I am looking for some information on where I stand regarding an unauthorised overdraft.
In November last year I took out a short term loan with Wonga in the amount of £420. I then ran in to financial difficulties and knew I would not have sufficient funds in my bank to cover the repayment due to come out. Therefore to avoid making matters even worse I cancelled the direct debit to avoid receiving charges for having insufficient funds to cover the direct debit.
I was under the belief that it would then be for me to arrange repayment with Wonga. However, on the repayment date, Lloyds TSB allowed Wonga to debit three sums in total, two in the amount of £10 and one larger for £288.50. As there was nothing in the account at the time the transactions put me £300 in to an unauthorised overdraft. The full amount of the loan was in excess of £450 so the full amount was not allowed to be debited, just enough to put me in to a large unauthorised overdraft and leave the loan unpaid for some reason.
I should also note that at the time Lloyds allowed these debits the only income in to the bank was benefits. In addition when I was working I had applied numerous times for an authorised overdraft with Lloyds TSB only to be rejected on each occasion.
I did not want the unauthorised overdraft and it is clear I could not afford it at the time and I had been rejected for an authorised one.
I am now receiving letters from solicitors demanding full repayment. Is there anything I can do? Any advice would be greatly appreciated.