Mr Lender took sons wages

[theshuffler]

Hi folks , another family issue .

 

My son took a payday loan out to cover his mortgage, as he was in court over it a few weeks ago and wanted to be up to date with his repayments. The loan was due to be paid last week and wasnt .

 

On wed 23rd oct emailed his payday loan company , providing them with an expenditure form and an offer of repayment of £10 per month . their reply is below

 

Thank you for your email.

 

You currently have an outstanding balance of xxxxxx

We would like to offer you 2 repayment plan options.

1)Balance over 2 months -£xxxxx per month

2) Balance over 3 months – £xxxxx per month

Please note whilst your account is not in a repayment plan status further interest will be incurred and our system will try to recoup the full outstanding balance at any given time.

Finally, we will also look to sell your account to a doorstep collection agency.

Please confirm which option you would like to go for should you want to set up a repayment plan with us.

 

His reply

 

Sorry but I can't afford that much. I was told to stop all non piortirty debts and focus on my mortgage and rates r else I will lose my home. I went to court last week and unless I keep to my payments the mortgage company will be granted repossion straight away. As for rates they were granted a order by the court already and I need to get it up to date by April.

Their reply

 

Thank you for your response.

 

Taking into account that you only recently opened your account with us last month and we have received no payments to date back, there is little in terms of a repayment plan we can offer you.

 

Please let us know should your circumstances change and if you are able to split your balance over 2/3 months.

 

Many thanks,

 

My son was at work and didnt reply to their last email . Thurs 24th Oct loan company take £100 from his account followed by a further £50 Fri 25th they took another £100 leaving him broke with 3 kids to feed.

 

Am I right in thinking they were a bit premature in taking £250 of him as he had made contact and was trying to negoiate with them and had in fact made them an offer? Should he or does he have grounds to complain to ombudsman , and incur these people a charge ? Or does he have and fighting chance of getting his money refunded ?

 

Any help would be much appreciated.

Edited October 26, 2013 by theshuffler

[Tawnyowl]

Hi theshuffler

My first thoughts.Yes the mortgage payments are a priority.

Is your son getting any help with his mortgage problems.Advice from anywhere.

I doubt you will get money refunded.From the payday loan company.

I know it is to late now but when possible payment problems arise best to cancel the CPA then contact the lender.

Many people it seems are borrowing for mortgage payments,heating,eating.

I dread to know what would happen to many if interest rates went up.

Many people who are working using foodbanks all wages gone on bills,mortgage rent.

Cancel as soon as possible,today if you can the CPA at the bank.

Or have they now taken the full amount owing.

Then he will be back in control and offer what he can afford.

With 3 children is he claiming all possible benefits,Working Tax,Child tax,Council tax etc.

Just in case

https://www.gov.uk/benefits-adviser

A quick link for you.

http://www.consumeractiongroup.co.uk/forum/showthread.php?396982-New-payday-loan-survival-guide-by-mike-dailly-govan-law-centre.

Edited October 26, 2013 by tawnyowl

[dx100uk]

'most' banks now are getting very pro-active with refunding the money taken by CPA.

 

New june 2013

 

Regulator orders Banks and mutuals to review complaints about not cancelling recurring payments from November 2009.

Consumers who have set up a regular payment from their account will now be able to successfully cancel that arrangement

by contacting their card provider, the Financial Conduct Authority said.

The FCA has been examining how easy it is for customers to cancel Continuous Payment Authorities (CPAs)

due either to payday lendersicon or for other regular payments such as subscriptions or gymicon memberships.

 

CPAs, which are also commonly called recurring transactions or recurring payments,

are relatively easy to set up but can be hard to cancel, causing problems for consumers trying to manage their finances,the FCA said.

 

Now, following the FCA review of how the largest high street banks and mutuals process requests to cancel CPAs, they have agreed that they will ensure that when a customer asks for a recurring payment to end, that will be sufficient to cancel the arrangement. They have also confirmed that should a payment go through by mistake following cancellation by a customer the customer will be refunded immediately.

 

In addition to securing this commitment, the largest banks and mutuals have agreed to review every individual complaint they have received about the non-cancellation of a CPA and to pay redress where payments have continued to be made despite the customer cancelling the arrangement. This applies to all complaints since November 2009 when the Financial Services Authority, the FCA’s predecessor, began regulating banking conduct.

 

Clive Adamson, the FCA’s director of supervision, said: “It’s important that consumers are confident that banks are meeting their everyday banking needs. Today customers can be confident that when they ask for a Continuous Payment Authority to be cancelled – it will be cancelled - and that it can be done easily.

 

“We recognise that historically this is an area where some customers have struggled but the banks and mutuals have responded positively to our work on this issue. From now on we expect them to be getting this right. In addition, they have committed to review past complaints.”

 

http://www.ftadviser.com/2013/06/28/regulation/regulators/fca-banks-have-to-cancel-recurring-payments-if-requested-UxbeHUuYQIy0SEYbGRE4tJ/article.html

 

...............

 

however this does not resolve the 'debt' to his PDL company.

 

really really silly idea to borrow money from a 2000%+ lender to avoid mortgage issues.

