Capital Finance One - Another nightmare

[katysue]

Hi! This is probably reiterating a few other posts, but this is what happened to me today: I have 3 accounts with Halifax, one of which i only use to pay bills - i just transfer money into there in time for bill payment dates as it helps me manage my money. 18 months aho, i had a loan with CFO. It is now being repaid through Payplan.

 

Yesterday, my bill account ~(which had all my rent money in) was emptied by CFO with 8 separate transactions. All the rent money went and my standing order bounced. They have apparently tried to take money from my debit card continuously since September 27th..

 

Halifax were actually really helpful. I read on here about Visa Chargeback and they assure me that it will be invoked once the payments "clear". I hope they honour this.

 

The weird thing about this is how CFO got my details - I am with a different bank to the one that i had when i had the loan with them, and have never gievn them any details at all. All repayments ae through Payplan. They have got my card details from somewhere. I readthat they are forwarded card details when you apply for other loans, but i haven't done this to my knowledge in a long time.

 

I will send off the letter discontinuing continuous payment authority tomorrow. Hate them. I tried to sort out my debts responsibly. Now they have put me in a position where i can't pay my rent.

[renegadeimp]

Have you applied for a loan elsewhere, or given your details to a broker, but then "cancelled" the application?

[katysue]

Not recently, no! But i did when i first got the new account and was totally screwed. I registered with a broker of some sort i think but thankfully didn't take a loan. I'm assuming that my details were passed from that broker to CFO. I'm also assuming that there#s some sort of mean clause in their Ts and Cs that make this legal. Hopefully, Halifax will honour their promise to refund the money...

[renegadeimp]

CFO lately, have been setting up ficticious broker companies to try and harvest peoples account details. AFAIK CAG's site team is collating info so it can be given to the regulators and other authorites, so the more info you can give them, the more chance we have of something happening with it.

 

There also is no clause that makes it legal, which is why the site team is collating as much info as they can.

 

Could you post as much info as possible on the broker you used? Names, dates etc.

[katysue]

I'll try and go back through my emails tomorrow and work it out. I get a BUNCH of texts everyday about loans so i assumed my details had been sold on. I just never thought i would have problems with a different account with a different bank. Things like this are precisely why i moved banks before embarking on my DMP. Are Halifax legally obliged to return my money? From looking at a few other posts i can seethat lots of people were told there was no way they could get their money back.

 

As always, THANK YOU.

[renegadeimp]

If it was an unauthorised transaction, then yes they are obliged. However, halifax and most other banks think the law and regulations dont apply to them and try to tell you different.

[Nao]

Below the most relevant bits of the Law applicable here, the full Law can be found online here: http://www.legislation.gov.uk/uksi/2009/209/contents/made

 

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.

[bristolrjt]

(2) Such consent—

 

(a)

may be given before or, if agreed between the payer and its payment service provider,

 

Does that not imply that by signing the terms of the loan company (the ones that authorise them to take payments at any time) is effectively giving them the right to take the money?

[Nao]

Yes and No, because you agree that they will take what you actually owe, but you don't give your consent to pay their random fees and charges that violate various guidelines.

[katysue]

I didn't give any consent for them to raid a bank account they don't even have details for! The whole point of me moving to Halifax was to protect the money for my priority debts!

[Nao]

exactly.

 

plus as the second loan never materialized (the one where they got the details from the application) you obviously also never signed a credit agreement for the second loan (as it never happened).

[katysue]

Thank you Nao.

 

I want to write to Halifax and to discontinue the presumable CPA. Does anyone know of a template letter for that? Am having trouble locating one. xx

[Nao]

Found one here:

http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority&p=3987716&viewfull=1#post3987716