THL Payday Problems/Rip Off!!!

[cricket67]

A couple of months ago I took out a payday loan with THL. For reasons that I won't go into, I defaulted on this loan. Time passed, and in the end I received a letter from a Debt Recovery Agency, stating that they had been instructed by THL to recover this debt. I contacted this agency, proposed a fair and reasonable repayment plan, and this was accepted starting from my latest pay date.

 

Cue to the other day:- my latest monthly salary came in overnight as it always does. I checked the amount the following day, as I always do, and found that a large sum of money had been taken out from my account. As the money taken out was approximately the amount I owed to THL, and was being collected/recovered by the Debt Collection Agency, I thought that it was the latter who had taken this money out in error....!!

 

I contacted my bank, who told me, that in the early hours of the morning there had indeed been a large withdawal of money from my account, using my debit card details. I asked who had withdrawn this money, expecting it to be the Debt Collection Agency - imagine my fury/surprise, when it turned out that THL, who had instructed a Debt Collection Agency, to recover my debt, were the people resonsible for taking out this money!!!

 

My question is this:- when a lender instructs or constracts out to a Debt Collection Agency, to recover a debt, who now has the legal responsibility for that debt. The original lender or the Collection Agency?

If it is the original lender - then what is the point of Collection Agencies, for if they have no legal responsibility for recovering the debt, how can they enforce recovery?

 

I have been led to assume from their letter that the Debt Collection Agency had responsibility for collecting the amount owed. If this is the case what on earth are THL playing at?

 

Can someone please help me?

 

Much distressed poster

[cerberusalert]

Under new rules that came into effect in November '09, you are entitled to an immediate refund while the bank investigates a transaction that you dispute, unless it has evidence that you acted negligently or dishonestly. While the burden of proof has always been with the bank to prove that you authorised the transaction, last year's changes mean that this requirement now has the force of law,

[cricket67]

A couple of months ago I took out a payday loan with THL. For reasons that I won't go into, I defaulted on this loan. Time passed, and in the end I received a letter from a Debt Recovery Agency, stating that they had been instructed by THL to recover this debt. I contacted this agency, proposed a fair and reasonable repayment plan, and this was accepted starting from my latest pay date.

 

Cue to the other day:- my latest monthly salary came in overnight as it always does. I checked the amount the following day, as I always do, and found that a large sum of money had been taken out from my account. As the money taken out was approximately the amount I owed to THL, and was being collected/recovered by the debt collection Agency, I thought that it was the latter who had taken this money out in error....!!

 

I contacted my bank, who told me, that in the early hours of the morning there had indeed been a large withdawal of money from my account, using my debit card details. I asked who had withdrawn this money, expecting it to be the debt collection Agency - imagine my fury/surprise, when it turned out that THL, who had instructed a debt collection Agency, to recover my debt, were the people resonsible for taking out this money!!!

 

My question is this:- when a lender instructs or constracts out to a debt collection Agency, to recover a debt, who now has the legal responsibility for that debt. The original lender or the Collection Agency?

If it is the original lender - then what is the point of Collection Agencies, for if they have no legal responsibility for recovering the debt, how can they enforce recovery?

 

I have been led to assume from their letter that the debt collection Agency had responsibility for collecting the amount owed. If this is the case what on earth are THL playing at?

 

Can someone please help me?

 

Much distressed poster

[cerberusalert]

The Payment Services Regulations 2009 and the Consumer Credit Act 1974

 

New rules get full refunds on disputed card bills | This is Money

[robjam1969]

Hi Cricket

 

You have fallen victim to a frequent 'trick'. You agree payment plan, then they help themselves. This is why it is always recommended that you cancel your debit card and pay by standing order.

 

Try reporting it as fraud to your bank, make a right fuss and see if you can get it put back in your account. The banks rarely help though. As for your question it probably makes little difference as often the DCA is part of the same payday loan company. If the loan id not assigned then THL retain ownership and can get who they like to try and recover it.

 

Sorry I can be more helpful.