Illegal account access ???

ukmartian

My daughter has a loan account to which i stupidly agreed to be a guarantor...unfortunately she missed last months payment and as i am UN-employed with NO benefits or income i was unable to pay the arrears..
My wife also has a account with the loan companies SISTER company ...she is not a guarantor to my daughters loan and the 2 accounts are completely separate..It transpires that last week the loan company accessed my wife's details from its sister company , phoned my wife divulged the fact that my daughter's account was in arrears and requested her to make the payment for my daughter . She refused as she had no knowledge of the account as both companies have different names.Today my wife discovered that my daughters Loan company has accessed her (my wife's) bank details from its sister companies records and taken the arrears from her (my wife's bank account)...Is this legal?? I consider it as theft as they had no permission and possibly fraud breach of privacy ..we have contacted the bank who are trying to reclaim the funds and the financial ombudsman ....plus a letter of complaint is on its way to the company recorded delivery ...Do we have a case , not because we cant pay , but the UN-ethical unauthorised access to my wife's bank account and disclosure of our personal account info to a third party...
thanks in advance

CKhalvashi

It needs to be put in a complaint to the loan company, and the bank should deal with it. Give Action Fraud a ring, and the FCA.

CK

ukmartian

Thanks ..I will follow up your advise ....We have already got a letter for the Loan company to be followed by a written copy with recorded delivery But i want to make sure that what they have done is illegal and not a twisted loophole in the regulations they are exploiting at my wife's expense

CKhalvashi

ukmartian wrote: »

Thanks ..I will follow up your advise ....We have already got a letter for the Loan company to be followed by a written copy with recorded delivery But i want to make sure that what they have done is illegal and not a twisted loophole in the regulations they are exploiting at my wife's expense

Recorded isn't necessary.

Second class with proof of postage (free from a post office) is.

It's cheaper, and has the same effect.

CK

poppasmurf_bewdley

Having read your post, it just occurred to me: Are any of the accounts concerned joint accounts, ie does your wife's account also have you or your daughters name, or does the loan have any joint signatures?

If they do, then the loan company would be within its rights to access them and offset one against the other.

If there is no connection other than surname and address, then I would think the loan company has acted illegally.

One other thing: Is the company concerned a bank? If so, which one?

gb12345

Looks to me like the OP and his wife have separate bank accounts (he mentions "my wife's" account).

She should report this to her bank as an unauthorised fraudulent transaction - she is not a party to the loan, so the loan company have no right taking money from her account.

Follow that up with a complaint to the ICO about DPA breaches:
1. The loan company revealing details of the loan to your wife.
2. Misuse of your wife's data.

ukmartian

Its complicated ...a few years ago my wife needed a loan quick and my daughter agreed to be guarantor for her . but my wife has always made the payments ...My daughter then needed a loan for college equipment etc and I agreed to be guarantor for her as there had been no problems with my wife's loan so my wife is a not a guarantor for her I am and she is not named on my daughters loan details or has access to the account neither are her bank details on my daughters account ,...in fact the loan companies have different trading names , but are connected ...in my opinion someone has, linked the surnames and address between my wife and daughter and blatantly used my wife's account to pay my daughters arrears....I wish that I had never allowed them to get mixed up in these companies having read a lot about them ....

ukmartian

We have ....lol ....they said they will return the funds ..£200 is a lot when you are unemployed

ViolaLass

OP, did you get the money back?

Pixie5740

Whilst you're getting this sorted out your wife should contact the bank and tell them to cancel the Continuous Payment Authority (CAP) that is set up on her debit card otherwise Amigo will continue to take money from her account.

Fruit_and_Nut_Case

ViolaLass wrote: »

OP, did you get the money back?

Pixie5740 wrote: »

Whilst you're getting this sorted out your wife should contact the bank and tell them to cancel the Continuous Payment Authority (CAP) that is set up on her debit card otherwise Amigo will continue to take money from her account.

I think the OP abandoned this thread last November, although it would be nice to know the outcome.