Help need advice on a payment plan for wonga...

[Kelziepopz]

Hello Everyone I'am New.....

 

I was just wondering how does cancelling a bank card stop wonga/payday from collecting... **EDITED** money from your account unauthorised...

 

x

Edited December 10, 2011 by car2403
removing potentially libellous comments

[chrissarah1988]

this can be done but knowing these people they will just put more interest on top of your loan, ive been told though that they cannot rip you off you pay back the original loan amount plus 1 month interest.

 

ive cancelled my card as i dont trust these people ive just ordered a new one from the bank the bank will not give them access to your bank without your permission otherwise they land themself in big trouble.

 

just ring your bank and tell them you've lost your card

 

you will be given a new card number, your sort code and account number will stay the same tho

[barrwad909]

Hi this does not stop any company from taking money on a recurring debit card payment. You need to send a formal letter stating that you remove an authorisation whether contractual or not to debit funds from your account for any reason. Then after fifteen days they cannot legally debit your account, if anyone knows anything other than this then feel free to correct me. This is information from Barclays fraud department in relation to another scurrying debit card payment and not a pay day loan account.

[asmilecostsnothing]

WARNING; be very careful if you apply for example a Payday loan and they wish to take your card details to set up a recurring card authority (RCA). It is very difficult to get out of this should your circumstances take a tumble and you can't meet the payments.

Even if your bank account has no overdraft facility, the card payment will still go through leaving you with an unauthorised overdraft and, of course, any credits will be swallowed up. Even basic bank accounts will end up in debit. ***Personally I'm not convinced with this paragraph as basic accounts only allow out what you have in your account, that said, there is nothing to stop the company waiting and retrying when you are in credit...

Your bank CANNOT cancel a RCA.

You can only request that the company who holds the RCA cancels it - experience shows that they are very reluctant to do this and will ignore requests particularly if there is a payment about due.

Aha, you say, I'll cancel my debit card and get a new one with different numbers - no good, as the bank will automatically transfer any RCAs against your old card to your new card - you still loose the funds.

OK, I'll close the account....nope, the bank cannot close an account with current RCAs in place.

 

Only way out - formally (and keep evidence) instruct the company to cancel the RCA. If they don't, then raise a dispute through your bank's dispute team - this can take some time and meanwhile, the company can still access your account and take funds; this means that in the interim period, you could be constantly being pushed into a corner through lack of funds.

 

Remedy - DON'T UNDER ANY CIRCUMSTANCES GET TIED UP FOR ANY REASON IN A RECURRING CARD AUTHORITY. Direct debits are much safer because you can cancel those and the direct debit guarantee is right behind you.

 

If the company insists on a RCA - walk away rapidly.

 

Drawing from my own experience I also got told if payments do get taken that you then dispute with the bank, it is not your place to go to the Police - it is the Banks responsbility to report as part of their investigation. (Braintree Constabulary)

[purplehearts]

WARNING; be very careful if you apply for example a Payday loan and they wish to take your card details to set up a recurring card authority (RCA). It is very difficult to get out of this should your circumstances take a tumble and you can't meet the payments.

Even if your bank account has no overdraft facility, the card payment will still go through leaving you with an unauthorised overdraft and, of course, any credits will be swallowed up. Even basic bank accounts will end up in debit. ***Personally I'm not convinced with this paragraph as basic accounts only allow out what you have in your account, that said, there is nothing to stop the company waiting and retrying when you are in credit...

Your bank CANNOT cancel a RCA.

You can only request that the company who holds the RCA cancels it - experience shows that they are very reluctant to do this and will ignore requests particularly if there is a payment about due.

Aha, you say, I'll cancel my debit card and get a new one with different numbers - no good, as the bank will automatically transfer any RCAs against your old card to your new card - you still loose the funds.

OK, I'll close the account....nope, the bank cannot close an account with current RCAs in place.

 

Only way out - formally (and keep evidence) instruct the company to cancel the RCA. If they don't, then raise a dispute through your bank's dispute team - this can take some time and meanwhile, the company can still access your account and take funds; this means that in the interim period, you could be constantly being pushed into a corner through lack of funds.

