Having difficulty cancelling CPA through HSBC

freeofdebt1

Hi,
Can you help please, I am having difficulties with cancelling a CPA with a payday loan. I bank through HSBC. I have called HSBC twice and both times they have basically fobbed me off stating that legally they cannot cancel a CPA until the money has gone out of my account. When the money leaves my account they said they will try and reedem it. Can anyone advise me please as I have read under an act provisioned in 2009 consumers can cancel CPA's themselves.
Much appreciated

halifax71

Might be useful

http://www.oft.gov.uk/business-advice/treating-customers-fairly/cpa-principles/#.Up3shMlFAdU

National_Debtline

Hello there.

Continuous payment authorities are covered by the Payment Services Regulations 2009. These regulations set out how payment service providers, such as banks, building societies, credit card companies and so on, should operate payment systems.




The Payment Services Regulations make it clear that you can withdraw your permission for a payment, or series of payments, to be made using your debit or credit card. The regulations say the following about consent.

• “Part 55 (3) The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.
• Part 55 (4) Subject to regulation part 67 (3) to (5), the payer may withdraw its consent to the execution of a series of payment transactions at any time with the effect that any future payment transactions are not regarded as authorised for the purpose of this Part.”
• Part 67 of the regulations deals with time limits for stopping payments. For continuous payment authorities, this will usually be the end of the business day before the payment is due.

In the Financial Services Authority booklet Bank Accounts Know Your Rights, it states:
“In most cases, regular payments can be cancelled by telling the company taking the payments. However, you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments. Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments”.

Use the following letter to contact the bank:

(Your home address)
____________________________
____________________________
The Date

To: _________________________
____________________________

Dear Sir/Madam
Card No: _________________________
I am/we are writing to advise that with immediate effect, I/we withdraw my/our authority for all future payments to be debited from the above card number by (name your payday lender here). This is in accordance with my/our rights under the Payment Services Regulations 2009, which state:
“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”
I/we also understand that should you not action my/our instruction, “any future payment transactions are not regarded as authorised for the purpose of this Part” and I/we shall seek an immediate and full refund.
Please confirm in writing that this instruction has been received and actioned.
I/we look forward to hearing from you.
Yours faithfully
(Your signature)

I really hope you find this information useful,

Best wishes,

David @ NDL.

rizla_king

freeofdebt1 wrote: »

I have called HSBC twice and both times they have basically fobbed me off stating that legally they cannot cancel a CPA until the money has gone out of my account.

That is complete bollux. They have a duty to cancel it. If they haven't put systems in place that allow them to do that then that is their own stupid fault. If they allow payments to go out then they have to immediately refund them and put right any costs you have incurred from their failure.

jonesMUFCforever

OP are the funds in the earmarked stage when you have tried to cancel?
If so the bank is correct. Earmarked funds cannot be stopped until they have been debited to an account - some earmarked funds never debit an account and drop off.