Direct Debit taken from cancelled MBNA Card

daermo

Hi, I am new as from today!
I took out an MBNA card some years ago and bought Card Protection in the event of a loss, paying by Direct Debit from the card. I cancelled the card a year ago and last week the Card Protection Company debited my card without my knowledge. MBNA paid the £70 from the CLOSED account!!
On argueing with CPP they tell me that they sent correspondence asking if I wanted to renew and the letter had a clause stating "there is no need to reply if you wish to renew". I unfortunately did not receive the letter and did not cancel.
MBNA are demanding payment and CPP are refusing to refund the £70.
Has anyone experienced this situation and does anyone know the legal situation.
I cannot believe that MBNA can re-activate an account that I have closed and that CPP can legally or morally!! rely on "no reply" to renew whatever the original agreement stated.

David

dazza.mk

Unfortunately it is not a Direct Debit, rather a continuous Payment Authority. The situation is that the onus is on the cardholder to contact any companies that hold a Continuous Payment Authority and cancel as the credit card company cannot refuse to accept them.

exel1966

As above, there isn't such a thing as a credit card Direct Debit, it's a CPA and by signing/agreeing to the t&C's of this payment method you have relinquished your right to cancel payments (directly) to the card company. It can only be done by CPP, therefore you have to request to CPP that they cancel it with the card company.

They are quite within their rights to take the £70.

A credit card account is not closed if you still have outstanding live CPA's.

Jimmy77_2

I have just got myself into a similar situation. CPP is VERY deceitful when it comes to this. I took out a policy some 5 years ago now on a credit card which I have now not used for the last 3 and a half years. I even forgot I had the CPP protection. Suddenly I get a statement from the CC company billing me for £50. In this time i moved house and didn't get the renewal notice from CPP and when I got my CC bill it was 2 days after their 14 day cooling off period - which includes strategic days around the Xmas holidays. According to the jumped up little S on the other end of the phone "obviously" it's all my own fault as I forgot to give the company my change of address (when you only get correspondence from them every 5 years it's hard to remember them at all) and therefore they can't refund, oh and lucky me my policy was up for auto renewal and so they charged my card for me anyway - how nice of them. By the way - CPP don't have a signed copy of my original agreement on file to proove that I agreed to those terms - so maybe I can get my money back on a chargeback? .........no, because they are classed as an insurance company, and it is not allowed - looks like they have every base covered - Well done CPP enjoy your profits at your dissatisfied customers expense! Will try to cancel the policy now to avoid an auto renewal in three years time - that is if they decide they want to cancel it for me - maybe they will decide to keep it open and in three years time I will have no leg to stand on again