How to pay PayDay Loans companies?

[Mise Eire]

I have setup a new basic cash account that i can use to pay Payday Loan companies to prevent them raiding my bank account whenever they fell like it. My wages will be paid into this account on the 27th of the month. I'm just not sure whats the best way to pay these companies. I know that Direct Debit is a no no from reading others experiences here.

 

My first question is if I set up a standing order to leave my account on the 27th, will this go out before my wages get paid in? My wages generally get paid at 1 or 2 am in the morning.

 

If i make a normal payment to another account using online banking on the 27th , will they see my account details and if so is there a way that they could go and setup a Direct Debit on the new basic account and clean that out?

 

Thanks

[markosoft82]

The standing order should leave after the wages have hit the account, but it depends on the bank.

 

With a direct debit, you're granting the other person access to your account, and an agreement that they can change at any time. It's why the payday cretins want a DD setup, so they're in control. A standing order or bank transfer doesn't setup any such agreement, it's you making a payment to them, and puts you in control. Which is why they don't like giving you their details. So long as your bank isn't inept, a standing order or bank transfer will not give the receiving party access to your funds on their terms.

[markosoft82]

Oh, the only way to get a direct debit setup is with your authorisation, which they wont have from you making a payment. Even with a standing order, they would be able to get your bank details, they just don't have the access to make the request themselves

[Mise Eire]

Thanks for the replies

 

Just reading Wage Day Advances terms and conditions on my loan contract i came across this.

 

1.6 You authorise WageDayAdvance Ltd to collect by Direct Debit, Debit Card, Electronic or any other means any monies owed under this agreement, from any Bank or Cheque Account, of which you have supplied us with details.

 

If i make a bank transfer using a new account then they can see my bank details. Would this allow them to then set up a direct debit using these details?

 

Thanks

[markosoft82]

It shouldn't, a direct debit can only be setup if you expressively agree to it. If you want to be ultra careful you can get a prepaid debit card, which you fund before they take the funds. There are some free ones out there, but I personally haven't used them

[t1ger10]

dont set up direct debit and only pay by standing order. i insisted on setting my standing order date for the 1st of the month and also told them that it can take 3-5 days to reach their account

[Jamie Kingston]

direct debits and debit card - the lender controls, standing order - you control - if you trust yourself stay in control!

[Mise Eire]

Thanks for all the replies

 

I am putting payment plans in place with most of my creditors. However many of these payment dates fall on my paydate which means i have to be on my toes.

 

I have decided to pay them by using a normal online bank transfer, not standing order and definitely not direct debit. These will go through using faster payments.

 

It seems that many\most banks execute peoples standing orders at midnight and if an account has no funds then the payment would bounce and the bank will then add penalty charges to the persons account. Any standing order i've had on an account before has been sent the day after my paydate so I have not come across this potential problem before.

 

Sometimes you'd have to wonder if the banks are almost as bad as these payday loans companies trying to extort as much as they can from people.

[DarrenAs]

Hi Mise Eire

I am using a pre-paid debit card for this - not linked to any bank account, and it can't go overdrawn. It seems like the safest way to deal with these firms, even if it's a little bit more hassle.

[Jamie Kingston]

safest is actually standing order but pre-paid cards are pretty much the same thing.