Payday express idiots

[scotslad26]

so i have a loan out with payday express i was in my 7 days cancellation period when i phoned to pay off my balance which should ave been the original loan and maybe 7 days interest. They said i can not do this as i can only do it with my first loan is this correct? the guy on the phone was a complete Piers Morgan aswell.

 

I just want to pay what i am due why do these people have to be so awkward.

 

anybody know what my rights are regarding this?

 

cheers

[renegadeimp]

Yes you can do it. It is your legal statutory right. If you cancelled within the agreed cooling off period, they cannot charge you more.

 

Also, do not phone them. Put it in email or letter sent by recorded delivery. If they do not accept what you say, then file a full complaint, make sure your bank account and money is secure, so they cant try and debit it whenever they want, and contact trading standards and the OFT.

[scotslad26]

problem is this is my last day so have to do it soon

[renegadeimp]

If you told them within the cooling off period, then it isnt your last day. As long as you have proof you told them before the period expired, then its their fault. As i said, send the email/letter referencing your previous communication. Since it would be post dated today, it would still count. If they dont allow the cancellation, then its time to give the OFT and trading standards a little nudge.

[scotslad26]

there cooling off period only applies to new loans this is my fifth loan approx and they say it does not apply to me they asked me to pay the full amount now or wait so i will just let them wait. total joke

[renegadeimp]

It apllies to ALL loans as long as they are not rolled over ones. Again, it is your statutory right and they cannot change it by any means.

[scotslad26]

do you have a copy of the terms rene? they are insisting that only applys to new customers

[renegadeimp]

Look up your statutory rights. Its all there.

[PDLVictim]

Hi scotslad26,

 

I assume their reasoning will be that you are an existing customer and therefore entered into a long-term agreement more similar to a credit card agreement than to a payday loan. This would be similar to e.g. MiniCredit. In this case they would be in their rights.

 

However we would need to see the very first loan agreement you had with them to know more.

 

From what I find in their agreements this is not set-up long-term. I also find that it is 14 days, not 7? Also the interest accruing is not clear in their agreement as it does not state how long it will be applied (e.g. until you have paid back), which they would have to state as you have 30 days after cancellation to pay back. So not sure if this interest after cancellation is enforceable, even if you take the whole 30 days to pay back:

• You have the right to withdraw from this agreement without having to give a reason.

This right starts on the day after the day the agreement is made, and continues for

14 days (the “Withdrawal Period”). To withdraw you must notify us that you intend

to do so within the Withdrawal Period. You can do this by telephoning us on 0800

0126 860 or posting notice of your withdrawal to Payday Express, 4th Floor Northside

House, 69 Tweedy Road, Bromley, Kent, BR1 3WA.

• If you withdraw you will have to repay any credit that you have drawn down during

the Withdrawal Period and any interest accrued at the interest rate stated in your

pre-contract and the agreement. This must be paid within 30 days of you giving us

notice of withdrawal. The amount of interest payable per day is set out in your precontract

and the agreement.

[renegadeimp]

Nope. Each contract you have with them is valid ONLY for the time you take the loan out. Simply because you are an existing customer does not give them the right to say you ar eon a longer agreement. They are a PDL and only do payday loans of 30-60 days etc, therefore the agreement can only last that long.

 

Regardless, it is written in statute law that you have 7-14 days ( im not sure which) in which to cancel the loan. Should you choose this option, you must pay back the amount borrowed and any interest accrued for that 7-14 days.

 

Remember, just because it is in their Terms and conditions does not make it lawful. If it breaches your statutory rights, that clause will be ignored in court, and proceedings will be followed as according to the law. It's the same with SOGA if you buy something off ebay, amazon etc.

[scotslad26]

thanks guys, I phoned up again for a second time as i was abit mad and got the same response as the first time i phoned. so i emailed them stating the email goes to a manager saying it was my right to withdraw and said i would be reporting them to the OFT etc, they phoned me up about an hour later saying they will clear the balance paying the loan amount only. they never said why it just came from the manager.

 

so thanks for the help guys saved me alot of hassle and money cheers.

[renegadeimp]

What happened is you called their bluff, stated facts and threatened to report their practices to the regulators, so they backed down. Nice work.

 

I would still report them to the regulators though as its guaranteed they are doing it to many more people who arent as wise as you are.