Capital Finance One/Ioweya - WAR

Youngest78

I’m after a bit of advice. First, a warning: there are factors in this story which infer that I have made some stupid decisions and mistakes. I acknowledge these and am in no doubt whatsoever as to my own responsibility for the mess I am in, so I would be grateful if any advice that was offered was free of judgement and/or lectures.

Some time ago I took out a payday loan of £250 with a company called Capital Finance One. My financial circumstances deteriorated to the point that I was unable to honour even the interest payments on the loan. At the time I was in a horrendous state and was applying for multiple payday loans, most of which I defaulted on. CFO tried to get the funds with my card details, but due to other similar circumstances I had to have the card stopped and a new one issued – the details of which CFO never got. Despite my default, I tried to keep them abreast of my situation and eventually, after a hell of a lot of head-banging and e-mailing and calling, they agreed to temporary payment plan of £20 a month, which I adhered to. Without any notice or warning they passed the debt on to a third party debt agency called Daniel Silverman, who contacted me about the debt, demanding full payment. I went through all of the same shenanigans with them and in the end they agreed to the same plan, £20 a month. I paid this regularly and then…..On my last payday a number of payments went out of my account which I did not recognise, amounting to some £400. Calling the bank, I found it was CFO who had requested many and random amounts. It only didn’t let them take a further £200 because they’d emptied the account.

I called CFO and they said they couldn’t discuss the account as it was with Daniel Silverman. I called DS and they said they wouldn’t be authorised to do such a thing so it must be CFO. I called CFO back and they said they had no record of my debt being with DS, even though they’d told me literally five minutes before they couldn’t discuss it with them on account of this. CFO claimed they had no record of any agreement with DS, and DS claimed they send evidence of the agreement to CFO on a daily basis and round and round it went.
Anyway, after a hell of a lot of ridiculous nonsense, I finally got to speak to an unspeakable cretin at CFO who basically told me the upshot was that they had applied for the funds because I had applied for another loan with them, thus violating the terms and conditions. I had no such recollection. The only loan I had applied for in the months preceding was once, in a moment of weakness, when I responded to a text from a compny calling themselves ioweya.com. I don’t recollect any information on the website, text or application suggesting who they were; obviously if I’d known I would never have applied. Anyway, I punched in my new card details when I applied.
This guy told me this was how they’d got the card details, and that they were entitled to use them. I won’t bore you with the rest of the conversation but it involved a lot of irate threats on my part and his. I argued what they’d done was illegal, he argued otherwise.

Now, can anybody on here tell me if they’re allowed to do this? I’m livid about the fact that although I screwed up with the loan, I played ball, kept in touch, set up agreements and honoured them – only for them to pull a stunt like this. The bank tell me there’s little that can be done if it’s a company I’ve a loan with; CFO say not only will they not refund any of it but they’re now demanding a further remaining £226!!!!!!! Which I’ve told them to go whistle for. All for a £250 loan. Now, I know this is all my own fault, the devil is in the detail, these companies are vermin etc – I know. But is it worth me taking them on over how they’ve recovered this £400 or am I in the wrong?

JustinCredibleGillespie

Sorry I didnt want to read and run. I can't really comment on what to do but personally I would close down your bank account, destroy that card and open a new one with a completely different bank. If you have defaults etc, this would likely prevent you from getting a full current account with another financial institution, Co-op would be your best bet

Although, I do think they are within their right to get their cash back whatever way they see fit from reading other posts on this site. Payday loans are a curse

KingElvis

You're in the wrong and now they've got it, they'll keep it.

Learn the lesson and don't mix with scummy grotty payday loans again.

[Deleted User]

Yup, they've taken the view they'd quite like their money back and managed to get most of it. You won't get it back.

But you do need to figure out how to pay them the rest and very quickly before it spirals again.

Youngest78

Even if I’m in the wrong I still want to know if what they’ve done is legitimate. I know that they won’t hand it back voluntarily now that they have it but it seems to me that what they’ve done is set me up through use of a dummy lending company that doesn’t show their details on it in order to get my new card details from me? How can that be ok?

[Deleted User]

I can't see they've done anything wrong. You've provided your card details to a company associated with them.

Youngest78

Yes but they have not put their name to that company. If it had read anywhere in the small print that they were owned by the same company i would hold my hands up, but there was no small print, nothing. In fact there was very little by way of any contact details at all. I'd reported them to the financial ombudsman before any of this even came to light; so now I'm fairly convinced that, like i say, it's a dummy site/facility.

JustinCredibleGillespie

You just need to be careful from now on. Just try and stay away from payday lenders altogether. I don't think there is anything you can do.

Hindsight is always 20/20.

chalkie99

I have just Googled Capital finance One and their terms are surprisingly easy to find and very clear in what they do to recoup their money. They don't seem to be very different than other payday loan companies, just a bit more upfront about it.

Basically, you are in the wrong and they are acting according to the terms you agreed to when you took the money. I'm sure that's not what you want to hear but it is how I see it.

The only way to protect yourself is to close your account and set up a new one elsewhere so they do not have access. Though, you would still, of course, owe the money.

ihateyes

What they have done is illegal...... end of.

You must complain to OFT and trading standards.
They are only allowed to take agreed amounts ie loan amount £300, than a £300 transaction. They cant try lower amounts...... I believe the OFT threatened fines against Toothfairy and Swift Sterling.

And to the above posters, if you defaulted on your credit card/ loan or mortgage, and you had made a one off payment, and one of these randomly hit your card would you still have the attituded of you owe, they got it??

http://www.oft.gov.uk/news-and-updates/press/2010/116-10

Specifically:


The OFT has imposed requirements on Tooth Fairy Finance which set out that it must not:

• vary the repayment date or amount payable in respect of the loan, unless this is specifically agreed in advance with the debtor

and

http://www.oft.gov.uk/news-and-updates/press/2010/142-10

This warning follows the OFT's decision to impose requirements on payday lender Safeloans Limited, trading as Paydayok.
Direct debit facilities are used by some payday lenders to give them greater control over the repayment of the short-term loan. This means that if a borrower defaults on the loan, the lender can make multiple attempts to take money from the borrower's account without agreeing specific amounts or dates with the borrower.
The OFT believes that some lenders use this 'continuous authority' as a way to bypass proper checks on a borrower's ability to repay. The OFT is also concerned that taking money from a debtor's account when they are already in difficulty could prevent them from meeting priority debts, such as rent or mortgage payments.
Safeloans Limited typically offers same-day loans of £50-£400 on a short-term basis. The requirements now imposed by the OFT on the company state that it must:

• only take money from the borrower's account on the date or dates set out in the loan agreement, unless otherwise agreed with the borrower in advance

Capital Finance One must be reported of the OFT..... now

chalkie99

ihateyes wrote: »

What they have done is illegal...... end of.

What you are saying is wrong in my view.

The requirements now imposed by the OFT on the company state that it must:
only take money from the borrower's account on the date or dates set out in the loan agreement, unless otherwise agreed with the borrower in advance

They were agreed in advance, at the very time the borrower agreed to the terms and conditions laid out by the lender.

Copied from their website:

You authorise us to collect any monies owed under the Agreement from any debit card account of which you have supplied details to us. We may make these attempts as frequently and at any time we choose while there is an overdue balance on your loan account, up until the time where the total amount collected equals the total amount owed. At this stage it will be deemed that your loan has been fully repaid. We do not have to give notice of these intended collection attempts.

He accepted the terms - end of.