Stopping Recurring Payments on Debit Cards
Discussion
OK, friend of mine gave a company a recurring authority on his debit card.
There is some dispute, and despite instructing them not to take any more payments, they continue to do so.
So he called his bank. They will not cancel the authority. So he told them to cancel card. Bank told him they will transfer authority to new card! Can they do that?
So how does he stop these payments???
There is some dispute, and despite instructing them not to take any more payments, they continue to do so.
So he called his bank. They will not cancel the authority. So he told them to cancel card. Bank told him they will transfer authority to new card! Can they do that?
So how does he stop these payments???
bigdods said:
thats odd - I had something similar with a credit card. I just called up the CC company and reported the card stolen. New card issued, no more payments taken.
That's what i thought would happen. Same as people cancelling cards when returning from holidays to prevent foreign parking tickets being paid by car hire company.But in this case the bank say they are obliged to transfer the authority to the new card.
They can send you a form (by post) where you need to sign that the recurring payment is not authorised.
I had the same thing last year and even though the telephone operator told me about the scam, she couldn't cease the payments going through.
Bit of a bugger, but the banks and the traders know the laws better than most consumers.
peterguk M500 said:
OK, friend of mine gave a company a recurring authority on his debit card.
There is some dispute, and despite instructing them not to take any more payments, they continue to do so.
So he called his bank. They will not cancel the authority. So he told them to cancel card. Bank told him they will transfer authority to new card! Can they do that?
So how does he stop these payments???
The service he is receiving under contract from the supplier most likely doesn't allow him to refuse payment until after the dispute is settled. If that is the case, and that is likely, he may well be in breech of that contract. He needs to check and resolve the dispute; resolution may well include reclaiming some of his money but refusing it in the first place isn't an acceptable action.There is some dispute, and despite instructing them not to take any more payments, they continue to do so.
So he called his bank. They will not cancel the authority. So he told them to cancel card. Bank told him they will transfer authority to new card! Can they do that?
So how does he stop these payments???
The bank is probably acting on his instructions signed at the time of ordering the service from the supplier even though he is not aware of that.
He needs to read the terms of the direct debit instruction very carefully when he signs up to them rather than when it goes wrong.
I am a Branch manager for a high street bank.
We see this ALL the time. mainly where people sign up for "free credit checks" only to not read the small print or question why they need to stick their debit card details in to get a "free" check.
People ask to stop their card thinking that will work but it will then just get debited to the new card instead.
The best option to sort quickly sadly is to close that account off and open another one (can be with the same bank). Doesnt then get the continuous authority transaction (cat) coming off the new account.
If you dont want to do that then you need to provide confirmation you have made attempts with the debiting company to stop the payments coming out. You can then tell the bank and we send a dispute notice to them to get them to stop.
This can take a month or so still to stop it and the chances of you getting your money back from the bank are generally slim as you have acted negligently in the first place with giving your details over.
Moral of the story - dont give your ****** card details over to sites especially without reading ALL the small print - and generally you dont get anything for nothing. If summat is free then no way on earth should you need to give card details
We see this ALL the time. mainly where people sign up for "free credit checks" only to not read the small print or question why they need to stick their debit card details in to get a "free" check.
People ask to stop their card thinking that will work but it will then just get debited to the new card instead.
The best option to sort quickly sadly is to close that account off and open another one (can be with the same bank). Doesnt then get the continuous authority transaction (cat) coming off the new account.
If you dont want to do that then you need to provide confirmation you have made attempts with the debiting company to stop the payments coming out. You can then tell the bank and we send a dispute notice to them to get them to stop.
This can take a month or so still to stop it and the chances of you getting your money back from the bank are generally slim as you have acted negligently in the first place with giving your details over.
Moral of the story - dont give your ****** card details over to sites especially without reading ALL the small print - and generally you dont get anything for nothing. If summat is free then no way on earth should you need to give card details
davepoth said:
Tell the bank he wants to shut his account if they are being silly.
I closed an account with a large bank (think black horses) but accidentally triggered a debit card payment 18 months later at iii.co.uk. The card was within it's expiry date and the payment went through, I called III and they said it went through and as far as they were concerned the money was into my account and ready to use. The old bank said it couldn't have happened and III would have the payment declined overnight. It wasn't, I visited a branch and was told it couldn't have happened and to call III. It all went around in circles until I got a letter from my old branch saying they made a payment on my behalf and could I please send them a cheque for the amount to allow the payment to continue. Obviously I did request the payment and had used the funds so I sent them a cheque, but still quite odd that it was still ok to use that long afterwards.
