Payment Being Taken Without Card Holder Auth

Tinypurplewitch

Hi All,

I am currently in a complete frazzle and am looking for correct legal information to put in a complaints letter to a multimedia supplier.

Long story short time. My debit card was used to make bill payments to a company who then stored the card details without my authorisation. I must add that the bills are not in my name. Last week upon checking my account I find that a sum just shy of £150 has been taken out of my account as a debit card payment. When my partner called the company they said that they had been told that the card could be stored as a continuous payment card. This was not the case. We have asked them to provide proof that I, the card holder, have given authorisation for the card to be kept on file and all they can say is ' we asked and got told yes'. We have also asked for a copy recording of the phone conversation proving this as we know there is no such conversation. I know that I am legally able to request this money be refunded via a charge back, which having spoken to my bank they are willing to proceed with, however I would rather not do this. I would prefer to get a refund to cover charges and some kind of incentive to stay with their company, I would also like them to look at their debit card payment procedures as I feel only the card holder should be able to make payments as if you walk into a shop with a card that is not yours you would be lucky to leave without having the card taken from you or worse case, being cuffed.

So what I am after is legal jargon to put in my letter to the company solidifying my position ; continuous card payments/storing card details can NOT be done without express authorisation from the card holder and the card holder only, NOT a third party.

Thank you in advance for your advise and help with the matter.

Consumerist

It seems that there has been an unauthorised transaction on your account which you have reported to your bank and they have agreed, as is required by the regulations, to refund the amount of that transaction. That is the limit of the bank's responsibility.

Once you have got your money back from the bank, you should take up your complaint separately with the media company to insist they desist from making any further transactions on your account unless they have your express authority for any such transaction(s).

Tinypurplewitch

Hi,

Yes the bank has said they are willing to go down the charge back route. I however feel that the media company should be willing to do something to put right their massive blunder and that they should change their procedure for card transactions or at the very least take a serious look at it as I doubt I will be the first or last have this happen to them. We will be leaving this media company if they do not make satisfactory recompence and as all we are asking for is payment of charges incurred due to their taking of funds illegally and some kind of short term discount or something like that, I do not feel we are asking to much.

Regards

meer53

I'd check your Terms and Conditions from the original agreement before you spend any money on solicitors. There may be a clause in there that allows them to do this.

chattychappy

Tinypurplewitch wrote: »

Long story short time. My debit card was used to make bill payments to a company who then stored the card details without my authorisation. I must add that the bills are not in my name.

Yes, but if you want advice on how to go legal, you must "add" the key details! Are you saying that the bill payments were made without your knowledge or authorisation? Ie the whole thing was fraudulent? Or is it that your partner used the card with your permission, but your complaint is that they didn't get your authorisation when storing the details for a CPA?

If it's the former, then sure you have some reason to complain - but really the remedy is to have the account restored and this seems to be what they are willing to do.

If you allowed your partner to use your card, then really your position is quite weak because you shouldn't have done that anyway.

Tinypurplewitch

Hi Meer,

I have looked on their site at their T's & C's and cannot see anything pertaining to payment of balances on the account. As far as I am aware all companies must adhere to the T's & C's of the banks with regards to how payment is taken from their cards.

Tinypurplewitch

Hi Chatty Chappy,

The payment was taken from the card without permission from either of us OR a bill being send. If my partner had given auth then quite frankly I would have his do dad pickled and hold no ill will against the media company, however they stored and took the bill payment with no auth at all. Not sending a bill and taking out such a huge sum of money from my account without my knowing has caused approx £50 or charges as I do not have an account with an over draft facility, and at 30 weeks pregnant this this the last thing I need!!

meer53

Each retailer has their own t & c's regarding whether they store card details or not, it's nothing to do with the banks. The banks cannot control how each retailer stores their information, some will store them, most retailers who offer ongoing services (like cable, satellite. broadband providers) will keep card details so that they can provide continuous service to their customers. If you've set up an agreement for them to debit your account, and you owe them money, they will take it. What they've done isn't illegal if the money is owed.

Tinypurplewitch

Hi Meer,

No auth was given at all for card details to be stored so I do not see how they can do so and then take a bill payment from that card without auth either? I have looked for their bill payment terms and cannot find them or anything that looks like them but I am still scouring their site.

redpete

So if the card was used dishonestly in the first place how can you be sure that the person didn't say it could be used for further payments?

meer53

The authorisation is given when you first give them your card details, they don't need to contact you for every payment. If you feel that the payment is unauthorised (i get the impression form your original post that this is something you do owe them, or your partner does) then get your bank to action a chargeback, BUT, if you have given this retailer your card details, then technically, they can refuse to do this for you, as for a transaction to be classed as unauthorised, you should never have had any dealings with the retailer. If they do action the chargeback, i'd bet my lottery winnings on it representing !
Why don't you just explain to the retailer that this has caused you to incur charges on your account and ask them to refund them ? It's worth a try. In the retailers defence, they don't know that you can't cover the transaction.
Don't want to sound too negative, but i deal with this type of query every day at work and don't think you'll have much success with the retailer, have you asked your bank to refund the charges ?