payday help

[yahoouser]

Hi everyone, hope someone can help me with this.

 

Im new to the forums although i have read a lot with interest, but now i have my own problem i need help with.

 

I took out a payday loan with Lending Stream, and have not missed a single payment, however, after my last pay day, they started taking small random amounts out of my bank account, ranging from around £2 to £20.

 

I dont know exactly how much they have taken so far, but its been everyday, i emailed and asked why and could they send me an email breakdown of what these amounts where for, i got an email back the next day saying, due to the data protection act i have to ring them on their extortionate phone number.

 

Are they allowed to do this, i had to empty my account to prevent them from taking anymore, as i did not know what else to do.

 

Any advice would be appreciated.

 

thankyou

[cornetgirl]

Hi Yahoouser and welcome to the forum.

 

It's worth putting a CCA request in to them (there is a template letter on the site somewhere) along with a PO for £1 to get your credit agreement, and also while you're at it ask for a full breakdown of charges and payments taken on your account. If they continue to try and take money from you while the account is "in dispute" then they are breaking the law (I think!). Hang in there though - we'll help you out!

[yahoouser]

Hi Cornetgirl and thanks for the reply, i havent put the account in dispute as of yet, i borrowed the money and i have been repaying it no problem, its just that i asked for them to send me a breakdown in an email and they refused, saying something about the data protection act and they cant do it.

 

I really want to know if they can send me a breakdown in an email if i ask for it through their website, which is what i did.

 

i had no emails saying any payments where missed or late, this money just started disapearing, i get paid a week today and dont want to have to withdraw all my cash to stop them doing it again, its just lucky all my importand DDs had gone out or i would of been in real trouble.

[cornetgirl]

It's probably better to put it in writing as anyone could in theory hack into your email account and send the email. Mind you, Lending Stream don't actually have a copy of your signature on file do they, so the same could be said there! I'm sure a brainy person will be along soon to help out!

 

Have you cancelled your card and reported the transactions to your bank?

[yahoouser]

Not cancelled anything as of yet, just wanted a little advice as to where i stood on the email/statement issue, guess im going to have to get them to send it to me. Dont really want to put account into dispute if im honest, dont want the hassle of nagging phone calls at work and home, heard so many horror stories it frightens me.

[ric_pendle]

I would look at their terms and conditions, it may say that they will only agree to take payments from your prefered debit method. If their t/c's don't state anything about if you fail to pay by card then they are entitled to take money by direct debit then they are in trouble as this is a breach of data protection law and they may have defaulted on their terms and conditions.

 

I did see before in a different agreement, that if they do setup direct debit they are required to give you notice. It would be worth having a read to see what they are entitled to do.

 

If they are not autherised to take money by direct debit, ask for the details of their data protection officer. Every company has one, and write to them to say they have breached their data protection act. If they ignore you, tell them you will pass everything to the information comissionar and they will be in touch.

 

Hope this helps.

[yahoouser]

I have defaulted today with lendingstream and it seems they can set up a direct debit, my queeries with them regarding why they took random payments remained unnanswered and i dont know what to do next, is there a template email around here that i can send to them telling them i would like the information by post or mail before i make any further payments?

[ric_pendle]

Hi Yahoo User,

 

Simply cancel the direct debit they have setup. Once this has been cancelled this basically relinquishes your authority for the company to use that direct debit anymore and in order for the company to setup a new one they will have to seek your authority again.

In theory this would just usually involve a call to say your electricity company to ask them to setup a new DD and you would give your account number and sort code again etc. That is basically the authority the electricity company needs to setup a direct debit.

When dealing with the scummy payday lenders it’s a little more tricky, again make sure you cancel the direct debit. You need to then contact the payday lender by email or post (not phone because you need to make sure you are recording your dealings with them). Advise them that you have cancelled the direct debit, advise them the reason for cancellation is the lack of notice when they debit your account, and the payments are not regular etc or for any realistic or agreed to amounts. You need to withdraw your authority for them to hold your account number and sort code also your debit card details in either electronic form or written hard copy form. Advise them all payments will be paid directly into an account they nominate. I would also make clear on the email that you will no longer authorise any direct debit setup on the accounts and if these account numbers are not remove/deleted this will be a breach of the data protection act, and give you grounds for complaining to the data protection commissioner.

When the idiots ignore this request and go ahead and reset the direct debit up, simply contact your bank tell them you didn’t authorise it and you want to make a complaint. Give them the email and they will go to town on the payday lender. The payday lender may even have to explain to their own bank why they setup a DD on an account they clearly don’t have authority to debit. I would then write a “formal complaint” to the data protection officer for the lender asking for an explanation of why they still have your account number without authority and if they did remove it from their records they will have to release the source from where they got the account number.

Basically they would be in big trouble as this is a serious breach of data protection.

Hope this helps.