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Hi All
I have very recently come across a few people who are coming to the end of their self managed DMP's (debt management plans), plans which included debts with payday loan companies.
As part of the closure process, these people have been contacting their creditors to confirm the ending of the agreement and that their accounts are paid in full and are now closed.
In response, a particular well known payday loan company has been advising that there has been an overpayment on the account and that they are due a refund.
All the debtor has to do to receive the refund is to provide the payday loan company with their bank account details and the money will be paid directly.
These people who have been told they are due a refund know that there has been no overpayment as they have paid back the original capital of the loan (including the original interest) to the exact pound.
They have been advised to push back and ask the following:
1) How much is the overpayment and refund due?
2) That back details will not be provided and any refund should be made by cheque and sent to postal address
In response to these questions is a more pushy request for bank details and that the debtor contact the payday loan company by telephone.
Pushing back again requesting that the payday loan company provide details of the refund due, and that it will be paid by cheque have been met with a stone wall of silence.
This is where the alarm bells start ringing.......................
As part of the debt management process these people have set up new bank accounts, to which the payday loan companies have no access as they don't have these details.
The reason for this is that people that don't do this almost always find their accounts emptied as the payday loan companies will take the money owed (regardless of any agreement in place, even when arranged with someone like the CCCS).
Those people I have spoken too have been sensible enough not to hand out the bank account details that they have carefully guarded over the last few years but it begs the question what would have happened if they had..............
So hence the BEWARE message!
There should be no reason why a payday loan company cannot/will not provide details of an overpayment, nor is there reason for them to not send a refund payment by cheque.
Strange how, when the request for bank details is refused, that all communication ceases.
If you have experienced this please let me know!
SnV
I have very recently come across a few people who are coming to the end of their self managed DMP's (debt management plans), plans which included debts with payday loan companies.
As part of the closure process, these people have been contacting their creditors to confirm the ending of the agreement and that their accounts are paid in full and are now closed.
In response, a particular well known payday loan company has been advising that there has been an overpayment on the account and that they are due a refund.
All the debtor has to do to receive the refund is to provide the payday loan company with their bank account details and the money will be paid directly.
These people who have been told they are due a refund know that there has been no overpayment as they have paid back the original capital of the loan (including the original interest) to the exact pound.
They have been advised to push back and ask the following:
1) How much is the overpayment and refund due?
2) That back details will not be provided and any refund should be made by cheque and sent to postal address
In response to these questions is a more pushy request for bank details and that the debtor contact the payday loan company by telephone.
Pushing back again requesting that the payday loan company provide details of the refund due, and that it will be paid by cheque have been met with a stone wall of silence.
This is where the alarm bells start ringing.......................
As part of the debt management process these people have set up new bank accounts, to which the payday loan companies have no access as they don't have these details.
The reason for this is that people that don't do this almost always find their accounts emptied as the payday loan companies will take the money owed (regardless of any agreement in place, even when arranged with someone like the CCCS).
Those people I have spoken too have been sensible enough not to hand out the bank account details that they have carefully guarded over the last few years but it begs the question what would have happened if they had..............
So hence the BEWARE message!
There should be no reason why a payday loan company cannot/will not provide details of an overpayment, nor is there reason for them to not send a refund payment by cheque.
Strange how, when the request for bank details is refused, that all communication ceases.
If you have experienced this please let me know!
SnV
thanks for the warning
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