Safety net credit and debt help....

Recreate

Hi all...Im new here and in need of some urgent help.
I have struggled with my finances for years and am trapped in the never-ending cycle of payday loans. I actually earn quite well but am a single parent so the funds have to stretch some way and I'm constantly robbing Peter to pay Paul. I'm sure you've heard it all before

I cancelled CPA with my bank about 4 months ago in relation to safety net credit, who kept upping my limit each month. The babk told me at the time that i needent cancel the card as CPA has been withdrawn.

They just took half my wages on Friday however and I'm now unable to pay my standard bills...mortgage, ctax, childcare etc

I can't speak to the special team at the bank until tomorrow morning but the general customer service person told me its gone and not much they can do.

I have no idea what I'm going to do and so stressed!

My debts are clearly something I need to fix because I'm sick of living like this and my little boy suffering due to my lack of organisation and financial sense! Is stepchange the best or payola to help more longer term? My credit rating is shot to pieces I have 2 attachments to earnings now too..both 200 each so that's causing me pain too and no idea if I can dispute them or reduce them. Aaargh :(

Recreate

Gosh sorry for typos

Willing2Learn

Hi and welcome to the forum,

Did you write to both the bank and the PayDay Loan companies to advise that you were withdrawing your authorisation for Continuous Payment Authority (CPA)? If you did, then you need to complain to the bank and ask for the amount to be refunded. In the longer term, you may need to declare your card lost, so that you get a new card and card number.

StepChange are an excellent free debt counselling service. You have chosen well!

Edit: Why not post up your SOA (Statement of Affairs) so that people here can give more precise advice. Just please remember to click on the 'Format for MSE' button at the bottom of the form and then post up here

http://www.stoozing.com/calculator/soa.php

Recreate

Thanks for the response.

I didn't write to them, I spoke to the bank and was put through to a special fraud team I think, who discussed it with me and told me they would remove the CPA so bo payments could be taken. According to them it was all I needed to do. Sigh. I will definitely complain to them tomorrow and hope they can help...

Recreate

Thanks for the SOA link too. I will sit down later today and work through it....glass of wine in hand I reckon!

sourcrates

Recreate wrote: »

Thanks for the response.

I didn't write to them, I spoke to the bank and was put through to a special fraud team I think, who discussed it with me and told me they would remove the CPA so bo payments could be taken. According to them it was all I needed to do. Sigh. I will definitely complain to them tomorrow and hope they can help...

This is a common complaint, as most bank staff do not know how to cancel a constant payment authority, and if they do, its only for one transaction, it is not permanent, i always tell anyone in this situation that there is only one certain way to stop lenders taking money from your account, and that is by reporting your card lost, it gets immediately cancelled, and can no longer be used.

Pixie5740

sourcrates wrote: »

This is a common complaint, as most bank staff do not know how to cancel a constant payment authority, and if they do, its only for one transaction, it is not permanent, i always tell anyone in this situation that there is only one certain way to stop lenders taking money from your account, and that is by reporting your card lost, it gets immediately cancelled, and can no longer be used.

Reporting the card as lost or stolen will not cancel a CPA. The CPA just gets transferred to the new card.

sourcrates

Pixie5740 wrote: »

Reporting the card as lost or stolen will not cancel a CPA. The CPA just gets transferred to the new card.

CPA does not always transfer between cards, they are normally unique to individual card numbers, although it may depend on how individual banks operate, all i know is it worked in my own case, and more than once.

When i was in my payday loan spiral, that was the thing that saved me, and my bank account, from been emptied.

The advice is meant as an extra weapon in your arsenal, just in case the bank fails in its duty.

D_M_E

You need to get back on to the bank and demand that they recall the money back into your account - point out that you requested that they cancel the CPA 4 months ago which they clearly did not do, and by not doing so, they have put you in severe financial difficulty.

Get them to confirm that it is cancelled and will stay cancelled even if the company or companies concerned try and reinstate it - they should be able to do this, I know Halifax do as they have done it for me, preferably get it confirmed in writing.

National_Debtline

Hi Recreate


I'd just like to reiterate that if you cancelled the CPA, your bank is now liable to refund you the payment if they allowed it to go in error. If you have any problems getting a refund, escalate your complaint to the Financial Ombudsman (FOS) www.fos.org.uk.


Contact all the essential outgoings you are going to miss a payment on and ask if they will hold action until you receive the refund and can make the payment. Alternatively you may need to set up a payment plan to catch up on the arrears in affordable instalments.


For help with your longer term options, contact one of the free debt advice agencies for some impartial advice. It's also worth looking into whether you may be entitled to a refund on some of the payday loan fees you have paid. You can find a guide to this here https://debtcamel.co.uk/payday-loan-refunds/.


Best wishes


Susie
@natdebtline

D_M_E

Since you cancelled the CPA - instructed the bank to do so 4 months ago and they confirmed to you that it would be done - I would think that you could claim from your bank any and all payments made to that CPA by the bank since cancellation.

You should also push for refund of any and all charges, such as overdraft fees, late payment fees and others levied not just by the bank but also by other institutions - which the bank stuck on you as a result of them paying out on the CPA after you told them to cancel.

With regards to Sourcrates' suggestion to get the card cancelled and a new one issued - yes, with some accounts this will stop the CPA but in some cases the bank simply move the CPA over to the new card when issued so it all depends on the terms and conditions associated with your account.