help - they've taken all my benefit money!!

[sallysunshine]

I had a £400 loan with them, they are now charging stupid interest. I have been advised to close my bank account but i don't know if i can do this as i have an overdraft. I really need help. Today i went to the bank to get money and it had all been cleared out. I have 2 children and on benefits so money isnt exactly a luxury i have.

Any help would be much appreciated.

[Nao]

the bank has to refund the money taken as you didn't authorize the transaction.

 

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

 

taking your benefit money is even worse, as there are some extra regulations that apply on top of it.

 

also cancel any cpa and report card as lost / stolen so they can't help themself to any more money.

[dx100uk]

own thread created

 

We have been telling people to put a letter into their bank instructing them not to make any payments under any circumstances to these companie

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

 

banks MUST follow written intructions from their customers !

This fsa guide has now been updated:

 

http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

 

Here's the text:

 

Cancelling a regular

card payment:

 

When you give your credit or debit card

details to a company and authorise

them to take regular payments from

your account, such as for a gym

membership or magazine subscription,

it is known as a ‘recurring transaction’

or ‘continuous payment authority’.

These are often confused with direct

debits, but do not offer the same

guarantee if the amount or date of the

payment changes.

In most cases, regular payments can

be cancelled by telling the company

taking the payments. However, you

have the right to cancel them directly

with your bank or card issuer by telling

it that you have stopped permission for

the payments. Your bank or card issuer

must then stop them – it has no right to

insist that you agree this first with the

company taking the payments.

Be aware, though, that you will still be

responsible for paying any money that

you owe.

see: http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority(2-Viewing)-nbsp

http://www.fsa.gov.uk/pages/consumerinformation/product_news/banking/know_your_rights/solving/index.shtml

dx

[sallysunshine]

ive been to the bank and they were totally useless. She didn't even see any money been took out apart from what i told her i knew was coming out. I dont understand??? My email says that toothfairy took 3 3 payments of £48. I cant cancel my bank account because i have an overdraft. I dont know what to do. Im left with nothing, which bills to pay and kids to feed, and have the worry about any money that does go in will be took by them!!

[Nao]

The Bank is completely wrong.

The Bank must refund those payments.

 

An unauthorised transaction is an unauthorized transaction, there are no excuses, if you owe them any money is not relevant for this, if you gave them the card details is not relevant for this, if you ever had anything to do with them in the past is not relevant.

If the Bank refuses to refund the Bank is breaking the law.

 

Make a complaint to the Bank in writing and demand their final answer on the matter, if they still don't budge complain to the FOS.

 

Where a transaction is found to be unauthorised, the PSP has an obligation to immediately refund the amount of the transaction and, where applicable, restore the account to the state it would have been in had the transaction not happened.

 

Quote taken from here: http://www.paymentscouncil.org.uk/what_do_we_do/regulatory_developments/

 

Plus based on this: http://www.legislation.gov.uk/uksi/2009/209/regulation/77/made

You can also hold the Bank liable for overdraft charges incurred due to unauthorised transactions and they have to refund those too.

 

Also the Bank ha no reason to not refund, simply put they can get their money back from Toothfairry / Speedcredit, http://www.legislation.gov.uk/uksi/2009/209/regulation/78/made as TF / SC must compensate the first provider(Bank) for any losses incurred or sums paid pursuant to those regulations

Edited October 11, 2012 by Nao

[sallysunshine]

right.

..just phoned lloyds tsb and have been passed from pillar to post.

 

The very snotty cow said that it is not up to them to refund the money as i gave them my details.

 

I told her yes i gave details but i have not authorized them to take random payments

and she said its not the banks problem and it is up to me to make sure the money is available.

 

i told her i was not told the money was coming out and surely they cant just take it.

again this wasn't her problem.

in the end i hung up.

 

I have depression and anxiety so im finding it sooo hard to deal with this and don't know what else to do.

I have tried contacting toothfairy but surprise surprise cant get in touch.

[Nao]

Put complaints in with the bank and toothfairy in writing, then complain to OFT, Trading Standards, Watchdog and so on.

[dx100uk]

they are benefits for you to survive on

not for the banks to allow anyone to take at will.

 

Lloyds are WRONG very WRONG.

