Pounds to Pocket is pursuing my son for outstanding payments but I have already paid off his debt
My student son got into trouble with a payday loan from a company called Pounds to Pocket (PTP). I offered to pay off the loan in full so he could pay me back the capital without accruing further punitive interest. He authorised me to have access to his account with them, which enabled me to make a payment by debit card on 6 July 2012 of £346.72, which left my account on 9 July. Pounds to Pocket says it has not received it and continues to pursue my son for payments. I have, as requested, provided a screengrab of my bank statement showing the payment and it says "management is investigating" but nothing happens. AR, Stockport
PTP offers loans of up to £2,000 for up to 12 months, at extremely high interest rates – a £1,000 loan incurs an APR of 277%. To put that in context, Sainsbury's Bank charges a typical APR of 14.8% on loans of £1,000-£4,999. Payday loans are one of the most expensive ways to borrow money and consumers should tread carefully when considering one.
PTP is owned by CashEuroNet UK, which also runs QuickQuid in the UK, operating out of Chicago in the US. I found its PR representative in the UK and can report that, following my intervention, your son suddenly received an email stating there was no further liability on the accounts. I'd urge your son to talk to you before approaching any other loan companies and especially payday loan firms.
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Thank you, Ian [Editor]