Online company charging credit card after deleting payment details

makeem95

I've been a GiffGaff user for a few years, but having decided to move on to EE, I stopped the Auto top-up on my account (it charges £10 credit on my account if the balance falls below £3) and also removed my payment details. Without my payment details, the site also won't let me turn Auto top-up back on so I thought I was safe.

This was back in October and this month, I got an email saying my account has been credited with £10 as the balance has gone below £3. I checked on GiffGaff again and sure enough I had £10 credit added, but there were still no payment details on my account nor was Auto top-up turned on. A few days later, I confirmed on my credit card statement I had been charged £10.

I have already contatced GiffGaff who I'm sure will sort this out, but I am absolutely livid that they can charge my credit card even after explicitly removing the payment details from their site. As they only offer PAYG and not contracts, they have no need to charge me at a later date for money due.

I feel this is must be against some financial or data protection regulation and want to know who else I can lodge a complaint with so GiffGaff don't sweep this under the carpet.

dzug1

You need to exhaust giff gaff's complaints procedure before taking it further. If there sort it out satisfactorily then there's no point

buglawton

GG's complaint procedure- last time I used GG it was all done by emails from commission-driven volunteers, very spotty responses. Good luck with that.

makeem95

Well, they're maintaining that I removed my card details after the top-up was charged, which isn't true. My account shows a historical record that my payment details were changed back in October 16th (when I removed the card details) so I'm telling them to check their logs again.

So because of their system glitch, they think I'm making up this story to get my money back which is infuriating me more.

stator

Once a service provider has charged your card once with the full details they can charge it again without the full details.

chattychappy

Seems to me that this is an unauthorised transaction. I disagree that you must go to giffgaff first (though this might be the quickest way). You can dispute it directly with the CC. It might be a struggle at first given you have had transactions go through in the past. But the rules are clear: if you dispute the transaction then the onus is on the CC to prove it was authorised, not for you to prove that it wasn't. Seems you have some evidence to support your position anyway and given the amount involved, they probably won't argue.

Aquamania

For sure, you should report any unrecognised or unauthorised transactions you see on your account to the card provider as soon as possible.
( I don't know why you have left things for almost a month? :eek:)

However, the advice to go through GG's complaint procedure is also correct, imo, particularly as you wish to bring this matter to the attention of GG.

You say you have attempted that, and indicate that they have not upheld your complaint. If they have not already provided you with a 'deadlock letter', ask them to confirm if the response given earlier is their final response to your complaint, so that you may now escalate the complaint
(otherwise you'll have to wait 8 weeks from original submission to take the matter further)

eddddy

chattychappy wrote: »

Seems to me that this is an unauthorised transaction...

I think it depends how GiffGaff set up their payments.

If each Top Up is treated as a separate CC transaction - then yes, it sounds like an unauthorised transaction which can be disputed with the CC co.

But if the OP/GiffGaff has set up a CC 'Continuous Payment Authority' - it's a dispute about the amount collected under the CPA. So it's a dispute with GiffGaff.

(There is no equivalent to the 'Direct Debit Guarantee' with CPAs. Many people say you should avoid them.)


If GiffGaff have set up a CPA, you should contact your CC co and tell them it is cancelled. That will stop GiffGaff collecting any more payments, but it won't help you recover the one that's already gone though.

Bit more info here: http://www.moneysavingexpert.com/banking/recurring-payments

InsideInsurance

makeem95 wrote: »

I have already contatced GiffGaff who I'm sure will sort this out, but I am absolutely livid that they can charge my credit card even after explicitly removing the payment details from their site. As they only offer PAYG and not contracts, they have no need to charge me at a later date for money due.

I feel this is must be against some financial or data protection regulation and want to know who else I can lodge a complaint with so GiffGaff don't sweep this under the carpet.

Its been a long time since I've had a PAYG phone but I am sure I have a vague recollection of occasionally going into a negative balance, particularly whilst abroad.

The Data Protection Act doesnt currently give you a right to ask for your data to be deleted - though this is currently being debated. The DPA gives more general obligations on a company to only keep data that it needs. If there is any way the account could go into the negative then there is a justifiable reason for them to retain the ability to make payment.

Clearly if you had removed the instruction to top up and they have subsequently topped up then they have made a mistake and in theory you'd be entitled to do a chargeback from your card issuer but in practice some may refuse

As you say, they will sort it out by the sounds of it and its a good lesson on ensuring you check your bank balances etc as mistakes are made occasionally.

chattychappy

eddddy wrote: »

But if the OP/GiffGaff has set up a CC 'Continuous Payment Authority' - it's a dispute about the amount collected under the CPA. So it's a dispute with GiffGaff.

Interesting point. In the event it was a CPA, my interpretation of "stopping the auto top-up" and deleting the details is that the CPA was cancelled. At the very least, the charge would be outside the terms of the CPA so I would still start on the basis that it was unauthorised and put the ball back into the CC's court.

Aquamania

chattychappy wrote: »

Interesting point. In the event it was a CPA, my interpretation of "stopping the auto top-up" and deleting the details is that the CPA was cancelled. At the very least, the charge would be outside the terms of the CPA so I would still start on the basis that it was unauthorised and put the ball back into the CC's court.

AIUI, the OP says in post#4 GG claim the last payment was taken before the OP cancelled the CPA.

It would appear the OP has evidence to the contrary, (although I'm a bit confused on the specific details) and is correct to put this back to GG.