 

however needs must, the tv adverts need to be stopped

as most younger people just don't realise the implications down the line.

 

nuff said.

 

no way you can help him?

 

if you cold kill the PDL now

it will save £100's in the coming months.

 

the implications on his cra file & future borrowing [inc negotiations on mortgage stuff]

 

could be scuppered for 6yrs if they mark his file.

 

dx

[theshuffler]

Thanks folks , Yes silly I know , but when your backs to the wall keeping his mortgage payments was his priority .the credit file isnt an issue as he dug a few holes for himself before.

 

I told him to cancel with the bank but he had already cancelled the card thinking they wouldnt be able to take any more , I have told him they still can access his account and they will .

 

 

My main question is Have the loan company been unfair after him telling them he couldnt affored their repayment options ?

 

Did they give him enough time (12 hourss ) to reply to them ?

 

He told them he couldnt afford £178 yet they went ahead and took £250 surely that is unfair ?

[dx100uk]

doesn't matter if its fair or not

 

they should not have taken the money

go get that CPA done.

 

he should get the money back almost instantly.

 

read that link I sent you.

 

dx

[theshuffler]

It was an online agreement Im waiting on him forwarding it , and I will post it up

[theshuffler]

dx Sorry mate am I missing something ?, the link is about cancelled cpa s his wasnt cancelled .

[dx100uk]

no but it should have been then they would not have gotten the payments.

you can still do it now

dx

[theshuffler]

Its cancelled now , Just got the agreement will look and see whats on it

[theshuffler]

Everything in the contract tells him of their intentions , On second day after repayment due they will take interest , then 40% of balance then a further attempt to recover the remaining 60%

Edited October 27, 2013 by theshuffler

[renegadeimp]

Thats considered an unfair term. Toothfairy tried it. Needless to say they dont do it anymore.

[theshuffler]

Anywhere i can read up on the unfair term bit? Below is the part of the contract Im talking about

 

1. Once we have signed the agreement we will pay the amount of credit into a bank account nominated by you. This agreement will come into force as soon as it

has been signed by the borrower and signed on our behalf.

2. You agree to repay the amount of credit together with the interest and any charges by the repayment shown by no later than 8.00 pm on the date shown.

3. You grant us permission to debit all sums due under this agreement using either a continuous payment authority charged to the debit card to which the authority

relates, by direct debit or by a standing order set up by you at our option. You must ensure that sufficient funds are available to make full repayment on the day the

repayment falls due. You authorise us to attempt to collect full repayment as set out below.

4. On the day the repayment falls due we may make up to 7 attempts to collect the full repayment, as follows:

4.1 we will make an initial attempt to collect the interest due. If that attempt is successful, we will make 2 further attempts, the first to collect 40% of the capital due,

rounded up to the nearest multiple of £10, and the second to collect 60% of the capital outstanding, rounded down the nearest multiple of £10;

4.2 if our initial attempt to collect the interest is unsuccessful, to allow time for your salary to be paid into your account, we will make up to 4 further attempts to

collect the interest due;

4.3 if any of these attempts to collect the interest due is successful, we will then make 2 further attempts, the first to collect 40% of the capital due, rounded up to

the nearest multiple of £10, and the second to collect 60% of the capital outstanding, rounded down the nearest multiple of £10; and

4.4 once we have successfully collected the interest due, but have failed to collect any capital in the two attempts made, we will not make any further attempts on that day

[renegadeimp]

Ok.4, 4.1, 4.2 4.3 4.4 are unfair and some banks even consider them fraudulant transactions and flag them as such.

 

A fair clause would be them debiting the account ONCE that day and DEFINITELY not SEVEN attempts, then sending you notice that payment was not made. Giving you the opportunity to make another payment within the deadline they set.

[theshuffler]

Cheers have sent them an email , just to get into some sort of negotiations , funny thing was my son phoned them after they took £150 and they offered him 40 quid back which he declined , the next day they ttook another 100 and if they had of given him the 40 they prob would of took that too.

[dx100uk]

so did you get the money back when you cancelled the CPA?

you should have done

 

dx

[theshuffler]

Dx the bank insist that there was no CPA set up and the money was debited from his card , which has now been cancelled . Anyone else think its strange that they offered him a lolipop in the shape of £40 . Hardly the actions of a company who believe they are right.

[dx100uk]

if they are saying theres no CPA then if the company did not write to him better that 7 days that it was being taken

then go do a chargeback.

 

someone is playing silly beggars here...

 

http://whatconsumer.co.uk/visa-debit-chargeback/#axzz2j7cNJGGJ

[theshuffler]

Thanks dx , I have put him on to that . Am I right in assuming that he can place an account in dispute because of unfair terms?

[dx100uk]

poss but in all honestly that will make little odds to them.?

 

the toothfairy stuff is worthy of a read me thinks in relation to this.

 

dx

[theshuffler]

Funds now back in account . Now to negoiate a repayment plan . I raised a complaint with their complaints department , however their reply failed to address any of the questions I raised. I asked them how relevant to the customer charter their actions were, in respect of fairness , reasonable and a responsible mannner . Obviously they dont want to answer that one

[renegadeimp]

Which pdl is this?

[theshuffler]

Its Mr Lender