Can a closed card honour payment?

kerricollier

Tesco card was closed over a year ago. I paid the AA with the card the last few years. The usually send a renewal letter but we did not get one and they took the payment without notification from the card. The card was closed and when I called them they state they have to honour the payment and now we owe them and the late charges as I had no idea about the payment. Is this legal?

SuperAllyB

AFAIK they have to honour the payment as its your responsibility to sort out any Continuous Payment Authorities. Late charges, I would think, depends on whether they sent a statement or e-mailed you to notify you of an online statement.

grumbler

MSE article:Continuous payment authority: manage recurring payments

The_AA_Company_Representative

kerricollier wrote: »

Tesco card was closed over a year ago. I paid the AA with the card the last few years. The usually send a renewal letter but we did not get one and they took the payment without notification from the card. The card was closed and when I called them they state they have to honour the payment and now we owe them and the late charges as I had no idea about the payment. Is this legal?

Hello kerricollier, this is something that we would like to help you with. Please email the details to chat@theaa.com including reference number 93556 your full name, address and membership number. Kind Regards, The AA

zerog

I'm just curious as to how the AA rep was notified about this thread, seeing as one wouldn't expect them in most cases to be perusing the credit card forum...

planteria

i wouldnt worry about that, just good that they're here, and apparently keen to help..
in terms of the continuous payment, yes, you need to sort it with the AA, so Tesco are right.
but in order to charge you any fees as a result, Tesco need to provide you with a statement..so tackle that side with them, and argue your case as strongly as you can.
good luck:)
fwiw i was stung by the AA about 10 years ago in this way, they were unreasonable, and so they lost my business for good.

ICan'tStandIt

Yes, the credit card company generally are obligated in situations like this to pay, but they do also have chargeback rights for things like 'expired card' so it is worth asking them about this once you've tried to resolve it with the AA.

chattychappy

In general, yes. If you have authorised a payment (whether or not via a CPA) then if it goes through you are obliged to pay up.

You are entitled to cancel a CPA with your CC. If you do, then the CC should not pay out and if they do you can dispute the amount.

If you are unsure of what CPAs you have agreed to, it would be no bad thing to write when closing an account to the effect that all/any outstanding CPAs are revoked. Might not stop a CPA going through, but you would have grounds to dispute if they do.

Of couse, if you are contractually obliged to pay a CC, then cancelling a CPA doesn't get you off the contractual hook. They could still chase you directly.