MATTHEW Ashmore’s dispute with a loan company has revealed a drawback of paying by debit card – he’s powerless to stop it taking his money.
The 29-year-old reckons he was denied a loan with Lending Stream early last year.
But the company has satisifed Barclays bank that an agreement was made and money is owed. And under the regulations the bank must pay out, even though Matthew cancelled his card.
Matthew, of Spa Lane, Woodhouse, approached Action Desk after £700 was taken in December. He raised a dispute at Barclays and – under the same regulations – he was given an instant refund.
But the company approached the bank and issued a guaranteed payment demand and £700 was taken a second time. And it is unlikely to be returned.
Matthew said: “Barclays said there’s nothing we can do, they seem helpless to stop it.”
A BARCLAYS spokesman said once they were satisifed the money was owed they would pay out – and any dispute over the amount or frequency of payments was between the customer and the third party.
Matthew had been given dispute forms but had failed to return them, he added. Meanwhile, Lending Stream had satisified the bank it had a genuine claim.
He added: “People need to read and understand the terms and conditions of taking out a loan. You could be allowing someone to gain access to your account.”
Lending Stream was unavailable for comment.