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UK consumers will find it easier to cancel regular payments and can seek compensation for past errors after a review by the financial watchdog.
The Financial Conduct Authority (FCA) said on Friday that banks and mutuals will have to cancel a recurring payment on the request of the customer, without asking them to contact the original merchant. Major banks and mutuals must also review every complaint they have received about the non-cancellation of a CPA since November 2009 and pay redress when payments have continued despite the customer cancelling the agreement. The deal relates to a type of payment called a continuous payment authority (CPA), which is often used when people sign up to use the services of gyms, payday lenders, insurance companies and internet firms......Read more here
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Up to 30,000 consumers may be eligible for compensation, after some banks failed to cancel regular payments from their accounts. The Financial Conduct Authority (FCA) said some banks have not been stopping such payments when asked to do so. The payments concerned are known as Continuous Payment Authorities (CPAs), or recurring transactions. Those with payday loans and gym membership are amongst those affected. Since 2009 banks and building societies have been obliged to cancel CPAs when asked to do so by their customers. But the FCA said that, up to now, some banks and mutual societies have not been doing what they were asked, forcing customers to cancel the payments with the businesses themselves......Read more here