CFO Cleared my Account, could anyone offer advice?

[bristolrjt]

I am currently having a very similar situation to a lot ofyou, on Friday CFO cleared my account over 6 transactions.

I too have done some stupid things relating to these loancompanies, I wanted to take out a small loan a few weeks ago to cover myselfuntil a commission cheque came in and happily handed my details to a company I hadnever heard of before. Turns out they are part of the cfo group and it was agreat way for them to get my details, pay day arrived and that was me clearedout.

I have spoken to the bank (Natwest), who in the firstinstance were very helpful and suggested that I speak to the visa people abouta chargeback (exactly the same advice you give on here). However, I have justspoken to them and they have told me that because it was a loan that I owedthen the bank could not refund the payments. I tried quoting the fsaregulations on the matter but they were having none of it. I am really stressednow and don’t know what to do, I would be really grateful for any advice. Ihave no issue with paying off debts, I am currently paying off 3 priority debtsat the moment and will eventually get to all of them (including cfo) but Icannot believe they are allowed to take money out of an account without myauthorisation-especially as the rules apparently say they cannot?

[Spiral123]

Hi bristol, CFO are real bottom feeders. Renegaide is the man but who will more than likely offer same advice he gave me, have a read of my thread in the meantime:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?365005-CFO-drained-my-account-RBS-say-its-allowed-help

 

Fight them all the way both banks and CFO, they are committing fraud and they know it. Natwest must do a chargeback as it is unauthorised, go right to the top and get leeters of complaint to Complaints dept and CEO if you have no joy with bank today.

 

Good luck.

[renegadeimp]

natwest are wrong and you need to get a complaint to them in writing, and also contact the FOS and FSA.

 

hey have told me that because it was a loan that I owedthen the bank could not refund the payments.

 

That statement right there breaks the law. DO you have it in writing? If not, demand it to be sent to you. Chances are they wont because they know 100% that they are breaking the law.

[Ell-enn]

Which other company did you give your details to ?

[bristolrjt]

Thank you for your advice so far, a quick update:

 

I have since called them back and threatened them with making a complaint, they put me on hold for ten minutes and told me they could still not to anything. I have made a formal complaint (the lady - who was very understanding by the way) suggested that there is not much they can do and I have now (as they asked) sent an email with the original contract in it.

They have again talked about it being a loan and I owed the money and therefore they could not reclaim it, they also mentioned that there is likely a clause that suggests that they can take money out as often as they like at what ever timing they like until all monies are repaid (i checked and that is in there).

I have been told that it could take up to 56 days (will likely be much sooner) until they come back to me with a decision.

 

You have already been helpful but is there anything else I can do in the meantime?

 

 

Ell-enn, I cannot remember the name of the other company but will check this evening ( i am currently in work and have already taken a lot of time away to try and sort this out - given that my director has offered to advance me my commission to help take the stress away I dont want to take advantage, I promise to check this evening).

[renegadeimp]

Ok. STAY OFF THE PHONE. No matter how tempting or frustrated you are, STAY OFF IT.

 

From the second you read this post, all communication, both ways is to be done in writing. This will give you a clear and full trail of evidence, should you feel the need to issue a court claim against them.

[bristolrjt]

Hi Renegade,

 

Thank you for the advice, I have already sent the email with my contract and explaining the situation so I assume now I just have to wait for a decision from their complaints people?

One question (as you do seem to be the person recommended to speak to about such issues), would a court claim have to be the next step or should I attempt complaining to the fos?

[renegadeimp]

Go through the complaints procedures first. This gives you more evidence to use in any court cases against them. The more evidence you can get, the better chance you stand of winning. If you simply file a claim and are not prepared, the court wont take very kindly to it.

[Spiral123]

Bristol, get a letter off to the complaints dept of bank straight away and forward it their CEO also, I found when I done this I had my monies back fairly sharpish. My letter as below, obviusly you will have to amend details as suits your case:

Bank

ComplaintHandling Centre

 

18th September 2012

 

Dear Sir/Madam

 

S/C: xxxx A/C No: xxxx

Branch: xxxxx

 

I have today spoken with the person who is dealing with my complaint (sorry Ihave forgotten his name), of the 11th September 2012 in relation to my request to a chargeback of £175.00 for unauthorised debit card transaction to my account on Friday 31st August 2012.

I have basically been informed at this stage that a chargeback is not possible because money is owed to the financial institution ie. Capital Finance One and a final decision will be made when a copy of my credit agreement with said company is furnished to him.

I have reiterated on many occasions that this account is in dispute since June 2011. The dispute I have with Capital Finance One is in reality nothing to do with Ulster Bank and nothing to do with my demand of a chargeback. My demand of a chargeback is on the grounds that they were not authorised by me, thus Capital Finance One have acted fraudulently in obtaining money from my account. My original contract with Capital Finance Onewas for a certain amount £xxx.xx amount on a specific Date XXXXXX, nothing can change that, thus with Capital Finance One taking unauthorised payments on 31st August 2012 nullifies the original agreement and any terms & conditions within and meaning the entire contract is unenforceable.

I decide who gets paid from my account not who Ulster bank decide.

Under FSA law the payments made to Capital Finance One should be charged back to me and any outstanding monies that they claim to be due is between myself and CFO to be agreed between us the two parties.

Again I stress the points originally made in my first letter of complaint, as per law set down by the Financial Services Authority:

 

 

1. I did not authorise the payments. “Your bank cannot simply say that use of your password, card and PIN conclusively proves you authorised apayment.”

 

 

2. “The fact that the person taking these payments is a financial body is not an acceptable response, and would not pass tests by the regulator.”

3. The bank must make the refund immediately.

 

 

 

 

These unauthorised payments taken were for essential living costs and have put me in financial hardship as a result.

