Banks refuse to cancel CPA's

[havinastella]

http://www.bbc.co.uk/news/uk-19598492

[citizenB]

Excellent - about time this was back in the public eye.

 

The way the PDL "test the water" to see how much they can drain from the borrower's account would flag up a fraud enquiry if it were any other company. But because it is a PDL, the banks simply let this go ahead.

 

 

 

 

Consumer rights

 

Continue reading the main story

 

“Start Quote

 

Customers have the right to stop any payment leaving their account”

End QuoteFinancial Services Authority

 

 

 

The right to tell your bank to cancel continuous payment authorities and other payments is enshrined in law by the 2009 Payment Services Directive.

 

The Financial Services Authority told Money Box it had a clear interpretation of the directive regarding the cancellation of payments by bank customers: "Customers have the right to stop any payment leaving their account. No distinction whatsoever has been made for pay-day lenders or indeed any other group.

 

 

 

 

Mike Dailly, who sits on the Financial Service Authority's Consumer Panel, does not agree there are payments a bank is unable to cancel and thinks those banks which are differentiating must change their approach: "The bank must respect the right of consumers to cancel any debit from their account and if they don't do that then they're breaking the law.

Edited September 16, 2012 by citizenB

[Ubiquitious]

Excellent - about time this was back in the public eye.

 

The way the PDL "test the water" to see how much they can drain from the borrower's account would flag up a fraud enquiry if it were any other company. But because it is a PDL, the banks simply let this go ahead.

 

 

 

 

 

 

 

 

 

What I never understand is why banks care so much that PDL companies get their money back. They seem to have special rules for PDLs.