 

Remedy - DON'T UNDER ANY CIRCUMSTANCES GET TIED UP FOR ANY REASON IN A RECURRING CARD AUTHORITY. Direct debits are much safer because you can cancel those and the direct debit guarantee is right behind you.

 

If the company insists on a RCA - walk away rapidly.

 

Drawing from my own experience I also got told if payments do get taken that you then dispute with the bank, it is not your place to go to the Police - it is the Banks responsbility to report as part of their investigation. (Braintree Constabulary)

 

That's interesting to know - but how do you know if you've consented to an RCA? I've taken out payday loans with several different providers (around 10), and as far as I know, have never been specifically asked to consent to this. Would this info be buried in terms and conditions? Is it usual practice for payday loans providers to require you to give consent for recurring debit card payments?

I do know that in the past, cancelling my card has worked as a short term measure when DCAs were raiding my account. However, I was aware that cancelling your card doesn't guarantee that the company can no longer take money from it - I was told this is because my consent to them taking money pre-dated my cancelling of the card. I did change my bank details quite quickly after this.

[asmilecostsnothing]

That's interesting to know - but how do you know if you've consented to an RCA? I've taken out payday loans with several different providers (around 10), and as far as I know, have never been specifically asked to consent to this. Would this info be buried in terms and conditions? Is it usual practice for payday loans providers to require you to give consent for recurring debit card payments?

I do know that in the past, cancelling my card has worked as a short term measure when DCAs were raiding my account. However, I was aware that cancelling your card doesn't guarantee that the company can no longer take money from it - I was told this is because my consent to them taking money pre-dated my cancelling of the card. I did change my bank details quite quickly after this.

 

Well I was only hit by this when in the payday loan trap...

I was basically told as soon you physically hand over card details you can be agreeing to this the RCA payments or I guess some banks call or can class them as 'rolling contracts' which allows payments out

Needless to say now I am careful who I give my details out to if at all now and took the advice given that I should get a new bank account in protection, rather then just cancel a card.

I've never had my account raided here after - I believe simply because of the opening of a new account

 

Could depend who you bank with to I guess

[Kelziepopz]

Hi Everyone me again...

Need advice on what i should do reguarding my wonga loan... To be honest im worried sick, im not going to be able to pay off my loan and interest in full and would like to set up a plan i wont b overdue till another 3days but dont want to incur extra charges if i can avoid it...!! 1st off i have no idea who to contact to set up a plan and im worried there going to clear my bank account out which only holds enough for my rent at the moment...!

 

What should i do...?

Please help all advice appriecated .....

[asmilecostsnothing]

:welcome:Hi Kelzie

 

Whilst I've never had a Wonga loan, have you tried emailing or facebook message them?

 

You will stand in better ground the earliest you can do something - attempt communication, be able to prove this and you'll be in the stronger position if they chose to do daft things

 

Have you worked out what you can re-pay and have you thought about change of account just to be on the safe side x

[Kelziepopz]

Hi thanx for the reply do u know if cancelling my card till ive opened a new account or hopefully set up a payment plan will stop them dipping in to my account whenever they feel like..?

 

Yes ive worked out how much i can afford on a monthly basis but which i also think is reasonable but have no idea who to contact..? and what could i do if they refuse...?

[Kelziepopz]

thanx for the reply xx

[asmilecostsnothing]

Hi again Kelzie

 

No worries hun, if you can def try and change your account (even if it is just a temporary move to a basic account as a 2nd option especially as your rent payment must come first as a priority payment - it just gives you that little bit of control) that said it strikes me Wonga won't really want to risk their reputation - I could be wrong though I am a little jealous (lol) cause they seem to be so good at communicating where some of the others do fail - their facebook page seems more like a fan club!!!

http://www.thisislondon.co.uk/markets/article-23944738-doing-for-money-lending-what-amazon-did-for-books.do

 

 

"At 60 days, Errol Damelin stresses, Wonga has "a default system that kicks in - at 60 days, the amount a customer must repay is frozen. We know that someone is in a challenging situation and we will do our best to help them, provided they are open with us. We will always try to do the correct thing.

