This could save you a fortune....

padington

Buyer beware ! Did you know that even once you've closed your credit card account, credit card companies will still honour all 'automated payments' and charge you?

Hallifax today also confirmed they cannot tell me if I have any 'automated payments' set up. They confirmed that regardless that i have 'closed' my account, a company that claims to have made a payment agreement with me can will still be paid after I have closed my account and I will be billed. Hallifax also confirmed that If I didn't pay this, this would damage my credit rating. I failed to ask if they will charge interest on this as well. They say this is the same for all credit cards. I suspect this is also true with debit cards. I'm outraged that this is allowed.

Halifax said that 'the customer must be aware of what agrements they have signed up for' and qualified that 'keeping track of these agrements are not the responsibility of the credit card comapny'.

Jesus, how many peoples credit ratings are ruined by this? How much money has been taken by companies who's services are not being used? I'm begining to wonder whether Martin Lewis should be campaining for people to boycott the whole credit card system on these grounds and forget about promoting rate tarting at all !!!

Please discuss........

miss_lisalou

Yep. But to play devil's advocate, it's not the card issuer's fault. If you sign up to an ongoing agreement, the company concerned (Green Flag, sentinel etc.. who take payments on an agreed basis - annually/monthly) have the authority to continue taking the money each year until you cancel it with THEM not your card provider. So they can do so even after the card number you've given expired or even after you close the card/account in question.

Perhaps it's those organisations to blame for actually hoping you will forget and allow the payment to continue each year. Always best to try and set it up by direct debit if possible to avoid this.

Call_Centre_Monkey

Yeah the banks aren't to blame at all, by law they must honour continious payments.

CLAPTON

it quite unfortunate...hopefully the law will be changed so that the card holder can cancel continuous payments from credit and debit cards just like you can cancel a DD.

Stonk

The solution is to remember who you have financial arrangements with, and when they are due for renewal / cancellation, etc. It's pretty simple.

YorkshireBoy

padington wrote:

Please discuss........

Discussed at length in the Regular payments off a credit card discussion sticky thread.

Astaroth

CPAs are going to be replaced with something more like direct debits but it will take time for it to happen.

Of cause they could decline the payments and then, in the majority of cases, you will be using a companies service without having paid for it and can therefore be accused of such things as "no intent to pay" and other fraud related offences.

The question is why would your credit rating be destroyed? You have a CPA setup then as soon as the account is reopened due to a payment then you will get a statement and will know to pay it.

padington

How many people do you think aware of this situation? It effectively means that you can never close your credit card account. Forever you are living with the worry that someone may have defrauded you on an old card and you could be be seriously effected. Also how clear are the credit companies to the customers that these transactions can never be stopped unless you are aware of them happening. The bottom line is that no one in there right mind should ever accept yearly subscription automated payments. For the protection of the publics pocket they should be banned altogether. Its just a corperate con job that preys on the less able.

padington

Your credit rating will be negatively effected if you credit company pays your 'bill' and you fail to pay them back (just quoting halifax). This could easily happen if you close your card, are not aware of the threat of automated payments and then move house. In reality you can't totally close a credit card account and you should always inform a credit card company of even your closed accounts when ever you move. Its hideous. Thats why even when you have 'closed' an account the automated telephone sytem will always tell you your 'ballance'. The truth is out, credit cards are for life. I would never advise anyone to get one. They are more hastle than they're worth. Unless you have alot of credit and alot of time.

grumbler

padington wrote:

It effectively means that you can never close your credit card account.

You can. Just cancel all CPAs and wait untill all one-off authorised payments come through.

Forever you are living with the worry that someone may have defrauded you on an old card and you could be be seriously effected.

If you have not authorised the transaction, you have nothing to warry about.

Also how clear are the credit companies to the customers that these transactions can never be stopped unless you are aware of them happening.

Quite clear IMHO. Just an example from Egg T&C:

22.5 After this Agreement has ended you should ensure that no Transactions are made and that any continuous payment authorities or standing instructions are cancelled by telling the recipient of the payment to cancel them.

. Or from FAQ: How do I cancel recurring transactions (other than Direct Debit or standing orders) on Egg Money?

You must tell the company which collects the payments from your account that you want to cancel them and should give the company sufficient notice of your wish to cancel the payments. You should keep any proof of cancellation.

The bottom line is that no one in there right mind should ever accept yearly subscription automated payments. For the protection of the publics pocket they should be banned altogether. Its just a corperate con job that preys on the less able.

Agreed about subscribtions. However, I pay my 1899, 18866 and 18185 telephone bills by CPAs and I am happy with this.

jojo1978_3

I think you'll find that when you come to close an account, that all credit card companies have to read a legal disclaimer to you, which will advise you that you need to cancel all cpa's.Its not that hard to do, just keep a record of any cpa's or check back through your statements if you can't remember what you have.