CFO Lending - Illegal Action?

[Nicky777]

Hi

 

I am hoping someone can give me some advice and steer me in the right direction. I took a payday loan out with CFO due to repay at the end of March. During the month I lost my debit card and the bank issued me a new one, I forgot however to update CFO.

 

i then found at the repayment date I was unable to pay them back, they notified me that the payment had failed because they had my old card details. During this time I have been trying to sort my finances out but had to try and get some emergency funds about two weeks ago to repair my car. I applied on line and was referred to CFO again, not realising I had supplied all my details (including my new card number) they refused the loan as I had an outstanding debt with them.

 

Didnt think anything more about it until today when my salary has gone into my account. There are 7 transactions on my account starting at 03.00hrs this mornin from them taking the total of my arrears on my original loan.

 

I have phoned them and said that they did not have persmission or authority to process the payment on my new card, that the application on the second loan did not make it clear that my details would be used and updated and I demanded a refund. They have refused and stated it is is in the t&c's of the first loan - I cannot see anywhere in the paperwork it makes reference to them being allowed to do this.

 

Surely they cannot simply retain my details, process them to update my account details and help themself to my money? I have wrote to them and advised that they did not have my authority to retain my card details, use it to pay the arrears when they choose and I have said I will raise issue with my bank. I am not hopeful that they will respond however.

 

Can anyone provide me with any points of legal reference or guidance on what I should do? They have taken over £350 which has left me in financial hardship again this month.

[renegadeimp]

Call your bank and demand a full and immediate chargeback as they were unauthorized transactions. Do NOT take no for an answer

[Nicky777]

Call your bank and demand a full and immediate chargeback as they were unauthorized transactions. Do NOT take no for an answer

 

Thanks do you know if the payday loan lender can do this? Has anyone got experience of this with the bank? The lender has gone in again this morning and taken another £72!!

[renegadeimp]

Cfo are well known for doing underhanded things. Have a read of some of the horor stories.

[Pastor123]

Call your bank and demand a full and immediate chargeback as they were unauthorized transactions. Do NOT take no for an answer

 

 

I agree with this. CFO lending did the same thing to me. Took money out of my account even though I had not given them my new card details and I had already been paying them through my DMP for months.

 

I rang my bank and explained that I did not authorise the payments. The bank refunded my money back the next day.

 

Be persistent as renegadeimp says and don't put the phone down until you get the chargeback

[Nicky777]

Well I spoke with my bank (Natwest) retailer disputes - Agent said nothing they can do as its a loan company, my fault if I owe them money then can help themselves nothing they can do. The way I was spoken to was appauling and was down right rude to me. I didnt accept this so asked for manager, was told by a supervisor the same thing. I explained they were breaching guidelines laid out by FSA, not interested. I said I had done research and there was other RBS customers that had the same issue, again not interested. Said I needed to go to police and report Fraud (?!) or take them to court!

 

Ended up with complaints, person was helpful although she maintained position at first but when I said I cancelled my lost card and I asked whether CFO would be able to take the payment and was told they wouldnt she said I was misinformed and should have been told to cancel the CPA. She said Visa have a system whereby if you set up a CPA even if the card is lost or cancelled your new card details are on there so the CPA is not cancelled or the person that had your old card details can still access your new card details - Is that correct does anyone know?

 

Anyway after sticking to my guns she is back dating to the cancellation of my original card which means I will get a refund as they should have updated the database, I am assuming the VISA database.

 

I really dont want to let CFO get away with this and maintain they got my new card details using a different website as a front, would anyone recommend who I can report them to? Is it OFT or TradingStandards?

[renegadeimp]

Stop talking to the front desk script merchants and DEMAND to be put through to the compliance officer.

Edited June 30, 2013 by citizenB

[Nicky777]

Stop talking to the front desk script merchants and DEMAND to be put through to the compliance officer.

 

Thank you renegadeimp -- it was only after speaking to their customer care team that they agreed to refund the money. I took your advice and didnt take No for an answer

 

Should I still send the CPA letter to CFO and Natwest just in case this happens again? I have cancelled my old card but worried they might somehow get their hands on my new one

 

They helped themselves to over £500 this weekend

Edited June 30, 2013 by citizenB

[renegadeimp]

Best way to do it? Write a letter, go to your nearest branch and get it copied, signed stamped and dated by the bank manager. You keep the signed copy, they keep the signed original. You are then covered and have cause to take them to small claims court and get regulatory action going. You can tell CFO what you are doing, but theres no need to.

