Extraordinary response from Barclays to my instruction to cancel a cpa

willpaysoonIhope

First of all, this is my first post here, but I have spent some time recently reading all the good advice posted. Thanks for that.

Anyway, after much soul searching and talking with the National Debt Line, I decided that the only way to deal with my debt situation and continue to feed my child was to break the PDL cycle, so that they could be dealt with via a repayment plan. As, like so many, this decision was made immediately prior to my wages being paid into my account, I had no time to set up a new bank account and transfer everything over to it. So today I popped along to Barclays, clutching a letter of instruction to cancel my cpa to one of the well known PDLs as is my right under FSA rules.

This is a direct cut and paste quote from the FSA website:

"However, you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments. Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments."

First of all it is not possible to deal with card issues directly with bank employees in branch - they have to phone the cards section at their head offices. So after a frustrating 20 minute wait while the Barclays assistant was on hold she finally got put through to a representative from the Customer Payment Solutions section. Let me be clear here, the lady concerned was very nice and polite, and whilst I may be amazed by the conversation that followed, she was only following the instruction laid down by her bosses.

I told her I want to cancel my cpa - to which she replied "you can't because it is to a financial institution"

I told her that she was wrong, and that under the FSA rules I have the right to cancel the instruction no matter to whom it is related. She went away and then came back and told me "we can cancel the cpa from our end, but there is no guarantee that it will work" she also added "99.9% of the time it does not work" :eek:

I said that I will be forced to empty my account before the PDL attempts to take money - to which she replied "you will likely find it is paid, and you will go into overdraft". "OK" I said "I don't have an overdraft facility" to which she replied "it will probably go into overdraft without the facility" - excuse me, what???????

Anyway to this I replied "good, your interest rates are much much lower than theirs, will give me a chance to pay things back quicker" - she laughed.

So when payday comes I will empty my account, not sure what to do about the DD that comes out the day after, because if I leave enough to pay that then the PDL will probably snaffle it.

I need to set up a new account, unrelated to Barclays (or Natwest :embarasse ). I'm unsure who to use or how long it takes to set things up and get everything moved over. Additionally I have to work, so it's not like I can spend all day on it like I did today (day off) If my weekly tax credits get snaffled I will be in deep trouble.

Anyone care to comment about Barclays response?

Also advice about a new bank account would be welcomed.

willpaysoonIhope

oh and I also handed them the following letter - which the assistant really did not wish to accept, but I insisted - sensitive info and the PDL name has been removed:

---

address line 1 etc.

28th June 2012

To Barclays Bank plc

Re: (PDL firm name) Continuous Payment Authority

Dear Sir,

With this letter I cancel any and all continuous payment authorities to the benefit of (PDL name) and any associated companies with immediate effect, as permitted under the FSA rules.

With this letter I also cancel any Direct Debit instruction that may have been set up with respect to (PDL name) and their associated companies. I currently have no knowledge of any such instruction existing.

I also permanently refuse any re-activations or future continuous payment authorities or direct debit instructions to (PDL name) and their associated companies.

I have written to (PDL name) via recorded mail to inform them of this action, and to cancel the continuous payment authority from their end. Should they not comply, Barclays must refuse payment without cost to me. Any payment made to (PDL name) from my bank accounts (listed below) will be termed a breach of my instructions under the FSA rules and will be reported, and compensation claimed, including the cost of failed direct debits due to insufficient funds if unauthorized payments are made.

Unfortunately, based on information available about this company, it seems likely that requests for payment will be made. All such requests must be refused from this date forward.

Arrangements to pay outstanding monies to (PDL name) will be negotiated between myself and (PDL name), and will only be made via cash giro credit.

This cancellation applies to all of my Barclays accounts, which are as follows:

(info removed for security)


Yours Faithfully

---

The assistant tried to argue the contents of the letter with me, particularly with regard to the setting up of future direct debits, to which I replied "This is my instruction which I am giving to you. If as a result of this instruction matters are taken to the FSA, then it is up to them to decide if I have made an unreasonable request"

jonesMUFCforever

Branch counter staff cannot stop a CPA - you should have telephoned their card services department to cancel.
If the payment goes through you complain and card services should refund it for you.

Calm down!

willpaysoonIhope

JonesMUFCforever, I was speaking to the card services dept, as they were phoned by the lady in branch on my behalf. Sorry I thought that was clear from my post.

meer53

Have you set up a repayment plan with the PDL company already ?

It's ok telling banks and PDL companies that you don't want to pay them but unless they are aware of your action they will just take any amount that is owed from your account, whether there is enough to cover it or not.

willpaysoonIhope

I took advice from the National Debt Line. Their advice is the same that can be found throughout this forum - which is to safeguard the money you receive from plundering by the non-priority lenders, and then to work out a debt management plan. The PDL will be informed before their allotted payment date.

I chose my username carefully because I am taking actions that will allow me to pay off all my debts, but the time scale of that is uncertain. In the meantime I must be in a position to look after my child and feed her etc. I'm not trying to avoid these debts, or to wriggle out of them, merely to make them manageable in the short term until they can be paid in full.

However the point of the post was to highlight that Barclays appear not to be following the FSA rules, in fact they seem to be blatantly flouting them in the case of the recipient of the cpa being in the financial services "club". Makes me wonder how many funny handshakes go on between the owners of the PDLs and the bank bosses.

Based on the fine imposed on Barclays by the FSA this week, it has become very clear that they already think they are above the law. Nice to see that they were wrong in that instance.