continious renewal charge

queenbeeno1

Hi

Anyone know the law regarding insurance companies holding credit card details on record? I paid the balance of my sons policy last year when he couldnt afford the monthly payments anymore. They are now stating they will renew the policy with my card details! I have asked them to cancel the policy which they are refusing to do without his authority. so they are undertaking a tacit renewal using my card details!

I have just had a very long discussion with them regarding holding my details, which they state are within their T&Cs but as I am not the policyholder I am not bound by these as far as I am aware. I have explained to them that no one made me aware of this and if had been advised I would not have given permission for my card to be used for anything else or held on record

Surely this cannot be legal.. basically unless my son cancels the cover himself I have to stomp up for his premium????

TadleyBaggie

As long as the card details are stored and used within the Data Protection Act, of course it is legal. So get your son to cancel, problem solved.

grumbler

queenbeeno1 wrote: »

Anyone know the law regarding insurance companies holding credit card details on record?

There is no any.

I paid the balance of my sons policy last year when he couldnt afford the monthly payments anymore. They are now stating they will renew the policy with my card details! I have asked them to cancel the policy which they are refusing to do without his authority.

Any problem with his authority? And the renewed policy is unlikely to be the cheapest anyway. It's worth shopping around, not forgetting about Quidco and TSB.

That said, tell them that you, as the card holder don't authorise them to charge the card and, if they keep fobbing you off, tell them that you'll contact your card provider and cancel it with them. It's their problem to chase your son for money if they wish or cancel the policy if he doesn't pay by other method.


MSE article: Continuous payment authority: manage recurring payments

SnowTiger

queenbeeno1 wrote: »

Surely this cannot be legal.. basically unless my son cancels the cover himself I have to stomp up for his premium????

The easiest way out of this is probably to contact your bank, explain the situation, and cancel the Continuous Payment Authority.

queenbeeno1

its a long story but I did tell them that I did not authorise them to use my card at any other time and I told them to remove it from their records. they keep repeating that theirs T&Cs state they can use the last used card on record for any future payments. Ive explained until im blue in the face that I am not bound by this as I am not the policyholder and that they should not have kept my card details without my permission but they keep stating my son needs to cancel the policy himself! Hes away and he doesnt even need the insurance anyway!
I think I have little option but to speak with the bank. Fabulous!!

jamesd

You could try being explicit that :

1. you are giving them notice under the Payment Services Regulations 2009 paragraph 55 (3) that you do not give consent to the transaction and withdraw any consent that they believe they have to carry out the transaction with your card.

and

2. that you are not party to the agreement between them and their customer and are not bound by it.

and

3. that if they take the unauthorised payment anyway, even though you have exercised your legal right to revoke or not grant permission, you will exercise your Payment Services Regulations right to have the payment reversed.

They will presumably say the same thing but you will have provided them more than ample notice.

Unless they make it clear, then go on to contact your card issuer, tell them the situation, and ask them to block any attempt to take the payment. The PSR require them to act on that notice and if it still goes through to refund on request by you.

What their contract says is entirely irrelevant to this. They must have permission to take the payment and you have told them that they do not have permission. Your son could also cancel the permission if he had used his card and originally authorised it.

dresdendave

queenbeeno1 wrote: »

they keep stating my son needs to cancel the policy himself! Hes away and he doesnt even need the insurance anyway!

I think I have little option but to speak with the bank. Fabulous!!

Rather than arguing with the insurance company/credit card provider/bank etc, why doesn't your son simply ring the firm and cancel the policy? In the 21st century being "away" shouldn't stop him from being able to make a phone call.

blink18

just get your husband, boyfriend, male friende to phone up and pretend to be your son..

done and dusted.

if they put through the renewal, and you then claim back the payment, the policy will be cancelled and your son will have to declare this when he next renews

takman

Like the poster above said why not just get your son to cancel the policy, then it's all sorted.
You willingly gave your card details to be used on the policy so you can't say you don't agree with the terms and conditions!. Your son's name may be on the policy but I bet you also gave them your name and address as well when paying.

SnowTiger

takman wrote: »

Like the poster above said why not just get your son to cancel the policy, then it's all sorted.
You willingly gave your card details to be used on the policy so you can't say you don't agree with the terms and conditions!

OP isn't a party to the contract. Their card was only used as a payment method.

jamesd

And even if he son had given his own card he could revoke permission to use that card under the PSR. He'd then have to cancel or use some other method of payment.