Payments taken after card was closed

daveil

I recently closed my Credit Card account only to have a card protection payment to come out of the account afterwards.

The card company in question have not been able to explain how/why this happened but have insisted we have to pay. Can they do this?

Any advice would be much appreciated.

Thanks

Dave

cifpower

Yes they can. It is what is known as a Continuous Card Authority and must be cancelled with the merchant.

Paul_Herring

daveil wrote: »

I recently closed my Credit Card account only to have a card protection payment to come out of the account afterwards.

The card company in question have not been able to explain how/why this happened but have insisted we have to pay. Can they do this?

Yes.

Any advice would be much appreciated.

You need to contact the company that took the payment and cancel the Continuous Payment Authority you set up with them.

thriftymomma

Sadly yes they can. It's like the direct debit of Credit Card transactions but they are far more time consuming/complicated to stop.

Moggles_2

Most of us buy this type of insurance in the process of applying for a credit card, but it's important to realise that the credit card and insurance policy are two separate products run by different companies.

A regular payment from a credit card is termed a continuous payment authority [CPA]. Once set up, you can’t cancel it. Neither can the credit card provider. Only the company you've arranged to pay can do this. Therefore, if you cancel the credit card and forget to notify the payee, in this case an insurance company, the premiums will continue to be charged to the closed account.

As the customer, you need to contact the insurance company directly and ask them to cancel the agreement.

Very best
M

daveil

Brill, thanks for all the advice.

I was wondering whether to dispute this charge but I'll get it paid straight away.

Thanks again.

Dave

youknowwho

daveil wrote: »

I recently closed my Credit Card account only to have a card protection payment to come out of the account afterwards.

The card company in question have not been able to explain how/why this happened but have insisted we have to pay. Can they do this?

Any advice would be much appreciated.

Thanks

Dave

You have taken out an inurance product. You the closed the account where the insurance prouct was meant to be paid from. The credit caard company havr to keep the account details for 6 years for legalreason adn because you have set up an authority with another company they can take the money. dont blame the credit cfard company, your the one who set up the transaction, so cancel it adn they wont ake the money. simples.

duggie1982

youknowwho wrote: »

You have taken out an inurance product. You the closed the account where the insurance prouct was meant to be paid from. The credit caard company havr to keep the account details for 6 years for legalreason adn because you have set up an authority with another company they can take the money. dont blame the credit cfard company, your the one who set up the transaction, so cancel it adn they wont ake the money. simples.

Did you get out the wrong side of the bed this morning and bump your head?

hur575

duggie1982 wrote: »

Did you get out the wrong side of the bed this morning and bump your head?

lol agreed