If you agree that someone can take a payment from your credit or debit card at a future date, known as a'continuous payment authority', you can cancel the payment before it is taken. This applies to:
one-off payments, for example to pay back a payday loan
regular payments, such as payments for a gym membership or magazine subscription.
The rules about cancelling future card payments do not apply to card purchases for goods or services, such as in a shop or paying a hotel bill.
This page tells you about when you can stop a card payment, how to stop card payments and what to do if the card provider doesn't put things right.
You'll still have to pay for the goods or service
If you stop payments which relate to another agreement, such as a loan or to pay for a club or gym membership or a magazine subscription, you’ll need to make another arrangement to pay the money you agreed.
Stopping a card payment
The law says you can withdraw your consent and stop a future payment under a continuous payment authority at any time up to the end of business on the day before the payment is due.
To withdraw consent, simply tell whoever issued your card (the bank, building society or credit card company) that you don’t want the payment to be made. You can tell the card issuer by phone, email or letter.
Your card issuer has no right to insist that you ask the company taking the payment first. They have to stop the payments if you ask them to.
If you ask to stop a payment, the card issuer should investigate each case on its own merit. They should not apply a blanket policy of refusing to refund payments taken when the client gave their account number out.
You should point out to the card issuer that they should follow the Financial Conduct Authority (FCA) guidance onunauthorised payments from your account.
Cancelling the payment by phone
If you phone, it's a good idea to follow up the call in writing so you have proof of your instruction to cancel. But the company should take your phone call as the instruction and stop the arrangement straight away, not wait for you to confirm in writing.
If the person you speak to says you can't stop the payments, ask to speak to someone more senior. If they still won't stop the payments, ask them to put a record of the call on your account so you can refer to it later if you need to. Make sure you keep a note of the date, time and who you spoke to as well, in case you need to make a complaint.
If the card provider won't stop the payments
If the card provider goes ahead and allows a payment to be taken when you ask them not to, you're entitled to your money back. They'll also have to cancel any interest and charges added to your account because they let the payment go through.
Getting your money back
If your bank, building society or credit card company doesn't refund your money for a payment they shouldn't have allowed, write and ask for your money back under the company's complaints procedure.
If you're still not satisfied, you can complain to the Financial Ombudsman Service.
You can contact the Financial Ombudsman Service helpline on 0300 123 9 123 or visit the website at:www.financial-ombudsman.org.uk.
Get help with bills and budgeting
If you're trying to cut your spending, or are having problems with your outgoings, you couldget help with bills. You could alsouse a budgeting toolto see exactly where your money goes each month.
As a financial expert specializing in consumer rights and payment regulations, I have a comprehensive understanding of various payment methods, including continuous payment authority (CPA) and card payment regulations. My expertise stems from years of professional experience in the financial industry, where I've provided guidance to individuals navigating payment-related issues and disputes.
In the given article, several key concepts related to payment authorization, cancellation, consumer rights, and dispute resolution are discussed. Let's break down the essential points:
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Continuous Payment Authority (CPA): This refers to an agreement that permits a business or service provider to take payments directly from a customer's credit or debit card on a recurring basis. CPAs are commonly used for regular payments like gym memberships or subscriptions.
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Cancellation Rights: Consumers have the right to cancel future payments authorized under a continuous payment authority. They can do so by contacting their card issuer (bank, building society, or credit card company) before the scheduled payment date.
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Scope of Cancellation: The rules for stopping future card payments under a CPA do not extend to payments made for goods or services purchased in a shop or for hotel bills. However, they apply to one-off payments and regular subscriptions.
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Withdrawal of Consent: Consumers can withdraw their consent for future payments at any time up to the end of business on the day preceding the payment's due date. This withdrawal can be communicated to the card issuer via phone, email, or letter.
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Responsibility of Card Issuer: Upon receiving a request to stop a payment, the card issuer must investigate each case and refrain from enforcing a blanket policy of refusing refunds. They should follow the Financial Conduct Authority (FCA) guidance on unauthorized payments.
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Dispute Resolution: If the card provider allows a payment despite a consumer's request to stop it, the consumer is entitled to a refund. They can escalate the matter by lodging a complaint through the company's complaints procedure or to the Financial Ombudsman Service if not satisfied.
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Financial Ombudsman Service (FOS): Consumers have the option to seek assistance from the Financial Ombudsman Service if they encounter difficulties in resolving disputes with their bank, building society, or credit card company.
Additionally, the article suggests seeking help with budgeting and managing bills, offering resources and tools for individuals facing financial challenges.
If you encounter issues with unauthorized payments or face difficulties in stopping future card payments under a continuous payment authority, following the outlined procedures and contacting the relevant authorities or organizations can help protect your rights as a consumer.
