Increasing numbers of bank account-holders are complaining about mystery payments on their statements for services they thought they were no longer paying for. We explain how to avoid the 'continuous payment' trap.
The Financial Ombudsman Service, which handles disputes between companies and individuals, has reported steady streams of complaints about 'continuous payment authorities' (CPA). The problems is being made worse by banks that incorrectly tell customers they cannot cancel the payments. These are the agreements that individuals enter into - often unwittingly - when they sign up to a service. They are are common in gym contracts, credit check services and subscriptions to services such as Lovefilm or Netflicks. They also feature in pay-day loan agreements and give lenders the right to access borrowers bank accounts if they fail to make repayments.....Read more here---: Rise of the recurring payment menace: How to avoid the continuous payment trap