cancelled a cpa

hannibal1970

hi

I cancelled a continuous payment authority with my bank over the phone but the payment still went through I was told it woudnt go through and if it did I would be refunded

I wasn't refunded and it let me go overdrawn by £500

I rang back but was fobbed off telling me something like it was a guaranteed payment so it went through

and I have to pay back the £500

my question is can they do this and why wasn't to payment declined

I have since changed banks but iam still paying them the £500 back could I get compensation?

grumbler

First time you were told correctly.
A card payment can't be declined and has to be refunded after it's taken.

Yes, you can demand a full refund of £500 plus all related charges (if any) plus compensation for being fobbed off and getting runaround. If it really was a CPA, not a single/first authorised payment, there is no such thing as "guaranteed payment".

What sort of subscription it was with such big continuous payments?

MSE article:Continuous payment authority: manage recurring payments

agrinnall

I'd guess it'll be something like motor or house insurance, with an annual renewal.

hannibal1970

it was for a final payday loan payment that I was disputing and didn't want it paying

yes I think I will make a complaint as request a refund thanks for the help

grumbler

hannibal1970 wrote: »

it was for a final payday loan payment that I was disputing and didn't want it paying

If so, for a CPA cancellation this is irrelevant. What matters is that you requested the cancellation. Everything else is not your bank's business.

Yet another MSE news: 'About bloody time' - payday lending

The new FCA regulations
The FCA takes over credit regulation from the OFT next April. It's turning the OFT's guidance into firm regulation. The new rules are subject to final consultation until 31 December, but are likely to go through unchanged, they include:

• ...
• Stopping lenders continually grabbing money direct from bank accounts. The number of loan repayments lenders can attempt to take from customer's accounts by continuous payment authority (CPA) is to be capped at two per loan – it can only take more than two payments if another agreement is reached between the lender and customer. Lenders must also only try to take full repayments.

Mind you, "next April" was April 2014, but I am not sure whether the new regulations came in force.

ETA: Payday lenders must comply with new rules from today, Apr 1, 2014

InsideInsurance

hannibal1970 wrote: »

my question is can they do this and why wasn't to payment declined

What is the timeline?

Card payments authorisation and funds leaving your account etc often dont happen within hours of each other. If the authorisation went through before the CPA was cancelled then the cancellation would take effect from the next payment.

hannibal1970

InsideInsurance wrote: »

What is the timeline?

Card payments authorisation and funds leaving your account etc often dont happen within hours of each other. If the authorisation went through before the CPA was cancelled then the cancellation would take effect from the next payment.

I cancelled it 2 weeks before payment was due

BMN

hannibal1970 wrote: »

I cancelled it 2 weeks before payment was due

I would call again. Chances are the person you spoke to previously was unaware of their procedures or misunderstood you.

If the issue still isn't resolved then make a formal complaint to the bank.