I cancelled my credit card but they still took the money !!

paull_4

6 months ago I was concered about money being taken from my credit card that I did'nt agree with (mainly e bay) No problem I told the bank of my concerns they cancelled my card and issued a new one.

The AA have just taken £115 from my credit card despite not having my new card details !! How can this be ?

I rang the bank, they say " I have given the AA authority to automatically renew until cancelled by me" but I have never given the AA my bank details only my card details a card that was cancelled when they took the money. The bank says " the money is taken from your card account, they don't need the correct card No. they have a mandate "

Any thoughts anybody ?

Regards, Paull. xx

dzug

The bank are 100% correct. You have given the AA authority. Until you cancel that authority with the AA they have the right to charge you.

ScottySmog

Sorry Paull but your bank are right. You have to cancel this arrangement with the AA.

The following BBC article may give some insight.

http://news.bbc.co.uk/1/low/programmes/moneybox/2099270.stm

Rikki

I had a simular problem with an annual direct dedit on a credit card.

Don't ask me why but unless you phone the company concerned and cancel the direct debit they can claim the money. You cannot phone the credit card company and cancel it.

Surely the AA should have written to you and we are taking our payment of £xxx out on such and such a date?

paull_4

yes the AA did write, half the rainforest i think. I did'nt reply as I had cancelled the card plus they did not have my bank details. How wrong I was.

If you wanted to set up a scam....this could be a good place to start. Thanks paull

paull_4

Thanks for the article link....frightening. Thanks paull.

Lavendyr

Rikki wrote:

Don't ask me why but unless you phone the company concerned and cancel the direct debit they can claim the money. You cannot phone the credit card company and cancel it.

You cannot have a Direct Debit on a credit card - instead this is a Continuous Payment Authority. Unlike a Direct Debit, you cannot cancel this with your bank or provider of the financial service - you must cancel it with the company with whom you set up the CPA.

PBA

If you didn't want the AA to take the payment you can phone the credit card company and get them to dispute the transaction. They'll then get the money back for you.

King_Of_Fools

PBA wrote: »

If you didn't want the AA to take the payment you can phone the credit card company and get them to dispute the transaction. They'll then get the money back for you.

No they cannot in this case as the payment was pre-authorised. The only way to get the money back would be via the AA. Seeing as the AA sent out a letter to inform that the money would be taken beforehand, the best that could be expected is a pro-rata refund for the remaining months.

paull_4

Thanks for the replies so far.....

I asked the bank they said nothing to do with them, the agreement was set up with the AA, only the AA can cancel!

But the qustion is... when i gave my credit card No. to the AA or anyone else for that matter...they didn't tell me I was agreeing to a "Continuous Payment Authority" so how can I have entered into an agreement without it being made very clear. Would that be leagal ?

I asked the Bank how many other CPA I had agreed to....they can't tell me.

Regards Paull xx

YorkshireBoy

paull wrote: »

But the qustion is... when i gave my credit card No. to the AA or anyone else for that matter...they didn't tell me I was agreeing to a "Continuous Payment Authority" so how can I have entered into an agreement without it being made very clear.

Always read the small print.

Also, when you received the renewal notice it would have said something along the lines of...

"If you wish to cancel the policy, please contact us. Otherwise we will debit your card number xxxx xxxx xxxx 7675".

(a little bit like "please tick the box if you do not want to receive specially selected offers from us)

CPA's are best avoided, especially if you chop and change your cards frequently. Indeed, if you do chop and change cards, and move house in the meantime, you could very easily finish up with a default or CCJ on your credit file.

Personally, I have 2 set up (RAC & car insurance). However, I'm 'on the ball' with my finances so it doesn't concern me.