Bank Account Stripped

[J2012]

Hello guys/girls

 

I had two paydays loans due today with wage day advance and also pay day uk

 

I had sent emails stating that I will need to arrange a repayment plan to pay as I would not be able to meet the full repayment at the end of this month.

 

Pay day uk agreed to a repayment plan of £55 per month and even sent me there bank details for me to setup a standing order

 

I woke up at 2am this morning to safe guard my wages by transfering it into my savings account and to my suprise my bank had been stripped to the bone! Both payday loans paid off in fulll but I can now not afford my rent and really dont know if there is anything I can do

 

Do I just have to accept this or is there any hope of me getting this money put back by the bank?

 

I dont like my chances

[J2012]

Also both companies have also closed my account...When I try to login my account is not recognised

[fletch70]

WDA take the money by direct debit don't they? If you have proof you told them call the bank first thing and ask them to reverse it. Must be done today

[Crocdoc]

I am sorry to hear about this as it happens all too often. I'm afraid you could have some difficulty to say the least in having you money returned.

 

I know that it is late in the day as far as your situation is concerned, however the secret of stopping these payments to payday lenders is as follows.

 

NEVER UNDER ANY CIRCUMSTANCES let them know that you are having difficulty in the lead up to payments dates until after you have cancelled the payment with your bank. I am aware that the banks can be difficult and very often state that such payments cannot be cancelled, this is absolute CRAP .

 

Therfore you must write to your bank INSTRUCTING them to cancel the payments, deliver it by hand if you wish and attach the following to your note.

 

 

Cancelling a recurring payment

 

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

152b In most cases, recurring payments can be cancelled by telling the trader taking the payments. However, a client has the right 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 to be made. S/he can tell the card issuer by phone, email or letter.

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

152d If money is still taken from the client's account, it will be deemed to 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 that s/he told the card issuer to stop taking payments. Instead, the card issuer would have to prove that s/he did not tell them to stop making payments.

152e The client should complain to the Financial Ombudsman Service when all the internal complaints systems within the company issuing the card have been exhausted.

You can learn more about your rights via the following fsa guide :

 

If the bank fail to follow your instructions, they become liable for repayment.

Edited February 28, 2013 by Crocdoc

[renegadeimp]

Get a chargeback as they are unauthorised transactions. Dont let the bank trick you with the "its a financial institution" crap.

[Crocdoc]

Get a chargeback as they are unauthorised transactions. Dont let the bank trick you with the "its a financial institution" crap.

 

I not sure that they are unauthorised payments unless I have misundersood the post as there is no mention of cancelling the payment intruction with the bank.

[Old Cogger]

Get a chargeback as they are unauthorised transactions. Dont let the bank trick you with the "its a financial institution" crap.

 

 

 

follow this advice?

[J2012]

Hi guys,Many thanks for the advice,I understand I was a fool to let them know I would have issues.

I just felt it best to get everything in place before payday

 

Big mistake

 

 

This is the email I have confirming the payment plan was accepted

 

Thank you for your email.

 

To make cash payments please use the details below.

 

60-00-01 Natwest sortcode

39524906 MEM account

12215529 reference

 

PLease confirm the exact date of the payments as you have stated first payment 28/2/2013 and next payment 1/3/2013.

We do not offer long term payment plans and the account will need to be reviewed in 4 months time if you are not in a position to pay the outstanding balance at this point.

Once the exact payment dates have been confirmed the payment plan can be put into place.

While payments are being made as per an agreed payment plan, no extra interest or charges will be added to the balance.

Until a payment plan has been agreed and put into place, payment will remain due as per the loan agreement.

 

Regards,

 

Claire

 

Collections

[J2012]

I am on live support now talking with them and they said they tried to call me to arrange the payment plan.

To which I replied that I had stated that I was not contactable via the telephone and that I would set up a standing order which I have done.

[J2012]

Transcript of chat so far

 

xxx: Thank you for waiting

xxx: I can see that we have received the payment today and your account is now settled.

xxx: We tried to call you in regards to the payment plan but no answer on your mobile.

you: Ok so why was £55 not debited as per the arrangement

you: I did mention in previous emails I would not be contactable over the phone and would be sending payment via standing order which I have set up at my end

you: with the details you provided

 

xxx: One moment please while I find that information for you.

you: I have 7 emails here in total from myself and xxx from collections which clearly state that payment plan is in place and my intent to pay £55 as this is what I was asked to do...Over £500 has now been deducted which basically leaves me homeless and in a vunerable position...I am happy to pay £200 off today as a token gesture but the remaining £300 will need to be credited within the next hour or I will seek advice from the OFT with where I stand on this matter

[J2012]

I have also asked Nationwide to cancel the CPA a few months ago to which they flat out point blank refused to do over the telephone.

