A POPULAR payday loan company double-charged hundreds of borrowers after a technical error.
Customers who had previously taken out a loan from The Money Platform faced additional fees, despite repaying their loan months ago.
About 300 payday lender customers are affected and have seen repayments taken back in error, in some cases totaling hundreds of pounds.
The Money Platform offers loans of up to £1,000 with a representative APR of 839.20%.
Those affected complained of being left out and the lender promised to make repayments and pay compensation.
A spokesperson for The Money Platform said: “We were informed this morning that our payment service provider, Mangopay, has reprocessed, through a technical error, a number of payments originally made in February and March.
“This was done by mistake and without our knowledge. We believe around 300 customers were affected.
The Money Platform said it was working with its payment service provider, Mangopay, to ensure customers are reimbursed as soon as possible.
The company said: “Mangopay told us they were issuing refunds to customer accounts this afternoon (July 25).”
The Money Platform told The Sun that it plans to compensate affected customers, but has not yet specified how much it will cost or how people will get the money.
A customer affected by the issue said on Trustpilot: “Like others here, I received an unauthorized payment of £362 into my bank account on August 22.
“I don’t have a current loan plan or agreement, so I was shocked to see this amount randomly debited from my debit card.”
Another former customer said: ‘They withdrew £139 from my account on Friday when the loan was paid off months ago.
This isn’t the first time payday lenders have come under scrutiny. Many other companies have had to pay compensation to their customers in the past for technical errors, overcharges and business closures.
How to get your money back
You should be refunded automatically if you were affected by the glitch.
If you have not done so or wish to file a complaint, you will need to write to The Money Platform.
You can do this by completing their online form. Be sure to use evidence to support your complaint. This could be proof that a payment made by the company means you missed a bill and a screenshot of your bank statement would suffice.
Loan providers are required to have a written complaints process that tells customers how to file a complaint.
You should be able to find the information on their website, but if not, ask them to send it to you.
Once you send in your complaint, the company must give you a response within eight weeks.
If you don’t get a response within eight weeks or are unhappy with the response you get, you can complain to the free service. Financial mediation service.
To get in touch, you must fill out a form, which you can find on the FOS website or simply complete online complaint form.
If you prefer to speak with someone, the FOS can help you do this if you call 0800 023 4567.
Don’t run to payday loan companies if you need to borrow
If you are struggling and need extra cash, there are a number of cheaper and less risky ways to borrow.
And remember – only think about borrowing money if you really need it.
Cheap credit cards – first you need to think about the usefulness of the card. If it’s a purchase, you should look for a 0% credit card. If you want to pay off debt, a 0% balance transfer card will be the best solution, although you will have to pay a fee to transfer your money to the card.
Cheap Personal Loans – Personal loans are generally best for larger purchases or if you need to consolidate debt and pay it off. Use a eligibility checker like MoneySavingExpert to find out what loans you could be accepted for, without hurting your credit score.
credit unions – Credit unions are local organizations where members pool their savings to lend to each other. This often allows them to offer products at low prices.