13/03/12….Problem re-paying Pay Day loans? ADVICE from Thame CAB

IF you have taken out a Payday loan you may find that your lender is taking money from your account that you need to pay for essentials, like food or rent, so what can you do to stop this from happening?
There?s a common myth that once you?ve agreed to such payments, you have no power to stop them. This is not true.

When you give your credit or debit card details to a company and authorise them to take regular payments from your account, it is known as a ?recurring transaction? or ?continuous payment authority?. This is not the same as a direct debit.

To cancel a regular payment just phone your bank and tell them you are withdrawing your consent for further payments to be taken. You don?t need to tell the company taking the payments or confirm your instructions in writing for your bank to stop payments. Your bank should stop making payments as soon as you tell them you have withdrawn your consent – regardless of whether you have also told your payday lender – and you can do this verbally.

If you have contacted your bank in time, and a payment is made after you have told it that you wish to stop the payment being taken from your account, it will be regarded as an unauthorised transaction and your bank must give you an immediate refund, and put the account back in the position it would have been if the payment had not been made ? in other words refund any interest and charges applied as a result of payment being made.
If you?re still having problems get free, independent advice.

Citizens Advice website www.adviceguide.org.uk
CAB adviceline 08 444 111 444 or 0300 3300 650(mobile)
Your local CAB is in Montesson Square, Thame (Market Place)