Payday loan taking payment out of IB

[jadeybags]

Hi

My little brother has been on IB for some years now,

he has taken out a Payday loan thing on the internet, a few times,

the last time was a few weeks ago & they are already upping the amount from 450 to 550 next week due to interest & late payment if he doesn't pay it off.

 

I don't know fully how those loans work, but apparently they will try to take the payment the day after his benefit goes into his account.

Which will be a week from next tuesday.

He knows he has been silly taking these loans, but I have advised him to open a new bank account & get his benefits paid into that,

& contact a debt agency to try get the interest stopped & arrange to pay back at a less amount each month?

 

From what I gather they take about half his IB in one go! They know he is on benefits.

 

What I am wondering is, will opening a new account work?

And does anyone know who he contacts with help about the interest they are piling on?

 

Any help appreciated, our mum is so worried & I said I would try to find out.

[honeybee13]

Hello jadeybags. I'll let the site team know about this and see if you need to post on a different forum for the right help.

 

HB x

[MIKEY DABODEE]

If he opens a new bank account and doesnt give them the details then they cant take the money He could phone Incapacity Benefit up and arrange his benefit to be paid by giros for now, and open the other account, has he thought about a post office account. Then when it is up and running phone the jobcentre and have the IB paid into the new account. If there is no money in the old account they cant get it, but unfortunatley the interest will keep on growing.

[jadeybags]

Thanks Honeybee. Ah that's a good idea Mikey! I didn't even think about Giros, ok will let him know about that. I said to him to be honest with the bank & IB & say exactly what the problem is. I'm sure it's nothing they haven't heard before.

Yes the interest is a big problem, hopefully someone will know who to contact about that x

[MIKEY DABODEE]

Am sure there will be no problem being put on giros for a few weeks untill he gets the card and pin from the new account. He doesnt have to give a full reason for wanting to go onto giros just explain he is opening a new account. Just check when he rings the Jobcentre they hold on record the correct post office for cashing the giros.. eg his local or preferred...

[jadeybags]

Okie dokie cheers x

[dx100uk]

you need to fire off the notice/letter of appropriation to your bsnk

see the green library tab top left

 

demand the bsnk refunds the money ..

 

benefits are to LIVE ON

 

not for ruddy bank charges or PDL co's to snatch at will..

i would also SPECIFICALLY INSTRUCT the bsnk NOT to honour any more payments

WITHOUT YOUR SPECIFIC OK to do so.

 

dont let them get away with this

 

they know the score from the banking code etc etc.

 

disgusting behaviour.

 

dx

[dx100uk]

you also do not have to pay aNY charges the PDL co adds

 

these are a PENALTY charge and NOT covered by any T&C.

 

dx

[Tawnyowl]

Hi Jadeybags

How are things going.Any developments.

Hope things are working out for your little brother.

Hope your mum is not as worried now.

Any news on possible new bank account,giro or contact with debt charity or payday lenders.

Who are the payday lenders .No need to say if you dont want to.

Just trying to help.

Looking forward to updates,and hopefully good news.

Edited January 4, 2012 by tawnyowl

[Nystagmite]

I think there's a payday loan board on here. Might be worth posting in there too?

[dx100uk]

so what happened did you send that letter?

op needs to post up

dx

[jadeybags]

Yes, posted in the payday loan forum the other day. Well, so far he has managed to open a new account, so that's sorted that one, they'll not be able to take his next benefit payment. The next thing to do is try & stop the interest, apparently he'll need to talk to the payday loan company about that.

Tawny owl, not too sure who the company are, I asked mum today but she isn't sure. He has said he will sort that side of it out. I just hope he does. It's possible that he's borrowed more than he's let on, & doesn't want mum knowing! x