Recurring Payments Warning! discussion

dalesrider

realaledrinker wrote: »

Can't post a link as I dont subscribe, but in today's Sunday Times, in an article entitles 'beware trap at renewal' it was claimed that some insurers (specifically Admiral) are using the Continuous Insurance Enforcement rules, which took effect in June 2011, to claim that they are obliged to automatically renew a motor policy unless the insured tells them that they are moving insurers.

But they send you a letter telling you that unless you contact them, to cancel, they will renew the policy....

I wonder how many people would complain if the ins co's did not renew their policy and they got pulled for no ins..

bobblebob

Its a simple method to try and get more money from people. Bit like places like Netflix that have a free 30 day trial, but will charge you on a monthly basis if you dont cancel after thetrial period.

Clearly states in their T&C this will happen (just like everywhere else), but people dont read them and then complain

Misty7

bobblebob wrote: »

Its a simple method to try and get more money from people. Bit like places like Netflix that have a free 30 day trial, but will charge you on a monthly basis if you dont cancel after thetrial period.

Clearly states in their T&C this will happen (just like everywhere else), but people dont read them and then complain

So is it ok and legal for them to continue taking payments or do they have to notify you beforehand as a reminder. The problem I have with Forces reunited is similar, it does also say in their T&C they will take automatic renewals payments and I confess I didn't read it.
However I was only signing up for 30 days, surely if I wanted more I would choose the 2 or 3 month option? Apparently I should have unticked the automatic renewal on my profile page, I didn't even know I had a profile page at that stage, I thought it was a simple 30 day agreement.

dalesrider

Misty7 wrote: »

So is it ok and legal for them to continue taking payments

it does also say in their T&C they will take automatic renewals payments and I confess I didn't read it.

I thought it was a simple 30 day agreement.

Yes it is legal for them to do this. You agreed to their T/C.

Nothing personal in this bit... Aimed at all that think they have been caught in that vastly overused word... Scam :rotfl:

Perhaps in future people will learn by the mistake and read T/C when signing up for a FREE trial..... Or anything else come to that.
But sadly from experiance it ain't going to happen.

I just don't get why people never twig, that a FREE TRIAL requires you to give the retailer your card details.....
If it's FREE they don't need to bill you :cool:


How many people realise that many ins policies have a £30 renewall charge built into the T/C. Now never seen one take it, but it is there....:eek:

Misty7

I never signed up for a free trial, otherwise I would have expected it, as I have seen that before and it is normally quite clear. I was signing up for a paid 30 day use of the site, although you are correct I will read the T&C in future, so a lesson learnt

Fozzy59_2

Many years ago ( I know I was subscribed in November 2005) I subscribed to The Magazine Service for a number of magazines.
In February 2011 I had cancelled all magazines except one, however I was stilled billed for the rest. This was eventually refunded, so far so good.
However, in October 2011 I decided to cancel this last magazine and the last magazine delivered to me was the November 2011 issue. Since then the company (now Great Magazines, part of Bauer) keep taking payments at random times. Every time they take a payment I have contacted them by e-mail and the money was refunded with the last message from them on 15th July which stated "I can confirm your last payment has now been refunded back to you and your account deleted"
On checking my CC statement online I noticed another payment as gone out for £3.65 on the 30th August 2012.
When I contacted them by e-mail again the reply I received was as below

"I am very sorry to read about the problems you have been experiencing. You have been given the incorrect information, and please accept my apologies for this.
The reason another payment has been taken from your card is because the payments are made through a company called ADLP and cancellations can only be made through this company directly. The telephone number you will need to contact them on is: 0870 2647091.
We are unable to contact them on your behalf and unable to refund or cancel any payments made through this company. Once again I apologise for this."

An online search revealed that The Magazine Service is the online site for ADL Partner UK Limited. There is another telephone number on the site which I will use, but my questions are why do they keep taking payments? and what are my options?

Sorry for such a long first post. Any advice appreciated.

*lulu*

Hi,

I have membership with credit expert to check up on my credit score etc
I initially took out the membership and make payment through my credit card and it only just dawned on me when i wanted to cancel my credit card that this regular payment is made.

I want to cancel this credit card but it means that the reoccurring payment will be made to my debit card? Should i avoid this?
What should I do? its the only form of payments that the website offers?!!

Thanks in advance for any help!

