Continuous Payment Authority Cancellation - Help Please!

iwantoutpls

I signed up to an online subscription using my UK credit card. I paid the first payment of $97 to the US company yesterday, with the other eleven payments due over the the next twelve months.

After gaining access to the course, I discovered it was very poor and does not live up the the promises.

I want to cancel, what is presumably a continuous payment authority (CPA) agreement, however their order agreement states that I must pay a $300 cancellation fee. This cancellation fee was not in their order agreement when I was considering the product last month, but it is there now - my fault for not re-checking.

I don't mind losing the first payment of $97 but I do not want to lose $300. How should I go about cancelling this?

As I understand, I can contact my credit card company and request a block on the CPA. Then contact the retailer and cancel my membership.

Do distance seller regulations apply for cancellations within 14 days? I only made the payment yesterday.

Will I be liable for the $300 cancellation fee? How would the retailer go about reclaiming this from me? I'm in the UK and the company (In reality, I think it is a one man operation with very basic/vague T+C's) is US based.

grumbler

MSE article: Continuous payment authority: manage recurring payments

DSR (CCR now) is an internal UK law with background EU regulations. Neither apply to a company based in US taking payments in USD, but there can be something similar US law.

Yes, you'll be liable for the cancellation fee. You can only guess how the retailer goes about reclaiming it and whether it ever will (unlikely).

[Deleted User]

You can tell your bank and they will cancel the CPA (you should also tell the retailer).

But you will probably still be liable for the cancellation fee, if it's appropriately covered in the terms. They would be able to claim it from the credit card company, as they would show it to be a valid term and separate from the CPA.

I'd start by clearly going through what you signed to see what it says.

iwantoutpls

Deleted_User wrote: »

I'd start by clearly going through what you signed to see what it says.

Thanks for the reply.

All the order agreement says with reference to refunds is "email us within 14 days and we will refund your purchase price minus a cancellation fee of $300".

chanz4

$300 would also be worth them taking you to court, wouldnt put anything past the us

boliston

CCA's can be very tricky to cancel! Probably easiest to report the card lost as that would at least mean you would get a new card with a different 3 digit security code and a new 16 digit number - this would still not absolve you from any liabilities from the supplier so they could still request payment by cheque and potentially take you to court.

grumbler

boliston wrote: »

CCA's can be very tricky to cancel!

Not really.

Probably easiest to report the card lost as that would at least mean you would get a new card with a different 3 digit security code and a new 16 digit number

Read the MSE article !!!!!!.

[Deleted User]

Changing cards won't override the CPA. Authority has been given against the account, regardless of any change in physical cards or numbers.

boliston

Deleted_User wrote: »

Changing cards won't override the CPA. Authority has been given against the account, regardless of any change in physical cards or numbers.

If that is the case why do they always tell you that you must remember to contact people you pay monthly subscriptions to, such as Sky, with your NEW card details after loosing a card?

Lily-Rose_3

What was it you signed up to OP?

You said 'subscription' indicating a magazine maybe, but then mentioned a course?

Wheres_My_Cashback

Would imagine the OP signed up to something fictional like a story book.