 

Have a read of http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority(2-Viewing)-nbsp specifically the two PDF's in the first post.

[Nicky777]

I agree with this. CFO lending did the same thing to me. Took money out of my account even though I had not given them my new card details and I had already been paying them through my DMP for months.

 

I rang my bank and explained that I did not authorise the payments. The bank refunded my money back the next day.

 

Be persistent as renegadeimp says and don't put the phone down until you get the chargeback

 

Did they stop after the first use of your new card or did they continue to do it? My bank have cancelled my card and I have a new one but whats to stop them taking my brand new card details from somewhere and using it?

[zelda18]

Hi i could not believe what i have been reading on this company. I got a txt from my bank on friday by fraud team. CFO managed to use a card that was cancelled to take over700 im in a state of panic as bank says my fault even though that card was stopped well i asked for it to be stopped due to damage and requested new card. Natwest did not stop carx and as ive said cfo has taken a lot of money. I have spoken to 3 people face to face and 7 people over the phone. Still refuse to put money back in my account which means no bills willbe paid as there is only my wage coming

im single. I handed a cancellation of continuous payment authority but was told that wont stop payments. Cfo have left me with all of 60 to live on for the next 4 weeks and they was not interested when i contacted them. What can i do?

[renegadeimp]

Your bank is completely wrong. The bank MUST perform a chargeback, Have a read of the stickied thread on CPA's. The FSA regulations are VERY clear.

[JOANNADDD]

need help urgently regarding these immoral loan sharks i took out a loan with cfo lending over a month ago i lost my job 8 of us got laid off turned up for work 1 morning and my work place was all locked up . i in formed cfo of this and entered a debt plan cancelled my card an d informed my bank not to pay them anything as debt plan was set up, 2 days ago my husband applied for a small cash loan form payday first 100.00 he was excepted then got email saying he was refused , when he went to the bank today 596.00 had been taken from his account he spoke to a guy in the bank and was informed cfo lending had applied for the cash at 3 am when he said this was not right he had never had a loan he was refused the bank said he would have to take it up with cfo lending which infuriated him as this was all we had to live on pay bills and feed our 2 small children so he phoned cfo and asked them what the hell was going on which he was told as he was married to me he is liable under same address and surname what a crock of poo he said he applied for himself not me and used his details to pay someone elses debt off surely this is illegal they hung up on him , then i did something stupid without thinking , i got an email saying new lender on market for short term loans for up to 100 we are desperate as we had nothing in our cupboard i managed to borrow 400.00 from my father for the rent whilst waiting for our working tax credits to be evaluated due to my hubby being sole earner now this company was called brisk buck i was excepted got the pin number to enter for my loan when i pressed on link to except loan were did it go cfo lending i was gobsmacked so i quickly logged into online banking and geuss what they took every last penny the original loan was only for 150 but they have taken now a total off 996.00 i am straight down to bank tomorrow and police station , isnt this entrapment is this illegal these companies should be shut down

[siennasmummy]

The only person liable for a debt is the person or persons who's names are on the agreement. I had this happen to me once. They took £350 from my own bank account to pay a debt in my Husband's name. The only way I got it back was by ringing the company and telling them that if they did not refund me within 24 hours, I was going to report them for fraud, ring the police and go to the newspapers. They then apologised and I got my money back. I'm sure this is illegal and your husband must ring the fraud department of his bank and tell them to chargeback the money immediately. Also, the fact that you only owe them £150 plus one month's interest, I would also write to CFO and tell them you are reporting them to the OFT for unlawful and unfair charges as well as raiding someone's bank account whom apparently owes them nothing!! £996 taken already? Shocking!

[renegadeimp]

If they somehow got your bank details and took money for a debt that wasnt yours, you MUST make complaints to the police, the OFT, ICO, FOS and FCA, regardless of what the outcome of the complaint was.

[jeb192]

Sorry for commenting on an old thread, please direct me to a better one if this isn't the right place!

 

I have a loan with CFO which I had every intention of repaying but I received a attachment of earnings order (different problem, long story) yesterday which decreases my income substantially.

