Co-Op Cashminder DR - Urgent help

TMO

Hello. I need some advice. I have a cashminder account. I have no money in my account. Last month a payday loan company took £87 from my account as a debit card payment and it has now put my account into £87DR. Co-Op is telling me I am liable for it as I should have had oney in my account. I am telling them that if I wanted to pay for it, than I would have had money in my account but I had nothing in my account so they should not have made the payment and it's a debit card payment, shouldn't it automatically refuse?

I contacted FOS and they contacted Co-Op on my behalf, I got the below letter a few days ago. Can someone advise me of my next step? I phoned Co-Op this morning and the women on the phone is telling me it's my fault and they gonna get a DCA after me and maybe court action even when I told her I am unhappy with the response letter and will be making a complaint to FOS again. How many people make a debit card payment today and it will fail cause you have no money in your account? Yet mine went through, and cause co op let it go through they are telling me it's my fault as they have a promise to pay but where is there promise to keep my bank account in order and protect my money when I have no money in my account? And can you imagine if debit cards did not fail, and everyone become overdrawn cause they accepted all payments? Madness.

Dear xx

Account number xx

Following your contact with FOS, details of a complaint you have raised have been passed to me to investigate in my capcacity of customer relations advisor. I am sorry that you had cause of complaint.

I under that your complaint is regarding the currently overdrawn balance of your cashminder account, details above. You are unhappy that the bank allows payments to debit your account when there are insufficient availiable funds, and this has caused your account to become overdrawn.

From looking at our records, I can see that on 4 june 2013, a card payment to xxxx (A payday loan company) for £87 debited your account, causing your account to become overdrawn by £86.96. We wrote to you on this date to advise you of this overdrawn balance and request that this be paid back immediately. We also wrote to you onj 17 june 2013 and on 26 june 2013, once again requesting that your overdrawn balance was repaid immediately. At the time of writing this letter, your account remains overdrawn.

Whilst I can appreciate your feelings on payments being made from your account without sufficient funds available, I must clarify to you the difference between card payments and automated payments, such as direct debits for example.

To breifly explain, when a card payment is made, effectively a "promise to pay" is given to a company for items or services you have received. This means we are always obliged to meet this payment and this is known as a "pending authorisation". Depending on the retailer, these "pending authorisations" are either for the full amount of the payment made or in some cases a smaller amount.

We will only receive notification of any payments made on your card from the retailer, and there is no other way for us to verify the amount spent. However, when we made aware of a pending authorisation, the funds in your account are meet this are "put aside". This means, however, in cases where we are only made aware of smaller amount than the payment made, the funds in your account to meet this payment can be spent or withdrawn prior to the card payment debiting. This could lead to your account becoming overdrawn.

Automated ayments, such as a standing orders or direct debitd, do not have such a delay in being debited from your account, and the full amount is always requested. Should there be insufficient funds to meet a standing order or direct debit from your cashminder account, we are not obliged to oay this and this will not be made. This means these types of payments can never cause you to become overdrawn but there would be a charge of £15 for items returned unpaid from your account.

Based on the information above, I can confirm that the overdrawn balance of your account has been incurred correctly and in line with our obligation to meet card payments made. It is also your responsbility as the customer to ensure availiable funds are in your account to cover all payments you wish to make. Any pending payments not yet shown as debited from your account should always be taken into consideration.

Therefore, as per your agreed terms and conditions, please ensure payment is made immediately to clear the informal overdraft on your account. If you are experiencing blah lblah.

I trust my letters clarifies blah.

If you remain dissatisfied, you may refer to FOS within six months of this better blah bllah/

Yours sincerely

xxx

customer relations advisor
On behalf of co op bank

bargainbetty

Work on the principle that if they didn't allow that repayment to a PDL company, you'd be up to your eyes in additional charges right now.

Sell anything of value, reign in your spending for a few months and be grateful that the Co-Op charges less than PDL companies.

You did have a responsibility to make sure the money was there, and you had to have given an agreement to pay for them to take the money by debit. What did you think was going to happen?

matttye

Have the Coop given you bank charges? It doesn't sound like it from your post.

