MSE News: Tesco Bank apologises after getting the rules wrong on recurring payments

Former_MSE_Callum

Tesco Bank has apologised after wrongly refusing to cancel a customer's recurring payment - and giving out incorrect information on its website and social media channels...

Read the full story:
'Tesco Bank apologises after getting the rules wrong on recurring payments'

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WillPS

This doesn't relate to Credit Cards.

PeacefulWaters

WillPS wrote: »

This doesn't relate to Credit Cards.

You can have recurring payments on a credit card.

KJSmith

Tesco Bank also seemed to have clarified their position in their follow up tweet (before any MSE intervention) which isn't shown in the article:

Tesco_Bank wrote:

We may be able to block the company meaning that they can't take any further payments, but we cannot cancel an agreement that you have made. If you call us on 0345 835 3353 (24/7) my colleagues will be able to assist you further - Caroline
https://twitter.com/tescobankhelp/status/981235527709085697

Also, I was of the understanding that banks are actually not under any legal obligation to cancel a continuous payment authority.

You can certainly withdraw your consent for any further payments and this would mean that if any future payments did occur they would be considered unauthorised. In which case the bank would therefore be obliged to provide a refund.

So by offering to block a company, Tesco Bank have in fact exceeded what's legally required of them.

WillPS

PeacefulWaters wrote: »

You can have recurring payments on a credit card.

You can, but the issue wasn't with a Tesco Credit Card, it was with a Debit Card.

They're totally different systems - I think the current account is their own, and their credit cards run off something related to RBS's system. I believe the customer support is separate too - I've definitely been transferred after getting through to the wrong lot.

eskbanker

KJSmith wrote: »

I was of the understanding that banks are actually not under any legal obligation to cancel a continuous payment authority.

The FCA disagrees, as per https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel:

REMEMBER: IT IS YOUR RIGHT TO CANCEL CONTINUOUS PAYMENT AUTHORITIES DIRECTLY WITH YOUR CARD ISSUER

KJSmith

eskbanker wrote: »

The FCA disagrees, as per https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel:

That page doesn't disprove what I said :think:. I guess it's just a matter of wording and your right to cancel = your right to withdraw consent for future transaction.

System

WillPS wrote: »

You can, but the issue wasn't with a Tesco Credit Card, it was with a Debit Card.

They're totally different systems - I think the current account is their own, and their credit cards run off something related to RBS's system. I believe the customer support is separate too - I've definitely been transferred after getting through to the wrong lot.

They don't use RBS anymore - the divestment was a number of years ago.

eskbanker

KJSmith wrote: »

That page doesn't disprove what I said :think:. I guess it's just a matter of wording and your right to cancel = your right to withdraw consent for future transaction.

I'm not sure there's much value in getting bogged down in semantics but it did (and does) seem to me that the FCA text I quoted directly contradicts the text of yours that I quoted!

KJSmith

eskbanker wrote: »

I'm not sure there's much value in getting bogged down in semantics but it did (and does) seem to me that the FCA text I quoted directly contradicts the text of yours that I quoted!

Not really. The FCA says it's your right to cancel. I never said it's not your right to cancel and withdraw your authorisation for future payments. What I was trying to say is that legally the bank isn't obligated to stop these payments from being made. According to the Payment Services Regulations their obligation is only to refund them if considered unauthorised.