Finance Company Taking Debt From My Bank Account

julie196143

Hi,
A Finacial Company have been recovering a Store Card Debt from me.
As I am only working Part Time at the moment, I agreed over the phone to pay £15 per month.
The Finance Company have been taking £30 per month from my Bank account even though I have no Direct Debit or Standing Order set up on my Bank Account. This is leaving me struggling with bills etc.
Is is possible for me to ask the bank to only allow the Finance Company to take no more than the agreed £15? Or to cancel that payment and set up a Direct Debit for the £15 per month?
Thanks in advance for any help.

GeorgeUK

Did you sign any kind of agreement with this company?
What does it say about payment?

Also wondering why you are having to pay a monthly amount for something when they are still trying to recover the debt. What happens if after 2 years they don't recover anything?

I would contact the bank and state that funds have been taken without your permission. As the company has your card number, it may be necessary to 'lose' your card and ask the bank for a new one. There is no way they should be taking more than the agreed amount. What have the company said about this?

julie196143

GeorgeUK wrote: »

Did you sign any kind of agreement with this company?
What does it say about payment?

Also wondering why you are having to pay a monthly amount for something when they are still trying to recover the debt. What happens if after 2 years they don't recover anything?

I would contact the bank and state that funds have been taken without your permission. As the company has your card number, it may be necessary to 'lose' your card and ask the bank for a new one. There is no way they should be taking more than the agreed amount. What have the company said about this?

I didn't sign anything, It was just a verbal agreement over the phone.
They rang me up saying I should pay the remaining debt (£170) in full but I explained that I was unable to as I was only working part time. So I told them I could only afford to pay them £15 per month as I only get paid monthly. They asked for my card details which I gave them as I trusted them to only take out the £15 per month.
I have not contacted the company about this matter yet I have been scouring the net to see if it can be stopped from the bank before I contact the bank.

Kavanne

Is it showing as a card transaction? You may have set up a 'continuous payment authority' with them, which would be bad news

Merlinexcalibur

Personally, I'd do what George suggested. Because once a company has your card details it's next to impossible to stop them taking payment.

They asked for my card details which I gave them as I trusted them to only take out the £15 per month.

Nope. Don't ever do that again. Because they can very easily take the whole amount and verbal agreements are worthless. Especially over the phone. If it ever got to court it would be classified as heresay. Your word against their's. Why writing is so important.

can be stopped from the bank before I contact the bank.

You really won't find any. Apart from contacting your bank ASAP and doing what George suggested. Cos you can't stop them taking it now. My next piece of advice would be to contact Consumer Credit Counselling Services for how to deal with this debt.

All I can suggest at this point. Purely to protect your own financial interests if nothing else. Cos they will take that money and your account could get cleared out. Or plunge you into unauthorized overdraft territory, creating a bigger debt in the process. Their argument would be you gave them your card details ... again, your word against their's if it came to the crunch.

julie196143

Kavanne wrote: »

Is it showing as a card transaction? You may have set up a 'continuous payment authority' with them, which would be bad news

Yes its showing up as a debit card payment.

julie196143

I think I will follow the advice and contact the bank tomorrow to see what they say. If I have no joy there, I will accidently 'lose' my card and order another one. Then ring the company up and make other arrangements to send them the £15 per month. Maybe a Standing Order as they won't be able to take any more than the £15. But it's whether they accept standing orders.

Merlinexcalibur

Maybe a Standing Order

Yes. If they don't accept standing orders maybe a quick mention about unfair payment methods and reporting them to FOS/OFT might do the trick. Cos they will try and whitewash. Thinking you won't know. I would personally write to them, not phone. Saves you money and getting the run around. Only pay what you can reasonably afford. Is my last piece of advice. Because you never know when you might have the next rainy day. Hope that made sense.

julie196143

Yes thhat makes sense thx but....What is FOS/OFT? And is there a web site where I can read up on reporting them to Fos/Oft? As I would like to have a bit of knowledge about reporting them.
I will take your advice and write to them.
£15 is what I can afford, if my curcumstances change for the worse I will be contacting them again to reduce the payment. But hopefully it will all be paid off soon

Merlinexcalibur

Financial Ombudsman Service, London and Office of Fair Trading. Both have websites with useful links, info. Reason I mention that is because if they refuse to accept payment by standing order then they are also making it difficult for you to pay. The other reason is they want your card details. Sure I read something in the guidelines by OFT about asking for payment by credit cards on debts. They know what they are doing you see, why they ask for your card details. Cos they know you can't easily stop the payments. And by not accepting a standing order payment how, exactly, do they expect to get payment from you in a fair way? QED, they are preventing you from paying. Hope that made sense.

FOS can be contacted by phone, but use their landline cos one is a higher rate number.

Oh, if I sound cynical I have learned to be where all these things are concerned. It pays to keep yourself abreast shall we say.

http://www.oft.gov.uk/

http://www.financial-ombudsman.org.uk/

julie196143

Yes it all makes sense thanks.
I understand you being cynical, gotta be in the know where these company's are concerned.
Thanks for all that, very helpful!
I will take a look at those web sites and read up on it all.
Thank you so much for all your advice and info.
I will get back to you to let you know how I get on.
Cheers!