Pay day loans - Have I done everything that is needed?

[MichaelMarsh]

Hi there

 

I currently have 6 payday loans:

 

Payday Express £100

Monkey Dosh £150

Pound Access £100

Square Money £200

Minicredit £100

CFO Lending £400

 

I've found my self taking these loans out to cover interest to defer others and I feel its going to be a never ending cycle and now want rid of them (Payday loans are the worst thing I've ever done).

 

After reading through threads on here I have now cancelled my card and switched my wages to be paid straight into my everyday savings account as I'm now looking to default these loans and hopefully set up payment plans with them when they fail at the end of the month.

 

Is there anything else I need to do to ensure the money isn't taken? Also, am I best contacting them before or after they default? And which lender are the worst to deal with?

 

Thanks

 

M

[renegadeimp]

You need to write to your bank and TELL them to stop any and all payments to these creditors, including the use of any CPA's. You have 2 well known trouble makers in your list who are known for stripping accounts, adding on unlawful charges, and even posing as another company simply to get your details so they can empty your account.

[MichaelMarsh]

Thanks for the reply

 

Is there a template letter anywhere to send to my bank asking them to stop the CPA's and payments?

 

Also is it possible for them to access my everyday saver account, it has the same sort code as my current, just a different account number.

[Guest Payday Survivor]

We are writing to advise that with immediate effect, I withdraw my authority for all future payments to be debited from card number [your card number added here] in respect of my payday loan with...... This is in accordance with our rights under the Payment Services Regulations 2009, which state:

 

“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”

 

Please confirm in writing that this instruction has been received and actioned.

 

We look forward to hearing from you.

 

Yours faithfully

 

Something like that should do but i never had to do this so not entirely sure

 

StepChange and Debtline have useful sample letters. I dunno why but i can't seem to access the template letters on here :S

[Crocdoc]

We are writing to advise that with immediate effect, I withdraw my authority for all future payments to be debited from card number [your card number added here] in respect of my payday loan with...... This is in accordance with our rights under the Payment Services Regulations 2009, which state:

 

“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”

 

Please confirm in writing that this instruction has been received and actioned.

We look forward to hearing from you.

 

Yours faithfully

 

Something like that should do but i never had to do this so not entirely sure

 

StepChange and Debtline have useful sample letters. I dunno why but i can't seem to access the template letters on here :S

 

Can I suggest that you attach the following to your letter as the banks have been known to state that they cannot cancel a recurring payment and often need reminded that they can.

 

Cancelling a recurring payment

 

 

152aRecurring payments, is the term used todescribe transactions for which a client has granted written permission forher/his credit or debit card to be debited for recurring goods or services, forexample, club membership subscriptions, insurance cover or payday loans. Thecard may be debited annually, monthly or at other regular intervals.

 

152bIn most cases, recurring payments can becancelled by telling the trader taking the payments. However, a client has theright to withdraw consent by simply telling whoever issued the card (the bank,building society or credit card company) that s/he does not want a payment tobe made. S/he can tell the card issuer by phone, email or letter.

 

152cThe card issuer has no right to insist thatthe client ask the trader to stop taking the payment first. The card issuer hasto stop the payments if the client has asked them to. The client could pointout to the card issuer that they should follow the FSA guidance available inthe FSA Know your rights booklet which is available on the FSA website at www.fsa.gov.uk.

 

152dIf money is still taken from the client'saccount, it will be deemed to be an unauthorised transaction, and the card issuermust give her/him an immediate refund. The card issuer will have to cancel anyinterest and charges added to the her/his account because the payment wastaken. It is not up to the client to prove that s/he told the card issuer tostop taking payments. Instead, the card issuer would have to prove that s/hedid not tell them to stop making payments.

 

152eThe client should complain to the FinancialOmbudsman Service when all the internal complaints systems within the companyissuing the card have been exhausted.

 

1. You can learn more about your rights via the following fsaguide :

 

Ending recurring payments from credit cards

 

57Recurring payments, is the term used to describe transactions for which aclient has granted written permission for her/his credit or debit card to bedebited for recurring goods or services, for example, club membershipsubscriptions, insurance cover or payday loans]. The card may be debited annually,monthly or at other regular intervals.

 

 

2. 58 In most cases, recurring payments can be cancelled by tellingthe trader taking the payments. However, a client has the right to withdrawconsent by simply telling whoever issued the card (the bank, building societyor credit card company) that s/he does not want a payment to be made. S/he cantell the card issuer by phone, email or letter.

59 Thecard issuer has no right to insist that the client ask the trader to stoptaking the payment first. The card issuer has to stop the payments if theclient has asked them to. The client could point out to the card issuer thatthey should follow the FSA guidance available in the FSA know your rights[] booklet which is available on theFSA website at www.fsa.gov.uk.

 

 

59a If money is still taken from the client's account, it will be deemedto be an unauthorised transaction, and the card issuer must give her/him an immediate refund. The card issuer will have to cancel any interest[] and charges added to the her/his account because the payment was taken. It is not up to the client to prove thats/he told the card issuer to stop taking payments. Instead, the card issuerwould have to prove that s/he did not tell them to stop

Edited February 21, 2013 by Crocdoc

[MichaelMarsh]

Following on from the above I cancelled all CPA's with the bank as I'm a about to enter into an IVA.

 

This morning Pound Access took 3 payments so I rang Barclays to inform them.

 

Barclays said that because this was the first time this company had taken any money out if my account there was no CPA in place so they could not recharge the money back for these payments, only further payments going forward.

