Cash Converters setting up a DD with my known/remembered permission

[Sirius Mcpudd]

Hi.

I received a payday loan from Cash Converters a couple of months ago. I set it up so that I would come into the store and repay the loan and interest when my DLA was paid into my bank account...

 

They said that they would need my card details to check that the bank account and card were indeed mine, by taking a couple of pounds out and then replacing it. They also said that they could also take the repayment as a debit card transaction, if I fail to pay, or I instruct them to.

 

I won't give all the ins and outs of what happened, as I don't want to bore everyone to death, but to cut a long story short, I forgot all about the loan and my debit card expired.

 

I assume they tried to make a debit card withdrawal, but the card information they had was "old".

 

I then woke up this morning, checked the bank to see if this months DLA went in, and am confronted with a £130 Direct Debit! I can't remember saying to Cash Converters that they could setup a Direct Debit to my bank account, which the bank said was setup this morning!

 

I telephoned my bank to ask what was going on, as I can't see what has gone where 'til the following day, and they cancelled the DD and said my money should return to my account by the morning.

 

What I am wanting to know, is if they, or any other company, can set up DD's without consent? or is there something in the small print saying they can?

 

True, I owe them the money, and my personnal circumstances is not of interest to them, but I now feel that they can wait for me to pay, as they "Burgaled" my account!

 

Can anyone tell me the legal side of what has happened, or is it well known they can dip into your account when they want?

 

Ta muchly!

[renegadeimp]

You are on state benefits, so it will be refunded to you under the direct debit guarantee. Also, since you are on benefits, you only pay £1 a month, regardless of what the PDL says.

 

For a company to set up a DD when no prior DD existed is not legal. If one existed, but it was cancelled and you failed to tell the creditor, then yes, it can be remade.

[raydetinu]

Answer is no you have to sign a DD form, no siganature then it is void; ask your bank for a refund.

[Guest Cash Converters UK]

Hi,

 

I am the Compliance Officer for Cash Converters UK and on becoming aware of this thread, I thought it might be helpful if I clarified how this process works. On completing an application form for a Cash Advance or pay day loan as they are commonly known, you are required to provide details of a live and active bank account. This is then verified at the point of the application. If this and all the other application elements are completed and meet the necessary criteria you will then be approved for an ammount that is deemed acceptable and affordable, based on the financial details you provided us with. One of these other application elements is the submission of a completed and signed direct debit mandate, which we advise is only used when payment is declined and an alternative method of payment is not agreed before payments are due. This is also stated in terms and conditions, which you will have been advised on and given a copy to take away along with your agreement at the time of taking out the Cash Advance.

 

If you would like me to investigate your experience further, to ensure the right process has been followed, I would be more than happy to do so. If so, please call 01928 737410 and ask for the Compliance Officer, should you wish to discuss. Alternatively please provide me your contact details and I or a member of our team will contact you.

 

Finally I should remind you that you must maintain payments to keep your account upto date. If your account is or goes into arrears you will be pursued by our collections staff for payment until your account is brought upto date or paid in full. If your circumstances have changed and you are experiencing financial difficulties, please let us know, as we can help by agreeing a reduced payment plan.

 

Kind Regards

 

Cash Converters UK Group Compliance Officer

[MARTIN3030]

Hello Simon,thank you for offering to intervene here.

We have now enabled your CAG membership to that of official rep.

 

This will allow response to any future or previous posts concerning Cash Convertors.

 

We do not actually see many complaints fortunately,and those we have seen are usually dealt with quite quickly at branch level.

 

Sirius-please keep us updated as to the progress / resolution.

Thanks.

[renegadeimp]

Just because its in your tocs doesnt make what you are doing legal.

 

Also why not deal in writing instead of calling. That way you cant fob people off like your company does normally.

[raydetinu]

If they have a signed authority to set up DD, then thats ok.

if dont want them to do that, then dont sign it!

[MARTIN3030]

This thread now closed.

If you have issues/problems with an account with Cash Converters,please start your own thread.