Regular Payments off a Credit Card Discussion

damon2810

If you set up a regular payment on your credit card you have no automatic right to cancel, Money Box has learned.
In some cases, it can be practically impossible to end the agreement and disputes can take up to six months to resolve.
The problem is occurring because most people do not understand the difference between normaldirect debit and the credit card equivalent, called "continuous payment authority".
Continuous payment authorities are becoming more common due to the internet.
By simply entering your card details, regular subscriptions to content providers can be set up immediately.
But while setting up these payments is easy, stopping them can be a nightmare.

To cancel a continuous payment authority, you must first contact the retailer.
If the retailer does not reply, cannot be contacted or refuses to stop collecting the payment, contact the card company.

hansi

Received today from Barclaycard (Thomas Cook card)

Change of Condition

Condition 15.2: We've updated this condition to explain if you want to withdraw your consent to future recurring transactions, you can now tell us. We still recommend you contact the retailer first because they initiate the transactions. If transactions are still processed we'll refund them, together with associated interest and charges.

glawster_2

Barclaycard changed their tncs so you can now contact them to cancel if the merchant won't help, they still advise to ask the merchant first though.

hansi

But, surely, this is the big thing.

. If transactions are still processed we'll refund them, together with associated interest and charges.

Greysonphil

It's just convenient at least.

nathadale

Now a days no need to worry to used your credit cards because every bank already raised their level of security againts illegal used or card tapping.

jamesd

The Payments Services Regulations 2009 require by law the card provider to cancel the recurring transaction. Since this is law it also overrides any obsolete terms in consumer credit or debit card agreements, though those are gradually being updated to reflect the law. A dispute with the merchant is not the way to go when you can just ask the credit or debit card issuer to handle it.

A company can't refuse to accept withdrawing of permission just because you're within a contract term, the PSRs still apply and override anything in the contract. You'll be in breach of contract if you don't continue to make payments by some other method, though. So you can expect debt collection activity up to and including seeking a CCJ against you.

The PSR don't apply to transactions outside the UK and European Economic Area, which is the EU plus Iceland, Norway and Liechtenstein.

Paul_Herring

That link in your post, Sebastian, looks a bit spammy to me...

thenudeone

mrkjohnson28 wrote: »

Thanks. thsi is really great.please keep it up.

9 identical posts in 9 different sections - Someone is trying to get their post count up so that they can then post spam links, IMO.

Press the spam button on the message above, folks.

spicetheice

Yes, even I had read about it somewhere. This is one of the ways in which these sites make money out of gullible people. Sometime back, I had also read that these sites use "15 day money back guarantee" to lure people and then don't let go off their money!