Where do I stand with my bank me debit card payments for loan? Any advice?

mademistakes

Hi there,

Me and hubby have sought advice from citizens advice regarding our terrible financial situation. We are following their advice and will be going down the repossession route. We're currently at the stage of not paying anything secured on the property, with the intention of saving this to pay for the rent when we do get repossessed.

We've hit a slight snag in that for our secured loan, we missed a payment a few months ago and since then we have been paying each month by our visa electron debit card. At the time of our decision to stop paying the loan, my card was reissued, and therefore all the numbers etc on the card have changed, so I thought when the loan company tried to collect it would decline. The bank however authorised the payment. I have queried this with my bank and they have said that because I'd paid them for a couple of months, if the loan company tried to collect with the old card details, it would be passed to the fraud team and they would authorise it. I said to the guy on the phone that I did not want any payments going to them, but he said that theres nothing I can do if they have the card details.

Does anyone know of anyway that I can stop the bank paying them? I've arranged with the loan company to set up the DD again, which I'll cancel, but do they have the right to them go back to the card details once the DD rejects? Is it wise to tell the loan company whats happening and ask them not to collect? I doubt they would stop collecting.

Any thoughts or advice would be really appreciated. Sorry if this warbles on a bit, but needed to get this off my chest before I get off to bed.
Thanks

LilacPixie

Could you not tell the bank that those transactions are unauthorised and therefore fraudulent. Demand an investigation be launched and a block put on all further payments

mademistakes

Thanks Lilac Pixie, When I spoke with the bank I did say they were unauthorised, but they said I would need to speak to the loan company about getting it back.
Will give it a try though, thanks!

rubydoiwannabee

Just to clarify my understanding...
did you call the loan company to make a payment (to stall them) hoping that the bank would decline because of the change of card etc.? Or did you pay successfully one month and you are saying the loan company have tried to collect another month as a switch payment without your authority??


Thanks

mademistakes

Hi Ruby, thanks for replying. It's the latter. When I missed a payment, I arranged to pay by debit card the full months payment. They have collected it successfully for 3 months via debit card.
Thanks

rubydoiwannabee

mademistakes wrote: »

Hi Ruby, thanks for replying. It's the latter. When I missed a payment, I arranged to pay by debit card the full months payment. They have collected it successfully for 3 months via debit card.
Thanks

So it does sound like the loan company are working on the assumption that you were giving them the card details for all future payments. How come it has taken three months for you to realise? I guess if this was the first month you might have more of a case with the loan company.... it is a difficult one but it does sound to me like your case is with the loan company and not the bank. Also isn't it quite unusual for a company to accept regular payments this way?

One option might be to stop your card, or report it lost etc so that when you have a new card all future payments will have to be cleared by your bank with you.

Sorry I haven't a clear cut answer, but I would be sure to talk to the loan company as soon as possible about the fact that this is not your preferred method of payment and that in fact you are unable to make any future agreed payments (will you be paying a nominal amount to them?) and then also tell your bank to not permit any further.

Oh and just another thought.... sorry to ramble it is late. Have you got a case about the banks paying without your authority on a pin number, signature. secutity code from the back of the card etc.?

xx

mademistakes

Thanks again Ruby. I've contacted the loan company and said to set up DD and not take card payments any longer. I have stopped the DD so they won't get their payment so I'm thinking they will probably try the card details again. My plan of action is to write to the bank to say that I do not authorise any payments to them. Will see how it goes this month. Augusts loan payment was the first month of us not paying anything in order to save for rent, so thats why we're just on the case just now.
Thanks again for the advice, I'll keep you posted!
xx

rubydoiwannabee

mademistakes wrote: »

Thanks again Ruby. I've contacted the loan company and said to set up DD and not take card payments any longer. I have stopped the DD so they won't get their payment so I'm thinking they will probably try the card details again. My plan of action is to write to the bank to say that I do not authorise any payments to them. Will see how it goes this month. Augusts loan payment was the first month of us not paying anything in order to save for rent, so thats why we're just on the case just now.
Thanks again for the advice, I'll keep you posted!
xx

Hi, very best of luck. Do keep coming back and posting the support and advice I have received from this forum is invaluable and really helped me through a very difficult time.

You are not alone.

mademistakes

Thanks for that. I really appreciate any advice and tips I can get. We're now at the beginning of the scary road to repossession, and I did feel really isolated until I came across this website and realised that we're not alone.
I never thought I'd say it, but I can't wait until we're out of here and in a rented house. I know it's going to be tough to get to that stage, but I'm hoping it'll be a fresh start for us debt wise - we've really learnt from out mistakes now!
I'm really addicted to this site now, and addicted to cutting costs wherever possible. I'm even considering starting my own road to repossession diary so I've got a record of everything and can look back on it, and hopefully help other people, but I've not got courage to start that quite yet!
Thanks again!
Take care!
xxxx:smileyhea