Credit Card unauthorised Payment.

GASMAN_3

Please be aware that if you have paid for insurance or breakdown cover with your credit card the company will take the next years payment automatically if you dont cancel it with the credit card company. I had a credit card from LLoyds TSB and cancelled it 12months ago. My Pet insurance became due and I went to another company, Sainsburys my ex insurer called for the payment from the credit card that was cancelled and they paid it, even though the card was no longer active. I have been told by the credit company that I must pay them and they will then sort it out. I now have two insurances on my Dog,

knowledgeman

GASMAN wrote: »

Please be aware that if you have paid for insurance or breakdown cover with your credit card the company will take the next years payment automatically if you dont cancel it with the credit card company. I had a credit card from LLoyds TSB and cancelled it 12months ago. My Pet insurance became due and I went to another company, Sainsburys my ex insurer called for the payment from the credit card that was cancelled and they paid it, even though the card was no longer active. I have been told by the credit company that I must pay them and they will then sort it out. I now have two insurances on my Dog,

Did you cancel it or just not tell them?

If its the latter its your own fault

All insurance is normally like this, auto renewals unless told otherwise

Its amazing how many folk dont read terms then cry about it

GASMAN_3

I did not receive a renewal notice from the insurance company and I am not crying about it I am just trying to warn people of the dangers of paying for insurance with a credit card or debit card.:mad:

jonesMUFCforever

Even if you had paid by another method eg cheque your policy would still be renewed unless you cancel it.
So they would expect a pro rata premium paid if you did not cancel by renewal date.

GASMAN_3

Thanks I did not know. I dont surpose a lot of people do realise that you have to cancel a policy when it becomes due if you do not wish to continue. I will in future be very careful. Thanks

barak

GASMAN wrote: »

Please be aware that if you have paid for insurance or breakdown cover with your credit card the company will take the next years payment automatically if you dont cancel it

per ejones999
"Even if you had paid by another method eg cheque your policy would still be renewed unless you cancel it."

I don't agree with either point. Your policy can only be renewed automatically if you have agreed, perhaps by default, to "automatic renewal". It is essential to read "the small print".

In particular, it is strongly recommended never to give "continuous authority" to pay ANYTHING with your Credit Card, as it can only be cancelled by the Credit Card issuer. Direct Debit is much preferred as you, yourself, can instruct your bank not to make any further payments, and your bank is bound to refund you in case of any error.

jonesMUFCforever

barak wrote: »

per ejones999
"Even if you had paid by another method eg cheque your policy would still be renewed unless you cancel it."

I don't agree with either point. Your policy can only be renewed automatically if you have agreed, perhaps by default, to "automatic renewal". It is essential to read "the small print".

In particular, it is strongly recommended never to give "continuous authority" to pay ANYTHING with your Credit Card, as it can only be cancelled by the Credit Card issuer. Direct Debit is much preferred as you, yourself, can instruct your bank not to make any further payments, and your bank is bound to refund you in case of any error.

Cancelling the direct debit does NOT cancel the policy!
You would be liable for any pro rata premium until you cancel with the company.

barak

ejones999 wrote: »

Cancelling the direct debit does NOT cancel the policy!
You would be liable for any pro rata premium until you cancel with the company.

Only if you had agreed to renew it.

Paul_Herring

GASMAN wrote: »

Please be aware that if you have paid for insurance or breakdown cover with your credit card the company will take the next years payment automatically if you dont cancel it with the credit card company.

I think you'll find that the first payment authorised a Continuous Payment Authority, and you need to cancel it with the company charging your credit card - they are the only side that can cancel it; your Credit Card comany certainly won't be able to. This is distinct from (e.g.) a Direct Debit or Standing Order, where you are in control. Search the boards for "CPA" for similar situations.

I'm certain you'll find wording on your insurance letter to this effect.

Contrary to your thread title, this is entirely authorised.

jojo1978_3

Paul_Herring wrote: »

I think you'll find that the first payment authorised a Continuous Payment Authority, and you need to cancel it with the company charging your credit card - they are the only side that can cancel it; your Credit Card comany certainly won't be able to. This is distinct from (e.g.) a Direct Debit or Standing Order, where you are in control. Search the boards for "CPA" for similar situations.

I'm certain you'll find wording on your insurance letter to this effect.

Contrary to your thread title, this is entirely authorised.

Thats exactly right.
A cpa is an agreement made between the company and the purchaser, the credit card company cannot cancel on behalf of the purchaser as they don't have the right to do so.