MSE News: Banks 'give bad advice' over card payment cancellations

snelmark

Just had this exact same issue with my Capital One credit card.

I had been paying Primus Telecom monthly via a continuous payment authority. I have now opened a Santander 123 current account so switched the payment over to direct debit (so as to benefit from 3% cashback.)

I read that now the banks are obliged to cancel the payment authority, so messaged Capital One to ask them to do so. They say that they cannot cancel it but will reimburse me IF Primus take any more payments. Not that I expect Primus to do so, but yet another firm not complying with the FSA rules.

Consumerist

snelmark wrote: »

I read that now the banks are obliged to cancel the payment authority, so messaged Capital One to ask them to do so. They say that they cannot cancel it but will reimburse me IF Primus take any more payments. Not that I expect Primus to do so, but yet another firm not complying with the FSA rules.

Sounds to me that they are actually complying with Reg 55(4) in that it has the effect that "any future payment transactions are not regarded as authorised" and the bank is required to reimburse you for unauthorised transactions (in most circumstances).

What the technical difference is between (a) withdrawal of your consent to future transactions and (b) reimbursing you for any future transactions which may occur is bit of a mystery to me.