Can toothfairy reinstate a CPA after cancellation?

[Gia]

A friend has got into problems with Toothfairy Finance.

They are unable to meet their repayment in a few days time.

 

I sent an email to Toothfairy via their contact form on their website on my friends behalf.

 

The email was to request a suitable repayment plan

and to inform them that my friend was revoking any right previously given to use a CPA on their debit card.

 

My friend has also cancelled this CPA with her bank this morning.

 

However, my friend has just received an email from Toothfairy

asking for evidence of her income such as a pay slip.

 

They also acknowledged that she had requested they cancel the CPA.

 

Toothfairy have said they will not use the CPA for a reasonable amount of time.

 

However, they then state that should a payment not be received or a plan set up to pay off the loan

that they will reinstate the CPA without further notice, and attempt to take repayments.

( she did not request they cancel the CPA, she instructed them not to use it,

and that she revoked any previous permission for them to use it).

 

Are they allowed to reinstate a CPA once she has notified them

she has revoked their right to do so,

and she has cancelled it with the bank?

[renegadeimp]

If you cancel it with your bank, then NO. If the CPA comes back, then the bank have broken the law.

 

You also need to report them to the OFT and go through the lenders complaints procedure.

[Gia]

If you cancel it with your bank, then NO. If the CPA comes back, then the bank have broken the law.

 

You also need to report them to the OFT and go through the lenders complaints procedure.

 

Thank you. Now because they have threatened to reinstate it, despite knowing permission has been withdraw. Does my friend have a valid complaint against the company to take to the authorities?

[renegadeimp]

It's definitley worth reporting to the OFT and also make a full complaint to the lender. The lender has 8 weeks to give you a final response, upon which you can decide if you want to get the ombudsman involved.

[Gia]

Thank you. I now have something to hit them with in my reply.

 

Should she provide them with evidence of a change in her income such as a letter or payslip as they request?

[Surfer01]

Thank you. I now have something to hit them with in my reply.

 

Should she provide them with evidence of a change in her income such as a letter or payslip as they request?

Simple answer is no she is not obliged to supply them with that information. Only a court can request those details.

[renegadeimp]

If you want to show willingness on your part and show their lack of concern towards you, then send them a simple budget summary. Nothing more.

[Gia]

Great stuff. Now I am fully prepared to respond to them. Tx again.

[Gia]

Well after emailing Toothfairy a copy of the OFT complaint that I made on my friends behalf, and a formal complaint about the CPA matter. I have had a result.

 

I supplied them with a basic income and expenditure breakdown, and showed that all she has left is £1 per week. Which is true thanks to the bedroom tax.

 

I received a reply accepting £1 a month, no interest or late fees, just the original amount borrowed and one months interest. Plus they supplied their bank details for a standing order or direct payment on the first request.

 

I also received a response from the OFT about the CPA issue and they wish to interview my friend and take a witness statement.

 

All in all a great result I think.

[zydeco]

they then state that should a payment not be received or a plan set up to pay off the loan that they will reinstate the CPA without further notice, and attempt to take repayments.

 

I hope you've got that in writing or at least in an email, the oft will love that and if they tried it and the bank paid them they'd both be in the s**t