Author Topic: CPA  (Read 1643 times)

JLRRAC

  • Guest
CPA
« on: 15 Apr 2012 05:13PM »
Or Continuous Payment Authority, again I find myself asking folk to forgive me if I've mentioned this previously but it crossed my mind that if I was only thinking I had mentioned it and not done so I'd best mention it now.

The CPA is a method of making payments to a company or business, for instance to Curry's or as in my case to a company that is part of the Bank of Scotland. This company I am dealing with is looking to recover a debt I have to the BoS and due to changes in some banks which they have not adopted yet (they will have by mid May) called the 'Faster payment method' the company I am dealing with will not accept 'Standing Orders'.

They have tried to force me to agree to a Continuous Payment Authority, at one point whilst I was speaking with them directly from my local BoS's own phones, threatened to put my bank debt into the hands of a private debt collection company who would come to my door if I did not agree to their CPA agreement. I responded to this by threatening them with my going straight from the bank branch to the Police with the intent of having them face charges of threatening and intimidatory behaviour, my doing this saw a change in their behaviour and they accepted a payment via a bankers draft. I was not charged for using this method by the bank.

I had only the same day caught a program on the BBC about folks 'worse deals' and in this program they explained that a CPA is not like a standing order or a direct debit, with CPA whoever the company is can take payments whenever they like and for as much as they like. Even if they tell their customer that they will only take a payment once a month and for an agreed amount they can as I've said actually take as often and as much as they choose.

Folk who have agreed to this method of paying bills or whatever can only but write to a company with which they have entered this type of agreement and 'Ask' that they stop taking payments, they cannot force the company to do so.

The advice from the CAB is to check your bank statements to make sure they have stopped taking further payments. Because of what I had learned from the BBC program I have made it clear to the company I am dealing with that I will not enter such an agreement.

I must add that when such agreements are made over the phone it can be very hard to force any company continuing with the agreement because they are not written down anywhere. The company I am dealing with tried many times to have me supply my debit card details, had I done so they could easily set in motion the steps to have me tied to a CPA.

My point in making this posting is to warn my fellow posters about this what seems recent introduction to payment methods. We are going through so much stress with things such as our health, Atos Origin assessments and  the welfare reforms I think we have more than enough on our plates to worry about. I might just be the sort of time a company might use to take advantage of people and it could be so easily missed in a phone call if we are not quite up to speed on what is being said to us during the call. As the saying goes 'forewarned is forearmed'.


KizzyKazaer

  • Global Moderator
  • Super Hero Member
  • *****
  • Posts: 9002
Re: CPA
« Reply #1 on: 15 Apr 2012 05:38PM »
Thanks for posting, JLR.

Some more information on Continuous Payments Authority:

http://www.guardian.co.uk/money/2012/feb/24/continuous-payments-authority-know-your-rights

JLRRAC

  • Guest
Re: CPA
« Reply #2 on: 15 Apr 2012 06:05PM »
Kizzy the following was taken from the article you have posted the link to;

"Lloyds TSB "We [ie, the bank] cannot cancel a purchase once you have given your consent to make the payment to a retailer (you will need to contact the retailer separately). This includes payments made on a regular basis using your card, such as magazine subscriptions."

Wrong! The bank or card company must cancel regular payments once you have told them you have withdrawn permission"

But this flies in the face of what the writer says at the begining of his article. He suggests or says that a person does not need to inform the company with which he/she has started their CPA. A person still has to get the company with whom they have the CPA in place with to acknowlege their (the customer's) wish to end the CPauthority between them.

JLRRAC

  • Guest
Re: CPA
« Reply #3 on: 15 Apr 2012 06:15PM »
What follows is a comment from the article by someone called Hermann22" I'm guessing it had to be written after the article was printed and pretty much says it all. Me I will not touch a CPA full stop!

"Hermann22
27 February 2012 1:52PM


As at yesterday Barclaycard still insist that they cannot accept requests from the card holder to stop such recurring payments. This was confirmed by a supervisor. When the article was mentioned to them they said that it was a load of rubbish! So, who is right? Perhaps the Guardian ought to contact Barclaycard and clear this matter up once and for all."

devine63

  • Guest
Re: CPA
« Reply #4 on: 16 Apr 2012 01:49AM »
My understanding is that a Standing Order or Direct Debit can be stopped by you telling your bank, but a Continuing Payment Authority is a different kind of payment and the only way to stop it is to contact the company with whom you made the arrangement  and get them to stop taking the payments.

If you ever have to give your debit card details to a company over the phone I suggest you specifically say I am authorising ONE payment, today, for the amount of XXX and no other payments.  I am NOT giving you the authority to create a Continuous Payment Authority or to take other payments and if you do so I will have the authorities pursue your company for fraud/theft.   Please confirm that you have recorded that instruction on your system exactly as I just stated.

It won't be perfect, but might be enough to help stop some companies.

By the way: did you know that if you owe a debt to a company and you have another savings or current account with them the small print of the debt agreement is likely to allow them to snatch money from your current / savings account if your debt payments are not maintained as agreed?    Therefore the best advise is to move your current / savings account to a company with whom you have not debts.

regards, Deb

oldtone27

  • Charter Member
  • Hero Member
  • *****
  • Posts: 2978
Re: CPA
« Reply #5 on: 16 Apr 2012 11:09AM »
I have just had a notice of change of conditions from Barclaycard in respect of my credit card. They say that the changes concern wording to improve clarity and are effective from 28/5/12.

There is one item which seems relevant to this thread and it is:

"condition 15.2: We've updated this condition to explain if you want to withdraw your consent to future recurring transactions, you can now tell us. We still recommend you contact the retailer first because they initiate the transaction. If the transactions are processed we'll refund them, together with associated interest and charges."

It makes no distinction as to the nature of the transactions. This would seem to overrule any CFA, although might be aggravating for the credit card company if the retailer did not desist in payment demands.

KizzyKazaer

  • Global Moderator
  • Super Hero Member
  • *****
  • Posts: 9002
Re: CPA
« Reply #6 on: 16 Apr 2012 12:16PM »
JLR in Reply #2:

But this flies in the face of what the writer says at the begining of his article. He suggests or says that a person does not need to inform the company with which he/she has started their CPA.

I don't see how the writer has been contradictory in any way - the whole thrust of the article seemed to me to be saying that despite banks insisting that retailers were contacted (Lloyds was given as an example, among others), this is not necessary and one can go straight to the bank to cancel the CPA.  He seems to be pretty consistent (and insistent) on this point:

It has emerged that many organisations are telling people continuous payment authorities can only be cancelled by the retailer or business – and that neither you, nor your bank or card company, has any power to stop the payments.

But that is wrong. In fact, you can go direct to your bank/card company and ask them to cancel the payments. The Financial Services Authority recently updated its consumer advice to make this clear.  It says: "Your bank or card issuer must then stop them – it has no right to insist you agree this first with the company taking the payments."
[/b]