Payday Express- depositing money into account without consent

[Cernykun]

Hello,

 

I recently applied for a PDL to Payday Express (having used them a good while ago). After inputting my details, I reached the final page of the application, whereupon it asked me to sign the electronic agreement (by placing my surname in a box), and also to enter a 4 digit pin that was to be sent to me via SMS.

 

The SMS never arrived. There was no functionality to request another via the site, and the only option available to request another was a premium rate phoneline. I refused to do this, and so left my PDL application incomplete. In the end I managed to borrow the £100 elsewhere.

 

Later that evening, I got an email from Payday Express with the subject heading Electronic Signature Required. The wording of the email was as follows:

 

 

"Dear Mark,

 

Thank you for your recent application to Payday Express.Great news, your payday loan has been approved for £100.00.

 

All you need to do to get your funds deposited today*using the Faster Payments Service is simply click the link below and electronicallysign your Loan Agreement.

 

(link removed as I could not submit this post whilst it was still included)

 

As I had already found the funds elsewhere, and was unwilling to phone a premium rate line for a 4digit pin, I ignored the email.

 

Imagine my surprise when, a few days before payday, I checked my RBS account to find there had been £100 in there for a few days from Payday Express! Despite the fact I had not submitted my electronic agreement, nor passed the security procedure.

 

I have written to Payday Express stating that, as I did not essentially complete the application, they were not entitled to deposit money into my account, and then take it back out again a week later with interest. In response to my letter, they have replied with the below:

 

"Dear Mark,

Thank you for your recent email.

 

We can advise that as an existing customerthe agreement that you hold with us is referred to as a running accountagreement which remains in place for the duration of your credit facility withus. Therefore you would not need to sign a new loan agreement with eachapplication you make with us.

 

If you did not require the fundscommunication could have been made via email or by calling the number providedbelow, we would have then removed the funds from your account interest free.

 

 

Surely this is not good enough? I did not finalise the application, did not sign the agreement and did not submit to their security check procedure. As for communicating to them that I did not require it... how do you refuse something you have no idea you have been given until it is too late to do anything about it! I am furious with them for this. Surely, "running account agreement" does not entitle them to assume I want to borrow from them, every time I partially fill in an application form?

 

Has anybody else had any experiences like this with them? Despite the small amount of interest involved, I am tempted to push this all the way to the small claims court if necessary, just for the principle involved.

 

 

[Conniff]

No, it's not good enough. Have they actually removed the funds with interest ?

[Cernykun]

Yes. The annoying thing is, because I wasn't expecting the money I didn't know about it until a day or two before it was due to be paid back. It was in my secondary account, not my primary one. They deposited £100 on April 16th, and then took £125 on April 25th.

 

I know they use the "running account agreement" to try and get around complying with certain T&Cs, but surely this does not mean they can loan money to me when all I have done is merely show interest? I would assume that they would need a signed agreement in all instances of somebody wanting to borrow.

[citizenB]

I have redirected your thread to the correct forums.

[renegadeimp]

Sounds like a new trick theyre trying to pull. They deposit it even when you didnt ask for it, then try and say "because you didnt tell us, we are entitled to the full amount plus interest back." I wonder how many people theyve tricked with this.

[Ceri Thomas]

Wow, I have read about payday express doing some shady things in the past but this one bites the bullet, must be a new tactic to rob people blind, complain to the OFT, if things like this go unreported there's no way they can be sopped on-going.

[citizenB]

Yes, you need to make a complaint to their Head Office and also the OFT. The OFT are investigating PayDay Loans at the moment so get your complaint in fast.