Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

[Undercover Elsa]

From BBC Moneybox:
Two of the UK's biggest banks have admitted denying some customers their right to cancel recurring payments.
Customers seeking to cancel continuous payment authorities (CPAs) have been told by banks such as Lloyds TSB and Santander that only the payee can agree such action.
But since 2009, banks have been legally required to cancel CPAs when a customer asks.
Customer guidance from Lloyds and Santander did not reflect this.
The new rights were enshrined in the Payment Services Regulations, which came into force in November 2009, but have been subject to ongoing discussions between the banks and the Financial Services Authority (FSA). Read more...


This is a very interesting development which affects anyone who has had problems cancelling payments since 2009 to payday loan companies. According to Paul Lewis in his interview on BBC Breakfast, compensation could be payable if you have been wrongly refused by the bank.

This also begs the question, if you have written proof that you requested cancellation, and the bank refused to act, could you get the payment/s refunded?

Shep x

[Riz]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Moneybox was interesting at Midday.

When it goes on iPlayer, I will post a link up.

[Undercover Elsa]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Could be another big can of worms for the banks

[PlanB]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Thank you so much for that. I didn't know things changed in 2009. Would the company also be obliged to tell a customer that they are setting up a continous payment? I got caught by Direct Line insurance who took money for car insurance renewal even though I had cancelled my policy and gone with the Meerkats option. I had no idea a CPA had been set up when I gave them a one-off payment by debit card over the phone. I got my money back eventually (they tried and failed to charge a policy which-I-hadn't-renewed cancellation fee too!) but that's not the point, many people don't even notice the money's being taken

My dead neighbour had a magazine subscription taken from her bank account even though she was deceased and probate was going on. Of course she wasn't in a position to cancel the CPA herself

[Riz]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Listen on iPlayer.

BBC iPlayer - Money Box: 28/04/2012

[Undercover Elsa]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Thanks Rizzle

[Bugsy]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Would this apply to a continuous payment from a credit card as well as from a debit card?

[PlanB]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Good question

[oscar]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Not looked into it, but my opinion would be yes. Surely the question is over CPA's is not critical on where the payment comes from.

[jen_br]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

You would think this is common practice and of course you have the right to cancel any payment shocked to hear banks are saying otherwise.

[Riz]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Would this apply to a continuous payment from a credit card as well as from a debit card?

Yes.

You would think this is common practice and of course you have the right to cancel any payment shocked to hear banks are saying otherwise.

You may be shocked, but before the 2009 regulations came in we didn't have that right on these types of payment.

[Never-In-Doubt]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

And to elaborate on Rizzles point: it was that bad that the bank could recharge any CPA's that were authorised AFTER account closure. So assume you subbed to a mag or something and in that year since you last paid you closed the account and moved banks, the old holding bank used to invoice you for the outstanding payments.

It was a nightmare!!

[Undercover Elsa]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Thing is, if you have written proof that they wrongly refused to stop the payments, can they now be claimed back?

[jen_br]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

That's
crazzzzyy UK for you!

[pooky2483]

Re: Your Rights in Cancelling Continuous Payment Authorities - Banks Have Been Getting it Wrong!

Is this where you give your Debit card details (the 16 digit number) over the phone and they take payments? I've heard the only way we could stop them, advised by my Bank too, was to report the card lost/stolen so they issue you a new one so the details are different, which means they cant continue drawing from the account as they now have the wrong info?

If so, it's about time we were given this control on OUR OWN ACCOUNTS.