Hermit

Hi, On the 16 Oct I noticed an unauthorised transaction on my Halifax bank account. I contacted the bank and immediately cancelled my debit card after checking that no further transactions were waiting to be applied to the account. A new card was requested and all this was done on the 16 Oct.

On the 18 Oct, I noticed another transaction on my account using the now cancelled debit card number. This transaction was the first recurring payment to hit my account following a period of free web hosting.

I contacted my bank and told them that this transaction shouldn't have been applied since the card was cancelled two days earlier. They said I had a point but then added that they cannot stop, and will continue to honor, future transactions with the old card because they don't know what agreement I made with the merchant or what goods I had received in exchange.

I found this this to be incredulous given that the card would be instantly declined if I :

• tried to use it in a store (online or offline) to pay for products and services.
• attempted to withdraw funds from a bank or ATM.
• attempted to set-up a new recurring agreement.

What they were telling me is that cancelling a debit card affords no protection against fraudulent or recurring transactions hitting ones account. I understand that prior authorised transaction may still be applied after the cancellation date but this wasn't the case.

I'm in the process of writing a very strong letter to have the amount returned to my account while threatening to involve the ombudsman should the bank refuse to refund me. Has anyone encountered such a problem and how was it resolved?

dalesrider

*lulu* wrote: »

I want to cancel this credit card but it means that the reoccurring payment will be made to my debit card? Should i avoid this?
Thanks in advance for any help!

Credit or debit cards makes no diffrence.

So transfer it over with no fear.

Either way if you cancel with credit expert and the ythen debit after that date you can claim the money back.

So just remember the date you cancel.

You can also ask the bank to stop further payments. But it is far better to tell the retailer.

dalesrider

Hermit wrote: »

Hi, On the 16 Oct I noticed an unauthorised transaction on my Halifax bank account. I contacted the bank and immediately cancelled my debit card after checking that no further transactions were waiting to be applied to the account. A new card was requested and all this was done on the 16 Oct.

Why do people assume that stopping a card will stop CPA....
Can I ask at that point did you tell them that you wanted to stop further payments?

Hermit wrote: »

On the 18 Oct, I noticed another transaction on my account using the now cancelled debit card number. This transaction was the first recurring payment to hit my account following a period of free web hosting.

But how can this be the 1st recuring payments. As you had already had one prior to stopping the card.
T/C of period of free hosting ? Mention anything about cancelling before the end?

Hermit wrote: »

I contacted my bank and told them that this transaction shouldn't have been applied since the card was cancelled two days earlier. They said I had a point but then added that they cannot stop, and will continue to honor, future transactions with the old card because they don't know what agreement I made with the merchant or what goods I had received in exchange.



I found this this to be incredulous given that the card would be instantly declined if I :

• tried to use it in a store (online or offline) to pay for products and services.
• attempted to withdraw funds from a bank or ATM.
• attempted to set-up a new recurring agreement.

Well both Visa & mastercard have systems that allow retailer to access the new card details where a CPA is set up.
I have bolded a bit as this is untrue. Once you have told them you want no further debits then under PSD (payment services directive) they have to refund these, straight away. once you have made them aware of the debit.
The agreement you have signed means nothing as far as EU/FOS/FSA are concerned.
If it is a binding agreement for a fixed period. Then it is upto the retailer to chase you via legal means.

Hermit wrote: »

What they were telling me is that cancelling a debit card affords no protection against fraudulent or recurring transactions hitting ones account. I understand that prior authorised transaction may still be applied after the cancellation date but this wasn't the case.

In effect yes. At presnet no card provider has a system in place to block CPA's. Once cancelled with the bank. At the moment only a retailer can stop the payments.. Yes Halifax can send a letter to retailer merchant bank, but they still can ignore that.
These are not fraud payments. As per their T/C which you agreed to.

Hermit wrote: »

I'm in the process of writing a very strong letter to have the amount returned to my account while threatening to involve the ombudsman should the bank refuse to refund me. Has anyone encountered such a problem and how was it resolved?

Given that you spoke to them prior to the 2nd payment. Halifax could return that and anyother since on the basis you cancelled with them on 16 Oct. Which would credit you these amounts.

You need to speak to the disputes department and not the front line call center.
Clearly the person you spoke too. Does not have a understanding of PSD.

Can I ask...
Have you at any point contacted the retailer to cancel ????