Edited by Gareth79 on Tuesday 28th December 00:12
Rule 1. - Debit Card
NEVER set up a recurring payment of this type on your bank account because you are reliant on the party to whom you have given the authorisation to cancel it. You are effectively giving them the keys to the vault and they can help themselves to whatever they want. Sorting out errors is a nightmare.
Rule 2 - Debit Card
Remember Rule 1.
Rule 1 - Credit Card
NEVER set up a recurring payment of this type on your card because you are reliant on the party to whom you have given the authorisation to cancel it. You are effectively giving them the keys to the vault and they can help themselves to whatever they want. Sorting out errors is a nightmare.
Rule 2 - Credit Card
Remember Rule 1.
For recurring payments always use Direct Debit. This gives you at least some protection as YOU can cancel it by notifying your bank AND the payee. Where possible always complete a paper instruction with your signature and keep a copy so that you have physical evidence of having authorised the collection. Be careful of using paperless methods - e.g. te;lephone/internet, especially the latter. Far too many people still don't have proper security on their pc/laptop. An undetected trojan linked to a keylogger leaves you wide open.
NEVER set up a recurring payment of this type on your bank account because you are reliant on the party to whom you have given the authorisation to cancel it. You are effectively giving them the keys to the vault and they can help themselves to whatever they want. Sorting out errors is a nightmare.
Rule 2 - Debit Card
Remember Rule 1.
Rule 1 - Credit Card
NEVER set up a recurring payment of this type on your card because you are reliant on the party to whom you have given the authorisation to cancel it. You are effectively giving them the keys to the vault and they can help themselves to whatever they want. Sorting out errors is a nightmare.
Rule 2 - Credit Card
Remember Rule 1.
For recurring payments always use Direct Debit. This gives you at least some protection as YOU can cancel it by notifying your bank AND the payee. Where possible always complete a paper instruction with your signature and keep a copy so that you have physical evidence of having authorised the collection. Be careful of using paperless methods - e.g. te;lephone/internet, especially the latter. Far too many people still don't have proper security on their pc/laptop. An undetected trojan linked to a keylogger leaves you wide open.
My wife had this problem with some Identity Protection deal. She cancelled it all when we went overseas to live, but six months later we received a (forwarded) letter telling us they were about to deduct another years payment from her Barclaycard.
The Barclaycard was also supposed to have been shut down months before, but it was still available on-line when I entered all her old details, passwords etc.
Several expensive phone calls from the other side of the globe and all is, supposedly, again, sorted out and shut down.
Barclaycard still tell her the credit card account doesn't exist, but we can still log in and see it on line!
. Zero balance, zero activity, but it is still there.
To stop a direct debit from a card you need to contact the people making the debit, not the bank.
The Barclaycard was also supposed to have been shut down months before, but it was still available on-line when I entered all her old details, passwords etc.
Several expensive phone calls from the other side of the globe and all is, supposedly, again, sorted out and shut down.
Barclaycard still tell her the credit card account doesn't exist, but we can still log in and see it on line!
. Zero balance, zero activity, but it is still there.To stop a direct debit from a card you need to contact the people making the debit, not the bank.
ANY HELP WITH THIS WILL BE MUCH APPRECIATED!!
I took out a payday loan with Capital Finance back in 2009 and at that time gave my debit card number to take payments each month, I then came into difficulty so stopped paying them and cancelled my card and got a new one in June 2010. This Sunday just gone (31st Jan) they have taken a payment of £150 from my card details without my authorisation. I spoke to my bank , Santander who informs me that although Capital Finance does not know the new card number they can still take payments from my old card number as it is a credit agreement. IS THIS RIGHT?
Basically, they are telling me that anyone who has my old card details (this is several financial companies) can still take payment from my card whenever they like!!!
I took out a payday loan with Capital Finance back in 2009 and at that time gave my debit card number to take payments each month, I then came into difficulty so stopped paying them and cancelled my card and got a new one in June 2010. This Sunday just gone (31st Jan) they have taken a payment of £150 from my card details without my authorisation. I spoke to my bank , Santander who informs me that although Capital Finance does not know the new card number they can still take payments from my old card number as it is a credit agreement. IS THIS RIGHT?
Basically, they are telling me that anyone who has my old card details (this is several financial companies) can still take payment from my card whenever they like!!!
lucia1980 said:
ANY HELP WITH THIS WILL BE MUCH APPRECIATED!!