 

I emailed CFO this morning to let them know I wasn't able to pay and they have sent me a series of unsatisfactory responses and a load of rubbish which I am sure is just some moron making stuff up. The debt is for £210 so I offered them £55 a month for 4 months (which would cover the loan + £10) but they are refusing to accept a payment plan without a month's bank statement and an overly detailed I&E form. I told them this request was in breach of the data protection act, and that I would not comply. I am willing to fill out a basic I&E form (not the one they've provided) but there's no way they're getting their hands on my bank statement.

 

Also, their online payment form does not work and they say that if I pay by bacs it will take 14 days to clear and I will incur charges and interest over that time? I told them in nicer words that that is absolute bullcrap. When they first sent me the bank details they didn't even send me a personal reference for the payment, they only gave me one when I explained that making a payment without a personal reference is equivalent to trying to pay my bills by throwing money in a ditch!

 

Honestly the person responding to my emails can barely write in sentences and is just sending me round in circles. How can I get them to agree to a perfectly reasonable payment plan? I refuse to speak to them on the phone. I keep my money in a savings account so they cannot take it, but I don't want them to start adding charges and calling my workplace etc when I've made a good offer.

[renegadeimp]

CFO are a LOW PRIORITY creditor. Tell them that they are getting £1 a month until your circumstances improve. They wont go near a court mainly because of their unlawful charges, and the fact they know that a court would side with you.

 

DO NOT send them any info. The most you could send them is a simplified budget summary and sign it as a statement of fact. You are dealing with one of the worst PDL's around right now. You need to put your foot down with them and not cave in.

[Anonbrumbie]

Hi

 

I am hoping someone can give me some advice and steer me in the right direction. I took a payday loan out with CFO due to repay at the end of March. During the month I lost my debit card and the bank issued me a new one, I forgot however to update CFO.

 

i then found at the repayment date I was unable to pay them back, they notified me that the payment had failed because they had my old card details. During this time I have been trying to sort my finances out but had to try and get some emergency funds about two weeks ago to repair my car. I applied on line and was referred to CFO again, not realising I had supplied all my details (including my new card number) they refused the loan as I had an outstanding debt with them.

 

Didnt think anything more about it until today when my salary has gone into my account. There are 7 transactions on my account starting at 03.00hrs this mornin from them taking the total of my arrears on my original loan.

 

I have phoned them and said that they did not have persmission or authority to process the payment on my new card, that the application on the second loan did not make it clear that my details would be used and updated and I demanded a refund. They have refused and stated it is is in the t&c's of the first loan - I cannot see anywhere in the paperwork it makes reference to them being allowed to do this.

 

Surely they cannot simply retain my details, process them to update my account details and help themself to my money? I have wrote to them and advised that they did not have my authority to retain my card details, use it to pay the arrears when they choose and I have said I will raise issue with my bank. I am not hopeful that they will respond however.

 

Can anyone provide me with any points of legal reference or guidance on what I should do? They have taken over £350 which has left me in financial hardship again this month.

I thought when you sign up with these companies you give them permission to take the money you owe them from any credit or debit card that you own.

[goodatresearch]

Your husband is not liable for your debt. Complain to the Police, they may fob you off and say its a civil matter but its not its a criminal offence. Stick to your guns and demand they investigate. Your husband should also be telling his bank that they have allowed fradulent deductions from your account and hes going to take legal action. As for your bank write to them instructing them not to allow any more payments. They have no legal right to tell you they cannot stop it as you owe the payday loan company money. And as above insist on a chargeback and complain to OFT/FOS, Trading Standards about the bank and the loan company.

[renegadeimp]

I thought when you sign up with these companies you give them permission to take the money you owe them from any credit or debit card that you own.

 

You do. But you can revoke the permission at any time.

[goodatresearch]

Completely true. Unfortunately some banks take the moral high road i.e. you owe the money so we are going to allow them to raid your account. They are wrong off course, Trading Standards and OFT are quite clear on this.

[renegadeimp]

Fca is the route you need to take

[goodatresearch]

Unfortunately the FCA dont deal with individual complaints.

[renegadeimp]

No they dont. But they WILL get involved if the bank refuses to cancel the CPA, and allows the company to continue debiting the account after the account holder has told the bank to cancel ANY transactions.

[goodatresearch]

Thats good news.