UrgentPPayday loan advice please - money taken without authorisation

[MattK]

Hi

 

I recently applied to uncle buck for a loan, providing debit card details as part of the process.

 

 

At the end fo the call they informed me that I had an unpaid loan from over a year ago witht them, which I do not remember but accept that its true - i had to use a lot of these companies last year to get by.

 

Yesterday I had a call from Barclays advising of suspcious transactions, and Uncle Buck have taken hundreds of pounds from my account. Ultimately Barclays advised that there was nothing I could do as Id freely given my card details.

 

Is this true? Do I not have to authorise card transactions? The account is only a few months old, so these card details are not the oens I provided when I took the loan - can they simply take money from me just because they know my card details? Don't i have to authorise a transaction?

 

 

ANy advice desparately welcome - I now have no idea how I'll pay my rent this month.

[rebel11]

Hi matt

 

Welcome to CAG

The guys will advise as soon as they are available.

 

http://en.wikipedia.org/wiki/Card_security_code

[sillygirl1]

No, it is NOT true, you did NOT authorise Uncle Buck to take the money. You must now email Uncle Buck telling them you want the funds replaced immediately, if they do not agree then go to the police and get a crime reference, then go to the bank and get the money back using the crime reference.

 

Complain to Trading Standards via Consumer Direct and to the Office of Fair Trading immediately.

 

Get another debit card from your bank, insist on another account number too as clearly this has been compromised.

 

The bank are not very aware that you DO have rights in this matter so complain about them not doing anything to get your funds back.

[MattK]

thanks silly, i am in a bit of a state - not slept all weekend and struggling to focus at work, so much appreciated.

 

is there a specific law I need to reference?

[sillygirl1]

There isn't a specific law but the Office of Fair Trading MUST hear about this from you - they have told off several other payday loan companies for doing this and you are clearly now suffering extreme hardship due to Barclays allowing the company to remove funds to which they were not entitled.

 

As I said you now need to INSIST on a new account number from Barclays and if necessary get the police involved as Uncle Buck had no real right to the money they have taken, at MOST they should have let you know what they were doing... clearly they are at fault. Tell them in no uncertain terms that you are complaining to all relevant authorities (including the police and the press) and they might start seeing sense and return your funds.

[BABABYBOO]

SAME THING HAPPENED TO ME THIS MONTH THEY TOOK 420 OUT OF MY ACCOUNT TAKING AS MUCH AS 4 PAYMENTS IN A DAY. TODAY THEY TOOK £10 I TOLD THEM I COULD NOT AFFORD ANYMORE AND THEY WENT AND TOOK ANOTHER £30. IT MEANS I CANT BUY FOOD AND THAT I HAVE TO WALK AN HOUR AND TWENTY MINS TOO AND AN HOUR AND TWENTY MINS BACK FROM WORK.

 

I just used the email to send to bank that i saw on here but when i called the bank to ask for an email address to send it too i was told there was nothing they could do and if i made a complaint it would not be carried further... most unhelpful!!!!!!!!

 

i don't deny that i owe the moey but i think to just take it and take it and take it and take it till the card declines is unfair!!!!!!!

[BABABYBOO]

sorry this is the email i sent. the bank were not interested so i sent it oo the company instead. doubt it will help

 

"I did not authorise the transaction and it is a civil debt which must be recovered legally in the correct manner and I did not authorise the three digit security code (ccv) at the time of the transaction.

 

Please return all monies immediately.

 

 

Further Information

 

 

Section 40 of the Administration of Justice Act

 

"S40 Punishment for unlawful harassment of debtors.

A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract he- harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation;

falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it;

falsely represents himself to be authorised in some official capacity to claim or enforce payment; or

utters a document falsely represented by him to have some official character, or purporting to have some official character which he know it has not.

A person may be guilty of an offence by virtue of sub-section (1) (a) above if he concerts with others in the taking of such actions as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment."

　

Office of Fair Trading

 

OFT warned payday lenders that they must not misuse debit facilities to vary the amount or date of a loan repayment.

 

The requirements now imposed by the OFT state that:

only take money from the borrower's account on the date or dates set out in the loan agreement, unless otherwise agreed with the borrower in advance

not change the repayment amount unless this has been specifically agreed with the borrower in advance

only take money from an account specifically given for the repayment of that loan.

 

 

'We have made it clear that we will not tolerate companies misusing repayment facilities and we will take action to ensure that unfair terms are not used. Those who offer payday loans must do so responsibly and in accordance with the expected standards.' Ray Watson, OFT's Director of Consumer Credit

Businesses should not include terms in their contracts with consumers that enable the business to vary the date and amount for collection without prior agreement.

