Direct debit guarantee for credit cards

punkmonk_uk

Hi

I cancelled my barlaycard over a year ago and 6 months ago I moved house. In the meantime a direct debit payment was made against my card and then late payments added as I didn't receive any statements. I now have a poor credit rating because of this.

I was informed by Barclaycard that they are required by law to honor direct debit payments even though the card has been cancelled. Is this correct as I have received information from other banks to the contrary?

I believed that the direct debit guarantee allowed you to cancel direct debits at any time so shouldn't my informing Barclaycard that I had closed my barclaycard account be the same. I had informed the people in receipt of the dd payment of my new card details but they had taken this out in error.

Any advice would be greatly appreciated

Jo

RTNI

Are you talking about a CPA (Continuous payment authority) like Sky TV or internet access or mag subscription?

If so then yes, the CC company cant cancel these, its up to you to contact the company concerned and tell them to stop taking the payment.

punkmonk_uk

Thanks for your reply RTNI

I am not sure. It was Barclaycard that used the term Direct Debit.

I should at least be able to get them to refund the late payment charges as they didn't inform me that I had any outstanding balance to pay off?

My credit rating is still screwed though I guess?

CLAPTON

its not possible to set up a DD from a CC.. its always a continuous payment authority... always best to avoid these.
Its worth contacting barcalycard again and asking them to cancel the charges and withdraw the credit record entries although of course they don't have too.

Of course if it waas in fact taken out incorrectly then that would made a difference.

punkmonk_uk

It was taken out incorrectly but by the AA but I believe they can't repair my credit score... can they?

JohalaReewi

If there are regular/standing payments being charged to a credit card, this is not a direct debit, it is a CPA.

CPAs can only be cancelled by the company taking the payments (not you or the credit card company). and you get no protection Also, even if you cancel the card, the CPA will still be charged to the (closed) account and you are still liable.

Provided the initial charge to your credit card was valid, you will have to pay. You may be able to negotiate a reduction in the late payment fees if the CC company didn't send statements (you did have mail redirection at your old address?)?

If the initial charge to your card was incorrect, you should dispute it and if you win, you will also get any penalty fees refunded and should be able to restore you credit history. Barclaycard should be able to write to the credit agencies to get your record corrected. Get a copy of your file from each agency and ask them how to correct the error. They usually have helpful helplines.

Direct debits can only be set up to take money from certain bank accounts. Definately not credit cards, and deduct points from Barclaycard for suggesting otherwise.

punkmonk_uk

I have other problems with them unfortunately

Firstly the AA have recognised the error and refunded my barclaycard with the funds they took through the CPA. However Barclaycard are saying they did not receive it and are STILL adding late payment charges

Secondly as I closed the account back in July 06 and had received no statements I had assumed that there was no need to inform them of change of address. I gave them the details of my new address back in June but when I rang them the other day they told me that I still had not notified them of change of address and consequently I am still not getting any statements.

Thirdly as the account was closed for over 6 months when I moved I destroyed all my records of my account and now no longer have the credit card number. Barclaycard tell me that they can't give me that number so I can't even pay the flaming late payment charges

None of this is my fault as I have done everything that I was supposed to. I informed the AA of my change of address and new CC details - they screwed it up. Barlaycard are refusing to repair my credit history as they have done everything by the book. Is there anything on my side I can fight this with?

Ever hopeful

Jo

dealer_wins

Is it really the case that payments can be taken of a closed account. Whenever I have closed down a credit card I was verbally advised that any continuous payments need to be altered as they would no longer be paid.

Surely once you have requested the account to be closed and this is actioned, if Barclaycard still make a payment then they are totally liable themselves as the customer has formally closed the account and agreement no longer exists for the customer to have credit.

Otherwise it is a licence for fraud and all sorts of nightmare situations such as this one.

Thomas_Crown

dealer_wins wrote: »

Is it really the case that payments can be taken of a closed account.

Yes. Years ago I had this problem when the RAC took money from a Lloyds Bank Access card even though the credit card account had been closed for almost a year. Eventually the RAC refunded the money.

JohalaReewi

punkmonk_uk wrote: »

Firstly the AA have recognised the error and refunded my barclaycard with the funds they took through the CPA. However Barclaycard are saying they did not receive it and are STILL adding late payment charges

Can you get this in writing from the AA along with dates and transaction numbers?

Secondly as I closed the account back in July 06 and had received no statements I had assumed that there was no need to inform them of change of address. I gave them the details of my new address back in June but when I rang them the other day they told me that I still had not notified them of change of address and consequently I am still not getting any statements.

If you phoned them, they should have a record of the conversation so can check back. This is not really an issue. The AA should never have claimed payment in the first place.

Thirdly as the account was closed for over 6 months when I moved I destroyed all my records of my account and now no longer have the credit card number.

You should keep records for at least 6 years not 6 months! There must be a record of your card number somewhere? The AA should know what it was and if you paid your credit card by direct debit, your bank will have a record of the reference number.

Barclaycard tell me that they can't give me that number so I can't even pay the flaming late payment charges

You could try asking for a copy of all information held about you by barclaycard under the data protection act. I think Martin has instructions how to do this somewhere.

None of this is my fault as I have done everything that I was supposed to. I informed the AA of my change of address and new CC details - they screwed it up. Barlaycard are refusing to repair my credit history as they have done everything by the book. Is there anything on my side I can fight this with?

Have barclaycard been sending out statements then? Thay should have done even if it was to your old address. You need to find out what happened to the refund from the AA and when it was made, then go back to Barclaycard with the details so they can track it down in their system.

wyebird

I had a Monmument Card (owned by Barclaycard) and they changed it to a Barclayard Platinum with a different number. I have a CPA to Sofa cinema and Barclaycard wouldn't pay it on the old card once it was closed, I had to amend the details to the new one. Was it closed off properly?