 

Is this right?

[MichaelMarsh]

I did send the bank a letter to cancel any CPA's with pound access 2 weeks ago. But this was the first time they took finds out if my account.

[biggeorge]

Had the bank been informed before the payments were took?

Do you have proof the bank were informed? Sign letter or recorded delivery receipt

 

If so then you need to make a complaint and demand your money back, do it in writing so you have proof.

 

I have made 2 complaints against Natwest and Halifax (my acc (£522 refunded) and wifes (£378 refunded) claiming breach of BCOS rules and have all charges

refunded since the cancel CPA letter was handed to the bank.

 

The most important thing when dealing with payday loans is to separate your income from the account these people

have, use a new account of even a friends while you get another account open.

If money is in the account the banks just let them take it, no money in the account and they don't pay it out.

 

George

[MichaelMarsh]

Hi thanks for the reply.

 

Yes I did inform the bank before the money was taken and the bank agreed they had the letter but because it was the first time the company had taken any payments from my account there was no CPA in place, so the could only recharge back future payments taken but not this one. They said I'd had to take the matter up with pound access.

[biggeorge]

The bank is playing with you, Once they have your instruction to cancel any/all CPA they must do so.

 

I would write to the bank (formal complaint) claiming breach of bank rules after CPA was cancelled they still paid out.

You could call at the bank with the letter too (also send one recorded delivery) and demand to see the manager, End of the day the bank have

broke BCOS rules, Your instruction to not pay these people was ignored and they should have followed you instructions.

 

You want the money taken back and if your account has incurred any charges you want them back too.

Ask for a final response as your not waiting 8 weeks for a refund of your money, then you can forward onto the fos.

 

Make sure any funds in your account are gone and any income going into the account needs to be changed (today) if possible

to an alternative account.

 

George

[renegadeimp]

Did you yell them to cancel the transactions or simply the cpa? Either way you are entitled to a full chargeback as it is an unauthorised transaction.

[MichaelMarsh]

This is the letter I sent them:

 

Cancellation of payments and Continuous Payment Authorities

 

To whom it may concern

 

After getting into a little bit of financial trouble we are now in the process of setting up an IVA. Therefore we are writing to advise you that with immediate effect, we withdraw our authority for all future payments to be debited from our debit cards/back account to the following companies in respect of payday loans.

 

Payday Express

Monkey Dosh

Pound Access

Square Money

Minicredit

CFO Lending

 

 

This is in accordance with our rights under the Payment Services Regulations 2009, which state:

 

“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”

 

Please confirm in writing that this instruction has been received and actioned.

 

We look forward to hearing from you

 

Yours Faithfully

[MichaelMarsh]

After speaking to several people at Barclays plus a manager they have told met hat they can't cancel these 4 payments that have been taken today.

 

They have said that they did recieve my letter requesting to canclem the CPA's and Pound Access was on the letter, but at the time of recieving it Pound Access did not have a CPA set up on my debit card so when they took the firsr ever payment this morning this would have to stand.

 

Is this correct or they just trying to FOB me off?

[renegadeimp]

They are fobbing you off. Weve seen it over and over. They are unauthorised transactions and it sounds like you need to stop dealing with the lackeys and go straight to the ceo.

[renegadeimp]

Prrof of that is your letter. They said they agreed to it even though you specificallt stated that all future transactions were cancelled.

[MichaelMarsh]

Update:

 

After making a comlaint with head office they temporarily reversed the transaction allowing me to take the money out of my account. However I looked at my account today and it is £127 over drawn. I rang the visa debit card services at barclays once again and they told me that even though the transaction was temp reversed it didn't stop Pound Access from claiming the funds and they are unable to charge it back to me as the CPA was not in place with this company on the date my letter was recieved. If I want they would send me dispute forms in the post but it could take up to 8 weeks to have an answer.

 

Barclays.... You ****ing tossers!!!!

 

Just can't win, I might just send a letter straight to the CEO.

[renegadeimp]

Do it. You told them to cancel any cpas to the company. Not just one that is there when you called.

 

Id also contact the oft and fsa and let barclays know in a formal complaint.

[MichaelMarsh]

So I emailed the Customer Relations manager back at barclays who gave me her email address yesterday (who I have to be honest, has been brilliant through out) and she put the money back in my account as a good will gesture.

 

Finally a result!

[renegadeimp]

"goodwill gesture". Meaning that they screwed up and do not want to admit fault.

 

You need to be issuing a full and formal complaint to the regulators and barclays though. Don't just take barclays word for it.

[MichaelMarsh]

I will still make the complaint.

 

The money is already back in my account and appears on the statement as "Good will gesture"

[renegadeimp]

I would withdraw it so they cant take it again. If they try and make you go overdrawn, then you can get them under BCOBS and with the OFT/FSA and FOS. They obviously know they are wrong, we need to find out why they keep doing it.

[denmark786]

Hi Crocdoc

 

Great info and exactly the sections I need to support my case, only issue is i don't have written evidence of my cpa /DD cancellation request before payment were taken but all done over phone which although the above quotes you can cancel cpa by any method, only thing I think that may help me is that when I asked for every thing to be cancelled, i also got new card, it was then another 3 weeks before mini credit took first payment of £25 followed £1250. I don't have over draft yet these charges showed as a minus day before salary and even when I called then I was told I could not stop it as it hadn't gone through yet. I know this is unlawful but how do I fight it?