Cancelling A Continuous Payment Authority With Barclaycard?

OM123

I got myself into a year-long Continuous Payment Authority contract until next June, with a US-based software company. They have refused me to be let go, I've asked several times.

I contacted Barclaycard and they mentioned they can block the merchant payments of course.
This is what I initially opted for but then I saw stories floating around about some companies demanding their money after blocking their payments, so I then called back and allowed the merchant charging my card again.
But when I was on the phone to them Barclaycard didn't really describe how they handle companies seeking debt collection to unpaid money from a customer if their still in their contract, if the customer wants these payments to be blocked.

Has anyone experienced such a situation with barclaycard or another bank? For example, do they still allow the merchant to charge the card, but refund you the same amount after it goes through? One person on the line said something about that. But the second person I spoke to didn't say anything about that and said "if you prefer to allow the merchant to charge your card instead of blocking them, please say so"
The merchant is legitimate and I prefer to maintain a good relationship with them in the long run, but all this is a good lesson to double check everything next time!

Thank you for any insight.

PRAISETHESUN

Cancelling a continuous payment authority (CPA) doesn't remove the actual obligation to pay the money - you would also need to cancel the contract with the merchant, subject to any agreement you may have made. The bank will completely stop all payments to the merchant. The obligation will then be on you to arrange for an alternate payment method. The merchant can choose to pursue you for missed payments, or breach of contract if they so desire, but it will be up to them how they want to proceed - you bank will not be involved.

Willing2Learn

It is best to cancel a CPA with both the retailer and the card issuer. However, you do have the right to cancel directly with your card issuer. Once you have done this, it must stop payments immediately – it cannot insist that you agree this with the company taking the payment first.

I am actually a bit confused by your post. Do you want the CPA to be continued or do you wish to cancel the CPA?

This is what the FCA say about cancelling a CPA:
https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel

Ben8282

OM123 wrote: »

I got myself into a year-long Continuous Payment Authority contract until next June, with a US-based software company. They have refused me to be let go, I've asked several times.

I contacted Barclaycard and they mentioned they can block the merchant payments of course.
This is what I initially opted for but then I saw stories floating around about some companies demanding their money after blocking their payments, so I then called back and allowed the merchant charging my card again.
But when I was on the phone to them Barclaycard didn't really describe how they handle companies seeking debt collection to unpaid money from a customer if their still in their contract, if the customer wants these payments to be blocked.

Has anyone experienced such a situation with barclaycard or another bank? For example, do they still allow the merchant to charge the card, but refund you the same amount after it goes through? One person on the line said something about that. But the second person I spoke to didn't say anything about that and said "if you prefer to allow the merchant to charge your card instead of blocking them, please say so"
The merchant is legitimate and I prefer to maintain a good relationship with them in the long run, but all this is a good lesson to double check everything next time!

Thank you for any insight.

What exactly is a year-long Continuous Payment Authority contract?
If the merchant is legitimate and you prefer to maintain a good relationship with them, then I would suggest that you don't stop paying them unless you have good reason to do so. If they ate refusing to 'let you go' and you are unhappy with their product, service or attitude, why do you want to maintain a good relationship with them?

Barclaycard will stop the payments if you ask them. Exactly how they achieve this I don't know but it will be behind the scenes and not something that you need be concerned about.

If you stop paying you will destroy your relationship with the company although as they are based in the US it is unlikely that they would take any action against you.. The software may stop working though.

born_again

This needs some clarifying.

1/ Do you mean that you have bought something and have to make payments over 12 months in Instalments?
2/ It is a year long membership, that you pay one payment for?

They can not stop you from leaving in June next year and you can tell them that now.

If it is No1, and you have been using the software, then while Barclays can block further payments. As it is your right to cancel with Barclays. The company do have a right to claim any money owed to them for the rest of the year.

OM123

I've bought into a contract where I have to make monthly payments for, to clarify. There's no option to cancel it in the account - only on the last billing month, June in my case. After that it auto renews to start for another year, so if there was a date to remember then it would be that.
But that's right about maintaining a relationship with a service you've been with for a while, instead of one you just don't care about. I thought I signed up for a monthly subscription but it was a annual subscription, paid monthly pricing model. Because I have been waiting for some work to finally begin I wanted to cancel it for the last few months. But from the advice it sounds the best option to continue the billing if I want to use their services still to avoid pursuit, if any.

born_again

OM123 Thanks for that reply. Makes it clear.
Set a reminder on your phone or computer to make sure that you do not forget to cancel. Or you will be tied to another year.
As a back up contact Mastercard once you have cancelled with the co. Or I would do it once the last payment has gone out this year. Just in case co make it hard to cancel.

phillw

born_again wrote: »

Set a reminder on your phone or computer to make sure that you do not forget to cancel. Or you will be tied to another year.

From what I can tell he doesn't actually want to cancel, just suspend the membership while he doesn't use it.

So it would be like wanting to sign up to a gym where you will only use it 8 months of the year. Which is fine if you sign up on a monthly contract that allows you to cancel at any time. But not if you sign up for the cheaper yearly contract.

Under UK consumer law a contract that automatically renews would be unfair, they need to get your permission to tie you in again. They can withdraw their services until you give the permission though. Not sure about US law though and businesses don't get the same level of cover either.