debit card transactions

meer53

The payday loan company will probably have an authorisation from before the card was cancelled which is why they've been able to debit your account. Whether they've done anything wrong depends on whether the payment has been processed as a CPA (continuous authority payment) There is a code on every transaction which shows whether it's a CPA or not.

It's no good advising your bank to refuse payments if you haven't advised the company concerned beforehand.

Gromitt

cazmc wrote: »

All I need to know is should my bank of authorised these transactions after they we're instructed not to and after the card reported lost.

The problem is that you guaranteed that the payments were to be made before you reported the card lost (ie, you authorised the payment at that point). So even if you cancelled your account, they would still be able to take the money, put you into unauthorised overdraft and then charge you even more money for that.

What you should of done is told the payday company you can't afford to pay them and that you need to enter a DMP with them. Just telling the bank "don't allow payments to leave my account" when you have a guaranteed payment is no good.

pqrdef

If people could take out payday loans and then just cancel their cards, the payday loan companies would be out of business in about 2 days.

PDL companies do not pre-authorise payments. If they did, the bank would put a hold on the money. There wouldn't be a lot of point in sending £200 to your bank account and at the same time locking out £200 of your available balance.

So the payments are not guaranteed. They can fail for insufficient funds, they often do, that's how people get into arrears with PDL companies.

But the card system works because merchants feel safe with it. If they felt they were at too much risk of not getting paid, they just wouldn't take cards, and the whole system would fall apart, to nobody's benefit.

So banks will not refuse a payment just because the card is expired or cancelled or because you have told them to stop the payment. That would just bring the system into disrepute.

If you report a card lost, they will still pay out if the transaction looks genuine. The claim for payment will include the date when the card details were taken, so if you want to stop a PDL repayment, you'll have to say you lost the card before you took out the loan.

But if you dishonestly report a card lost to try to stop a payment that you've authorised, you're liable to end up with a fraud marker and nobody will touch you. Bad idea.

So basically your word is your bond. Is there a problem with that?

pqrdef

cazmc wrote: »

advised to open new bank account

This is good advice though. Don't leave money where creditors can help themselves.

Everybody should have their income paid into a savings account at a bank that they don't use for anything else. This can be a lifesaver if you ever need it, but it'll be to late to arrange it then.

dalesrider

Buzby wrote: »

If you told the bank the card was lost, this would not have happened as all transaction on the card number would cease. The customer loses control when handing over any card number.

Oh how I wish I had a £ for everytime I hear someone say report card as lost and it will stop payments....:rotfl:

PDL co's and any co that processes can get round this very easy.
Both Visa and mastercard have systems that allow retailer to simply request the new card details and process transactions.

But to assist the OP.
Under FOS advice if you told your bank that no further payments were to be made to the PDL co's and they took payments afterwards.
You need to raise a complaint under PSD. Odds on that the PDL will not be CPA. They tend not to process as this.
But be aware any returned by the bank can be rejected by them. Or they simply could take you to court and get a CCJ against you.