payday loans and raiding bank account

[legalese]

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

No miliitant it wouldn't work from the card but it is in the banks hands so they can and do use a setting off method of continuing payment, but if you tell the bank that you want all payments stopped to the payday loan then that would work.

[IanM]

Re: payday loans and raiding bank account

Sorry Davyb, you are wrong this time, my wife had to report her card lost 8 weeks ago because a company continued to take a subscription even though it had been cancelled and they refused to accept it had been cancelled and continued to take the payment so my wife reported her card lost and had a new one issued with a new number. My wife then had to contact a couple of other companies to inform them of the card number change to avoid missing payments due to refusal on the old number.

[miliitant]

Re: payday loans and raiding bank account

has that had any effect on you ian

are they still raiding her accout on the old card details

[Guest]

Re: payday loans and raiding bank account

Sorry Davyb, you are wrong this time, my wife had to report her card lost 8 weeks ago because a company continued to take a subscription even though it had been cancelled and they refused to accept it had been cancelled and continued to take the payment so my wife reported her card lost and had a new one issued with a new number. My wife then had to contact a couple of other companies to inform them of the card number change to avoid missing payments due to refusal on the old number.

I can only say what has been the case in my experience, i know i had to change bank accounts to stop AOL from drawing on one of my debit cards, however as said it is pretty much a moot point because all you need to do is cancel the authority by quoting section 55.

D

[miliitant]

Re: payday loans and raiding bank account

i am led to believe that the only way to stop this is getting a brand new bank account number

but what are the consequence if the bank ignore section 55

try telling that to someone who has had their bank account cleaned out and the bank just say go to the FOS

[legalese]

Re: payday loans and raiding bank account

i am led to believe that the only way to stop this is getting a brand new bank account number

but what are the consequence if the bank ignore section 55

try telling that to someone who has had their bank account cleaned out and the bank just say go to the FOS

I think new bank is the way miliitant as they can still use the method setting off to your new account in the same bank, not 100% but 99% sure they can. New bank mate

[miliitant]

Re: payday loans and raiding bank account

but how can the bank use the setting off argument, even though it may be inn their terms and conditions, which is contrary to the

The Payment Services Regulations 2009

which is the statutory authority in this

a banks own t&c do not over ride statutory obligation

[legalese]

Re: payday loans and raiding bank account

Its a tricky one and could be lying somewhere else in another act but as i said above your best to move banks or tell the bank to stop paying the payday loan as a family member has paid it off with their card.

[Guest]

Re: payday loans and raiding bank account

i am led to believe that the only way to stop this is getting a brand new bank account number

but what are the consequence if the bank ignore section 55

try telling that to someone who has had their bank account cleaned out and the bank just say go to the FOS

If the bank ignore section 55 then they must refund the money if not you can report them to the FOS, their obligations are quite clear under the payment regulations.

The legislation involved would be the Services and Markets Act 2000(a); I am unsure if you could act upon a breach yourself or if you would have to go through a regulatory authority, you would have to examine the act.

D

[Guest]

Re: payday loans and raiding bank account

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


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.

D

[legalese]

Re: payday loans and raiding bank account

Be aware, though, that you will still be
responsible for paying any money that
you owe.

This responsibility will follow you into your new account in the same bank, if the payday loan company has been taking money for a debt from your account then they can carry on taking money from the same bank but different account (the new one), as evidence shows you had been making payments from same bank different account....As i said above get New bank, new accoount, no evidence of payments.

[Guest]

Re: payday loans and raiding bank account

No of course it simply means that cancelling the payment authority will not cancel the debt(obviously)

This would be the same if you changed or closed the account.

D

[Jennie wren]

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 had a payday loan and fell into the same trap. The details were set up using my debit card. I reported the debit card as lost once I realised what they were doing (they did exactly the same to me). This stopped them taking any money from my account as once you have a replacement card it stops ALL transactions on the old card whether they were set up previously or not.

[Guest]

Re: payday loans and raiding bank account

I had a payday loan and fell into the same trap. The details were set up using my debit card. I reported the debit card as lost once I realised what they were doing (they did exactly the same to me). This stopped them taking any money from my account as once you have a replacement card it stops ALL transactions on the old card whether they were set up previously or not.

It would appear that on some occasions it works, if you look over the road, you will see lots of occasions where it hasn't, as indeed it didn't with me.

I suppose it is up to the individual to decide if they want to take the chance.

Section 55 seems to be working better now, however the advice is the same as always , and that is to open a parachute account

D

[legalese]

Re: payday loans and raiding bank account

If a payday loan company has been receiving payments from your bank and suddenly the payments stop, they can still get their money payments from the same bank if they think you are trying to avoid any further payments. By moving to another bank the payday loan company wouldn't have any idea where you gone, so if your old bank account is now closed or there are no deposits being made into it, they cannot take your money as it would not be there, its in your new bank account which they don't know about.