 

They sent me a visa dispute form and told me to go away pretty much

[J2012]

you: I am happy to pay off £200 today from the money you have already recieved and £55 per month until the debt is cleared,This is a better offer than I originally was accepted for and is the best I can do at my end but I do have a desperate requirement for the remaining to be sent back today so that my financial commitments with rent are met

xxx: Unfortunately, we cannot deal with this issue over Live Chat or Email, we need to speak to you on a telephone. We are more than happy to help but must discuss this over the telephone.

you: Why can this not be dealt with via email,What is the need to speak to me over the telephone,especially as I have no access to a telephone at present

you: I will not be entering into a conversation over the telephone that cannot be monitored and or recorded by myself,If you are refusing to assist me unless I call to speak with you then i will also put this in my complaint to the OFT

you: I have been in touch with xxx from collections who has been dealing with this,Surely you should be talking with her.There is nothing more that I need to say,I have made a very fair offer and have not broken any of the repayment plan that was agreed,Infact I have offered even more

you: If this isnt resolved now I will simply request a chargeback from my Bank and then we will settle this with the original £55 per month as agreed by yourselves

xxx: All calls are recorded here and records kept accordingly.

you: I keep records for my safety and for my legal protection

xxx: I understand your concern.

xxx: One moment please.

xxx: For Data Protection purposes we need to communicate by telephone or in writing. (This will need to be posted) We are aware that you are posting publicly and we are not prepared to communicate in this manner.

[J2012]

Big brother is watching you!

[J2012]

The guy then refused to continue the conversation and that is where it ended

[renegadeimp]

Looks like they are pretty much stealing from you, especially with that letter. I'm not 100% on the legalities in this instance, so ill see if i can grab an admin.

[Ell-enn]

If Wageday took the money by Direct Debit then you can ask the bank to return it under the DD guarantee as it is not the amount you agreed to pay.

[Northernpug]

Agree with Ell-enn. You had an agreement in place to pay £55 and Wageday have breached that agreement by debiting your account with an amount that was not agreed and which they didn't previously advise you off. Speak to the bank and tell them that Wageday have debited your account with an unauthorised amount and you want the amount returned to your account under the direct debit guarantee.

[fletch70]

Did you call the bank as suggested this morning?

[42man]

And make sure you send the transcript to the OFT too...

[J2012]

Morning all

 

Oh what a cock up lol I called the bank last night after reading the advice.

The person at the bank confirmed two payments made by direct debit by wage day advance for £250 & £70 Which I thought was quite strange as the amount was over £500!

 

Anyway...After cancelling these direct debits and explaining the situation to the guy from the bank,I got off the phone and headed downstairs only to realise I had made a mistake! All this talk of wage day advance got me mixed up as it is actually pay day uk/MEM consumer finance who took the £500 not wage day advance.

 

Wage day advance took just over £300 which was the amount borrowed and although I emailed them a week ago stating I would not be able to meet the full repayment and would need to arrange a payment plan,They never responded.

 

I called the bank back who told me that paydayuk/mem consumer finance did not debit via direct debit and I would need to wait until the transaction has cleared then call them back and file a visa dispute over the phone.

I told them I had made a mistake and actually cancelled/reversed the wrong direct debit and they have told me to call again at 9am and they should be able to stop the reversal.

 

I dont believe I have any right to cancel this transaction as they never got back to me regarding my repayment plan or even accepted one,Am I right in thinking this?

 

Many thanks for all the above help,You have been amazing!

[Crocdoc]

Regardless of where we are now as the issue appears to be confused. The only way to stop payday lenders stripping a bank account when they have access is to cancel the payment arrangement IN ADVANCE of any negotiation regarding a repayment plan

 

Once a reduced payment arrangement is in place NEVER UNDER ANY CIRCUMSTANCES agree to them taking the reduced sum by direct debit or recurring card arrangement. THIS SIMPLY PLAYS INTO THEIR HANDS and once again gives them control of your account.

 

Standing order or any other method that keeps you in control is the way to stop the practice of stripping accounts. They may argue that they don't not accept alternative methods of payment, nevertheless if you have offered payment in writing and they refuse, thats up to them, but it puts you in a much stronger position if they try and pursue through the courts.

 

Trust me on this one as it is and tried and tested method.

 

I accept that this does not help you in your current situation, however it will assist if you have further difficulties.

[J2012]

Thanks Croc

[Ell-enn]

Do Wageday Advance have your debit card details ? (I bet they have) - when they get to know the DD has been cancelled they will simply use your card details to take payment - you need to advise the bank in writing that you withdraw consent for them to use your card. I would be tempted to leave the DD cancelled, after all they took a sum you hadn't agreed and didn't respond to your request for a payment arrangement.

[fletch70]

I agree with Ellen. You told WDA. it is not your fault they didn't reply. In fact they may have done that deliberately. In my personal experience they kept setting the DD up until i told them not to.

[J2012]

Well here is a update

 

I recieved funds back from WDA from the bank no problem,Found a email from WDA stating my account is gaining daily interest,I kindly emailed them back and told them I wouldnt be accepting this due to them ignoring my intention of setting up a repayment plan,Still awaiting a reply from them.

 

More concerning was Nationwide and my paydayuk loan of £545 I filled my Visa dispute and sent them the email I receieved from paydayuk accepting my repayment plan etc To which I recieved the response from Nationwide that they have contacted the Lender and are now waiting for a copy of their mandate which they have up to 30 days to respond

Now when I originally spoke with Nationwide when this happened I was told to contact them back once it shows on my statement and in some cases such as fraud the money will be returned straight away pending investigation,Obviously my case didnt fall into that category...I told them to cancel my dispute as I dont feel I will get anywhere and waiting 30 days seems like a total joke to be honest.