Continuous Payment Authority (CPA)

yellow29_2

Advice needed please! In October last year I took out a £200 loan with Pounds to Pockets and have been paying almost £40 a month for the last 6 months. This was set up with a CPA. Unfortunately our money problems have got worse and after a long and very useful conversation with StepChange last Friday I was advised to contact all my creditors and offer £1 per month until things improve. I have cancelled what I can and am using the template sent from StepChange to write to everyone with my offer. My problem is Pounds to Pockets and the CPA. I have spoken to my bank twice to try and cancel it so that I can write to them with the offer advised by StpetChange but they have refused to cancel the CPA saying they cannot cancel it and that I have to contact Pounds to Pocket. This I will do when the CPA is cancelled because if I ask them to cancel it now, they will, I am sure, say no! Is the bank correct? I know I will have to clear this debt as I do owe the money but would like to cancel the CPA and come to a more affordable arrangement with Pounds to Pocket. Any advice would be helpful and many thanks for reading.

DCFC79

So why not contact P2P with the template latter ?

Or am I missng something

~Beanie~

Your bank is wrong, they CAN cancel a CPA:

The FSA and continuous payment authorities

Earlier this year the Financial Services Authority (FSA) confirmed that under the Payments Services Regulations (PSR), a customer can cancel a continuous payment authority by contacting their bank or the card issuer.
Once you’ve told the bank to cancel the authority, it becomes an ‘unauthorised transaction’ and the bank shouldn’t make any further payments. If the bank does make a payment they’re in breach of the PSR and you’re entitled to an immediate refund (or slightly later if it’s a credit card payment).
The banks have now accepted this as their obligation under the PSR. Unfortunately the technology isn’t in place yet for the bank to be able to stop the payment if the payday lender requests it but the bank must still re-credit you with the payment.
In the future the banks will change their technology so they can stop any payments, but unfortunately we’re not sure when this will be available.


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


You need to speak to someone who actually knows what they are doing!

antrobus

yellow29 wrote: »

.... I have spoken to my bank twice to try and cancel it so that I can write to them with the offer advised by StpetChange but they have refused to cancel the CPA saying they cannot cancel it and that I have to contact Pounds to Pocket. This I will do when the CPA is cancelled because if I ask them to cancel it now, they will, I am sure, say no! Is the bank correct? ...

According to Stepchange banks don't yet have the technology 'in place' to be able to stop payment under a CPA. So the bank is correct to say that it can't cancel it.

But have a look at what else Stepchange have to say on the subject.

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

gb12345

yellow29 wrote: »

I have spoken to my bank twice to try and cancel it so that I can write to them with the offer advised by StpetChange but they have refused to cancel the CPA saying they cannot cancel it and that I have to contact Pounds to Pocket. This I will do when the CPA is cancelled because if I ask them to cancel it now, they will, I am sure, say no! Is the bank correct?

Take a read of this and the links.

Legally your bank have to cancel the CPA if you ask them to. If the person (probably a brainless call center monkey) you speak to refuses then I would get their name and advise them that you will be making a formal complaint and advising the FOS that they are breaking EU regulations and then ask to speak to their manager, who hopefully might have access to the departmental brain cell.

You can also claim back any payments taken since you advise the bank of your wish to cancel, so keep a note of the dates that they refused.

matttye

antrobus wrote: »

According to Stepchange banks don't yet have the technology 'in place' to be able to stop payment under a CPA. So the bank is correct to say that it can't cancel it.

But have a look at what else Stepchange have to say on the subject.

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

It's not the customer's problem that the bank doesn't have the technology in place. The Payment Services Regulations 2009 is four years old so they've had four years to update their systems to enable customers to cancel CPA's as the law dictates customers have the right to do. Why havent they done this?

The bank should therefore be telling customers they don't have the technology to cancel the transaction but they will immediately refund customers when it leaves their account, not just saying they can't do anything about it, which is a blatant lie.

I suspect the same right was given by earlier legislation too, although I wouldn't know what act.

*Foolish*

I managed to cancel a CPA with my bank, the first person I spoke to wasn't sure if they could, so she passed me onto someone else, who was very helpful, she cancelled it for me, but obviously gave me the advice that the lender may take action.

fermi

Worth reading.

http://www.paullewismoney.blogspot.co.uk/2012/04/the-continuous-payments-racket.html