Bank failed to cancel CPA and now Im struggling! is this right?

Redpepper10

I cancelled a continuous payment authority with my bank about 3 weeks ago.

I informed the pay day loan company that I was in financial difficulty but was told they couldn't do anything until I defaulted.

The cpa has now gone out my account for over £250.
I called my bank to query and they are saying they can't do anything other than dispute it but as it was technically authorised payment to the company, Im unlikely to get my money back.

I pointed out that I had cancelled the CPA with them and they said they can't stop a payment unless I provide them with the exact amount. The payment varies every month so this isn't possible.

I also can't recall be asked by the advisor how much the CPA was for, I was just told it would be cancelled.

I now don't have enough money to see me through to next payday. A whole month away!

Is this right? I thought the bank had to refund me but they are saying they dont and all they can do is apologise for mis information.

An apology won't feed my two kids!

wannabee_in_credit

Do you have written proof that you cancelled the CPA?

Someone wiser than me will advise but I think the bank can get you the money back.

rizla_king

No, not right. Whoever you spoke to is spouting a load of bull.

Tell them that

• That on ***** date you gave a clear instruction to cancel the CPA for all future payments
• That the payment made was after that date and was therefore unauthorised under regulation 55(3) and 55(4) of the Payment Services Regulations 2009
• That you are entitled to an immediate refund of the amount and any penalties under regulation. 61

and that if they do not immediately refund then you will be taking the matter to the FOS and reporting them to the FCA.

Browntoa

this says they are wrong


http://www.fca.org.uk/news/continuous-payment-authorities-your-right-to-cancel

Payday loans

When taking out a payday loan, it is common for the lender to set up a continuous payment authority on a debit card. However, we sometimes hear of payday lenders varying the dates and amounts they claim from customers’ accounts and making repeated attempts to take payments.
Our findings revealed that some card issuers were calling continuous payment authorities set up with payday lenders ‘guaranteed payments’ and incorrectly refusing to cancel them when requested by their customers. Those card issuers have now agreed to end this practice.
You should be aware, no matter if the firm you are dealing with calls a continuous payment authority a ‘guaranteed payment’, ‘recurring payment’ or ‘recurring transaction’, it is still your right to cancel it directly through your card issuer.
What to do if payments are not cancelled

Any related payments taken after you ask for a continuous payment authority to be stopped are considered to be unauthorised transactions. Card issuers must refund these payments and any related charges immediately.
If payments continue, contact your card issuer to arrange a refund. If it fails to do so, you should make a complaint to the card issuer and, then, if you are not satisfied with its response, take the complaint to the Financial Ombudsman Service. Find out more about how to complain

Redpepper10

Thank you for the replies. I will contact them again tonight.

Is it true the bank needs an amount to cancel or is it just the actual cpa they cancel?
This is where they tell me they can't do anything!

I don't have written proof as they never sent me any but do have a note of time and date of call etc.

rizla_king

No it's not true. That is just the idiot advisor making things up.

Redpepper10

Hopefully I can sort something tonight and get my money back.

I'm not holding my breath though. The advisor was adamant.

rizla_king

They normally are, right up until the point they have to admit they are wrong.

If you get the same, demand that you speak to a supervisor/line manager. There is nothing in the regulations that says you must specify an amount. It covers all future use of that CPA, which can be any amount.

matttye

Redpepper10 wrote: »

Hopefully I can sort something tonight and get my money back.

I'm not holding my breath though. The advisor was adamant.

Just remember that you are in the right here, not them, and don't take no for an answer.

rizla_king

Also tell them that:

"by incorrectly allowing this payment it will result in you incurring other penalties, charges and debt. At the moment they can minimise this by refunding the payment, but if they unfairly delay then they will make themselves liable for these losses and that you will seek repayment of them in redress under the regulations, and in any formal complaint to the FOS."

Redpepper10

Nope they are still not budging! Saying they can't cancel and the company have to.