CFO Drained my account **WON** Barclays refund and pay **compensation**

[brendenconnolly]

I have some information, based on my own experiences of CFO Lending, and my own bank, Barclays.

 

I have had an account with CFO Lending for some months,

I lost my job 2 weeks ago, and when I contacted them to cancel my continuous card authority,

they told me that was not possible, and the payment would be taken on it's due date, which was today.

 

The payment was for £217.

 

I then wrote to them, demanding that the continuous payment authority be cancelled, and received no reply.

 

I put the same request in writing to Barclays.

 

They never bothered to respond either.

 

I then went to the branch and cancelled my visa debit card, and ordered a new one

- thinking that the old card had been cancelled, this would prevent the full payment, and I would arrange repayments with CFO at a more affordable rate.

 

I checked my online banking this morning, and discovered CFO lending had debited my account by the £217, despite all of the above.

 

My first port of call was to visit the branch - I may as well have saved the petrol, since the bank teller told me nothing could be done because it was a financial institution.

 

After explaining that referring to CFO as a financial institution was a gross exaggeration of their status as legal loan sharks,

and that no-one is allowed to steal from anyones account, I left more frustrated than I had been when I arrived.

 

I then called Barclays Debit Card Services, and found something out which is very disturbing.

 

Because I had cancelled my card, my first question was how they could then debit over £200 from a cancelled card, bringing me into my overdraft.

 

The response was "because they are a financial institution, they can debit your account using only the first 12 digits, disregarding the final 4 digits of my card number

- when I cancelled my card, only the last 4 digits actually change on the new card. They are not required to use the security code".

 

He then went on to tell me that nothing could be done at the moment, because although the money had left my available balance, it wasn't physically with CFO yet.

 

Only when I pushed the point, and explained all the actions I had taken to prevent this happening, did he agree to do a temporary reversal of the transaction,

and I got the money back

- but if the company dispute this

- as they surely will

- I may lose the money again pending investigation, and there is nothing they can do to stop them taking more payments,

even if that takes me beyond my £400 overdraft limit!

 

I have my money back for now, but I suspect not for long, and that this is only the beginning of a long process.

 

I appreciate that I owe CFO the £217.

I am not trying to avoid responsibility for my debt, even although the loan was only £120,

 

but having lost my job, I genuinely couldn't afford to make that payment, especially a few days before Xmas,

 

I took every possible step to avoid this situation, and reach an amicable arrangement with them due to serious financial difficulty,

but since the company are so brutally uncompromising, and focused only on money, that was not possible,

and as a result they decided to steal from me using a cancelled card,

and as far as I can see Barclays are entirely complicit in allowing them to steal money from my account,

despite the withdrawal of my authorisation to do so, and

 

that makes me wonder what the banks get out of helping these payday loan companies to do this on what seems to be an industrial scale.

 

Circumstance and need drew me into the murky world of payday loans, and I wish I had never gone there -

 

however, any advice from anyone reading would be good!

[dx100uk]

own thread created

 

dx

[brendenconnolly]

cool - thanks!

[slick132]

Hi BC and welcome to CAG

 

You did well to stick to your guns with Barclays and secure a reversal of the transaction.

 

The banks seem to have a problem understanding this basic principle - if you instruct them NOT to pay someone, they are duty bound to follow your instruction.

 

If you cancel the CPA as you correctly did in writing, the bank should not pay the recipient, whether they are a "financial institution" or anyone else.

 

Read more about this here - http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority&p=3705245&viewfull=1#post3705245

 

Can you confirm :-

 

1. When you contacted CFO by phone to withdraw your consent to the CPA.

 

2. When you wrote to CFO confirming this.

 

3. When you wrote to Barclays to confirm cancellation of the CPA.

 

4. Did you call the bank before this, to cancel the CPA.

 

[brendenconnolly]

Hi Slick, thank you very much for your reply.

 

I have to be honest, and tell you the main reason I stuck to my guns with Barclays was because I read so many other stories bearing remarkably similar hallmarks to my own,

both on this site and elsewhere, and did some research to find out the best way to stop these payments.

 

The request was put in writing to [email protected] on the 14th December 2012, and was handed in to Barclays Dumbarton branch the same day.

