118 118 CPA even though I cancelled card?

adz0rz

Hi Guys

Hoping for some help and advice.

I'm completing some necessary steps to enter into a DMP. One of these steps was to cancel my debit card so the payday lenders couldn't just dip into my salary as I don't have enough to pay them.

I cancelled my cards a few weeks ago. And from next month am being paid into a different account.

Today I noticed that despite cancelling my card 118 took nearly £200 out my account! - this is money that needs to be put towards priority debts.

I phoned my bank (Barclays) who were confused as how they could take a payment without having the new card details (and previous direct debits cancelled). After some escalations I had a manager tell me that as they are a payday loan company they have the right to dip into other accounts by other methods.

Surely this can't be right?! I demanded my money back that the bank allowed a payment on a cancelled card (or without card details)

Please help?

rizla_king

if you cancelled the cpa according to instructions here

http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

you can make the bank refund it as an unauthorised transaction

[Deleted User]

However, if you just cancelled the card, then previously authorised payments are still valid.

sourcrates

Regulation 55 of The Payment Services Regulations 2009:


Payment service provider’s liability for unauthorised payment transactions
61. Subject to regulations 59 and 60, where an executed payment transaction was not authorised
in accordance with regulation 55, the payment service provider must immediately—
(a) refund the amount of the unauthorised payment transaction to the payer; and
(b) where applicable, restore the debited payment account to the state it would have been in
had the unauthorised payment transaction not taken place.

Write to your bank, don't phone, write, stating the above.
The bank must refund you, the manager does not know what he's talking about.

Lemonsqueezer78

If this is a true Continuous Payment Authority, you have a legal right to ask your bank to cancel this and authorise no further payments. Have you now done this?

Cancelling your card will not always stop CPAs which you are responsible for cancelling properly, either with the billing party, or with your bank.

118118 do not have the right to "dip in to accounts"... but it will not stop them trying if they have your card details on file.

Contact your bank again and ensure you ask them to cancel this CPA effective immediately. Then follow this up in writing.

From the point you make an official request to cancel this, your bank must then refund to you and further amounts taken.

http://www.moneysavingexpert.com/banking/recurring-payments

Regarding the current £200 you will probably need to make an official complaint to your bank, to see if this will prompt them to refund you - and chargeback to 118118. I really don't know where you stand with this however, if you just tried to cancel a card with an "active" CPA in place, but you did not actually cancel the CPA formally with the biller or the bank....

rizla_king

sourcrates wrote: »

Regulation 55 of The Payment Services Regulations 2009:

only applies if they cancelled the cpa.

seems they didnt

cancelling the card doesn't cancel the cpa

adz0rz

Thanks for be advice guys.

To clarify; no I didn't cancel the individual CPA I read on here (perhaps wrongly) that cancelling the card would effectively stop this happening.

I think I will log an official complaint to see if I can get a refund but it looks unlikely?

Lemonsqueezer78

Unfortunately recurring payments and CPAs are tricky when it comes to cancelled accounts. Phoning your bank and asking to cancel your account does not itself automatically remove all rights to charge a transaction to your account from people you have given your card details to take genuine payments for things. If a CPA transaction comes in on a recently cancelled card, and it appears to be a genuine authorisation you have given to someone (therefore it is reasonable of your bank to believe this is not a fraudster using the account details), then your bank may well still approve it. In fact even marking your card as lost or stolen doesn't always stop recurring/CPA transactions coming through a lot of the time (there are plenty of examples of it happening, even on these boards).

It's hard to say what your chances are with a bank complaint to be honest. But I would say unlikely personally. Despite what many believe, your bank doesn't have automatic power to just reverse this transaction from 118 118 on a whim. Chargebacks can only happen in certain specific situations and only when certain conditions are met does the bank have the necessary chargeback rights to take the money back from the merchant and refund the customer. If this isn't a valid chargeback case and your bank does not have rights to take that money back from 118 118, then your only hope is if the bank agree to give you this money out of their own pocket, as a gesture of goodwill.

Hence, why I think its unlikely. But you have nothing to lose in asking. Make a complaint. Mark it as a complaint and as mark it as a formal transaction dispute. They may give you something...