Can RAC take membership fee from an old bank account?

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Abbey1991
Abbey1991 Posts: 159 Forumite
in Budgeting & bank accounts
Martin wrote:
What if I'm switching my bank account?
If you're switching your bank account, then the seven-day switch guarantee from the banks will take care of switching all your direct debits and standing orders over. However, it won't switch any continuous payment authorities you have – you'll have to do these yourself.
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Is the above true for all UK banks?

I have a RAC debit card continuous payment authority on an old bank account that I have switched and closed. It's definitely debit card and not direct debit.

I don't want to stay with RAC. Can I be sure that the new bank won't pay the RAC the new membership fee?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Cancel your contract with the RAC.

    Otherwise, where the money is taken or not, it will still be owed.
  • Abbey1991
    Abbey1991 Posts: 159 Forumite
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    Thanks. its an annual.contract fully paid for in advance, so the contract won't be breached.
  • tempus_fugit
    tempus_fugit Posts: 1,189 Forumite
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    It might do if it auto-renews. If so, change it so that it doesn't, or failing that you will have to contact them anyway. Leaving these things to chance can cause no end of problems.
    Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
  • Vortigern
    Vortigern Posts: 3,245 Forumite
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    Abbey1991 wrote: »
    Thanks. its an annual.contract fully paid for in advance, so the contract won't be breached.
    RAC will renew that contract and charge your card unless you tell them (RAC) that you wish to terminate your agreement at the next renewal/expiry date.
  • PRAISETHESUN
    PRAISETHESUN Posts: 3,723 Forumite
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    You are correct in stating that continuous payment authorities (ie. card transactions) will not transfer when using the CASS, so there is no risk that you will actually have money taken from your account.

    Actually cancelling your policy is a different matter, and you may still be required to pay fees if you let the renewal try to happen. Unless you've explicitly told them not to renew, you will have normally authorised them to automatically renew the policy. They will try to take the payment from your cancelled card, be unable to, and then probably contact you to arrange another form of payment. You will probably also be charged fees for late payment, or to actually cancel the policy after it renews so all the more reason to contact them before they try to take payment.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Abbey1991 wrote: »
    Thanks. its an annual.contract fully paid for in advance, so the contract won't be breached.

    Just phone them just do your covering all bases.
  • Abbey1991
    Abbey1991 Posts: 159 Forumite
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    OK I'll phone them but this isn't right, it's not fair that people who prepay a whole year but then forget about it, get hit with late charges etc.

    It's not like car insurance where driving uninsured could leave someone in trouble with the law.
  • Shakin_Steve
    Shakin_Steve Posts: 2,701 Forumite
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    You can instruct them when taking out cover that you do not wish to auto renew. With reference to your point about car insurance, you can't get into trouble with the law by not renewing your rescue cover, but you can end up on a dark, wet motorway in the middle of the night with some recovery man asking for your credit card.
    I came into this world with nothing and I've got most of it left.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Shakin_Steve wrote: »
    You can instruct them when taking out cover that you do not wish to auto renew.
    The last special offer I got (can't remember if RAC or AA) was conditional upon agreeing to auto renewal. I simply diarised to call them 11 months in, knowing the renewal email/letter was my second line of defence.
  • MisterMotivated
    MisterMotivated Posts: 518 Forumite
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    Abbey1991 wrote: »
    it's not fair that people who prepay a whole year but then forget about it, get hit with late charges etc.


    They'll normally send you a renewal letter telling you how much the charge is going to be for the next year, so that would generally serve as a reminder to anyone who forgets. And, given the choice, I'd rather forget and be charged a fee than forget and break down then realise I'm no longer covered. The only 2 breakdowns I've ever had have happened to be between midnight and 3am on dark country roads on cold/rainy nights.
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