If you are unwilling to move on this matter, please issue me with a final response letter so that I can take my complaint to FOS and the FSA.

 

Yours faithfully

[citizenB]

natwest are wrong and you need to get a complaint to them in writing, and also contact the FOS and FSA.

 

they have told me that because it was a loan that I owed then the bank could not refund the payments.

 

That statement right there breaks the law. DO you have it in writing? If not, demand it to be sent to you. Chances are they wont because they know 100% that they are breaking the law.

 

I dont think the statement actually breaks any "laws".. but it certainly is misleading so would probably breach their own guidelines as well as those issued by the OFT.

[Nao]

If the statement itself breaks the law can be questioned, but refusing to refund an unauthorized payment does break the law plus guidelines plus t&cs of the Card provider (Visa, Mastercard, whichever).

[renegadeimp]

Are you sure citizenB? Doesnt FSA rules state that the banks arent allowed to not chargeback money and say that because you have a prior relationship they cant perform it? Or words to that effect.

[Nao]

Quote from the payment services directive which is required to be law in the entire EU.

 

The PSD also protects your rights in the event of unauthorised or incorrect debits from your accounts. You

have three types of refund rights.

 

● Unauthorised debits: If you realise that an unauthorised debit has been made from your account, you have

the right to an immediate refund as long as you notify your payment service provider as soon as possible,

and no later than 13 months after the debit date.

 

● Overcharging: If you have authorised payment without stating the amount, e.g. through a direct debit or

a card payment for hotel or car bookings, and the amount debited is not what you could reasonably have

expected, you will be entitled to challenge it by contacting your payment service provider within eight weeks.

The payment service provider will then have to reimburse you within ten days or justify its refusal.

 

● Incorrect processing: If you authorised the transaction but the payment service provider made a mistake

in processing the payment, e.g. failed to pay, debited the wrong amount, paid late or paid twice, you will be

allowed to challenge the error within 13 months and obtain proper rectification.

 

Source:

http://ec.europa.eu/internal_market/payments/docs/framework/psd_consumers/psd_en.pdf

http://ec.europa.eu/internal_market/payments/framework/index_en.htm

[bristolrjt]

Thank you all for the advice so far, I am going to wait for a response to my initial email and complaint before sending over another email as detailed above...would you agree that to be the best course of action?

Also, Ell-enn, the other company is Zebit

[renegadeimp]

Lender Details: Zebit, trading name of Lending Stream LLC, Camrose House, 2A Camrose Avenue, Edgware, Middlesex, HA8 6EG, UK | Registered Address: 2711 Centerville Road, Suite 400, Wilmington, DE 19808, USA | Registered in the State of Delaware, USA | Registration Number: 4124111 | Consumer Credit Licence: 0643942

 

hmm.

[renegadeimp]

Even the bank they use isnt registered or regulated in the UK. It's registered and regulated in gibralter.

[Nao]

wasn't lending stream quick quid?

[bristolrjt]

Let me double check but I am pretty sure that was the one I applied to

[sillygirl1]

No, Quick Quid is Northway Brokers...

[Ell-enn]

If Zebit aren't one of CFO's sister companies then how did the bank details get passed to them - are you sure it wasn't a payday loan broker you applied to ?

[citizenB]

Are you sure citizenB? Doesnt FSA rules state that the banks arent allowed to not chargeback money and say that because you have a prior relationship they cant perform it? Or words to that effect.

 

I am happy to be proved incorrect, renegadeimp

[Nao]

there are no exceptions defined in the law for having previous relation with a business (its the 2009 payment services directive).

Its based on the Eu wide law by the same name from 2007 which I had quoted on the previous page.

[Old Cogger]

read this might give you an idea what the situ is;-

Cancelling a regular card payment FSA RULES CONTINUOUS PAYMENT CARD.doc

[Nao]

The full law on the matter can be found here: http://www.legislation.gov.uk/uksi/2009/209/contents/made

 

Most relevant bits (there are more, but these shouldbe sufficient for now:

 

Consent and withdrawal of consent

 

55.—(1) A payment transaction is to be regarded as having been authorised by the payer for the purposes of this Part only if the payer has given its consent to—

 

(a)

the execution of the payment transaction; or

 

(b)

the execution of a series of payment transactions of which that payment transaction forms part.

 

(2) Such consent—

 

(a)

may be given before or, if agreed between the payer and its payment service provider, after the execution of the payment transaction; and

 

(b)

must be given in the form, and in accordance with the procedure, agreed between the payer and its payment service provider.

 

(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.

 

(4) Subject to regulation 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 purposes of this Part.

 

59.—(1) A payment service user is entitled to redress under regulation 61, 75, 76 or 77 only if it notifies the payment service provider without undue delay, and in any event no later than 13 months after the debit date, on becoming aware of any unauthorised or incorrectly executed payment transaction.

 

Evidence on authentication and execution of payment transactions

 

60.—(1) Where a payment service user—

 

(a)

denies having authorised an executed payment transaction; or

 

(b)

claims that a payment transaction has not been correctly executed,

 

it is for the payment service provider to prove that the payment transaction was authenticated, accurately recorded, entered in the payment service provider’s accounts and not affected by a technical breakdown or some other deficiency.

 

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.

Edited October 3, 2012 by Nao

[RobbingHood]

Zebit are lending stream. Northway I believe are the likes of Swift Sterling and Pound till Payday. QQ are Cash Euronet.

 

CFO use payday first and money majesty as cloaks to the CFO website. They also have paycfo which acts as a portal to setup a payment plan but NEVER use this as they will empty your account as soon as you put those details in.

 

Although data gets passed around between all of these all the time for pence, so your data is never safe.

 

Fact is your better off not applying for a loan via a broker as if you have loans with other lenders it will end in tears