Wried question really, i have been in my IVA or over a year now. But I have checked my account today to see that a creditor has taken money from my account. A payday loan company has taken £290 from my account. I am shocked most of all, that this has happen, but also wonder where i stand on getting the money back fast. As i require the money to live and this is a substantial amount of my monthly allowance.
Also what is the best way to respond to this, the company is now closed for the evening, so i will be giving them a call first thing in the morning. But who else would i need to inform i will be speaking to my IP. But would i also be able to speak to the police and my bank as money have been from my account with-out authorisation?
Hi - sorry to hear this! Is the company that took the money a listed creditor in your iva? If they are, they cannot take money from your account. You should let both the loan co and your IP know so the money can be put back asap. Good luck x
I take it this loan was included in your iva? You need to speak to your ip ASAP and get them to sort it out. The police won't be able to.do anything about it.
Did you open a new bank account before the iva started?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If this is down to them having your debit card details(as payday lenders often demand before the loan is handed out) then report the card as stolen to get a new one,although I am not sure what your bank or even IP can do about this.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
thanks for the messages. I will be speaking with my IP in the moring and the company. I did get a new account before my IVA, although stupidly before my IVA was set up a made a £20 token payment until the IVA was set. But since then i have not had any problems, it seems strange that 14 months into my IVE they do this.
So to be honest i am worried that i will not get my money back, for which I need this month, i hope that my IP will be able to help. But yes the creditor is part of my IVA.
Definitely report your card missing so they can't do it again.
I.hope you can get the money back.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Do not make the mistake of telling your bank that the company knowingly had your card details as they wont help you,you must tell a little fib and say its missing,but that wont help you recover money from the creditor.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
There is a recent article - stating the bank can cancel these payments but its easier for them to "pass the Buck" - however report the card as stolen - they will reissue a card with a diffrent number
You will most definitely have lost that money to the payday loan company. You can complain and they will say sorry and all that, but you will not see that money. As others have said you need to cancel that card and get a new one. Your only saving grace is if your Bank refunds the amount and they take the hit with a claim against the payday loan company. Even if your IP make a complaint I doubt he/she will have the clout to get it back, they will use delaying tactics and pass them from pillar to post. I do feel sorry for you as I know £290 is a huge amount.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
Is your debit card a visa. If so ask your bank to do a charge back. If they deny knowledge of this ask to speak to a supervisor. The transaction is without your authority and is protected under the visa charge back scheme. Goggle it plenty of articles on it on not well known about
The OP has said that they made a token payment to the loan using the new bank account so this is obviously where they got the details from.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi ZMRST,
Bank card useage and fraud is an area of my expertise and I would suggest you are very careful here what you do.
In sum I am sorry to say that Merlin is probably right- you have either lost this money or it can take anything up to 10 months to get it back:
If you have taken out a payday loan you 'will' have agreed a 'continuous payment authority' which means you have authorised the lender to take money from your account as and when they want to. Although the Office of Fair Trading has said this is not good practice it is not 'unlawful'.
Go to the bank - DO NOT tell any lies or exaggerate, if you are lucky they will be sympathetic and may do a chargeback.
They are in fact under no obligation to do so unless you can show them the transaction was fraudulent or unauthorised. At the least they will probably want you to raise a dispute before taking any action. It will take a minimum ten days to investigate. This will involve contacting the payer bank. The chances are the lender will be able to show that there is a 'continous payment authority' - this will be valid unless it had been cancelled (you would have needed to have sent written notification to the company and the lender will probably deny this). Unless you can prove it the end result will be that the bank will not do a chargeback because they will say you did in fact authorise the transaction).
If you report the card stolen or missing it will make no difference(the payment authority was set up before the card was reported stolen so makes no difference).
If you have used the card since then the bank will see this.
You will not be able to use the card again until a replacement arrives - if you try to use it it may flag up as stolen and if the store or police are extra efficient you could find yourself detained for attempting to use a stolen card.
I would not tell any fibs. The Bank will not be very impressed if they think you have made a false report and may close your account or/and may put your details on the Credit Industry Fraud Avoidance Register. They may equally report your fraudulent claim to the police themselves.
I doubt the bank would be interested even if you could show the payday loan company was a creditor in your IVA. This is not their issue to resolve.
All in all you will have to consider if this is all going to be worth it. At the very least you should cancel the card so that it cannot happen again.
The Police - this is not a criminal matter they will not be interested.
If this fails you will have to go through the routine of complaining to the lender, waiting eight weeks (the time they are allowed) for them to investigate it and respond. If they dont give you your money back you will then have to go to the Financial Ombudsman (this can take up to six months and you may still not get your money back). Clearly if the creditor is in your IVA the Financial Ombudsman will say that the practice was unfair and you will be refunded the money.
Even if this is the case I suspect you will have to then either have to pay it in to the IVA or the lender will say he is entitled to pay it direct to the Supervisor or use it to offset his own debt within the IVA ( An expert will confirm this).
My advice - make sure you cancel the card and unless the bank are prepared to do a chargeback without requiring it to be formally reported and dealt with - you are unfortunately best to swallow the loss