I had spoken to CFO on the phone, but at that stage, not the bank - I felt a visit to the branch should have been sufficient.

 

Worryingly, the bank teller who told me they hadn't received the CPA cancellation letter was the SAME bank teller I handed the letter to a week previously.

When I challenged her, she just said they get letters every day and she couldn't distinguish one from the other

- it may still be en route somewhere else to be actioned.

 

I get the feeling the tellers aren't very well trained - I don't really think they set out to lie to one, I just think they don't know any better,

and that greater responsibility lies with Barclays who are at fault for not ensuring that their staff can provide customers with the correct information.

 

What I find particularly galling, is that the banks are well aware of the problems people are getting into with these payday loan companies,

and rather than trying to assist, they are happily complicit in allowing them to empty peoples accounts, using incomplete card details,

and without the need for verification of one's security code.

 

During my relationship with this CFO lending, I have never needed to use verified by visa, or any other card authentication system.

 

Barclays card services would NOT have refunded me at all, or given any temporary reversal had I not spent over an hour on the phone quoting every regulation I could find,

they in fact, for the majority of the call told me there was no way pending transactions could be reversed

- yet lo and behold, after threatening further action, they found a way to do it.

 

I have had to take my cash, right up to my overdraft limit, out of my account now, to ensure I am OK over xmas,

and that these people are not able to go into my account and take it from me again

- it may well be that the temporary reversal will be reversed again, taking me beyond my overdraft limit,

but that is something I will need to deal with as and when it happens

- my account will be funded again next week, and the week after, with small sums of money, I just hope I don't need to go through all this again to access it!

 

And of course, dealing with CFO lending has only just begun, because this now means I have defaulted,

they will not agree any reduced repayments to clear the debt, and the lord alone knows what charges they will add

- they are going to have to be paid, but in all honesty, they way they have behaved,

 

I am in no rush to clear my debt, they are just going to have to wait until they are prepared to set up repayments which I can realistically afford,

since I did not anticipate being in this financial hardship due to losing my job at the time I took the loan.

 

Thanks very much once again.

[dx100uk]

you do NOT have to pay any PENALTY charges the PDL levy

 

they are UNLAWFUL.

 

dx

[brendenconnolly]

Further to my last posts, the money has now, once more, been removed from my account, taking me £240 over my limit, with several bank charges on top of that at £8 a time. Barclay's have sent me paperwork to complete, which I have done, and sent back, and they now tell me it will take until May 12th before a decision has to be made, following their investigation, and in the meantime the funds will remain unavailable. This means I have had to temporarily increase my overdraft from £400 to £640 with a reducing balance each month until it's paid back.

 

I have explained to Barclay's the financial situation I am in, yet still they will not give me this money back until their investigation is complete.

 

Is there anything I can do to force them to hand the money back? I am in a dire situation at the moment, I have no money literally, yet the bank hold these funds from me. I am certain they will be returned after investigation, but that doesn't help in the meantime.

 

Any help would be gratefully appreciated!

[renegadeimp]

Time to file formal complaints with sharkleys fos fsa and oft. Make a complaint under bcobs and be prepared to take them to small claims court if necessary.

[brendenconnolly]

I will look at going down that road, but I need a final response from Barclay's before I can do so, and they just keep fobbing me off!

[renegadeimp]

You only need the final for the fos. Not for the others.

[BornThisWay]

My sympathies. This happened to me with CFO and NatWest. I never got my money back from NatWest, their attitude was that it was nothing to do with them.

 

Cancel your overdraft, start another account with Barclays or somewhere else, and ensure there is never a Penny in the original account for the CFO sharks to get hold of. That seems to be the only way to stop them.

[brendenconnolly]

That's what I'm thinking is going to have to happen - CFO Lending are the worst company ever. They have been texting constantly to offer me their "CFO RESOLVE" product, offering £100 today, and pay the whole lot back on payday, but all they are doing is trying to get me to give them a debit card with money on it. They are sharks!

[MichaelMarsh]

If anyone has any problems with Barclays allowing payments after CPA has been cancelled email - [email protected].

 

I emailed him and all money was refunded, they even gave me a good will gesture payment.

