Payday loan issue with QQ

[vjohn82]

Ok...

 

My wife took out a payday loan... we were in the muck big time but she is the only one with a full time job. She received £200.

 

We extended it for a month... paid £50 to them... the rest was rolled over to the next month.

 

We couldn't afford the next one so we were looking to roll it over again but we didn't have enough in the bank to pay the £50... I tried to explain but they took it anyway. I called my bank and the money was returned.

 

QQ then took two smaller payments totalling £62 - they claimed it was for £50 interest and £12 default fee. We then attracted 3 separate charges from the bank for returnin the D/D's, and unauthorised O/D fees.

 

It states in the contract with QQ that:

“We will give you a notice if you or we make any changes to the debit arrangements under this Loan Agreement ("Advance Notice"). If you have elected to pay by Direct Debit, you and we agree that the period of Advance Notice that we will provide to you is 3 Business Days.”

One payment was for £24.81 and the other for £37.19. I never gave my authority for these direct debits. In fact there is no signed paperwork anywhere of me ever agreeing they can take out money for these two amounts.

They claim the small print states they can take out two smaller payments if the first one is refused and indeed the contract does state this... but I was under the impression that legislation overrides certain terms in consumer contracts? Surely the D/D Guarantee covers this type of issue? I'm sure that it is a fundamental breach of contract?

Any advice appreciated.

[mjc007.5]

Hello Vjohn,

 

Sorry to hear of your woes with QQ - no experience of them specifically but involved with to many others in this area and all to aware that these are standard tactics!

 

If I read your post correctly they are in breach of their own contract in that they did not give you the "advance notice". Interesting that the contract says 3 business days when "industry standard" (according to the British banking associations web site) is "normally 10 days". I might well be wrong but I am not sure that the direct debit guarantee is actually law as such but even it is they rely on contract law, you counter with direct debit rules (or law) and you have a deadlock - QQ and most others on here will try and call your bluff!

 

I would think (and have had some success myself with others in this "market") worth going after the contract angle - if they have not given you "advance notice" of their smaller direct debit payments (and I feel it is likely that they did not! ) then they are in breach of the contract. They cannot hold you to the "contract" whilst breaching it themselves (although they will try) so you have the basis of your "account in dispute"? (others may rubbish this viewpoint but it is a starter for ten )

 

Certainly go after the bank again to try and get the latest monies they have taken repaid on the grounds that you specify, if not already insist that they make no further payment to QQ (as I am sure you know the only way to be sure if you are keeping the same account is watch like a hawk!). I know it is not for everyone but I can recommend the parachute account - this removes any risk to your income on an ongoing basis, reduces the stress involved as a result and any subsequent charges etc related to your old account can be dealt with as another debt.

 

Back to QQ and probably worth firing a CCA request off (a £1 postal order and at worst you get back an enforceable contract - I have had one company write back asking me to clarify what I was requesting??? ) as well as complaining to OFT, trading standards etc - one thing I am learning as I go is the more of us that register a complaint we will eventually reach a critical mass for action to be taken against this "sector".

 

Best of luck

[reddennis]

mn