Question
I feel that there may be a case for banning the use of "Continuous Payment Authorities" in the UK.
They can be subject to aggressive marketing tactics, for instance, when an online, an goods retailer website may offer you a £10 discount if you sign up to an associated discount saver type website to get future discounts on all kinds of goods . But unbeknown to the unsuspecting customer who trusts the retailer, on the associated site, buried away in the small print there will be a trial offer for a limited period and then a deduction of £10 per month for membership of the associated discount website.
If you do not check your emails or your bank statements in detail this can cost a lot .I did not find it when I checked my monthly direct debits and standing orders because it was a Continuous Payment Authority and these are not listed alongside these other payment methods on the banks website I do not like Continuous Payment Authorities and I do not knowingly sign up for them but I got caught nevertheless. Answer
I agree that continuous payment authorities are open to abuse.
Continuous payment authorities (CPAs) are similar to direct debits but apply to debit and credit cards rather than a bank account and, vitally, they are not subject to the protection offered by the direct debit guarantee scheme (which essentially says you must be notified in advance if the amount, date or frequency of direct debit changes).
Finding out whether you have any set up is really a case of trawling debit/credit card statements for regular payments - far from satisfactory. And, if you have any annual insurance policies that you pay be debit/credit card be especially careful as these are more often than not setup via CPAs.
If you want to cancel a CPA then in theory your bank/credit card company must do so if you ask them (as per the Payment Services Directive). In practice it seems banks are sometimes reticent to do so and there's confusion over whether they're obliged to do so (despite the law...). So the first point of call should perhaps be the company taking the payments - ask them to stop taking payments (although you'll need to fulfil any outstanding payments/obligations as per the contract you agreed to, if relevant). If the company is difficult then ask your bank/credit card company to cancel. And if that fails take your complaint to the Financial Ombudsman Service (FOS), although even they appear to have a chequered history of upholding CPA complaints - all in all the whole thing seems rather a mess.
Best to avoid CPAs in the first place wherever possible - companies offering free trials etc that require you to provide your credit card details will almost certainly be entering you into a CPA. And, if you have some, watch your debit/credit card statements like a hawk to ensure the company only takes what's owed.
I feel that there may be a case for banning the use of "Continuous Payment Authorities" in the UK.
They can be subject to aggressive marketing tactics, for instance, when an online, an goods retailer website may offer you a £10 discount if you sign up to an associated discount saver type website to get future discounts on all kinds of goods . But unbeknown to the unsuspecting customer who trusts the retailer, on the associated site, buried away in the small print there will be a trial offer for a limited period and then a deduction of £10 per month for membership of the associated discount website.
If you do not check your emails or your bank statements in detail this can cost a lot .I did not find it when I checked my monthly direct debits and standing orders because it was a Continuous Payment Authority and these are not listed alongside these other payment methods on the banks website I do not like Continuous Payment Authorities and I do not knowingly sign up for them but I got caught nevertheless. Answer
I agree that continuous payment authorities are open to abuse.
Continuous payment authorities (CPAs) are similar to direct debits but apply to debit and credit cards rather than a bank account and, vitally, they are not subject to the protection offered by the direct debit guarantee scheme (which essentially says you must be notified in advance if the amount, date or frequency of direct debit changes).
Finding out whether you have any set up is really a case of trawling debit/credit card statements for regular payments - far from satisfactory. And, if you have any annual insurance policies that you pay be debit/credit card be especially careful as these are more often than not setup via CPAs.
If you want to cancel a CPA then in theory your bank/credit card company must do so if you ask them (as per the Payment Services Directive). In practice it seems banks are sometimes reticent to do so and there's confusion over whether they're obliged to do so (despite the law...). So the first point of call should perhaps be the company taking the payments - ask them to stop taking payments (although you'll need to fulfil any outstanding payments/obligations as per the contract you agreed to, if relevant). If the company is difficult then ask your bank/credit card company to cancel. And if that fails take your complaint to the Financial Ombudsman Service (FOS), although even they appear to have a chequered history of upholding CPA complaints - all in all the whole thing seems rather a mess.
Best to avoid CPAs in the first place wherever possible - companies offering free trials etc that require you to provide your credit card details will almost certainly be entering you into a CPA. And, if you have some, watch your debit/credit card statements like a hawk to ensure the company only takes what's owed.
Read this Q and A at http://www.candidmoney.com/questions/question762.aspx
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