Money taken from account leaving account over overdraft limit

[amiles1]

Hi all.

 

I was due to repay a Payday UK loan on Friday (6th Jan) for an amount of £337.50. Due to my current financial position I was unable to repay that amount or even the rollover amount of £67.50. There was only 1p of available funds of my £500 overdraft on Friday and the payment wasn't authorised. Payday UK then emailed me stating the payment had not been made and asked me to contact them. I emailed them back on the same email address from which they had emailed me, to tell them I could not make the payment and to offer repayments of £25pm until the balance was cleared. On Sunday I noticed this email had not been delivered (informed by hotmail), so I found another email address for them and sent if off again. This morning (Mon 9th) I checked my email and was surprised to be told by Payday UK that the loan had been settled in full I checked my online bank account to find the 1p of available funds I had was no longer there, although my balance didn't show the amount as having left my account on my statement yet. I called Halifax and they informed me the transaction had been authorised. They have advised me to contact Payday UK with the transaction authorisation code, amount, date, my name, card details, & Halifax fax number etc so that the transaction amount can be refunded to my account (as per FSA regulations 'Tom' at Halifax informed me).

 

I'm aware now I should have cancelled my bank card so that payment couldn't have gone out, but what I want to know is whether following this course of action will result in PDUK faxing Halifax back and refunding the money concerned? I'm very sceptical & no doubt in the T&C's of the loan agreement it states they can charge the money to my card at any time after the loan repayment date...eg) it was an 'authorised' payment to PDUK and as such there is nothing I can do!

 

My main concern is my bank account is now £337 over my overdraft limit and Halifax will now charge me £5 per day until my account is brought back within my overdraft limit!!! I'm really annoyed about this because Halifax refused the payment on Friday when it was due, yet were quite happy to make the same payment on Saturday and will now directly profit from it as I am over my overdraft limit...NOT VERY ETHICAL IMHO!!!!!!!

 

Any help gratefully received.

Thankyou.

[johnvernon74]

I think these pay day loan companies, are doing these card payments offline which will automatically "push through" the authorisation stage. Ethical No? and probably in breach of there merchant account with the debit card company. Id suggest its unlikely they will refund the card transaction as they have done nothing wrong. So they think! The charges from the Halifax are probably gonna be less than PayDay UK.

 

Have you asked the bank why they authorised this payment? Can they raise your oiverdraft?

[ghea7255]

ive had a similar problem with them and am now 170 overdrawn on an account with no arranged over draft a bank with rbs and took out a loan with payday express but then found myself out of work before the repaymment date.i contacted them to let them know and ask if i could deley the repayments but had no reply so on the repayment date the money was taken from my account making me overdarawn.then the bank declined it and charged me so not only did it not get paid and iam getting harrassed by payday ex iam been charged by the bank because it went overdrawn then the charge from the bank overdrew me so got charged again the last charge was for 90quid so now my account is sitting mounting up with charges.i asked the bank to freeze the account but the wouldnt.i also asked them before all this to cancel any direct debits.which they failed to do they did however recall a 30quid fee from the company but that was really no use to me as that didnt even cover the bank charges.

i think these companies prey on the needy and desperate we find ourselves in financial difficulties and turn to theese companies at the time the money is good but its not worth the stress and debt later.

i wish i never took the loan out and feel i will never catch up with repayments the charges from the bank and payday ex are daylight robbery.

 

to the op i hope you get yours sorted i know what your going through

[kayester]

I don't know if my situation will help you see some light at the end of the tunnel but i am going through financial difficulty at the moment and have a £440 (plus £110) interest with payday express, have had it deferring over a few months and i phoned them before Christmas to advise them of this, as i am sick of paying interest and nothing else. I was passed from pillar to post and had my account on hold for 2 weeks. They took £45 late payment fees from my account today and I spoke to a few people then a manager phoned me back quite a few hours later. He told me my account was now £660 as more interest had been added. He credited the £110 and also put the £45 back in my bank account and agreed a payment plan with me for £10.00 per week with no extra interest.

Keep at them...they will give in! I have received my credit agreement via email