CFO drained my account - help

[diddy1]

This happened to me today. CFO took 3 amounts out of my bank account totalling £309.24.

 

I had a loan with them before and had changed my card details as I lost my card.

They offered me CFO resolve, and I gave them my new card details however the amounts they have taken are more than the resolve amount agreed.

 

My bank wont do anything

- as I have seen from other posts this is common occurrence,

they say I have to contact CFO directly,

who shocker, do not answer their phone.

 

The number I got from the bank was permanently engaged

 

- probably by everyone else that has had this happen to them.

 

Does anyone have any idea of what my next action should be.

 

I feel that the bank should not have authorised the debits, as the balance on the account was £1.21

- nowhere near £309.24! and they said that CFO had made several other attempts that had not been authorised by them due to insufficient balance,

so it makes no sense that they would authorise if the balance was still insufficient.

 

I have also emailed CFO, although having looked though other peoples posts am not feeling confident of a response,

saying that I am prepared to agree a repayment with them but they need to refund the amount back to me as it was not authorised.

 

I am wondering if the resolve thing cancels their authority to collect the original amount as the agreement on the resolve was £150.00 only.

 

If anything surely this is the max they can claim?

 

I would have thought that me agreeing to the resolve thing was essentially a new form of contract?

 

I have advised CFO that I will go to OFT if they do not refund the money immediately and discuss a repayment with me.

 

I should raise an invoice to them for the amount they debited, plus interest, plus bank charges

I have incurred as they have taken my account into unauthorised overdraft at £5 per day charge with bank,

compensation for emotional stress etc and sell it on....

 

wonder how they would feel.

[dx100uk]

it IS YOUR BANKS PROBLEM

 

phone themNOW!!

 

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 [now the FCA] 11:24 31/05/2013 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

and

Attach the following to your claim and in the interim period write to your bank and attach the following (Keep a copy)

Regulation 55 of The Payment Services Regulations 2009:

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.

This means that you can simply ask your bank to refuse the payments, it is also good practice to let the lender know too.

So, if you would like your creditor to stop trying to take a payment all you need to do, in theory, is to inform them that you remove their authority. It's probably better to do this in writing and via recorded delivery - if possible.

You can learn more about your rights via the following fsa guide :

Ending recurring payments from credit cards

57 Recurring payments, is the term used to describe transactions for which a client has granted written permission for her/his credit or debit card to be debited for recurring goods or services, for example, club membership subscriptions, insurance cover or payday loansicon. The card may be debited annually, monthly or at other regular intervals.

.

58 In most cases, recurring payments can be cancelled by telling the trader taking the payments. However, a client has the right to withdraw consent by simply telling whoever issued the card (the bank, building society or credit card company) that s/he does not want a payment to be made. S/he can tell the card issuer by phone, email or letter.

.

59 The card issuer has no right to insist that the client ask the trader to stop taking the payment first. The card issuer has to stop the payments if the client has asked them to. The client could point out to the card issuer that they should follow the FSA guidance available in the FSA know your rightsicon booklet which is available on the FSA website at www.fsa.gov.uk.

.

59a If money is still taken from the client's account, it will be deemed to be an unauthorised transaction, and the card issuer must give her/him an immediate refund. The card issuer will have to cancel any interest and charges added to the her/his account because the payment was taken. It is not up to the client to prove that s/he told the card issuer to stop taking payments. Instead, the card issuer would have to prove that s/he did not tell them to stop making payments.

.

60 The client should make a complaint to the Financial Ombudsman Service when all the internal complaints systems within the company issuing the card have been exhausted.

I hope this information is of assistance

 

New june 2013

 

Regulator orders Banks and mutuals to review complaints about not cancelling recurring payments from November 2009.

Consumers who have set up a regular payment from their account will now be able to successfully cancel that arrangement

by contacting their card provider, the Financial Conduct Authority said.

The FCA has been examining how easy it is for customers to cancel Continuous Payment Authorities (CPAs)

due either to payday lendersicon or for other regular payments such as subscriptions or gymicon memberships.

 

CPAs, which are also commonly called recurring transactions or recurring payments,

are relatively easy to set up but can be hard to cancel, causing problems for consumers trying to manage their finances,the FCA said.

 

Now, following the FCA review of how the largest high street banks and mutuals process requests to cancel CPAs, they have agreed that they will ensure that when a customer asks for a recurring payment to end, that will be sufficient to cancel the arrangement. They have also confirmed that should a payment go through by mistake following cancellation by a customer the customer will be refunded immediately.

