Advice Please

[Woolfie]

Hi there,

I am trying to sort out my daughters bf's finances at the moment and would be very grateful for some help.

He has got into a moderate amount of debt with payday loan companies and his bank have been paying these companies and now he is over his overdraft limit with charges etc.
He contacted the bank and asked them for help a few weeks ago and they issued him with a new card - (supposedly to stop the payday loan companies accessing his money) but this has not worked. He is now trying (with my help) to sort things out. I wrote a letter to all the pdl companies asking them to set up a payment scheme and they have all bar one agreed. The one that has not responded has continued to take money from his account and caused him to incur further charges! I have advised him to move accounts which he is doing and we have reported the pdl company to the FO.

He realises that PDLs are not the way forward but how do we go about getting the charges back from the bank? How do we stop more charges being applied to the bank? Why is the bank still allowing him to get in deeper and deeper?

Is it worth reporting the bank to the FOS too?


Thanks for any help

Woolfie
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As an after thought. Is there no limit to how much these companies can charge? I am sure i read there was a limit of principal sum plus one months interest? any one know?

[labman]

Re: Advice Please

If you look up Section Nine of The Lending Code I think you'll find a way forward.


Here you go:

http://www.lendingstandardsboard.org...endingcode.pdf

[Woolfie]

Re: Advice Please

I have penned the following letter - any thoughts please


Dear Bank



I have been reviewing my account online and I notice there are a lot of charges being applied to my account due to a payday loan company taking payment from my account. I spoke to someone in the bank about thisa few weeks ago and was issued with a new debit card which I was told would stop these payment coming off.

I also note that the additional payments have taken me nearly £200 over my overdraft limit. Surely there is something wrong when this is allowed to happen. I have requested that the company in question stops taking money from my account but they have not done this.

I feel that I am now forced into a position of not being able to control this debt and I would ask for your help and support in this matter. I must insist that you do not allow any further debit transactions from my account and with this in mind I hereby revoke any and all authorities given to take funds from my account. I will make alternative arrangements to repay these companies.

I would also request that you refund the charges applied to my account as they were out with my control!

It would also be helpful if you could extend my overdraft sufficiently to cover the current amount owed to avoid any further charges. I would then request that there is a regular decrease in that overdraft until such time as my account is back under the initial agreed £100 limit.

[labman]

Re: Advice Please

Without wishing to repeat myself, I think you need to read the section I suggested from the Lending Code. It places certain obligations on banks for customers suffering from financial difficulties.

Off the top of my head I think it's page 28.

[Woolfie]

Re: Advice Please

Thanks labman