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Another bank account cleared - how to stop it?


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Hi - thanks to everyone who offers advice on these forums - it's hugely appreciated. Here's my issue...

 

I'm struggling badly with payday loans, and had one due for repayment today. So I emptied my bank account in advance: I wanted the payment to default so that I could convince the payday loan company to discuss a repayment plan with me.

 

They had repeatedly refused to discuss any form of repayment plan before I had missed a normal payment...

 

But when I checked my bank account today, I was horrified to see that the full loan amount had been taken out anyway - leaving me with a negative balance, in an unauthorised overdraft, which makes a bad situation much, much worse.

 

I guess that's why they refused to discuss a repayment plan in advance - they knew I wouldn't default because my bank would give them their money anyway. :x

 

So my question is really how this happened, and how to stop it happening again?

 

I guess it is related to the continuous payment authority issue? I've read the helpful thread on this forum about it and I will make sure that I tell Santander not to make any more payments under the CPA arrangement. (I cannot just close the Santander account as I have an approved overdraft with them).

 

But assuming Santander agree to that (as their terms and conditions say they will) is it watertight? In other words, next time I am in this situation, and deliberately empty my account before a payday repayment is due to leave it, that repayment will definitely default, rather than go out anyway? Or are there other tricks payday companies use?

 

thanks very much!

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You need to put your instruction in writing to your bank, if you can't hand the letter into the branch then send it by recorded delivery.

 

A draft letter is affixed

Letter to bank to stop PDL payments.doc

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Please consider making a donation, however small, if you have benefited from advice on the forums

 

 

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My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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If they have your debit card details for continuous card payments you need to "lose" your bank card. The bank will cancel your card and issue you with a new one with a new number. You will keep the same account number and sort code for direct debits and standing orders etc, but the loan companies will not have your card details and will need to talk to you. DO NOT GIVE ANYBODY A CONTINUOUS CARD AUTHORITY AGAIN!

:razz:ALWAYS REMEMBER, IF YOU GOT YOURSELF INTO YOUR SITUATION, YOU ARE MORE THAN CAPABLE OF GETTING YOURSELF OUT OF IT

WITHOUT THE HELP OF THE DCA's!!!!!!!!!!!

 

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Thanks for the replies. I was hoping the ability to withdraw consent for continuous payment authority would mean I would not have to lose my debit card, but I guess it's better to try both methods!

 

HOWEVER - when I contacted my bank to withdraw consent, they told me I could not do that. They said: "When you enter into an agreement with a company the only way to cancel the payment is to cancel the agreement. If you do not cancel the agreement the company will still have a legal right to collect funds from your account which the bank cannot stop."

 

Argh! Any advice much appreciated :)

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Who is the bank?

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Please consider making a donation, however small, if you have benefited from advice on the forums

 

 

This site is run solely on donations

 

My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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Hi,ive had a payday loan with wageday advance,just wanted to warn others,I got into difficulty paying back,so i cancel my bank card by reporting it lost,also canceled any direct debits set up.This was 2 weeks ago,GUESS checked my bank today to find wageday advance had took a CARD payment for the full amount of £237 from my bank.I rung the bank asking how this can happen,when i canceled my card 2 weeks earlier..WELL after some investigation by the bank..It turns out wageday advance,And other companys, can somehow bypass the authorisation process involving card payments.The bank sorted this out straight away via chargeback,and the money was back in my account by 4pm today,IT did end well for me in the end but i thought id just share this with evreyone.

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http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf print this off send it to your bank with a covering letter (draft affixed) and refer them to page 15!

Letter to bank to stop PDL payments.doc

Help us to keep on helping

Please consider making a donation, however small, if you have benefited from advice on the forums

 

 

This site is run solely on donations

 

My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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