payday loans and raiding bank account

[miliitant]

i have been helping out a member at work who has fallen into the payday loan trap.
he is tring to pay it back but as soon as his wages go inn to his account in the early hours, they take it.

when they did a debit for £5.00 on monday, i realised they must have set up the computer to keep trying different amounts all the time

on the 14/08/2012 i did him a template to send revoking the continious payment authority as to

Regulation 55 of The Payment Services Regulations 2009:

HE SHOWED ME AN EMAIL RECEIVED YESTERDAY FROM THIS COMPANY

I have cancelled your card details as requested

ok then, they have cancelled the card details so he can pay it by bank giro or standing order once they send it, only problem is

THEY DEBITED ANOTHER £5.00 TODAY

so this is now theft under the Fraud Act 2006

I have done him an email demanding an explanation and stating a witness statement will be made to the police on the actions of this company

comments please

they also keep refusing to send him their bank details so he can set up a standing order. they keep asking him to phone as all communication is by email as he cannot trust a single thing they say, i have advised keeping to email

[Guest]

Re: payday loans and raiding bank account

Hi

I presume you copied the bank in on the section 55 request. If so you can get them to refund the payment under section 61

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.

D

[miliitant]

Re: payday loans and raiding bank account

thanks davyb

its the legal side though i, myself am concentrating on

they have committed an unlawful act and i am going to recomend a police statement on this for fraud

[Guest]

Re: payday loans and raiding bank account

HI M

I hope you can prove me wrong but from experience i would be extremely surprised if the police would be at all interested, many of us tried involving the authorities in the early days when these started clearing peoples accounts out, this was when the advice was generally agreed to tell people just to open another account.

Still if you want to give it a try, then more power to ya.
D

[legalese]

Re: payday loans and raiding bank account

He should use royal mail registered (signed for), email wouldn't have the same legal standing as in royal mail, il find out more for you on this.

[IanM]

Re: payday loans and raiding bank account

Report your bank card as lost. All transactions will then be blocked by the bank and a new card issued with a new number. Prevents them from taking any money unless you give them your new card number.

[Guest]

Re: payday loans and raiding bank account

Report your bank card as lost. All transactions will then be blocked by the bank and a new card issued with a new number. Prevents them from taking any money unless you give them your new card number.

Doesn't work i am afraid, the authority would have been registered before the card was "lost", anyway there is no point now the new regulations are up and running you just need to contact the bank and quote section 55.

D

[bluebottle]

Re: payday loans and raiding bank account

I can tell you that the police will not act for a fraud involving just £5.00. Yes, these scrotes have committed an offence of Fraud by False Misrepresentation under Section 2, Fraud Act 2006, but the police will need more substantial evidence of fraud before they take any action. If the scrotes had taken, say, five or more amounts without lawful authority and ignored requests to stop, then the police would be more likely to take action. However, the amounts would have to be substantial, at least £200 or more per unauthorised transaction. This amount may well have increased, so please check what it is with the local police force as individual police forces have their own policies.

One way of stopping this is for your member to ask their bank to issue a new card with a different long number and block the old card. This then prevents the payday loan provider helping themselves when they feel like it.

[miliitant]

Re: payday loans and raiding bank account

Report your bank card as lost. All transactions will then be blocked by the bank and a new card issued with a new number. Prevents them from taking any money unless you give them your new card number.

ime afraid i must disagree on that one

when you have a new card issued, even if reported as lost /stolen, it is only the first 12 didgits on the card that are changed, it is the last 4 didgits that make up the sixteen card number that links it to your current account

that is how payday loan companies can still force through transactions on a cancelled card

[legalese]

Re: payday loans and raiding bank account

Doesn't work i am afraid, the authority would have been registered before the card was "lost", anyway there is no point now the new regulations are up and running you just need to contact the bank and quote section 55.

D

I am afraid you are wrong davyb, reporting your card as lost would work as you card details would have changed, i am almost sure its the last 4 numbers and the security number that would be different, try paying for something with your card but input the wrong numbers, see if it works. Not just that, imaging a card thief using it.

[legalese]

Re: payday loans and raiding bank account

ime afraid i must disagree on that one

when you have a new card issued, even if reported as lost /stolen, it is only the first 12 didgits on the card that are changed, it is the last 4 didgits that make up the sixteen card number that links it to your current account

that is how payday loan companies can still force through transactions on a cancelled card

I am sure that is the banks decision miliitant, they use a system called setting off or something like that to pay debts.

[IanM]

Re: payday loans and raiding bank account

Report a card lost and the new one is issued with a new 16 digit number and 3 digit security number on the back. The account number remains the same though.

[Guest]

Re: payday loans and raiding bank account

I am afraid you are wrong davyb, reporting your card as lost would work as you card details would have changed, i am almost sure its the last 4 numbers and the security number that would be different, try paying for something with your card but input the wrong numbers, see if it works. Not just that, imaging a card thief using it.

I am 100% sure i am correct on this.
Just for arguments sake , say you set up a number of legitimate payment authorities then you lost your card, would you expect them to be cancelled? No and they would not be, the agreement to make future payments is not dependent on the card it is dependent on the authority.
This is one reason the new regulations were brought into place, there should be no problem now s long as people make the banks use them.

D

[miliitant]

Re: payday loans and raiding bank account

Report a card lost and the new one is issued with a new 16 digit number and 3 digit security number on the back.

before i tell my member that can anybody tell me with 100 % certainty that a payday loan company cannot force through a transaction with your old card details, even though you have a new card and raid your current account

[Guest]

Re: payday loans and raiding bank account

before i tell my member that can anybody tell me with 100 % certainty that a payday loan company cannot force through a transaction with your old card details, even though you have a new card and raid your current account

I can tell you with 100% certainty that they can, they have in my own personal experience, not just PDL companies but AOL Sky and many others.

D