I took out a payday loan with Capital Finance back in 2009 and at that time gave my debit card number to take payments each month, I then came into difficulty so stopped paying them and cancelled my card and got a new one in June 2010. This Sunday just gone (31st Jan) they have taken a payment of £150 from my card details without my authorisation. I spoke to my bank , Santander who informs me that although Capital Finance does not know the new card number they can still take payments from my old card number as it is a credit agreement. IS THIS RIGHT?
Basically, they are telling me that anyone who has my old card details (this is several financial companies) can still take payment from my card whenever they like!!!
Seems right enough to me. You have their money, they made sure that you couldn't welch on the deal, and they are continuing to take their money back, as you agreed to let them do at the time.I took out a payday loan with Capital Finance back in 2009 and at that time gave my debit card number to take payments each month, I then came into difficulty so stopped paying them and cancelled my card and got a new one in June 2010. This Sunday just gone (31st Jan) they have taken a payment of £150 from my card details without my authorisation. I spoke to my bank , Santander who informs me that although Capital Finance does not know the new card number they can still take payments from my old card number as it is a credit agreement. IS THIS RIGHT?
Basically, they are telling me that anyone who has my old card details (this is several financial companies) can still take payment from my card whenever they like!!!
What exactly do you have a problem with?
Edited to add, your best bet is probably to take out a new loan, on better terms, pay the first one off, and make sure that you can handle the repayments this time.
Edited by NorthernBoy on Tuesday 1st February 21:19
I had a Capital One CC that I put a quarterly standing order for a WHICH? subscription - about £9 a quarter.
I cancelled the card forgetting that the SO was linked to it and eventually got a letter from Capital One regarding non/late payment.
This was well into 6 months since cancelling the card.
I subsequently found out that although the card is not active these SO's ARE active until you cancel with the vendor, and I never received any penalty letters from Capital One, either.
I cancelled the card forgetting that the SO was linked to it and eventually got a letter from Capital One regarding non/late payment.
This was well into 6 months since cancelling the card.
I subsequently found out that although the card is not active these SO's ARE active until you cancel with the vendor, and I never received any penalty letters from Capital One, either.
Is their anyway of spotting from your statement / online banking etc who has this?
I lost my card last weekend, cancelled it and as expected had a few emails this week saying I've missed payments - Lovefilm and my Gym, I've spoken to them and they're happy to wait till my new card arrives (should be with me when I get home from work).
To be honest I'm pretty fed up with Lovefilm, liked the service a lot at the start, but it doesn't take much imagination or chatting with friends who are members to work out they prioritise new members when they choose what film to send you and I'm I’m honest I've watched all the old films I want to see so I tend to just use it to watch old TV shows like the Wire and Entourage. Any new films I choose never turn up.
I've tried to cancel but it seemingly takes 14 pages of web to be finally given a number to call and given the hard sell about staying.
Anyway - this would be a good opportunity to bin them (there's no tie-in period) how can I check they can't just grab it from the new card?
I lost my card last weekend, cancelled it and as expected had a few emails this week saying I've missed payments - Lovefilm and my Gym, I've spoken to them and they're happy to wait till my new card arrives (should be with me when I get home from work).
To be honest I'm pretty fed up with Lovefilm, liked the service a lot at the start, but it doesn't take much imagination or chatting with friends who are members to work out they prioritise new members when they choose what film to send you and I'm I’m honest I've watched all the old films I want to see so I tend to just use it to watch old TV shows like the Wire and Entourage. Any new films I choose never turn up.
I've tried to cancel but it seemingly takes 14 pages of web to be finally given a number to call and given the hard sell about staying.
Anyway - this would be a good opportunity to bin them (there's no tie-in period) how can I check they can't just grab it from the new card?
Also, I working in banking for years and never knew about these reccurring payments things on cards - seems very unfair to me. Almost without knowing you can give a company access to your account for whatever amount, whenever they like and you have no option to cancell at your end in the event of a dispute. No need for a pin number, or that security code on the back give them your card details once and that's it, a lifetimes worth of access to your current account.
It'll really make me think before I give anyone my card details.
It'll really make me think before I give anyone my card details.
you may find this interesting reading...
http://www.financial-ombudsman.org.uk/publications...
it explains some of the types of recurring payment issues.
http://www.financial-ombudsman.org.uk/publications...
it explains some of the types of recurring payment issues.
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