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Charged on a Credit Account I closed a year ago
Lukey__b
Posts: 14 Forumite
Hi all,
I wonder if someone could offer me some advice; hopefully someone has been in a similar position and could suggest a way forward for me.
About a year ago I was a victim of credit card fraud. I got the money back with no problems and was pleased with how the company went about it (it was Halifax, they’re not the people I’m having the problem with). Only thing was, they wouldn’t give me a clue as to who it was who stole the money off of me (which was how I saw it)… so I don’t know whether it was some ‘charity’ in Nigeria or a flatmate or friend of a flatmate, etc. So I was left a bit paranoid.
Anyway, because I was worried it could have been someone I knew, I phoned all the cards I had and cancelled all of them. I had one with Halifax, one with Barclays and one with Virgin. Because I didn’t use them and was just paying them off, I didn’t see the point of keeping them open to risk which is why I closed them all down assured that nothing could be charged to those accounts.
Whilst I was closing my Virgin one, they decided to go in for the sale and started talking about some sort of protection scheme for identity theft… I wasn’t sure what it was, but I had just been ripped off and at that time wasn’t sure if I would get my money back.. so I took it out. £70 for a years protection.
Fast forward a year. All my cards are paid off and then I notice that £25 has been taken out last week on my Virgin Credit card. Initially I thought that it must be a mistake, so I phoned them expecting an apology and a cheque in the mail. No, they tell me that it is a charge for this ‘Identity Protection’ scheme… they automatically renew it every year. To which I tell the chap on the phone that I had closed that card a year previous, so how can ANYONE charge my account for anything at all, even I shouldn’t be able to. He informs me that the account was never closed.
Now, I do have a slight issue with a company automatically renewing a product without my consent, but I understand that maybe this was in the terms when I initially signed up. What I do have a big problem with is Virgin not closing my account, because if they had this ‘Identity Protection’ scheme would not have been able to automatically renew.
Is there anything I can do? I closed my account by phone last year, but obviously I have no proof of this. As I don’t use the account anymore (apart from when products they have bloody sold me renew), I doubt they would care if I said I threatened them with leaving etc. It all seems rather unfair, as even if I cancel now, what’s to say this doesn’t happen again next year?!
Sorry about the long post, just wanted all the details out there so that hopefully someone can help.
Thanks in advance for any advice whatsoever.
Edit: Just to add that the £25 is what they are taking out monthly. It was £70 that was charged to my account, which to some isn’t a lot, but has left me £5 from being overdrawn a week from payday.
I wonder if someone could offer me some advice; hopefully someone has been in a similar position and could suggest a way forward for me.
About a year ago I was a victim of credit card fraud. I got the money back with no problems and was pleased with how the company went about it (it was Halifax, they’re not the people I’m having the problem with). Only thing was, they wouldn’t give me a clue as to who it was who stole the money off of me (which was how I saw it)… so I don’t know whether it was some ‘charity’ in Nigeria or a flatmate or friend of a flatmate, etc. So I was left a bit paranoid.
Anyway, because I was worried it could have been someone I knew, I phoned all the cards I had and cancelled all of them. I had one with Halifax, one with Barclays and one with Virgin. Because I didn’t use them and was just paying them off, I didn’t see the point of keeping them open to risk which is why I closed them all down assured that nothing could be charged to those accounts.
Whilst I was closing my Virgin one, they decided to go in for the sale and started talking about some sort of protection scheme for identity theft… I wasn’t sure what it was, but I had just been ripped off and at that time wasn’t sure if I would get my money back.. so I took it out. £70 for a years protection.
Fast forward a year. All my cards are paid off and then I notice that £25 has been taken out last week on my Virgin Credit card. Initially I thought that it must be a mistake, so I phoned them expecting an apology and a cheque in the mail. No, they tell me that it is a charge for this ‘Identity Protection’ scheme… they automatically renew it every year. To which I tell the chap on the phone that I had closed that card a year previous, so how can ANYONE charge my account for anything at all, even I shouldn’t be able to. He informs me that the account was never closed.