[renegadeimp]

GOod will gesture means they know they did wrong but will not admit it. ALso, Please make full complaints to the regulators. Dont ignore it or say you will and not follow through with it.

[brendenconnolly]

Thank you so much for that Michael. Very much appreciated - here is the e-mail I have just sent to Mr. Maddox. I hope that get's a response, because all other avenues have failed miserably. Your thoughts on the e-mail would be gratefully received.

 

Dear Paul,

 

I received your name and e-mail address from someone posting on consumer forum who had help from you regarding the very same issue I am having, who advised me to e-mail you, having got nowhere through the regular channels. My sort code is ****** and my account number is ********. Barclay's case reference for the matter in hand is ****-*******.

 

For reasons I will come to later, I had reason to cancel a Continuous Payment Authority with a PayDay loan provider called CFO Lending. I done this in writing on 14th December 2012, and handed a signed letter intimating the same to the Barclay's branch in Dumbarton, the same day. To be on the safe side, I also cancelled my debit card, and ordered a new one, to ensure that this company, who I was in dispute with, and who I am now taking to court, could not debit any monies from my account. On 22nd December 2012 CFO lending were then able to take £217.60 from my account, using the details of a cancelled card. I then spoke to Barclay's Debit Card Services, who immediately reversed the transaction. In February (I don't recall the exact date), this money was again taken from my account, and despite numerous calls to Barclay's, nothing has been done to return the money this company have stolen from me.

 

I am in a very difficult situation at the moment, in financial terms, trying to live on very restrictive benefits, I am struggling on a day to day basis, and I would have thought in such circumstances the bank might have shown a little more support to their long standing customers, than sharing an allegiance with a company of parasites who, according to the forums I have read online, have stolen money in this way from many thousands of customers of various banks over the last few years.

 

The simple fact is that I cancelled my Continuous Payment Authority, and my debit card, and they were still allowed to take money on a cancelled card. There have been around £40 of bank charges as a result of this, which I would also appreciate having refunded to my account, since this error lies somewhere other than at my door. I believe some sort of goodwill gesture might also be in order. Having reviewed the BCOBS regulations, and the FSA handbook online, it is clear that these monies should be refunded onto my account IMMEDIATELY, and I would be extremely grateful if you could see to it that this is done. I have a long standing relationship with Barclays, and this is honestly the first problem I have had, however this matter has now dragged on for 3 months, I'm told it will be 2 more months before a decision is made. I would like to continue as a Barclay's customer, and have my account back in order, as it's always been, but if you are unable to help me with this, then I feel I have no choice but to go down the complaints route, and ultimately into court, where I intend to challenge CFO Lending on their dubious practices.

 

This e-mail comes from my e-mail address registered with Barclay's, so I shall expect a reply at least within the next 24 hours, or I can be reached on ***********. Alternatively you have my home number in your system.

 

I would like to take this opportunity to thank you in advance for your assistance, and in anticipation of your reply, and hope we can work together to resolve this matter.

 

Yours sincerely

[slick132]

On reflection, it would have been a good idea to get a receipt from the branch when you took in that letter. Or to have sent it in by Recorded Del'y.

 

However, if you have a copy of the letter, that will have to do.

 

See what response you get to your email and let us know.

 

[brendenconnolly]

Michael, how long after you e-mailed this Paul Maddox chap did it take before you were refunded?

 

Slick, with hindsight, it would have been great if I had got receipts for the letters. The CFO one is easy to prove, because it was e-mailed, but the one handed into the branch, I only have a copy of - not so easy to prove I handed it in. Although, I do hope they are not going to go down that road. At the end of the day, it is going to cost more than they owe me if I go to the FOS! lol

 

Thanks guys - as soon as I get a response, or if I get a response I will let you know. I thought my e-mail might at least have been acknowledged by now, but alas not!

