Payments on CLOSED card accounts

xiiipaul

In May 06 I closed my credit card account, cleared all debt. In Dec 06 the company made a payment for an annual card payment that I had not personally contacted to cancel.
How can the bank legally issue a payment on my behalf when I had closed the account and thus ended any agreement to their terms and conditions from that point onwards?

tom188

You signed a continuous payment authority with a 3rd party and the credit card company is duty bound to continue to pay until you cancel with that party.

Just because the account is closed does not mean that transactions cannot still be made.

Paul_Herring

xiiipaul wrote: »

In May 06 I closed my credit card account, cleared all debt. In Dec 06 the company made a payment for an annual card payment that I had not personally contacted to cancel.
How can the bank legally issue a payment on my behalf when I had closed the account and thus ended any agreement to their terms and conditions from that point onwards?

Ah - you may have closed the account, but you're still bound by the T&C's whereby you are still responsible for any charges made to that account. One of the terms of closing the account is to ensure that the account is not used for any more payments - indeed most CC companies explicitly ask you to cancel any such payments when cutting up your card. You clearly haven't done this. Unlike, say, a direct debit or standing order on a current account, it is your responsibility with a CPA, to tell the charging company to stop the charges to your card - the CC company cannot do this.