Recurring Payments Warning! discussion

grumpyx

When paying by a debit or credit card, the retailer does not have to say they could set up a recurring payment. Privilege Insurance had on their payment page that I was paying a “one off single payment” with a credit card. As I am looking to avoid recurring payments this tricked me into thinking it was a one off payment. It turned out I had entered in to a recurring payment.

If you read your insurance contract you will increasingly find that recurring payments will be used and if you do not cancel before they take the money they can charge x% of the renewal which could be £100s.

I would like to see action to either get rid of recurring payment (Direct Debits do the same job if multiple payments are needed) or introduce a similar guarantee to Direct Debits.

Anyone with me?

grumpyx

Anti-Corporate_theft wrote: »

This is the latest financial industry scam of keeping your card details to re-use without your knowledge. Whilst some people may authorise recurring use of their cards (AVOID) others will find unknown to them that companies are assuming the right to impose recurring payments. This is illegal! We had this happen with Bennetts Insurance who are part of BGL Group which includes Comparethemarket.con. Once they have your credit card they assume an ongoing right to recharge it for inflated annual renewal without initial or subsequent authority. That is fundamentally wrong and something that people should complain to the ombudsman and indeed use the "small claims court" process to stamp out."If" we had a regulator in the financial industry all the problems such as this, PPI mis-selling, bank bail outs etc etc etc. would not be happening!!!!!!! Complain vigorously to Consumer Focus, Ombudsman and use the small claims court entirely appropriately their expense. Any use of a credit card must surely be knowingly and identifiably positively authorised by the owner of the card. Any other transaction is attempted theft!

It is a scam and fundamentally wrong but the insurance company will have something in their terms about having the option to take further payments so it will be legal. The Financial Ombudsman can only act on indivdual cases and even then they cannot do anything unless you have lost money.

Beverley_Bill

I found out about this the hard way. I cleared a credit card debt several years ago and the card was cancelled as I changed address and banks.

It was only when I did a credit check several years later and found that I had defaulted on 3 years of subscriptions. All the old statements had gone to my old address which was rented. I presume the new occupier just binned them.

The upshot was I had paid for services I hadn't had, with a credit card I didn't have, with money I wasn't earning any longer.

I did manage to get the credit record rewritten but it ended up costing me a lot of interest which I never got back.

Joan1961

Have just tried to cancel recurring payment with Barclays who have totally refused & told me to speak to company involved. Pointed out info from Martin Lewis told was not applicable not the law HELP!!

Optimist

Joan1961 wrote: »

Have just tried to cancel recurring payment with Barclays who have totally refused & told me to speak to company involved. Pointed out info from Martin Lewis told was not applicable not the law HELP!!

Raise a complaint with Barclays. It is the Payment Services Regulations 2009 that you need to be mentioning. These give you the right to cancel.

If the complaint fails at Barclays, it shouldn't once it passes to someone who knows what they are doing, but if it does go to the Ombudsman

crazysexycool_2

i have been hit 3 times by 3 different companies on this and in the end i have today cancelled my bank account. however, upon cancelling it the bank informed me if companies try to take money from my cancelled bank account they would have to honour the payments. ARE YOU KIDDING ME! so i have it in writing that i have cancelled 2 of them by calling them scammers on line while getting them to cancel my membership as it has to be verified by them before it goes live, but i have taken copies and will be putting it in the video naming and shaming these crap companies.

But what amazes me is the fact that the banks hold my money safely, or so i thought and then allows companies access to my hard earned cash through the back door, but deny all knowledge and that they can't help you. What rubbish. I am now wiser and more powerful and the net also gives us the people powers we never had before. so i am on a mission to name and shame and the vid will be posted on youtube will grow as more companies are named.

jamesd

grumpyx wrote: »

I would like to see action to either get rid of recurring payment (Direct Debits do the same job if multiple payments are needed) or introduce a similar guarantee to Direct Debits.

Anyone with me?

Just the law in the form of the Payment Services Regulations. There's no need for more law, just people using the existing law. Just like a direct debit you can cancel with your bank.

crazysexycool wrote: »

i have been hit 3 times by 3 different companies on this and in the end i have today cancelled my bank account. however, upon cancelling it the bank informed me if companies try to take money from my cancelled bank account they would have to honour the payments. ARE YOU KIDDING ME!

Yes. The Payment Services Regulations require your bank to act on a cancellation notice from you to the bank unless it's just before the payment is taken. Not all bank employees or consumers know the law yet so there's still room for mistakes.

Some older bank contracts may restrict notices to be only to the company taking the payment. The law change has made those null and void. Banks are gradually updating their agreements but even if not updated the law still beats the terms of the agreement.

drothwell

I have designed a good sample letter of cancellation to the bank or credit company and if you would like a copy completely free of please request to my email address [EMAIL="der@droth.plus.com"]der@droth.plus.com[/EMAIL].

Best Regards and just want to help others!

Moffla

cepheus

A serious problem with these card payments is they don't show up on your on-line banking so you are probably unaware until the merchant contacts you again (or if they do).

Would it be reasonable to include the scheduled debit card payments on-line or would the bank say it is nothing to do with us?

I have just realised my debit card details such as the number has changed since the last payment, does this mean the continuous authority will not work without my permission? This of course causes problems for the ones you do wish to continue.

cepheus

They inform me that the Nat-West cancellation number for continuous payment authorities (debit card) is 0845 3660391