 

In addition to securing this commitment, the largest banks and mutuals have agreed to review every individual complaint they have received about the non-cancellation of a CPA and to pay redress where payments have continued to be made despite the customer cancelling the arrangement. This applies to all complaints since November 2009 when the Financial Services Authority, the FCA’s predecessor, began regulating banking conduct.

 

Clive Adamson, the FCA’s director of supervision, said: “It’s important that consumers are confident that banks are meeting their everyday banking needs. Today customers can be confident that when they ask for a Continuous Payment Authority to be cancelled – it will be cancelled - and that it can be done easily.

 

“We recognise that historically this is an area where some customers have struggled but the banks and mutuals have responded positively to our work on this issue. From now on we expect them to be getting this right. In addition, they have committed to review past complaints.”

 

http://www.ftadviser.com/2013/06/28/regulation/regulators/fca-banks-have-to-cancel-recurring-payments-if-requested-UxbeHUuYQIy0SEYbGRE4tJ/article.html

[renegadeimp]

CFO resolve is a huge ( cant put it here due to site rules). It MUST be reported. Please follow dx's instructions on how to get that money back. Do not take no for an answer.

[diddy1]

I just spoke to CFO, surprise surprise they wont return the money, and say I still owe them £82.

 

They said it is illegal for the bank to authorise the debits if there is no money to do so - not sure how correct this is but on line to bank.

 

> quick EDIT, spoke to a lady in the bank and she has submitted a cancellation form for the CPA or a Recurring Debit form which cancels authority for them to debit anything else from my card.

 

However they also say that until the debits show on my statement as actual transactions they can't dispute them.

Edited October 15, 2013 by diddy1

[sillygirl1]

Get onto the Office of Fair Trading and let them know about this IMMEDIATELY, the OFT are trying to collect cases together where PDLs misbehave in an effort to get them closed down.

 

You will get a standard 'we will take note but can't do anything yet' reply and maybe a reply where they want to get more info from you (this means that you are being taken seriously).

 

Go to the OFT NOW.

[diddy1]

Will do, thank you.

 

Sorry, i'm just on the OFT website. It says go to citizens advice to make a complaint. Is there a specific department in OFT that I need to contact regarding this?

[renegadeimp]

You go to your bank for the chargeback. Not the lender. Resolve is there purely to harvest bank details from people so the company can strip the account. Weve seen it dozens of times.

[sillygirl1]

This is precisely why we say you must change your bank account once you take out a PDL and protect your income.

[diddy1]

Ok I get that they are not the most scrupulous of lenders,

and really target people like me who are on low income and end up in a cycle of having to increase loans

after each payback to cover the interest charges,

and I do think that that is wrong,

 

there should be fairer terms, and they should not get away with extortionate interest charges,

or their other 'charges' or taking money back without notice or authorisation

 

but surely taking the loan out then deliberately changing bank accounts after so they cant get anything back is no better?

 

And apparently even if I had done that they still could have managed it,

 

I've seen on here from other people where they have.

 

don't get me wrong, I do want advice.

[dx100uk]

go get your money back NOW

 

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 [now the FCA] 11:24 31/05/2013 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

and

Attach the following to your claim and in the interim period write to your bank and attach the following (Keep a copy)

Regulation 55 of The Payment Services Regulations 2009:

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.

This means that you can simply ask your bank to refuse the payments, it is also good practice to let the lender know too.

So, if you would like your creditor to stop trying to take a payment all you need to do, in theory, is to inform them that you remove their authority. It's probably better to do this in writing and via recorded delivery - if possible.

You can learn more about your rights via the following fsa guide :

Ending recurring payments from credit cards

57 Recurring payments, is the term used to describe transactions for which a client has granted written permission for her/his credit or debit card to be debited for recurring goods or services, for example, club membership subscriptions, insurance cover or payday loansicon. The card may be debited annually, monthly or at other regular intervals.

.

58 In most cases, recurring payments can be cancelled by telling the trader taking the payments. However, a client has the right to withdraw consent by simply telling whoever issued the card (the bank, building society or credit card company) that s/he does not want a payment to be made. S/he can tell the card issuer by phone, email or letter.

.

