Strange response from Nationwide re. cancelling CPA for PayDay Lenders

SuzyCat

I sent them an email and called last Thursday requesting that the CPA be cancelled, using a template letter..

First I get this response:

Thank you for your message.

Can you confirm the last date these companies debited your account? Once I have this I will be able to update our system to cancel future payments for you.

Regards

So i responded with dates. Then today I get this response:

Dear Member,

Thank you for your message.
Unfortunately Nationwide is unable to stop these payments from being debited from your account. However, now that we have received notification from you to cancel this payment, going forward if any future payments are debited, please inform us and we will arrange to refund your account.

I would recommend that you contact the retailer or company to ensure that they are aware of your intentions to cancel your payments.
If you have any further queries or concerns then please contact me on the number below.

So will they be authorising them or not?!?! I'm confused. But at least I have in writing that they will issue a refund and also I have a named person at bottom of email!

fermi

They obviously don't have systems in place to proactively block payments yet. A lot of banks have allegedly yet to get that technicality sorted, so in the meantime they are forced to promise to refund/reverse any that do occur.

As they say, would also be a good idea to cancel the CPA by informing the lender, so in theory they should not attempt to take payments in the first place.

FireWyrm

Pft. Incompetant idiots.

They are required by law to act on your request to cancel a continous payment authority. Anyone who says otherwise doesnt know what the hell they are talking about. I suggest you go into the branch and talk to a real human who presumably posesses a brain and the necessary training to do what you are asking.

See here : http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments

The FSA has made itself quite clear on the subject. Insist the Bank do what it has been told and stop the creditor taking the money from your account illegally.

Refunds are frankly not acceptable. They should by now have processes in place. My guess is that the numpty you spoke to is still under the impression (wrongly) that you have to cancel it with the vendor.

Edit 2 : see also : http://www.which.co.uk/news/2012/05/credit-card-payment-cancellations-banks-fail-test-284961/

Edit 3 : See this : http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf

SuzyCat

fermi wrote: »

They obviously don't have systems in place to proactively block payments yet. A lot of banks have allegedly yet to get that technicality sorted, so in the meantime they are forced to promise to refund/reverse any that do occur.

As they say, would also be a good idea to cancel the CPA by informing the lender, so in theory they should not attempt to take payments in the first place.

I have emailed each of the lenders too but only had response from one! Hardly a surprise!

Asbestross

Hi SuzyCat,

Unfortunately many PD lenders will hide behind "system issues" or delivery delays when it comes to correspondence sent via email. To ensure they act upon this, you'll need to send a letter via 'signed for' royal mail, removing their Continual Payment Authority.

Do this as soon as possible, if further debits are attempted after they have received this letter it is Theft, pure and simple and can be reported as such to the bank and authorities.

Good luck

EDIT: The bank should action your request regardless, but I like to cover all angles

Lensman_2

I usually don't quote chapter and verse of the law where I can possibly avoid it - but you may actually get a better outcome by including a reference to the Payment Services Regulations 2009 in Asbestross' letter.

It seems that most of the high street lenders haven't heard of it yet...
http://www.bbc.co.uk/news/business-17870704
Let alone PDL companies...

DevCoder

Section 55, Clause 3 (Clause 1b is the creation of the CPA, Clause 3 revokes that right)


55.—(1) A payment transaction is to be regarded as having been authorised by the payer for the purposes of this Part only if the payer has given its consent to—

(a)the execution of the payment transaction; or
(b)the execution of a series of payment transactions of which that payment transaction forms part.
(2) Such consent—

(a)may be given before or, if agreed between the payer and its payment service provider, after the execution of the payment transaction; and
(b)must be given in the form, and in accordance with the procedure, agreed between the payer and its payment service provider.
(3) The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.

(4) Subject to regulation 67(3) to (5), the payer may withdraw its consent to the execution of a series of payment transactions at any time with the effect that any future payment transactions are not regarded as authorised for the purposes of this Part.

meer53

FireWyrm wrote: »

Pft. Incompetant idiots.

They are required by law to act on your request to cancel a continous payment authority. Anyone who says otherwise doesnt know what the hell they are talking about. I suggest you go into the branch and talk to a real human who presumably posesses a brain and the necessary training to do what you are asking.

See here : http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments

The FSA has made itself quite clear on the subject. Insist the Bank do what it has been told and stop the creditor taking the money from your account illegally.

Refunds are frankly not acceptable. They should by now have processes in place. My guess is that the numpty you spoke to is still under the impression (wrongly) that you have to cancel it with the vendor.

Edit 2 : see also : http://www.which.co.uk/news/2012/05/credit-card-payment-cancellations-banks-fail-test-284961/

Edit 3 : See this : http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf

The majority of banks do not yet have the facility to block CPA payments. Yes, bank staff are aware of the regulations stating that a customer can contact their bank to cancel a CPA. They are neither incompetant nor numpty's.

If the FSA had requested that banks have the available systems in order to do this before publishing their regulations then we wouldn't have to listen to people like you, insulting bank staff.

This situation has been discussed a number of times on the forums.

Nationwide have issued the correct response. Once the CPA has been cancelled with the retailer, any further transactions can be refunded. Until all banks update their systems, this is all that can be done. Doesn't matter what regulations are in place.

rizla_king

Don't accept any excuses from the bank.

http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

sarahlil

Have you had any attempts to take payments yet?

I sent Nationwide an email regarding the same thing this morning so any updates would be great!

DevCoder

Please dont email, I know they say its an accepted correspondence route but in honesty it really isnt

Ring them, take the name (first name would do) and log the time of the call when you request the removal of the CPA. Then follow it up in wiritng (signed for).