Zeb:

If I remember from previous threads don't the lenders say something like the terms and conditions are available on the website and it is up to you to go read them and it states the fees and charging process within these T&Cs and that's how they got around it and apparently it is legal for them to do so.

Firstly, the proper charging process needs to follow the terms of the direct debit guarantee (if it wasn't a direct debit, then there will still be a correct process to follow). This process includes the payee being told the amount and date of any charges before the payment is taken. Being told is not the same as being asked to read some terms and conditions.

Secondly, for any any terms and conditions to be valid, they need to be reasonable and they need to be agreed by the payee. The tone of the first post suggests that wdf did not click any box on a website and did not communicate in any way other than in the phone conversation. The payment was taken 10 minutes after the phone conversation and this does not allow time to read anything of note on a website. The bank should reverse the payment fairly quickly unless the "broker" can produce evidence that the the terms were accepted and agreed by wdf. The issue of whether the terms were reasonable does not arise unless they were agreed.

Thirdly, if the proper process outlined in the direct debit guarantee and if the terms & conditions were reasonable and were agreed, wdf could indeed ask for a refund (less £5) under the Consumer Credit Act as Zeb suggests as it is now 6 months after the "application" and a loan has not been offered.

As the "broker" is no longer responding to communications, I would, however expect the bank to be willing to start their disputes process, find in favour of wdf and reverse the full original payment without too much fuss. My feeling is that the correct initial step - to try and sort the matter out with the "broker" - has been exhausted in this case and further letters to them are unecessary and unlikely to produce a result.

It's wdf's decision what to do next but, as this is far from a unique situation, I have no doubt that other users of these boards will benefit from knowing how matters proceed.

If I remember from previous threads don't the lenders say something like the terms and conditions are available on the website and it is up to you to go read them and it states the fees and charging process within these T&Cs and that's how they got around it and apparently it is legal for them to do so.

I have found a letter from a previous thread which was recommended to be used for such cases. You may even want to read the thread. You will see that you are not the first and un likely to be the last in this position and what you are going through is common practice with personal loan lenders, specifically those that deal with client with a touch of adverse credit.

http://www.moneysupermarket.com/community/forums/t/no-worries-loans-14889.aspx?PageIndex=1

(Courtesy of Resurrection)

[Your Name & Address]

[Date]

Dear Sir/Madam

On the [Date] I made an application to your company for a loan of [Amount]. I have a copy of the agreement which was signed and sent back to you. The [Fee £ Amount] administration fee was paid.

I would like to ask that you refund my administration fee minus £5 which by law you are entitled to keep.

I would at this time remind you that Section 155 of the Consumer Credit Act 1974 provides that a credit-broker may charge no more than £5 for his services if the consumer does not enter into a relevant agreement within six months of an introduction to a prospective source of credit or hire. If the broker has already charged more than £5 for his services and section 155 applies, the excess must be refunded to the consumer upon request.

As I have never entered into any relevant agreement the above applies and you are lawfully bound to refund the original administration fee, minus £5.

Should you fail to do so, I will have no option but to report your company to the Office of Fair Trading to whom you are licensed by.

You have 21 days from today in which to refund the requested monies. Please make any cheques payable to [Your Name]

I would suggest you give this a go as this will show them that you are aware of the law under which they operate and your rights to refund and absolutely follow through with it if they do not refund in a timely manner.

Should you receive no action from this then you should take it to the Office of Fair Trading and include all copies of correspondence both too and from the company.

good luck.

wdf:

I did not give them permission to deduct this amount and was not aware of any charges during the telephone conversation with this company.

Your next step should be to contact your bank to tell them what has happened. I would expect, at this stage, your bank may ask you to complete and sign a form but they should reverse the transaction within a few weeks of you contacting them.

Last year i applied for a loan online big mistake, The Finance facility based in Manchester took 69.95 from my account about ten minutes after I came off the phone. I did not give them permission to deduct this amount and was not aware of any charges during the telephone conversation with this company. I complained to no avail and eventually sent a recorded delivery letter for a refund as i had not accepted any loans put forward from this company. I have had to wait six months until a refund can be issued and now three weeks after the date my refund was to be issued still waiting. Another recorded delivery letter sent numerous E-Mails and no response next stop the FOS. When will these companys no longer be able to get away with this kind of theft and soddy customer service.