59 The card issuer has no right to insist that the client ask the trader to stop taking the payment first. The card issuer has to stop the payments if the client has asked them to. The client could point out to the card issuer that they should follow the FSA guidance available in the FSA know your rightsicon booklet which is available on the FSA website at www.fsa.gov.uk.

.

59a If money is still taken from the client's account, it will be deemed to be an unauthorised transaction, and the card issuer must give her/him an immediate refund. The card issuer will have to cancel any interest and charges added to the her/his account because the payment was taken. It is not up to the client to prove that s/he told the card issuer to stop taking payments. Instead, the card issuer would have to prove that s/he did not tell them to stop making payments.

.

60 The client should make a complaint to the Financial Ombudsman Service when all the internal complaints systems within the company issuing the card have been exhausted.

I hope this information is of assistance

 

New june 2013

 

Regulator orders Banks and mutuals to review complaints about not cancelling recurring payments from November 2009.

Consumers who have set up a regular payment from their account will now be able to successfully cancel that arrangement

by contacting their card provider, the Financial Conduct Authority said.

The FCA has been examining how easy it is for customers to cancel Continuous Payment Authorities (CPAs)

due either to payday lendersicon or for other regular payments such as subscriptions or gymicon memberships.

 

CPAs, which are also commonly called recurring transactions or recurring payments,

are relatively easy to set up but can be hard to cancel, causing problems for consumers trying to manage their finances,the FCA said.

 

Now, following the FCA review of how the largest high street banks and mutuals process requests to cancel CPAs, they have agreed that they will ensure that when a customer asks for a recurring payment to end, that will be sufficient to cancel the arrangement. They have also confirmed that should a payment go through by mistake following cancellation by a customer the customer will be refunded immediately.

 

In addition to securing this commitment, the largest banks and mutuals have agreed to review every individual complaint they have received about the non-cancellation of a CPA and to pay redress where payments have continued to be made despite the customer cancelling the arrangement. This applies to all complaints since November 2009 when the Financial Services Authority, the FCA’s predecessor, began regulating banking conduct.

 

Clive Adamson, the FCA’s director of supervision, said: “It’s important that consumers are confident that banks are meeting their everyday banking needs. Today customers can be confident that when they ask for a Continuous Payment Authority to be cancelled – it will be cancelled - and that it can be done easily.

 

“We recognise that historically this is an area where some customers have struggled but the banks and mutuals have responded positively to our work on this issue. From now on we expect them to be getting this right. In addition, they have committed to review past complaints.”

 

http://www.ftadviser.com/2013/06/28/regulation/regulators/fca-banks-have-to-cancel-recurring-payments-if-requested-UxbeHUuYQIy0SEYbGRE4tJ/article.html

[diddy1]

Hi dx100uk

 

Who do I go to? My bank says the transactionis have to appear on my statement before I can dispute them. CFO says they wont release the money back to me. I have spoken to the bank who said they have cancelled the CRA from today but cannot back date it.

[dx100uk]

your bank is WRONG.

 

demand to speak to someone that can sort the issue

 

dx

[diddy1]

I would love to, but am really lost as to who within the bank to talk too and what exactly to say.

[renegadeimp]

Speak to a supervisor or manager on the phone. Or the branch manager in person. If they refuse, you need to demand it in writing along with them dating and signing it, so you can make an official complaint. If they wont put it in writing then you know theyre lying.

[diddy1]

Just to update, thanks for advice everyone.

 

I spoke to my bank again today, got through to the disputes department.

 

I explained what had happened.

 

She asked me if I had tried to contact them before, and I said about the resolve things that they did not respond to

 

she said because I submitted it they will class that as the date from which they will cancel authority.

 

Apparently I should have a refund of the monies back in my account by midday tomorrow and any future payments to them are totally blocked.

 

they can come to me and have it paid back by a different method.

 

One where they don't get my card details and I'm not going to wake up to them having cleared my account.

[renegadeimp]

So a good result. Pity it took that long for your bank to actually follow the law.

[diddy1]

I'm just relieved they are putting it back on and really appreciative of the advice from everyone on here. I've never posted before, and really glad I did because I would have just accepted the information they gave me that they couldn't do anything about it

[sillygirl1]

Don''t forget to inform the OFT of their misbehaviiour in clearing out your bank account, very much against the OFT Guidelines in Debt Collecting.

 

You MUST complain to the OFT as they have ignored you and that is not on. The OFT are collecting evidence against the Payday loan market so your complaint may be the nail in their coffin.