Now, I do have a slight issue with a company automatically renewing a product without my consent, but I understand that maybe this was in the terms when I initially signed up. What I do have a big problem with is Virgin not closing my account, because if they had this ‘Identity Protection’ scheme would not have been able to automatically renew.
Is there anything I can do? I closed my account by phone last year, but obviously I have no proof of this. As I don’t use the account anymore (apart from when products they have bloody sold me renew), I doubt they would care if I said I threatened them with leaving etc. It all seems rather unfair, as even if I cancel now, what’s to say this doesn’t happen again next year?!
Sorry about the long post, just wanted all the details out there so that hopefully someone can help.
Thanks in advance for any advice whatsoever.
Edit: Just to add that the £25 is what they are taking out monthly. It was £70 that was charged to my account, which to some isn’t a lot, but has left me £5 from being overdrawn a week from payday.
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Comments
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This is known as a CCA - Continuous Card Authority. Transactions like this can be taken from a closed account. It is your responsibility to cancel these transactions at source I'm afraid.0
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Ah, thanks for that.
I find comfort in knowing I’m to blame for my problems rather than someone else.
Is this ‘CCP Identity Protection’ worth the money, if you know about it at all? I was consoling myself with the thought that even if I have no money, at least no one can steal my identity.0 -
I think they are worthless but some people like it.0
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When you sign up for some services they are on "auto renew".
This is common for motor insurance, home insurance, breakdown insurance etc.
You will have implicitly agreed to the terms and conditions.
When you "close" a credit card, they tell you that you are responsible for stopping any continuous payments and they can still go through.
So they are not properly closed in terms of stopping payments.
The card comapnies can do nothing about it.
If you have authorised payments then they HAVE to pay it, they have no choice.
It's up to you to be aware of any continuous payments you have and make sure you stop them when you no longer want them (I keep mine in a spreadsheet).
It's much better to pay for these things by Direct Debit and not use credit cards for continuous payments.
The reason is that you can cancel a DD with your bank and legally they HAVE to stop it (this doesn't mean you can avoid debts you own but you CAN stop the payment).
With Credit cards the company HAVE to pay it and they cannot stop it. You have to stop it with the company who clearly have an interest in "losing" your instructions.
My advice would be to
1) READ terms and conditions in future
2) Keep track of any continuous contract
3) Always use DD and do not use credit card continuous payments
4) Don't buy protection
5) Be careful with all your details e.g. shred paperwork, don't enter competitions (or think carefully about it) NEVER giev details out over the phone etc.0 -
What you all seem to have overlooked is that it was Virgin or someone they were acting for as agents or introducers who set up the Continuous Payment Authority without telling the Customer why they were using one and how it worked.
This was all done under the jurisdiction of FSA regulation and clearly it resulted in the customer being treated unfairly as well as apparently not following customer instructions to cancel the account.
Generally these Continuous Payment Authorities are a menace and abused constantly by hard-nosed businesses who care little for anything than a quick sale, as well as pure scammers too. The sloth-like FSA should have banned this payment method years ago, or at least made it subject to the same guarantee scheme as current account direct debits.
As for Identity Theft insurance protection, don't make me laugh. Can anyone tell me how such "protection" has significantly benefited them following identity theft?
.... Nope, thought not.0 -
Lukey__b wrote:I’m to blame for my problems rather than someone else.
That's a first here! Someone actually accepting the blame
Always read your small print and T&Cs. They may be drafted by the company but they are for you.
These scam (no better a word) insurance 'protection' schemes are quite useless I'd say for most people plus if you think about it your're giving your data to even more people (the company offereing the 'protection').
Credit cards and bank accounts already have a fair bit of in-built protection for the consumer.0 -
When you take out identity theft or credit card protection or whatever, the CC company put it out to a third party insurance company who then set up a CPA on your card. When you cancel the card, the CC company do NOT cancel any associated insurance policies so you have to remember to do this yourself. If you don't then the insurance company take their money under the CPA and voila, your closed CC account is reopened.
The moral of the story is either don't pay for any CC insurance scams OR remember to cancel them when you cancel the card.0
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