cancelled card payments?

m16a3

ive been hearing a few stories of people having money taken from there accounts by loan companies using there cancelled card details. i was under the impression that a cancelled card means just that....CANCELLED. it couldnt be used on the internet by somebody so how can these companies take there money from it.

Stompa

http://www.moneysavingexpert.com/banking/recurring-payments

jonesMUFCforever

No a continuous authority means just that continuous - until you cancel them and get confirmation.

madgagoo

Indeed, a continuous authority is given to the company at account level so they can take payments even if a card is cancelled.

They can actually still take payments even if the ACCOUNT is closed and the bank can then debit these payments to any other accounts you hold (although I think they need your permission to do so).

Nasty things continuous payment authorities. Avoid at all costs.