payday loans

[ian ament]

I had an old payday loan ,but my debt managent programme i was on was dealing with them, apparently i applied for another payday loan i didnt not realise they gave my bank details to my old payday loan they took all my funds out of my bank account. now iam left with nothing , is that legal can they do that

[labman]

Re: payday loans

What a shame that while in a DMP you had to take out another payday loan. This is not judging you, but if the DMP has been calculated correctly, you should have plenty of money to live on and make your agreed repayments. There should be no need for further loans.

If you are finding you can't live within your current set up, you should go back to the DMP provider and tell them - may I ask who it is?

As for your question, if the application was with the same, or a related PDL company, they can use your details and take every penny you have quite legitimately under something called the right of set off. Further, if you have money in other accounts within the same banking group, they can take that as well.

What you need to do:

You need to go into your bank, or phone them, and instruct them to cancel the Recurring Payment Authority to the PDL company. Follow this up with a letter stating the same, ideally sent recorded delivery if you can afford it, so you have proof of receipt. Alternatively, ask for Proof of Postage which is free and keep this VERY safe. Ask the bank to confirm in writing to you the RPA has been cancelled.

This should stop them doing the same again, and if they did you would have recourse against the bank.

Hope this helps.