Can a company still charge your card account even if the number changed?

Xentarago

I bought a service last year with my old debit card, that was registered to my old address. I moved out mid way through the year and into my new place but during the move, my wallet got nicked, including said card. I had it replaced and the new account registered to my new address, pretty straight forward.

Going back to the service I was talking about, they don't have my new card details on file, in fact they still have the old one and the address as my old address. I'm not going into many details over why, I'll just say they're being really arsey about cancelling the service because I haven't given them 30 days notice and are trying to tell me I need to pay for another full year they won't even meet me half way and downgrade it to a monthly plan because "computer says no".

I'm just wondering if they'd still be able to charge my card even though the details have changed and they still have the old card on file. It's more to do with the fact I can't actually afford to pay for another year rather than wanting to get out of paying at all - as I say I tried asking them to downgrade it to monthly but they're giving me this rubbish about how their system won't allow it because an invoice has already been rung up. My account hasn't got anywhere near enough in it to pay for the service, however knowing my bank, they'd allow it anyway, then charge me 20 quid because my card was used even though I don't have the money and the charge me 20 quid for an unauthorised overdraft.

Enterprise_1701C

Read the page I have linked to.

You can stop the payment

https://www.citizensadvice.org.uk/debt-and-money/banking/stopping-a-future-payment-on-your-debit-or-credit-card/

grumbler

Xentarago wrote: »

I'm just wondering if they'd still be able to charge my card even though the details have changed and they still have the old card on file.

Yes, they can. However, they must not attempt charging if you tell them that you cancel the CPA.They still can chase you for what you owe them.
To be on the save side tell your bank too that you cancel the CPA and to make sure that no money is taken anymore.


MSE article: Continuous payment authority: manage recurring payments

eddddy

... but just to be clear, even if you successfully stop the debit card payment - you will still owe them the money.

(...assuming you really have breached a 30 day notice condition.)

If it's something like a mobile phone provider, broadband provider or utility company that reports to the Credit Reference Agencies, this may impact your credit report.

And/or the service provider might decide to take you to court to get the money.


Or they might just write a few nasty letters and then give up. It entirely depends on the company concerned.

jonesMUFCforever

Yes they can charge your account even if the long PAN number has changed.
As you have not cancelled the CPA on the card the bank will stop any future transactions to them but will not refund the last payment unless you can supply them with proof of cancellation.

SuperHan

If you have issues with your bank authorising payments that take you below zero, you have 4 options:

Watch your money better
Go to a better bank with an adequate arranged overdraft
Get a basic bank account with no overdraft facilities and an online card (although not fool proof)
Pay £10 for something like Halifax Control (I think Lloyds/TSB offer something similar).

However, provided the T&Cs are fair, you owe the money for this and are going to have to pay it somehow, or incur whatever consequences for not doing.

Xentarago

CPA. That's what I was looking for, thanks for that information.

Anthorn

Here's the scenario: Your wallet was stolen and so was the card. A new card was issued and the old card was blocked to prevent it being used fraudulently.


Personally, I don't see how a blocked card can be used even if a continuous authority was given. But a continuous authority can be withdrawn by writing to your bank. Keep a copy, send by signed for delivery.

grumbler

Anthorn wrote: »

Personally, I don't see how a blocked card can be used even if a continuous authority was given.

Can't I just cancel my card instead?

With the new rules in force, such drastic action shouldn't be necessary. Besides, as the forum story above shows, it's not guaranteed to sort the problem.
When you cancel a credit card, the account remains open for a few months to ensure there aren't any as yet unprocessed payments on the card. If the retailer is still asking for the recurring payment, this will count as a new payment coming in and the card company will ask you to settle it.
It's far better to contact the retailer or bank to enforce your right to have payments cancelled. Then you know that the issue is fully and finally dealt with.

>> Beware recurring payments

bris

Cancelling the payment still does not stop the contract, just it isn't paid for. You need to watch your credit file if you refuse to pay, it could get trashed.

InsideInsurance

Anthorn wrote: »

Here's the scenario: Your wallet was stolen and so was the card. A new card was issued and the old card was blocked to prevent it being used fraudulently.


Personally, I don't see how a blocked card can be used even if a continuous authority was given. But a continuous authority can be withdrawn by writing to your bank. Keep a copy, send by signed for delivery.

Because for a CPA to go through, in theory, 1 authorised payment must have gone through first.

The idea of CPA is supposed to make your life easier, you dont have to phone up your insurer, sky, electricty company etc every month to pay because the first is authorised and the subsequent go via CPA. If that all fell over each time someone lost their card and so had it blocked then people would have lots of problems with their travel insurance suddenly being cancelled or such because the customer forgets if its their BC or AmEx card they paid with after they lose their AmEx.

If someone found the card they couldnt then set up a CPA on the card because the first transaction has to be authorised which would hit the block.

You can mess about with writing a letter, sending it by Signed For but personally found a 2 minute call to my telephone banking was sufficient or a quick online message to them.

As others have already pointed out though, all this does is stop people being paid. It doesnt cancel the contract or stop the liabilities due under it and indeed can increase them with failed payment charges etc/