Recurring Payments Warning! discussion

Not_So_Naff

grumbler wrote: »

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.

You failed to include the whole of my quote. May I make it clear that I 'quoted' information previously posted by MSE, I am not a financial guru.

The 'reality' remains that people, other than the person charged with paying up, can elicit funds from an account. Individuals loose control of their affairs once they set up a CPA. Financial Institution(s), including those mentioned, are primarily interested in maximising income. The whole financial set up is almost inextricably interlinked,
when one gets into trouble the rest suffer badly.
What is continuing to happen is clearly wrong. We NEED something to be done about it.

Why are CPAs used? Perhaps they cost less to administer?
This smacks of the 'Banking' problem period.

grumbler

Not_So_Naff wrote: »

Why are CPAs used? Perhaps they cost less to administer?

Because they are convenient for customers? Because DDs can't be used for credit card and international payments? Do you prefer to pay manually every month for a subscription?

E.g., many people, that never switch insurers, are happy to pay by a CPA (monthly or yearly) for car and house insurance.
If you don't like CPA, don't use continuous services requiring this sort of payments.

MSE information is correct. If you tell your bank that some particular transaction is a CPA and you want to cancel this particular CPA, your bank will do this - by setting up a filter to decline such transactions in the future.

stevemitch2

Just wondering if anyone knows the situation with recurring debit card payments, when a new debit card is issued by the bank, and the new card obviously has a new 'long number', new expiry date and new code in the signature strip.

My question is can the business still take payments from my account being as the card details are entirely different now and they do not use bank account number to debit, purely the card number? Surely the bank should refuse any payments requested from an expired debit card?

I would have thought they cannot debit from the old card details still, and i have other businesses i am happy with using my debit card for payments and when my first card expired, these other businesses stopped taking payments until i re-entered my new card details to resume the monthly debits, which is how i thought it should be.

It is just the one company that has never asked for new card details and have been successful in taking payments even though the card details they have are the old card details, and i have had a nightmare in trying to get this one company to stop taking money.

Is this the banks mistake in allowing debits to be taken on an old debit card?

Thank you for your time

18cc

Yes then can - and do - take payments from your 'old' debit card when you get a replacement. This is standard practice across the industry.

You should not have to have nightmares or any other kind of dream to cancel a recurring payment - if the company won't do it tell your bank to do it and while they are at it refund all the payments taken from the date you notified the company that you wanted to cancel.

stevemitch2

Many thanks for your reply

wow, i cant believe the bank would honour a payment from an expired debit card - where does it end....?

jonesMUFCforever

stevemitch2 wrote: »

Many thanks for your reply

wow, i cant believe the bank would honour a payment from an expired debit card - where does it end....?

Dig around these forums for tales of people suddenly uninsured due to a payment not going through - there are loads of examples where the current system is better than the one you want.

stevemitch2

jonesMUFCforever wrote: »

Dig around these forums for tales of people suddenly uninsured due to a payment not going through - there are loads of examples where the current system is better than the one you want.

Well as I initially mentioned, when it comes to many other companies that take payments from my debit card, they ALL contacted me in advance of my old debit card expiring to ask for a replacement card details to be submitted as the current card would be expiring soon.

This, to me, is the correct way to operate, and any of those other companies that did not receive my updated card details (as the original card was expiring), did NOT attempt to take money using the expired card details. Those i didn't update was obviously due to no longer wanting their service and any that i missed updating didn't matter as i received reminders etc to update.

So it is beyond me why the one company could not do any of this and have been the only company to attempt and succeed taking money via the expired debit card, even after contacting them to stop

Deganwy

I have had a problem with someone stealing my credit card details and using them to set up a Continuous Payment Authority with Netflix. After cancelling and renewing my card three times and then finally cancelling my credit card account and being told to notify Netflix, the payments have stopped. However my credit card company write that there is "no guarantee" that this will be effective. This is despite my never having signed up for the CPA in the first place.
I believe that the rules governing CPAs need to be looked at and that people should be advised not to sign up for them and to use adirect debit instead.

eskbanker

Deganwy wrote: »

I have had a problem with someone stealing my credit card details and using them to set up a Continuous Payment Authority with Netflix. After cancelling and renewing my card three times and then finally cancelling my credit card account and being told to notify Netflix, the payments have stopped. However my credit card company write that there is "no guarantee" that this will be effective. This is despite my never having signed up for the CPA in the first place.
I believe that the rules governing CPAs need to be looked at and that people should be advised not to sign up for them and to use adirect debit instead.

Rather than cancelling and renewing cards, you'd have been better advised to follow the instructions at https://www.moneysavingexpert.com/banking/recurring-payments#cancel to cancel the payment mandate itself, and insisting that the card company complies with the FCA rules on this by doing so....

Danielle1985_2

Hi,
I signed up for an 8 week bootcamp and paid over the phone. After the 8 weeks money was taken out for another 8 weeks. This was fine as I wanted to continue with it. The next bootcamp starts after Christmas but I no longer want to take part. I was not expecting the money to come out of my bank yesterday. I contacted the person running the bootcamp and explained I no longer wanted to take part, in effect giving 4 weeks notice and I asked for a refund. He told me I couldn’t have one because I had signed a contract to say 8 week’s continuous payments. I understand what I have signed but I am completely baffled how the Christmas break works because if I have paid 4 weeks before a course this time (last time it was 2) then where are those 2 weeks made up? Plus everytime a break week is had (e.g Easter) then everyone would be another week behind. Eventually you would wnd up paying a course in advance. I feel like it’s a clever way of making people forget what they have/haven’t paid for. I feel 4 weeks notice before the next course is enough notice. Do they have to state in their contract about breaks in service(2 week Christmas holidays)?
Thanks in advance