The OFT considers such terms are likely to be unfair under the Unfair Terms in Consumer Contracts Regulations 1999, as they have the potential to operate to the significant detriment of consumers. For example, where money is unexpectedly taken from consumers' accounts during a time of financial difficulty, consumers may incur additional fees and charges from their bank or financial provider. "

[ihateyes]

yo need to cancel your debit card, and get a new bank account, otherwise they will dip as and when they please..... bunch of thieves

[MattK]

**UPDATE**

 

having found the original credit agreement (its from 2009), there is no reference to them being authorised to use these methods.

 

I'm aware that current agreements from most payday co's do have these clauses, but this one seems to be from before they started including these.

 

Barclays are insisting that they cannot do a Visa chargeback as it's a loan repayment, however the original agreement included a DD mandate (for a different account) and no debit card details were involved at all. Uncle Buck only got my card details when I recently applied for a loan and they informed me I had an outstanding balance from 2009.

 

At no point did I authorise them to take payment from thsi card, and as far as I can see, the original credit agreement doesn't include provision for them to do this either.

 

FULL TEXT FROM AGREEMENT (excl. my personal details) - apologies for formatting, I had to copy from a PDF.

 

Am i correct in thinking this doesnt allow them to take the money or am I clutching at straws?

 

KEY FINANCIAL INFORMATION

THE CREDIT LIMIT OF £

REPAYMENT is by debit card, direct debit or cheque.

AMOUNT OF EACH REPAYMENT may be collected in various amounts & multiples THE APR IS

and must be within 30 days.

_________________________________________________________________________________________________________________________

OTHER FINANCIAL INFORMATION

TOTAL CHARGE FOR CREDIT - Interest will be charged at a fixed rate of on the amount of credit applied on the date of the loan.

KEY INFORMATION

MISSING PAYMENTS could have severe consequences and make obtaining credit more difficult

Default – We reserve the right to charge you * interest on any instalments in arrears for such period as they are in arrears at the contractual rate

* for Letters/Notices sent to you about your default at £10 each

* any fees we incur in the instruction or involvement of third parties for:-

Tracing you, Returned Payments, Debt Collection, Court Action

IMPORTANT – READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was

made. If they were not, the creditor cannot enforce this agreement against you without getting a court order.

The Act also gives you a number of rights. You can settle this agreement at any time by giving notice in writing and paying off the amount you owe

under the agreement.

If you would like to know more about your rights under the Act, you should contact either your local Trading Standards Department or your nearest

Citizens’ Advice Bureau.

TERMS AND CONDITIONS

DEBTOR:

200.00

2339.30

This is a credit agreement regulated by the

Consumer Credit Act 1974. Sign it only if

you want to be legally bound by its terms.

Date of signature ________________

. YOUR RIGHT TO CANCEL

Once you have signed this agreement, you will

have a short time in which to cancel it. The

creditor will send you details of how and when

you can do this.

You agree

- that signature to this agreement acknowledges receipt of a true copy of the

agreement

 

- you have received the Pre Contract Information before signing this agreement

- if your repayment is not honoured we may share information about you and your

account with other lenders

 

- to a creditor making a credit reference and fraud prevention Agency search which

may be recorded by the Agency concerned and shared with other creditors; and

- the creditor may disclose to such agencies how you conduct your account

 

- if you default or are suspected of fraud that others lenders may use this

information about you and others with whom you are financially linked for credit

assessment, debt tracing, and fraud and money laundering prevention.

You have a right to be told which Agency we use and to obtain from the Agency a

copy of your file.

You have a right to cancel after you have signed this agreement. You have 14 days

from the day after this agreement is executed. You can do this by sending written

notice of cancellation to 238/242 Brownhill Road, London SE6 1AU.

You must tell us within 7 days if you change your name, address, place of work,

mobile number or email address.

You must tell us immediately if you change your debit card or bank account.

You must tell us immediately if your salary will be paid into another account.

We may end this agreement after giving your proper notice in writing if:

- you fail materially to fulfil your obligations set out in any part of the

agreement

- you have given false information in connection with this agreement

- you commit an act of bankruptcy (such as failing to pay a debt as ordered by

a Court)

- we believe your ability to repay the loan on it’s due date is seriously impaired

(such as losing employment)

- allow another person to take over our part of the agreement, that person will

then take over all rights and responsibilities under the agreement

207931

30 % (360% pa)

Signature for (or on behalf of) Creditor

Date: 18 JUN 2009

[MattK]

also (slightly tongue-in-cheek)

 

the credit agreement clearly states that:

 

AMOUNT OF EACH REPAYMENT

may be collected in various amounts & multiples and must be within 30 days.

well, it's 2 years later, so I guess that's invalid?!

_________________________

[ihateyes]

i hope barclays budge now on that basis.....

keep us updated.

I would also report it as theft to the plods, using that agreement as proof, though as it doesnt involve them wrinting a penalty charge, they probably wont be interested..... you could tempt they with a coffee and doughnut!

[MattK]

will keep posted

Edited June 9, 2011 by MattK