Payday Lending Scams

[The Wookiee]

If it's a recurring charge then cancelling the card won't stop the vendor charging on the card. The charging has to be stopped at the source.

http://www.moneysavingexpert.com/banking/recurring-payments

am pretty sure payday loan companies don't use recurring payments as the amount may vary each month.

 

[BlueSeagull]

Not sure what to do with this one - my girlfriend (without my knowledge) thought it'd be a good idea to take out 2 Payday loans back in early June, each for £100. One was with Payday UK and another with Lending Stream. These are both now fully paid back with the appropriate interest.

Today, almost 2 months after the initial application, she has received a text and an email from a company called Power Funding who have written to confirm that her Power Funding Fee of £69.75 was being debited. A quick call to her bank, Halifax, suggests that the payment was indeed pending but they have refused it at her request. However, they've suggested that they will be unable to refuse any further transactions should they be requested by Power Funding?!

My girlfriend has no idea where this has come from, but does acknowledge that she didn't read any Ts & Cs and just applied through the two different website. Having a look online hasn't turned up too much information - it's hard to find any information on "Power Funding" (website is http://www.power-funding.biz) and the contact details are 1 Liverpool Street, London, EC2M 7QD - 0844 318 8001. The number does turn up some information on a Google search, mostly being associated with about 3 or 4 other similar companies. Other people have described writing/calling/emailing with no response.

Anyone have any idea of the legal position on this - and having payments taken out of her account (I think it's debiting her card). Surely she can just cancel her card and replace it with a new number to solve the problem?

If it is being debited from her debit card (still from her bank account) surely you can request a direct debit indemnity? I have done this on debits come out wrongly on numerous occasions, as it is the consumers right to get back monies wrongly taken from their accounts. Plus DD's can be cancelled at any time, I bank online and do it on there, as I noticed a £50 charge from a similar loan company (I only enquired, didn't take one, but a 3rd party tried to take money anyway!) so I cancelled it straight away.

 

[Razi]

If it is being debited from her debit card (still from her bank account) surely you can request a direct debit indemnity? I have done this on debits come out wrongly on numerous occasions, as it is the consumers right to get back monies wrongly taken from their accounts. Plus DD's can be cancelled at any time, I bank online and do it on there, as I noticed a £50 charge from a similar loan company (I only enquired, didn't take one, but a 3rd party tried to take money anyway!) so I cancelled it straight away.

I think it's debiting her card, rather than a direct debit from her bank account by the looks of it.

Just had a look for the business address - 1 Liverpool Street, London - doesn't seem to be any company in there by the same name. What's the chance on any letter actually being received? Grr.

Also, nothing for the company names on Companies House.

 

[severnside gull]

It's a scam and if it was me I'd make an appointment with her bank asap - explain that this company is uncontactable and if they refuse to cancel all future payments then immediately cancel her card - if they won't replace it with a new one she may have to find another bank and that will be tough as she must have a bad credit record (accessing payday loans pretty well fucks your credit rating straight away) but don't take any shit off them and don't be afraid of threatening to report them to the financial regulators if they try to refuse to cancel the card.
make it clear that you will make no further payments to the bank in respect of this scammer or any similar .................... of course the bank may co-operate and help you but don't be surprised if they try to screw you instead

 

[The Wookiee]

If it is being debited from her debit card (still from her bank account) surely you can request a direct debit indemnity? I have done this on debits come out wrongly on numerous occasions, as it is the consumers right to get back monies wrongly taken from their accounts. Plus DD's can be cancelled at any time, I bank online and do it on there, as I noticed a £50 charge from a similar loan company (I only enquired, didn't take one, but a 3rd party tried to take money anyway!) so I cancelled it straight away.

Direct debits yes, debit card payments no ! You can dispute them with your bank ni they will just confirm with the payee that the payment is due which due to the loan companies complicated terms and conditions the victim does not have a leg to stand on.

 

[BlueSeagull]

I think it's debiting her card, rather than a direct debit from her bank account by the looks of it.

Just had a look for the business address - 1 Liverpool Street, London - doesn't seem to be any company in there by the same name. What's the chance on any letter actually being received? Grr.

