MSE News: Tesco Bank apologises after getting the rules wrong on recurring payments

This doesn't relate to Credit Cards.

Tesco Bank also seemed to have clarified their position in their follow up tweet (before any MSE intervention) which isn't shown in the article:

Tesco_Bank wrote:

We may be able to block the company meaning that they can't take any further payments, but we cannot cancel an agreement that you have made. If you call us on 0345 835 3353 (24/7) my colleagues will be able to assist you further - Caroline
https://twitter.com/tescobankhelp/status/981235527709085697

Also, I was of the understanding that banks are actually not under any legal obligation to cancel a continuous payment authority.

You can certainly withdraw your consent for any further payments and this would mean that if any future payments did occur they would be considered unauthorised. In which case the bank would therefore be obliged to provide a refund.

So by offering to block a company, Tesco Bank have in fact exceeded what's legally required of them.

KJSmith wrote: »

I was of the understanding that banks are actually not under any legal obligation to cancel a continuous payment authority.

The FCA disagrees, as per https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel:

REMEMBER: IT IS YOUR RIGHT TO CANCEL CONTINUOUS PAYMENT AUTHORITIES DIRECTLY WITH YOUR CARD ISSUER

eskbanker wrote: »

I'm not sure there's much value in getting bogged down in semantics but it did (and does) seem to me that the FCA text I quoted directly contradicts the text of yours that I quoted!

Not really. The FCA says it's your right to cancel. I never said it's not your right to cancel and withdraw your authorisation for future payments. What I was trying to say is that legally the bank isn't obligated to stop these payments from being made. According to the Payment Services Regulations their obligation is only to refund them if considered unauthorised.