Taking payment from closed account

debg1_2

I had a Egg credit card which I closed last December (due to them hiking up the interest rate....but we won't go there!!) In August I received a renewal notice from CPP (card protection plan) which I ignored because I no longer wanted cover and assumed as it was on the Egg card they wouldn't be able to take payment anyway.
Next thing I get a text and email from Egg to check my account where I found an uncleared balance of £42.99. I am now in dispute with CPP to try and get this refunded but they claim that I should have cancelled when I closed the account - but I had no idea I had this renewal coming in August!! Then I assumed a closed account meant they couldn't obtain payment but apparently they can open up account to do this!!
Just wondered if anyone else has been stung like this?

beth58_2

Sorry can't help how you stand legally, but I know this is something a most companies are doing now, if you don't cancel it the contract rolls on for another year. I think they'll probably take the stance that ignorance is no defence.

This once again highlights you can't assume anything.

debg1_2

Thanks Beth I kind of figured I'm going to have to learn an expensive lesson....but there again don't want to go down without a fight!!!

bengal-stripe

debg1 wrote: »

....I received a renewal notice....which I ignored..........I had no idea I had this renewal coming in August!!

and assumed.....Then I assumed.....

Too much assuming on your part. You received a renewal notice and you couldn't be bothered to advise the company, the account no longer existed.

tersus_slate

it's all a big CON

rhcp

Surely, if the account is closed, it is CLOSED. They can't take payments on a closed account. Did you have an outstanding balance on the card when it was closed? Is there still an outstanding balance, apart from the protection plan? It sounds like egg are very dodgy!

YorkshireBoy

rhcp wrote: »

Surely, if the account is closed, it is CLOSED. They can't take payments on a closed account. Did you have an outstanding balance on the card when it was closed? Is there still an outstanding balance, apart from the protection plan? It sounds like egg are very dodgy!

Nothing dodgy at all. OP entered into a contract with CPP. All Egg did was pay monies that became payable under that contract.

Egg_Card_T&Cs wrote:

20.4 If this Agreement is ended by you or us, you must ensure that no further Transactions are made and that any continuous payment authorities or standing instructions are cancelled by telling the recipient of the payment to cancel them. You will still have to pay all sums that you owe us (including Transactions, interest and Charges applied to the Account after the Agreement has ended) in accordance with the Agreement. The Agreement terms allowing the making of new Transactions will no longer be effective, but all other terms will continue to apply until you have repaid your Balance in full.

They also verbally tell you this if you call to cancel, and remind you yet again in the closure confirmation letter.

CPP_T&Cs wrote:

A3: Length of policy and premiums
...We will renew the policy on the renewal date unless you contact us before that date and ask us not to.

As others have said...far too many assumptions have been made, and not enough reading of T&Cs of contracts entered into.

debg1_2

That's what I thought!! There was no outstanding balance when it was closed - they never even the courtesy to contact me to question taking the payment. The worrying thing is if I had changed address or phone number I would never have known that payment had gone onto my account.

chattychappy

rhcp wrote: »

Surely, if the account is closed, it is CLOSED. They can't take payments on a closed account.

"CLOSED" is a vague concept.

You can terminate your contract, but you will remain liable to outstanding charges. This includes transactions for which you've previously given your authority but haven't appeared yet.

It works both ways. Say you bought something, paid for it and closed your account. It then goes wrong - would you want to be deprived of your s75 rights?

The OP made the comment that s/he thought because of the account being closed they wouldn't be able to take the payment anyway. But so what? If money is owed, it is owed. You can't just cancel a contract by cutting off the means of payment.

debg1_2

If an account is closed they should have least have contacted me for an alternative means of payment!!

lisyloo

If an account is closed they should have least have contacted me for an alternative means of payment!!

NO, you're not listening.
If you don't listen to how it works then you are going to make the same mistake againa and again unless you learn.
It doesn't matter whether you agree with it or not you need to take heed of how it works in the real world.

If you have continuous authorities set up on a credit then they will continue to be taken from a closed account from ANY provider not just EGG.
My advice is don't agree to continous authorities on credit card. Find another way to pay. If none is on offer don't do business and go to a different company.

As others have said if you cancel over the phone they tell you this, futhermore they also put it in a letter.

You need to start READING your letters and also LISTENING to what people are telling you.

I don't know where you stand legally I'm afraid, but Egg have done nothing wrong and you didn't tell CPP you no longer wanted cover.