SAGA Visa refuses to cancel repeat payment authorisation

fastguy

Just closed my account but they warned me to cancel all repeat payments to the card since I would still be liable if a previously-authorised request was submitted after account closed. I asked which merchants has pre-authorised requests that they would pay even after account closure & they listed them. I specifically asked them to cancel all these but they said they could not.
I thought the law changed after a court ruling 2 years ago to allow customer to cancel without going via merchant?

stephane_2

If you want to cancel any repeat payments you will need to contact the merchant/supplier directly, you have no other option

YorkshireBoy

stephane wrote: »

If you want to cancel any repeat payments you will need to contact the merchant/supplier directly, you have no other option

That's incorrect...

http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments (scroll down to the bottom of the page)

prowla

YorkshireBoy wrote: »

That's incorrect...

http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments (scroll down to the bottom of the page)

That is a good link!

"In most cases, regular payments can be cancelled by telling the company taking the payments. However, you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments. Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments."

Also, IMHO, closing an account should automatically stop transactions against it.

stephane_2

YorkshireBoy wrote: »

That's incorrect...

http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments (scroll down to the bottom of the page)

You still have to inform the company in question...no matter what!

YorkshireBoy

stephane wrote: »

You still have to inform the company in question...no matter what!

Again, that's incorrect.

It's an either/or situation.

I'm not sure how many more links you'll need (there are dozens available including one on this very website*) to see that you do NOT have to contact the organisation. Yes it's the right thing to do. Yes you may still owe them money so may need to contact them anyway. But NO you do NOT have to contact them to stop a CPA...since the 'rules' changed recently (something you appear not to know...until now ).


* http://www.moneysavingexpert.com/banking/recurring-payments#cancel

RobertoMoir

YorkshireBoy wrote: »

But NO you do NOT have to contact them to stop a CPA...since the 'rules' changed recently (something you appear not to know...until now ).


* http://www.moneysavingexpert.com/banking/recurring-payments#cancel

About time. Let's see how long it takes for the lenders to drill this into the their call centre staff.

chattychappy

stephane wrote: »

You still have to inform the company in question...no matter what!

Just to repeat, this is WRONG information. The law changed 1st November, 2009 with the Payment Services Regulations 2009. Reg 55:

(3) The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked … (4) …the payer may withdraw its consent to the execution of a series of payment transactions at any time with the effect that any future payment transactions are not regarded as authorised for the purposes of this Part.

And page 15 of http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf posted earlier makes it clear.

Of course cancelling the CPA might not cancel any underlying contract you have with the merchant (eg a subscription). That's another matter.

The OP should cancel in writing with the SAGA and quote the regulation. Keep a copy. If further payments are made and billed, then claim a refund under regulation 61 which requires unauthorised transactions are reversed immediately.

chattychappy

RobertoMoir wrote: »

About time. Let's see how long it takes for the lenders to drill this into the their call centre staff.

Well, in case they are in doubt, the FSA has updated its guidance to providers: http://www.fsa.gov.uk/static/pubs/other/draft-psd-apr12.pdf

Note bottom of page 2:

with reference to the customer’s right to withdraw consent for a series of payment transactions, clarification that it is not acceptable for the payment service provider to make withdrawal of consent dependent on notice having been given to the merchant.