Breaking a "Continuous Payment Authority" debit card transactoin

blckbrd

Glad it worked out for both of us!

I actually think staff know they should cancel but there's some stupid policy to try not to.

As fas as I'm concerned, it's not for the the bank to decide to make payment on a contract they're not party to except to act as a wallet. And unless the contract is with the bank that's all they ever are in any transaction.

maisiemog

I'm going through this with Lloyds at the moment. I wrote to them cancelling several CPAs as I wanted to have control of my money. They wrote back to me saying they were unable to do this. Since then over £200 worth of payments have left my account. I have written bak to them informing them thy had to legally cancel them on the date of my first letter and that I am entitled to a refund for the money they allowed to leave my account! Now waiting to hear from them but not expecting them to be very forthcoming with giving me my money back! Mind you I did say that I was making a formal complaint and that if they didn't I was reporting them! After this weeks pay all my money is going into a Barclays account anyway so it should be safe! An I likely to be successful in cancelling the CPA and getting my money back?

meer53

maisiemog wrote: »

I'm going through this with Lloyds at the moment. I wrote to them cancelling several CPAs as I wanted to have control of my money. They wrote back to me saying they were unable to do this. Since then over £200 worth of payments have left my account. I have written bak to them informing them thy had to legally cancel them on the date of my first letter and that I am entitled to a refund for the money they allowed to leave my account! Now waiting to hear from them but not expecting them to be very forthcoming with giving me my money back! Mind you I did say that I was making a formal complaint and that if they didn't I was reporting them! After this weeks pay all my money is going into a Barclays account anyway so it should be safe! An I likely to be successful in cancelling the CPA and getting my money back?

When you set up a CPA with a company, it is YOU who is agreeing to make the payments. The card issuer doesn't have any input in this arrangement at all. This is why they can't cancel the payments. How do you expect the payments to cease if you haven't notified the company who are collecting them ? The card issuers don't have the authority to cancel an agreement YOU have set up.

The FSA regulations advise that they can do this, but i don't know of any bank that has systems in place to do this yet. The card issuer would have to monitor your account on a daily basis to be able to cancel CPA payments which come through. I don't know of any bank which offers this service either. Years ago, we used to monitor accounts monthly for CPA payments, and as long as we had on record that the customer had cancelled, we used to charge them back. Due to the huge rise in CPA payments, we can no longer do this.

If YOU contact the company concerned to cancel the CPA, then notify your card issuer that you have done this, if there are any further debits, your card issuer can refund you for these under PSD regulations,and they will then dispute it with the company concerned.

fermi

maisiemog wrote: »

After this weeks pay all my money is going into a Barclays account anyway so it should be safe! An I likely to be successful in cancelling the CPA and getting my money back?

Complain to the bank. The payments were unauthorised and they are obliged to refund them.

If they refuse, then take the matter to the FOS.

fermi

maisiemog wrote: »

I'm going through this with Lloyds at the moment. I wrote to them cancelling several CPAs as I wanted to have control of my money. They wrote back to me saying they were unable to do this.

http://www.bbc.co.uk/news/business-17870704

When Money Box contacted Lloyds TSB, it said it was the bank's policy to cancel a recurring transaction if a customer requests it:

In a statement, Lloyds TSB said: "We apologise that there have been occasions recently where the guidance we have given customers has not reflected our policy. We will be communicating the correct procedures to all colleagues as a matter of urgency.

"We are aware that the current terms and conditions for a number of our products do not reflect our policy on recurring transactions; however we can confirm that these will be updated in due course."

maisiemog

So I am right that they have to refund me any charge made from the date the they received my original letter cancelling the authority? Ad can't charge me for the fact that they put me into overdraft by allowing the payment which then causes a direct debit to bounce?

And I would like to clarify to that I am paying these companies, just not by debit card as I would like to be able to keep some of my money to feed my children and pay my rent! I pay all my debts back £10 a week which is all I can afford at present and does mean I am paying back over £600 per month on my debts!

FireWyrm

maisiemog wrote: »

So I am right that they have to refund me any charge made from the date the they received my original letter cancelling the authority? Ad can't charge me for the fact that they put me into overdraft by allowing the payment which then causes a direct debit to bounce?

And I would like to clarify to that I am paying these companies, just not by debit card as I would like to be able to keep some of my money to feed my children and pay my rent! I pay all my debts back £10 a week which is all I can afford at present and does mean I am paying back over £600 per month on my debts!

The law is clear on the matter but you have to fight the bank for it. They will eventually comply, but they will fob you off and claim that they cant help.

Start sending letters. They HAVE to do what you have asked regardless of whether they have 'processes' in place or not.

Alongside this though, you could move banks and ringfence your income one month leaving the old account open with the CPA on it. This was the old way of stopping these things. Essentially, doing a flit to another bank so they cant physically take the money at all.

susieanne

I wrote on here for help on this subject a while ago , hsbc no matter how many times i rang them and whatever i quoted them they kept saying they could not cancel my continious payments it was so annoying

In the end i reported my card stolen which i was told several times on here that reporting a card stolen would not stop a pay day company taking my money

Just an update 3 months down the line the pay day company was unable to take any money , they tried everyday for weeks but they got £0 . I now have a payment plan in place .

Glad you got yours sorted

maisiemog

I have switched banks! My wages and tax credits now go into the new account and this week is the last week that my husbands wages will go into that account. I'm just fuming that the bank think it is ok to break the law and then not do anything about it! I bet if it was the other way round they would soon be down on me like a ton of bricks for their money!

FireWyrm

maisiemog wrote: »

I have switched banks! My wages and tax credits now go into the new account and this week is the last week that my husbands wages will go into that account. I'm just fuming that the bank think it is ok to break the law and then not do anything about it! I bet if it was the other way round they would soon be down on me like a ton of bricks for their money!

They would indeed. It has always annoyed me that someone can just continue to take money from my account and the bank is utterly unable to do as I have instructed, after all, who's money is it!

In the news this morning for instance, Barclays have just come clean about a culture of avoidance when it comes to the banking rules. Barclays have been actively avoiding them, ignoring them and misleading not only their own customers, but investigators as well. Lovely.