In a Mess

MrsSmith2013

I'm after some advice on behalf of my sister. She is in a bit of a pickle with money at the moment.

One of the main problems is that her current account with the TSB has a £900 overdraft, which she is living in. The TSB have been continuing to make payments out of the account putting it £600 over the £900 authorised overdraft this month.

My main question is, can they do this? Surely if the account is at the overdraft limit, they shouldn't still be allowing payments to leave the account?

She has opened another bank account for her wages to go into, but she's receiving daily letters from the TSB now, which she's not even opening. I've offered to help her, but will need to sit down with her and go over what she has coming in and what is going out.

I had my issues with the TSB when I was younger, so I know they're pretty terrible and am keen to help her.

Any advice is appreciated.

timetogrowup89

I think if it is a 'continous payment authority' then they can still take the money even if it puts you over your overdraft.. Who were the payments too?

MrsSmith2013

What is a continuous payment authority? Sorry if thats a daft question!

I think they were for mobile phone bills and payday loans.... another part of her situation which isn't good.

[Deleted User]

They can, at their discretion, return SOs and DDs unpaid, or pay them, which will, in either case, involve charges.

Your sister needs to contact LTSB, ASAP, to discuss available options.

MrsSmith2013

Thanks Bob... would it be best to call or write? I always used to write to them when I had my "issues" with them, just so I had proof, but I wasn't getting letters every single day.

timetogrowup89

MrsSmith2013 wrote: »

What is a continuous payment authority? Sorry if thats a daft question!

I think they were for mobile phone bills and payday loans.... another part of her situation which isn't good.

Im not 100% sure to be honest, just remembering reading about someone in a similar situation to your sister on here. think it gives companies more power to request the money that what a direct debit does...

http://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

Im sure someone else with more knowledge will be along to help you soon...

I would make sure she contacts the bank to cancell all direct debits leaving that account and contact the companies of essentail direct debits to get them to collect from her new account.

[Deleted User]

Probably best to make an appointment, and speak to someone, in person, at the branch.

Also, in future, if she realises she is going to go over her overdraft limit, she should visit the branch, and try to arrange an increase in her overdraft limit, before the payments go out, thereby avoiding the unauthorised overdraft fee(s) and interest.

sourcrates

timetogrowup89 wrote: »

Im not 100% sure to be honest, just remembering reading about someone in a similar situation to your sister on here. think it gives companies more power to request the money that what a direct debit does...

http://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

Im sure someone else with more knowledge will be along to help you soon...

I would make sure she contacts the bank to cancell all direct debits leaving that account and contact the companies of essentail direct debits to get them to collect from her new account.

A continuous payment authority is when you give a company your debt card details in order to pay a debt you owe them, that means they can take the money you owe them at any time agreed with you, or if you default, at any time to suit them.
You can cancel a CPA but you have to contact your bank and inform them who the creditor is etc, they will do this for you if asked, but it doesn't always work.
Lots of people on here had these type of problems particularly with pay day loan companies, the only sure way is to cancel your card and get a new one from your bank, but even then creditors can clean out your account by setting up a direct debt, which is also a CPA you will have given permission for when you agreed to there terms and conditions.

Vikipollard

She needs to cancel the continuous payment authorities (the payday loans will definitely have those). Mobile phone may be solely a direct debit - not sure.

Cancelling her card will NOT work. You only need to read on here the number of threads where someone 'loses' their card after taking out a payday loan, cancels it and is then surprised the bank still pays the creditor. Payday loan companies are all too wise to that one, hence the continuous payment authority. It will just carry on despite the new card.

I believe the banks have to cancel to CPA if asked to - they may try to b*llsh*t her that they can't, but the can and they must.
Never tried to cancel one myself as fortunately payday loans didn't exist when I got in a mess with money, but there's a sticky I think on this website which quotes the rule about banks having to cancel a CPA.

harrys_dad

A full statement of affairs posted on here would be really helpful, listing all income, outgoings and debts. It is next to impossible to give decent advice with only half the information. Why not persuade her to sign on here and get advice directly?

MrsSmith2013

Thanks for the replies and advice. She's coming to mine tonight so we can look at it all together.

She's a difficult person to deal with Harrys Dad, I can almost guarantee she won't sign up on here. Everything with her is a load of crap / s^&t / pointless. To be honest, she's only reluctantly dealing with the bank because its driving our mum mad getting all these letters and phonecalls to her house and my sister just completely ignoring them. She has a completely blaise attitude to literally everything, and without us trying to nudge her into sorting it out, she'd just leave it.

I'll try and get her to do an income and expenditure with me tonight and post it up here. She stays at home with our parents rent free, her only outgoing should be a £165 per month bus ticket for communting to work, and I think her earnings are around £1000 a month... how someone couldn't live a comfortable life on that is a mystery to me, but I suppose we are all different. She smokes and is out every weekend so I guess that accounts for some.

Will pop back later, and hopefully she will have managed to stop the CPA's if we can get on to the bank today.