Help - They Re-Activated My Credit Card

edtaylor

Please can someone help me.

I cancelled my Sainsbury's Credit Card 2-2 1/2 months ago, and now they have reactivated it!!!

They said I had £10.01 on the card (i had paid too much!!) and then 2 months after i closed my account they have reactivated it with a £50 charge for Cardguard (the HSBC card insurance - i had no knowledge of a payment being due).

They are saying that i should have cancelled the account with Cardguard (or at least set up a different payment method) and that i now owe them £39.99 (they have kept the £10.01 that i overpaid!).

Are they allowed to re-activate an account without asking me first?
They said that they had to honour the agreement i made with Cardguard to pay them £50. Surely it is me that has to honour the agreement,not them, and if my account is closed, then they won't continue my policy.

It seems to me that they are just trying to make me continue my card account with them (and build up some £12 charges!!)

Have i got all this wrong, or are they in the wrong?

Can anyone offer any advice?

jonesMUFCforever

Yes they can.
It was you who set up a continuous payment authority with Cardguard and it is only Cardguard who will cancel/refund the payment.

I also think that if your card was in credit they would not have cancelled it.
Only cards with a nil balance can be closed but as you have shown they can and will be re-activated unless you have cancelled all payments.

YorkshireBoy

edtaylor wrote: »

Can anyone offer any advice?

See section 8, and the definitions, in your credit agreement.

Check out this thread on CPA's

Whenever I've closed a card, and certainly over the last 2 years or so, part of the 'script' read by the CSA includes telling you to make sure you cancel continuous payment authorities. Forgetting to do so, or forgetting you had them set up (especially the 3 yearly ones) is no excuse I'm afraid.