If not, what are you complaining about? The Payday Loan company would have added whatever they thought they could get away with... you'd probably "owe" them £200+ by now.

I'd rather owe the bank money than a PDL any day of the week.

Besides this, this is standard banking practice, like they say.

Sorry, I don't think you have any grounds whatsoever for a complaint here.

[Deleted User]

More proof there is no such thing as a basic bank account?
You know an account where funds should surely not be released if there is not the full amount or no money in the account, that is what I'd hope a basic account means!
(queue the complaint)

The crying shame OP is that you didn't know about CPA

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

Amazes me, if OP had used this before funds were out, this wouldn't have occurred?

I remember the [EMAIL="C@-op"]C@-op[/EMAIL] very high and mighty when it comes to PDL's, they have yet to understand payday loans are classed as 'low priority' - hope OP was able to make priority payments first

OP the banks have to follow rules when it comes to instructing a DCA - what lovely ethical banking they have!

TMO

bargainbetty wrote: »

Work on the principle that if they didn't allow that repayment to a PDL company, you'd be up to your eyes in additional charges right now.

Sell anything of value, reign in your spending for a few months and be grateful that the Co-Op charges less than PDL companies.

You did have a responsibility to make sure the money was there, and you had to have given an agreement to pay for them to take the money by debit. What did you think was going to happen?

This has got nothing to do with a PDL and additional charges. This is why I don't use this forum much cause of morons like you. Get to the frickin point, this is about money being taken from an account when there was no money in there. Everything else is irrelevent. Don't bs me with "oh you would have got additional blah blah" that is not the point. Moron.

TMO

matttye wrote: »

Have the Coop given you bank charges? It doesn't sound like it from your post.

If not, what are you complaining about? The Payday Loan company would have added whatever they thought they could get away with... you'd probably "owe" them £200+ by now.

I'd rather owe the bank money than a PDL any day of the week.

Besides this, this is standard banking practice, like they say.

Sorry, I don't think you have any grounds whatsoever for a complaint here.

Oh look another one, instead of giving information you seem to want to discuss my PDL. Which is irrelevent. Stay on topic, not rubbish. I had no money in my account, I have no overdraft facility. Thus this should not have been paid. Banks don't owe a duty of care or promise to pay, I do. They owe a promise to pay if funds are there, not if there is not.

TMO

Deleted%20User wrote: »

More proof there is no such thing as a basic bank account?
You know an account where funds should surely not be released if there is not the full amount or no money in the account, that is what I'd hope a basic account means!
(queue the complaint)

The crying shame OP is that you didn't know about CPA

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

Amazes me, if OP had used this before funds were out, this wouldn't have occurred?

I remember the C@-op very high and mighty when it comes to PDL's, they have yet to understand payday loans are classed as 'low priority' - hope OP was able to make priority payments first

OP the banks have to follow rules when it comes to instructing a DCA - what lovely ethical banking they have!

I did think about CPA but to me it still should not have happend. I will be going through FOS and maybe court action. I refuse to pay this.

Anoneemoose

So OP, what does it say in the terms and conditions of your bank account regarding CPA's? Payday loans are not normally simple debit card transactions...they are continuous payment authorities for payment to a particular company.

IF your terms state in no uncertain terms that you cannot, in any way shape or form go overdrawn, then you may have a case. If not, it might be wise to get off your high horse.

Not sure your attitude is helping.

Anoneemoose

Anoneemoose wrote: »

So OP, what does it say in the terms and conditions of your bank account regarding CPA's? Payday loans are not normally simple debit card transactions...they are continuous payment authorities for payment to a particular company.

IF your terms state in no uncertain terms that you cannot, in any way shape or form go overdrawn, then you may have a case. If not, it might be wise to get off your high horse.

Not sure your attitude is helping.

Here is section 13 of the t&c's

13. Overdraft Services
13.1 We do not offer formal overdraft services on this account but if
you request a payment where you do not have sufficient funds available on your account and our systems allow it to be paid we
will not charge you even if the payment causes you to overdraw your account. If we do not make the payment we can charge you an unpaid item fee. Details can be found in our account charges leaflet.

Maybe you should have read these first instead of blaming the bank.