Regular Payments off a Credit Card Discussion

edited 6 August 2012 at 8:48PM in Credit Cards
286 replies 260.2K views


  • Karma67Karma67 Forumite
    541 Posts
    Debt-free and Proud!
    dmaske wrote:
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    Would this be classed as SPAM??? :mad:
  • Myron_2Myron_2 Forumite
    59 Posts
    Sorry allthatmularky - are you sure you mean Debit Card, as this is effectively a Direct Debit surely, and you can cancel it yourself.
    Actually, and this is onconvenient, if the company keeps on taking payments after you legally and correctly cancel a contract and there are no outstanding payments then you could call the bank or credit card company and report the card as stolen and being illegally used.

    I can't see CPAs being used against a card that has been reported as stolen and fraudulently used. It could be possible then to get the legal system involved.

    I wonder how a company would take it if on cancellation you would then advise them that if any further funds were to be taken after cancellation that there will be a prosecution pending.
  • I work for a Bank, and the hard and fast rules are as follows:

    If you have willingly given your Credit / Debit Card Number over the internet, or over the phone or filled in a subscription of any form quoting your number, then you are responsible for cancelling it. Any cancellation you issue to the Company takes 30 days to become effective, if after which shuld further debit's appear then your Bank /Credit Card Company have right's to refund you and pass the debt back to the Company. If you can't cancel yourself, (can't get in touch with company or get no response), then ring your Bank / Credit Card Company and they on your behalf will issue a Cancellation letter to the Company, again this takes 30 days to become effective, but any further charges after the 30 days will be refundable, although it is your responsibility to report further charges to your Bank / Credit Card Company.

    You should never as suggested earlier report your card lost/stolen, as you yourself are committed Fraud against the said Bank, and you will be on a very sticky wicket when the Bank /CCC contact your with a copy of your original signed authority to which you are now professing is Fraud.

    Direct debit's are slightly different to Continuous Authority Payments, although you must again cancel first with the Company and then with the bank. Hope this helps anyone.
  • Galstonian wrote:
    I don't believe this can be valid. If you go by just the first 12 or 13 numbers it does not uniquely identify the card holder so how can it be charged to their account?

    Card validation for such thing's are on the first 13 digits, the last 3 on most debit cards on change, no matter how many times you get a new card only the last 3 will change, any subscriptions etc, will continue to be paid via the funds in the bank account behind the owner off the debit card with those first 13 digits.
  • cos_2cos_2 Forumite
    624 Posts
    Part of the Furniture Combo Breaker
    I currently have three CCs and, forced to check because of this thread(!), have dicovered they all explain CPA, viz I have to cancel via the supplier, not the CC. It seems that the supplier can continue claims against a CC account, regardless of its status, unlike a bank account that might refuse a DD claim when closed. Seems crap to me.
  • Just do what I do, and have done ever since I started on the internet.. Alternate 2 or 3 cards. Use one for 2 or 3 months and then report it stolen, all the numbers and code thingies they need to get the payment have changed. But your other 2 are registered everywhere and ready to take over. Re-register your new card but DON'T use it for a while. It also stops people laying low with your card details and having a spree later. Or is that a complicated system?
    My broad mind and narrow waist are slowly swapping places!!
  • ReaperReaper Forumite
    7.2K Posts
    Part of the Furniture 1,000 Posts Photogenic
    Sounds a terrible idea. You are wasting company and police time with fictitious reports of theft. You are not liable for any fraud on your credit card anyway.

    In relation to Continuous Payment Authorities even reporting a card as stolen will not always prevent them honouring valid transactions which you will then have to pay.

    For normal transactions look at the "disposable" Cahoot web card if it worries you that much.
  • Well just report them lost then, same difference. Stops people ripping you off with these kind of payment agreements!
    My broad mind and narrow waist are slowly swapping places!!
  • MSE_Martin wrote:
    Did you know?

    Authorising a regular payment off a credit card known as a ‘Continuous Payment Authority’ is much more dangerous a bank account ‘direct debit’. !The problem is you can’t cancel it, only the company its set up with can. !

    The major, but not exclusive, culprit of such dodgy dealings are internet !!!!!! sites leaving people taking !‘embarassed’ monthly payments. !Always make sure any CPA is set up with a legit company, and try to use direct debts not credit cards. !I once reported on this for Moneybox, read a report based on that here

    To discuss this click reply

    Insert of clarification: !Thought i should say, a CPA (also called a recurring transaction) applies if you do it off a debit as well as credit card. !You need to do a Direct Debit off your bank account, not a regular debit off any plastic.

    As Martin quotes its not very safe to have a CPA. However, online cheap phone companies like 1899 dont offer any other options. what do u guys suggest, is it safe with 1899?
    Im with 1899 and the payments taken off my CC each month.
    Any advice, suggestions?
    If this has been answered before do apologise for the post! :confused:
  • cos_2cos_2 Forumite
    624 Posts
    Part of the Furniture Combo Breaker
    Point of correction - a previous poster spoke about cancelling a direct debit by first contacting the supplier/company. I've copied this from the BACS website:

    If you need to cancel a Direct Debit, simply write to your bank or building society. It is also a good idea to send a copy to the organisation concerned. Your bank or building society can make the cancellation up to and including the due date, but try not to leave it until the last minute or you run the risk of a payment being made. Remember that cancelling the Direct Debit simply stops paying the organisation. If you carry on receiving the goods or service then you will have to organise an alternative payment method.
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