Old Credit Cards: Should I cancel them Discussion Area

deeba

Hi there

I'm new to this site, just signed up today.

I was just wondering if these figures below are what you have reclaimed back from credit card companies or how your debt repayments have reduced.

Hope you don't mind me asking.
Thanks

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bethanyrayne

beedeedee wrote: »

Slightly off - but useful.
If you cancel the cards - don't cut them up or anything, just buy a small wallet and stuff them in there, along with old filling station cards, library cards etc. If you should have the misfortune to be mugged - hand over this wallet instead of your real one.......

I thanked you for this post because I like the way you think! :rotfl:

pauli108

I'm not sure if I understood correctly - can I cancel my cards any time, given I have paid off my debt? Are there no cancellation fees?
What about expired cards? Do these accounts also need to be cancelled?

HamiltonL

Nope, usually you can just call up and cancel them. Providing there is no pending interest they can be closed immeditately. You may be offered incentives like vouchers or card offers to keep the account open a bit longer but they won't mind if you close it still.

Expired cards are probably still open accounts. It may be there were problems reissuing cards to you (I've had that). So best to call up and shut them down.

Careful_Spender_3

Hi Guys

I recently had reason to canx my MBNA CC, as they permitted a company (called Fasthosts - a website hosting co. who is known to them) to claim another year's subscription from the card, even though, as far as I was concerned, I had not authorized this for this year (last year was the only time).

I had set the website up for someone last year, using my card but in their name and taking payment from them. Fasthosts said they emailed the account holder (not me) recently, informing them they would be taking the money, and this gave them permission to use the details they held from the year before. MBNA agreed that this is how some subscriptions work and only a letter from me to Fasthosts but sent to MBNA, would - hopefully - canx any future payments.

I was annoyed at this and canx my Credit Card with them (via email, fax and 2 letters), and am fortunate enough to be able to clear the balance with the next DD next week.

However, I have just received a letter from them stating that any future subscriptions will continue to be paid even though the account is closed, and I will continue to be liable !

Is this normal?

I will to call MBNA tomorrow to ask for a list (if they have one) of any and all companies which may or may not believe I have a subscription with them on this card (which is now canceled) , in the hope that I can canx them all.

I thought Credit Cards were safer than debit cards, but if this is all normal I think I will stick to other means from now on.

Advice welcome please.

Thank you

:beer:

Moggles_2

Careful_Spender wrote: »

I recently had reason to canx my MBNA CC, as they permitted a company to claim another year's subscription from the card, even though I had not authorized this for this year. MBNA agreed that this is how some subscriptions work and only a letter from me to Fasthosts but sent to MBNA, would canx any future payments. I was annoyed at this and canx my Credit Card with them ... However, I have just received a letter from them stating that any future subscriptions will continue to be paid even though the account is closed and I will continue to be liable. Is this normal? I thought credit cards were safer than debit cards, but if this is all normal I think I will stick to other means from now on.

Yes, this is normal. A regular payment from a credit card (best avoided, IMO) is termed a continuous payment authority. Once set up, you can’t cancel it. Neither can the lender. Only the company you've arranged to pay can do this.

Careful_Spender_3

Thanks Mogggles

just to be totally clear, you are saying that the above is the case - that the CC company can continue to pay money to any third party who claim I have a subscription with them - even when the card / account is cancelled?

Thanks for your time.

NickX

Careful_Spender wrote: »

just to be totally clear, you are saying that the above is the case - that the CC company can continue to pay money to any third party who claim I have a subscription with them - even when the card / account is cancelled?

Yes this is correct.

This is why Moggles suggests that CPAs (Continuous Payment Authorities) are best avoided.

Careful_Spender_3

Thanks Moggles

Actually, that is the scary thing; I was not aware I had any CPAs. I expected each and every payment to require my direct and personal authorisation each time or it could not happen. (ie. No contact from me = no payment).

I also called MBNA today and they confirmed what you said. Thankfully I have got the money back from the people who I set the website up for in this instance, but there have been others with other companies who could in theory claim later (I have done it as a favour and a bit of fun rather than as any sort of business). Also we have purchased car insurance, break down cover, a magazine subscription, and perhaps other stuff, which can be renewed each year.

Anyway, MBNA confirmed that, even with the account closed and the Card cancelled, any standing CPAs would be paid and added to my (closed) account, and that I would have to write to each of the companies that I have a CPA with if I wished to canx them.

I asked if they have a list of any such companies, to which he said 'No!'.

So I asked, then any company could contact MBNA and claim I have a CPA with them and MBNA would pay it?

He said, only if I knew them (I had paid them before)!

So again I asked, so any company that I have authorised a payment to previously could claim I have a CPA with them, and MBNA would pay it?... even though the account is closed and I have told MBNA that as far as I am concerned I have no such CPAs and do not authorise any such payments!? ...and he said 'Yes, that is the case!'. :wall:

There aren't words to describe how frustrating and stupid this situation seems to me.

I said, I thought Credit Cards were supposed to be safer. He said, only for things like internet purchases, and not subscriptions! (as you said Moggles).

To which I replied that these were internet purchaces, and I was not aware I had agreed to any ongoing suscriptions. It was (as far as I was concerned) a one time payment which I could renew if I chose to - and not that it would continue whether I chose to or not!

Anyway (and apologies for boring anyone else with this, as it is perhaps not quite on topic now), It was left that he would send me (free :dance: ) the last 12 months records again, and I am to go through and write a letter to each of the compnaies who could, in theory, be expecting a renewal at some point, and send the letters to MBNA and they will inform the companies concerned. Then, if the companies do take any money at some point in the future, MBNA should be able to reclaim it!! :mad:

I asked if he knew of any credit cards which would not permit CPAs, as they seem to be every bit as much of a threat as fraud (Perhaps more-so, as they are hard to stop and impossible to reclaim - unlike direct outright fraud!).

He said 'No!' Perhaps a reader here knows of one, as I am at present right off Credit Cards?

Thanks again for the help.

Advice welcome from anybody else too, as this seems too stupid for words!

:j

Moggles_2

Careful_Spender wrote: »

Thankfully I have got the money back from the people who I set the website up for in this instance, but there have been others with other companies who could in theory claim later. Also we have purchased car insurance, break down cover, a magazine subscription and perhaps other stuff, which can be renewed each year. MBNA confirmed that, even with the account closed and the card cancelled, any standing CPAs would be paid and added to my (closed) account and that I would have to write to each of the companies that I have a CPA with if I wished to canx them... I asked if he knew of any credit cards which would not permit CPAs, as they seem to be every bit as much of a threat as fraud. Perhaps a reader here knows of one, as I am at present right off credit cards?

No such plastic exists.

There's risk attached to everything but, in general, credit cards are the safest way to purchase goods/services. (If you carry cash, it could be nicked. If you use cheques, they could get altered. I would avoid CPAs though, if at all possible.

A CPA (also called a recurring transaction) is just as dangerous when arranged via a debit as a credit card. Best practice is to use direct debits from your bank account, rather than a regular debit from any plastic