Recurring Payments Warning! discussion

scoffers

Hi,


Just had my first experience of these recurring payments...


MS Xbox Live account was set to auto renew the 12 month subscription, which I no longer required, but as I knew the card details I had on the account had expired LAST AUG I did not take any action until MS managed to take the payment from my bank account using the expired debit card information.


After more than an hour on the phone to the bank they advised it was not in fact a bank error but that the recurring payment agreement allows MS to request and receive the payment (with the help of VISA) using expired details.


The bank however did refund the amount to my account and I have switched off the auto renew


*** BE AWARE ***

Shakin_Steve

I had exactly the same problem with the RAC. They renewed my membership with an old CC number after that card had been lost and a new one issued. I was particularly peed off with MBNA for allowing the payment to go through, as they had stopped the card and sent a new one. I thought the general idea of stopping a card was to prevent fraudulent use, not allow it to be used.
They paid the money back and apologised.

Orkneyboy

Does anyone know how to get a list of CPAs from a bank or credit card company. I want to check that there are no nasties hiding out there from CPAs I set up years ago? Surely banks should show them in the way that they show details of Direct Debits and Standing Orders?

DCFC79

Orkneyboy wrote: »

Does anyone know how to get a list of CPAs from a bank or credit card company. I want to check that there are no nasties hiding out there from CPAs I set up years ago? Surely banks should show them in the way that they show details of Direct Debits and Standing Orders?

Or credit card customers should remember the CPA's or make a note of them.

Why is the card company at fault ?

silvasnow

what you may need to do is speak to the bank as they can stop these kinds of payments well i know sanatnder can do, they process whats called a fdcp (future dated card payment form) which essentially uses the merchants details to block further payments, the only down side to this is that if the merchant is sneaky and uses a different name with even one letter different that won't stop it however i'd advise to speak to the bank first of all

grumbler

All banks now must do this:

MSE wrote:

Ask your bank or credit card provider to cancel it

1. The Financial Conduct Authority has stated banks MUST cancel a continuous payment authority when asked. It also added that if further payments are taken in error after a customer asks for a cancellation, the bank must refund them.

Continuous payment authority: manage recurring payments

MoneySavingNovice

Orkneyboy wrote: »

Does anyone know how to get a list of CPAs from a bank or credit card company. I want to check that there are no nasties hiding out there from CPAs I set up years ago? Surely banks should show them in the way that they show details of Direct Debits and Standing Orders?

I recently had a long and somewhat concerning discussion on this very point when trying to close a first direct credit card.

I’m very aware of the so-called continuous payment authorities and make a point of cancelling the CPAs both with the merchant and the bank when I no longer need them.

That said I do think there are a number of unscrupulous companies and individuals who may have set up a CPA without my knowledge.

When closing my account I asked first direct to ensure that any open CPAs were also closed. They came back and told me that they couldn’t do it as they did not maintain or have the needed information to action this.

It appears that trying to establish if you have any unknown CPAs is virtually impossible

jonesMUFCforever

MoneySavingNovice wrote: »

I recently had a long and somewhat concerning discussion on this very point when trying to close a first direct credit card.

I’m very aware of the so-called continuous payment authorities and make a point of cancelling the CPAs both with the merchant and the bank when I no longer need them.

That said I do think there are a number of unscrupulous companies and individuals who may have set up a CPA without my knowledge.

When closing my account I asked first direct to ensure that any open CPAs were also closed. They came back and told me that they couldn’t do it as they did not maintain or have the needed information to action this.

It appears that trying to establish if you have any unknown CPAs is virtually impossible

They are correct.
Banks know about direct debits and standing orders because you have authorised them to be taken from your account.
The only people who know about a CPA is you and the company you gave the authority to.

Not_So_Naff

If, as MSE have said:

Quote:
Originally Posted by MSE
Ask your bank or credit card provider to cancel it
The Financial Conduct Authority has stated banks MUST cancel a continuous payment authority when asked. It also added that if further payments are taken in error after a customer asks for a cancellation, the bank must refund them.

and

jonesMUFCforever wrote: »

They are correct.
Banks know about direct debits and standing orders because you have authorised them to be taken from your account.
The only people who know about a CPA is you and the company you gave the authority to.

From experiences described in this Thread it is clear that some 'CPA Holders' can and do abuse them to the financial detriment of the 'Person giving that Authority'.
The Financial Conduct Authority NEED to make changes that ensure that CPAs are set up and controlled by the Financial Institution(s).

Another quest for MSE?

grumbler

Not_So_Naff wrote: »

The Financial Conduct Authority NEED to make changes that ensure that CPAs are set up and controlled by the Financial Institution(s).

You have to face the reality. Unlike DDs (internal UK payments system), card payments are part of international system governed by the payment system provider (Visa/Mastercard/Amex...) rules. They may or may not adjust to satisfy some new requirements unique for UK.
The best they (Visa etc.) can do now is to require all CPA transactions to be marked differently from normal transactions that would make easy for banks to identify them and to decline, if needed, with a self-explaining reason/code.