Also, nothing for the company names on Companies House.

Hmm, there usually isn't for these rip off companies I'm afraid mate. Good luck.

 

[The Wookiee]

It's a scam and if it was me I'd make an appointment with her bank asap - explain that this company is uncontactable and if they refuse to cancel all future payments then immediately cancel her card - if they won't replace it with a new one she may have to find another bank and that will be tough as she must have a bad credit record (accessing payday loans pretty well fucks your credit rating straight away) but don't take any shit off them and don't be afraid of threatening to report them to the financial regulators if they try to refuse to cancel the card.
make it clear that you will make no further payments to the bank in respect of this scammer or any similar .................... of course the bank may co-operate and help you but don't be surprised if they try to screw you instead

Report the card stolen, the bank will replace it within 7 days

 

[Razi]

Thanks for all the advice on this one. We'll see what happens..

 

[Sergei's Celebration]

[MENTION=715]Razi[/MENTION]. Firstly the best of luck and i do hope you get this sorted.

It looks like the money is part of a 'membership scheme'.

Doing a bit of a dig i came up with these:

power loans claims

Pay-Cs.Com claims

eze loans claims

cashoo claims

Unfortunately its not a happy read, the same 'scam' has stung many other people. By the looks of things: cashoo, eze-loan.net, Power Funding, Power Loans and pay-cs are all one in the same.

Reading some other stuff is the money being drawn classed as 'a membership fee'? It looks like others have been charged this fee as agreed to under the T&C's. Some light at the end of the tunnel those that have written to the Coy at 1 Liverpool street have had the charges cancelled after 14days. I have found the cashoo T&Cs (also at 1 liverpool) as i am sure they will be the same. CashooMoney.co.uk | Our Terms and Conditions


Be careful tho' as Powerloans.com has removed itself from the web and therefore i would suggest closed as a business. This maybe a tactic to limit the potential for you and others to recoup costs/fees.

Best of luck, i hope this has been of use and i'll keep looking to see what i can find.

Sergei.

 

[Razi]

[MENTION=15296]Sergei's Celebration[/MENTION]

Great stuff - thanks for that. I did notice a few of those names coming up frequently in my Googling, which just goes to back up any concerns about it being a bit of a scam. As you suggest, it is coming up as a membership fee - one problem may also be that the 'date agreed' is suggested as 05/06/11 yet the date of payment (and the first we knew about it) is 29/07/11. I wonder if this is a way to avoid the 14 day period, since it's now well past the original agreed date.

We just cant understand how these people came to be involved, since she registered with Payday and Lending Stream - which these two don't seem to be associated with. She must've just clicked somewhere else or filled in a random form somewhere during the process, I guess.

Thanks again..

 

[Seagull on the wing]

...I don't have a credit card and if I want something I save and buy it.Think this is an abject lesson to everybody...Never ever borrow money. Good luck on getting it sorted.

 

[Sergei's Celebration]

We just cant understand how these people came to be involved, since she registered with Payday and Lending Stream - which these two don't seem to be associated with. She must've just clicked somewhere else or filled in a random form somewhere during the process, I guess.

No worries, i am glad you found it useful.

On my digging around I did find this. I didn't see any of your companies on there but it would explain how a third, unrelated, party got her details (they use a 'lead generation' site). 19 dodgy debt websites shut down - Investigations

Again best of luck.

 

[NMH]

It's a shame that banks themselves don't have solutions or advice for this kind of event.

Useless, and we give them our money to look after....or something.

 

[melias shoes]

New girlfriend, one who doesnt think 1000% APR is reasonable!!

This.

 

[Sergei's Celebration]

This.

Hay! We all make mistakes and it takes an adult to admit where they went wrong. People need support and help when they find themselves in such times not silly comments!

 

[Langley]

Write or contact Watchdog, so others may be warned in advance

 

[seagullondon]

accessing payday loans pretty well fucks your credit rating straight away

incorrect. her credit rating should be fine as long as she paid back what she was meant to to the first company. I, shamefully, got a loan from wonga last year when times were tight but was due money and have since checked my credit rating and it is above average despite getting a similar loan.

 

[IndependentWSU]

I apologised