"We want to get the customer back to where they were - there's no point in us being aggressive."

 

Try these - see how you get on

collections@wonga.com

customercare@wonga.com

There may be some others on the other threads on here too which give a name

 

You might want to favourite this !

https://help.wonga.com/help/payments/repaying/lost-card

[Kelziepopz]

Hello everyone i was wondering before setting up a repayment plan with wonga does my account have to be overdue as its due in 3 days..? can they help me before or do i have to wait till the due date\after to be able to set it up...? plz help...:???:

[sillygirl1]

Contact them now, don't leave it to the last minute, it will help your case should it ever get to court. You need to let them know how much and when you will be paying.

 

Also please try and get your income paid into another bank account next month in case of raids, Halifax Easycash, Co-op or Post Office all have good basic accounts.

 

The more you do before default the better. They may ask for a set up fee but that is not a valid option.

[loofyllis1972]

I had a Wonga loan too - I emailed them as soon as I knew I was going to default and offered a payment plan, which they rejected, and they offered me one which was not affordable. I emailed them back to this effect, and they then agreed (with a minor change of about 2.00 per month) my original proposal. They also froze all the interest and charges, which is more than I can say for QQ, PDUK and Cash Genie....

 

Personally, I found them the most understanding and reasonable to deal with... although different people seem to get different responses from the companies involved.

 

I think maybe if you are very upfront with them, they will try and work with you... Good Luck!

[edwincluck]

Your bank cannot cancel a [recurring card authority] RCA. You can only request that the company who holds the RCA cancels it

 

That's not true!

 

Here's what the Financial Services Authority has to say.. [1]

 

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’. These are often confused with direct debits, but do not offer the same guarantee if the amount or date of the payment changes. In most cases, regular payments can be cancelled by telling the company taking the payments.

 

However, you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments.

 

Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments.

.

.

Sequenci of this forum has authored an excellent article entitled "Continuous Payment Authorities - How to stop them", with reference to the relevant law. [2]

 

 

 

[1] Financial Services Authority (January 2012), "Bank accounts: Know your rights". (FSA:CC003)

Available from: http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf

 

[2] http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

Edited February 9, 2012 by edwincluck

[asmilecostsnothing]

Please shut up and stop dregging up old threads . For your added information my problem was early last year and I CAN APPRECIATE information at that time maybe was very different

 

Could depend who you bank with to "I guess"

Never claimed I was an expert

[Michael Browne]

Whoa, chill out. Whilst the new stance by the FSA may not be of any use to you now, there are others who may be searching for advice on cancelling a continuous payment authority.

 

But then maybe your username is ironic.

[asmilecostsnothing]

Sorry but you may have or not worked out I am not in the mood for smiles

if it wasn't for half the drivel on this site that works for one and not the other : (

 

 

FSA - Who the hell are they ??? yeah bit like the FOS I imagine

Edited February 11, 2012 by asmilecostsnothing
.

[edwincluck]

There are others who may be searching for advice on cancelling a continuous payment authority.

 

The 'new' law on cancelling Continuous Payment Authorities deserves greater publicity. Thanks to Sequenci's article and the Consumer Action Group, it is getting that publicity. [1]

 

The power entitling the payer to directly instruct his bank to stop a Continous Payment Authority is contained in Regulation 55 of The Payment Services Regulations 2009. [2]

 

That Regulation came into force on 1 November 2009, over two years ago now. So the law is not strictly new at all.

 

Even now, few borrowers know about the protections contained in this new Law. Unsurprisingly, the Predatory Lenders have no plans to enlighten them.

 

There are even rumours that the Lenders are using covert 'assets' to propagate drivel to deliberately mislead borrowers!

 

[1] http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

[2] http://www.legislation.gov.uk/uksi/2009/209/pdfs/uksi_20090209_en.pdf

Edited February 12, 2012 by edwincluck