Barclaycard. Closed Account. Strange Practice?

roadster1

I closed my Barclaycard a while ago as they stopped giving Nectar points. I wrote to them and got a confirmation letter back. Much to my surprise I got a statement in the post last week with a transaction on it. After querying it with them I got the following reply........

Unfortunately, even if you do close this account the transactions will
still come onto your account.


Cancelling these agreements are very important because, once you have
given a retailer authority to use your credit card account in payment
for goods or services, we are obliged to honour any vouchers we receive
from that retailer, even on a closed account.


I am sure you will understand that the agreement between credit card
companies and retailers to accept vouchers which have been authorised by
cardholders is fundamental to the credit card industry.

Well, I thought that closed meant closed, but obviously not!!

Epiphone

If you have a CCA - Continuing Credit Authority if I remember my acronyms - the CC company will pay them. as they say you have to cancel them but perhaps they could make this clearer.

A typical example is paying for an ISP then they keep taking money after you canel them/the card.

grumbler

The information from Barclaycard is absolutely correct. You are liable for all transactions you authorised before closing the account. The main concern is usually Continuous Payment Authority (see long Regular Payments off a Credit Card Discussion), however this applies to single transactions too.

roadster1

I'll have to go back through a years worth of credit card statements and see what else may be lurking in the background.

I recently renewed my car insurance, the previous insurer said they would take the payment from my credit card automatically unless I phoned them (0870 number of course) and it took 3 phone calls (0870 number again) to get the option of automatic renewal removed from my new insurer.

You certainly don't get any of the protection that Direct Debits give either

roadster1

grumbler wrote:

The information from Barclaycard is absolutely correct. You are liable for all transactions you authorised before closing the account. The main concern is usually Continuous Payment Authority (see long Regular Payments off a Credit Card Discussion), however this applies to single transactions too.

Thanks, hadn't spotted that thread