 

demanda chargeback

 

dx

[markosoft82]

If you can't get to a branch, then call Lloyds back. Ask to speak to a manager straight away (politely. If you sound angry, then the rep will put up a fight). If needs be keep going higher up until you get someone that will instruct the chargeback. have ready infront of you the parts outlined in above posts about how the bank has to refund the payment, and which document it's from. Get the person's name and extension number of who you talk to (and their manager's name too). Make sure you give them facts and as little room as possible to move in.

 

If you can get to a branch, ask to speak to a manager. Once again, be prepared with the regulations they must adhere to.

[rippedoff15]

Hi, the best way is to ring fence your money then you are in control, open another bank account with another bank, its very quick to sort out and have funds paid to the new account, once it is open your money is safe then pay by standing order again you control never given card detail out nor bank account details. good luck

[markosoft82]

Unfortunately Sally has an overdraft facility, so that's not an option. One thing you can do Sally, is get a request in writing to your branch to remove all cpa's on your account that tooth fairy have, and get them to sign and stamp the request and give you a copy. That way tooth fairy can't do it again. And "loose" your debit card.

 

But certainly don't back down with the bank, they can and should reverse the transactions. Like I said above, don't just talk to the front line reps, they probably don't know the regulations

[JOHNINYORK]

I do not think that the overdraft comes into the equation,what does matter,is who you see at the bank.

Just to give you an example.I had a loan with Speed Credit for £400,after 2 days,I repaid it with 2 days interest.In other words,I cancelled the agreement which was in accordance to their T/C's.They disputed this,saying that I owed them interest for the whole 14 day term.To protect my money,I explained to Santander what had happened,they immediately cancelled my card.All other transactions were still live,direct debits etc.If anyone tried to remove money from my account using the old card number,the bank would refuse to pay them.Needless to say,Speed Credit tried to remove money from my account on numerous occasions,but the bank stopped them.

I do have an overdraft with Santander.

 

Regards,John.

[markosoft82]

I'm not saying she can't get it reversed, see my previous replies. I'm saying she might not be able to move money into a new bank account due to the overdraft. Hence getting the CPA's and debit card cancelled is a priority so they haven't access to her funds.

 

But yes, it is all dependent on who you speak to. Which is why I'd recommend asking for a manager

[JOHNINYORK]

I take a great interest in any dealings with these parasitic vermin,AKA Speed Credit.Even after I had repaid my loan,they were still adding charges and penalties to the outstanding interest.It got to roughly £900,they actually said they had not received the payment.It was only after their own bank (Barclays) gave me a print out of the payment transaction,that they finally acknowledged receipt of payment.This how I got to find out that the money went into a CIM Technologies account,the account was on the print out.So,when all these people in this forum complain about the antics of S/C or T/F,my heart goes out to them,I know what they are going through.A strange car in the street,is it the bailiffs,or DCA.Do you answer the phone,will it be someone after money.The informative texts giving you a countdown to when the bailiffs are coming.A letter from their solicitor.But it comes to a time,when you say sod this,I will draw their hand out onto the table.Play with them in their rules,dirty.

This is the final letter that I sent them.

 

Dear Sir/Madam.

As you seem to be incapable of reading my previous email to you,here it is again.

 

Dear Sir/Madam.

Thank you for your texts,email and letter,that you have sent me this last week.They made interesting and amusing reading.

 

EXPLAIN.

Your letter(NDR) says that I have ignored all calls that you have made to me.All missed/unanswered calls are still on my phone,I do not seem to be able to see your number there.Have you your phone records available to substantiate your claim,maybe it is an oversight of yours,or are you just PROLIFIC LIARS.

 

EXPLAIN.

You have been giving me a countdown to when the Bailiffs are coming to see me.As the case has not been to court,how can a Bailiff visit me without court papers.Or are you being PROLIFIC LIARS yet again.This is a case of gross intimidation.

 

EXPLAIN.

You have stated my Toothfairy loan.Since when have CIM TECHNOLOGIES and MCO CAPITAL been the same company.

 

EXPLAIN.

I sent you an email requesting a breakdown of my so called loan.You have failed to answer,yet again.Just the same as the previous emails that I have sent you.

 

EXPLAIN.

My own bank has read your T/C's,they have advised me to keep well away from you.Your own bank tried to contact you by phone,without any success.The expression of something fishy came into the conversation.I was talking to someone who works in the Moneyshop,when one of the NDR texts came,I showed him the text.Gross intimidation was what he said.Also,companies like yours get the PDL business a bad name.So,could you please explain why everything is negative about you.