[davyatsea]

Michael,

Having had some experience of thie myself, maybe I can help. I had a similar problem with CFO Lending. After seeking advice from the CAB, I changed bank accounts with Barclays, transferred all mny legitimate outgoings onto the new account and have left the old account empty. It is clear that CFO are attempting to debit my old card on a regular basis as I keep receiving emails/texts saying that they are doing so. Barclays cancelled my CPA immediately following my request on the phone and they sent out letters to me to confirm this had been done. I offered CFO a token payment of £30 per month as I did with other PDL's. They acknowledged receipt of my payment, but stated that they couldn't enter into a repayment plan. Compared to other PDL's they have been fairly quiet, but its getting time to refer them to the OFT/FOS as well. The general concensus from this forum is that PDL's cannot enforce repayment of anything more than the original loan plus one months interest. The problem we have is getting these people to respond to emails instead of firing out their automated junk. Best of luck, and hope that Barclays play ball with you.

[brendenconnolly]

Well, Barclay's called me back. The chap was very helpful, and assured me they will have it sorted within 24 hours, and he will phone me back tomorrow afternoon with their resolution. Fingers crossed this brings the matter to an end - I am impressed with how quickly they have responded to me, and the quality of service - let's just hope tomorrow brings a satisfactory conclusion to the matter!

 

Thank you for all the advice!

[slick132]

Hi BC,

 

I hope you'll have it resolved tomorrow.

 

If there's any doubt about your money being returned immediately, mention that Barclays have a duty imposed by the BCOBs regulations and you will make a formal complaint if they fail to sort this for you. You can take direct court action against the bank using BCOBs if necessary.

 

Keep us updated.

 

[turkwyfe4lyfe]

just cancelling a card and getting a new one is not the way. them card details are still active for 30 days after you have cancelled it, accrding to Halifax, to allow any payments etc to go in or out which is why i reported it lost so that the card is blocked and cant be used at all.

I once had a similar situation with QuickQuid and the CPA...where the bank manager at Halifax, was adamant nothing could be done from my end until i showed him the FSA handbook, (provided by a link from Renegaide,)

 

he stamped and signed both mine and their copy of the CPA instruction I typed and was on my way. Was only in their 15 mins, i expected more of a fight!! and QQ never managed to debit my account

[brendenconnolly]

First of all, apologies for the delay in updating you all on the progress I have made. Following a call from the Customer Services Manager, who promised to call me back within 24 hours with a resolution, he kept to his word, and the resolution was that all my money was refunded to the account as a goodwill gesture, including all the charges. I was paid an additional £220 for all my inconvenience, but without any admission of liability on the part of the bank.

 

I have now opened a new account with Nationwide, I am more comfortable with this, because CFO would have no details of, or way of debiting this account - had I stuck with my Barclay's account, this situation could have arisen again anytime. I will leave my Barclay's account unfunded for a few months, until they stop trying to debit it - they still try regularly!

 

Many thanks for all the help and advice on here - I feel I got a just resolution, and most importantly, I got my money back - I have no doubt Barclay's will pursue CFO Lending to recover that money, and wish them good luck with that, but I don't fancy their chances!

[dx100uk]

hey great result!!

 

title amended to help others

dx

[brendenconnolly]

Hi, thanks for that - I thought it was a good result, although I doubt whether CFO will agree.

 

Barclay's tell me that there is an interbank meeting due in the next few months to address the problems their customers are increasingly having with PDL companies. Clearly, the banks know there is something not right in allowing and facilitating their dubious practices. Although, following recent years, we all know the banks are a bit morally challenged!

 

Something needs to be done though, and there is an issue with staff training, because not only do they regularly give out conflicting information, but far too often they give out the wrong information, creating confusion and making situations worse.

 

However, if I have learned one thing from this unpleasant debacle, it is NEVER to solve short term financial worried with a Payday Loan. It is NOT the solution. If there are any problems paying them back, then it can very quickly turn ludicrously expensive, it becomes very stressful when they phone you 8 and 9 times in a day trying to get money you simply don't have. They claim to be responsible lenders, and they claim to lend only within the realistic limits that individuals can pay back. This is not the case though, often they make no checks with employment status / income etc - they rely on what customers tell them, and bang the money into your account before you can change your mind. Better to go without than solve a problem using these companies - the problem that is solved in the short term, leads to far worse problems, and much more stress in the longer term - it's just not worth it!

[slick132]

Hi BC and I'm delighted with the result you achieved here.