 

I hope you do not mind in giving you free advertising,as every text,email and letter you send me,gets posted on the internet.Likewise for all correspondence that I send you.All my correspondence to you has been polite,as the internet is read by all ages.But I will go as far as calling you nothing but GUTTER DWELLING PARASITIC VERMIN.

As you have had difficulty in reading my previous emails which were in English.

 

MON PRET EST REMBOURSE

 

TA MO HIASCHTA AISIOCTHA

 

FY MENTHYCIAD YN CAEL EI AD-DALU

 

MEIN DARLEHEN ZURUCKGEZAHLT WIRD

 

MY LOAN IS REPAID

 

This is the reply I got shortly afterwards from M/H

 

Dear John

 

Thank you for your message passed to us from Speed Credit.

 

After taking your message into consideration we have decided to close you loan.

 

Yours Faithfully

 

Rebecca Franks

 

Door Collections

 

Marshall Hoares Bailiff

 

Getting back to the problem that Sally has.If she gets a new card,she is not opening a new account,so her overdraft facility will be safe.The bank should stop transaction for S/C,as this was for the old card number.

When I explained to Santander,it was only someone on the front desk that I saw.

Regarding a CPA,just a little info which I am sure we are all aware of.

 

The FSA and continuous payment authorities

 

Under the Payments Services Regulations (PSR), a customer can cancel a continuous payment authority by contacting their bank or the card issuer.

 

Once you’ve told the bank to cancel the authority, it becomes an ‘unauthorised transaction’ and the bank shouldn’t make any further payments. If the bank does make a payment they’re in breach of the PSR and you’re entitled to an immediate refund (or slightly later if it’s a credit card payment).

 

The banks have now accepted this as their obligation under the PSR. Unfortunately the technology isn’t in place yet for the bank to be able to stop the payment if the payday lender requests it but the bank must still re-credit you with the payment.

 

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

 

Regards,John.

Edited October 14, 2012 by JOHNINYORK

[Nao]

according to my solicitor even before the cpa cancellation it is still an unauthorized transaction if you don't agree with any of the details (date or amount for example) of it.

Cancelling the cpa essentially just shifts liability to the Bank.

 

Also according to the same Solicitor the bit in the terms that they can help themself to money owed would only hold up in Court if they could proof you knew you would be unable to repay the amount due on the agreed date, plus even then each and every penny in fees could be challenged, plus it still would only apply to the card details provided in the application.

Edited October 15, 2012 by Nao

[JOHNINYORK]

Very interesting comments.

Regarding not being able to repay on the agreed date

,is a bit iffy.

 

For example,

if you asked for a rollover,

you would know that you were unable to make the full payment.

 

Therefore S/C would be entitled to withdraw money from your account.

 

Or,

did your solicitor mean if S/C could prove that you were committing an act of fraud,

then they were entitled to withdraw their money,

as the agreement would become void.

 

Another thing to ask your solicitor if you have time.

 

In their T/C's, there is a clause which states that S/C can alter their T/C's at their discretion.

 

So, half way through the loan period, the T/C's get altered,is the agreement now void.

 

They could for example put the interest up to £100 for every £100 borrowed over 14 days. Would S/C have to inform you of the new T/C's.

 

After I changed my card (not account), S/C were unable unable to remove any money from my account. Which is exactly what your solicitor has stated, (card details in the application.)

 

Regards,John.

Edited October 16, 2012 by JOHNINYORK

[Nao]

If they could prove that you knew you would be unable to pay then they could attempt to take the payment again and again.

So for example if you took out a loan due to be repaid on 18th oct at a amount of ￡300 tbey could try to hit your card again after the 18th for ￡300 plus fees (provided the fees are legal).

But as long as they can't prove that the only authorization they have from you is to charge ￡300 on the 18th.

 

With rollovers its different, as that means you provide consent for the interest only payment, plus change the details of the previous authorization, which is perfectly possible as you can always withdraw the consent to a future transaction.

 

Anyway, his main point was that it shouldn't be necessary at all to chase the Banks, as there would be no need to do so if the pdls followed the law and guidelines.

 

I'll ask him what he thinks about the changing terms.