Continuous Payment Authority

[Buckman]

I give up wrong forum.

 

[otherclive]

Why is it that when doing car insurance and paying by card, they automatically set up a Continuous Payment Authority on your card? Really annoys me as you are not given an option to opt out. Real hassle thne trying to contact them to have the CPA removed! IMHO it should be an option or made illegal if there is no option!

We are with LV+ and always are asked when a new policy is set up. It’s not just insurers who set up CPA the CMHC and Greenflag do it to. I don’t know what your problem is as they notify you in advance for the new premium or membership fee. The letter or email invariably tells you what card will be used for payment which gives you the option to call them and cancel the policy in advance or change the payment card.

 

[RogerL]

One year I never got the email and ended up paying twice for car insurance which caused me a bit of embarrassment. I got the refund eventually. I pay CAMC and also Mayday every year and no CPA with them. Either way it should be an option and not mandatory when doing a quote Online.

Agreed - I've got no CPA with Caravan Club or Mayday - my house insurance does have CPA but that was made clear at inception.

 

[Jcloughie]

The CPA’s I have all notify me one month (or so) before renewal. I think that is a legal obligation. But in any case, they all promise to do this at initial sign up.

I think it has to be a legal thing as you only contract to them for 1 year, (normally). So new contract has to be a new agreement. It is also an oportunity for them to change rates or terms.

John

 

[ProfJohnL]

If its a practice you don't like, talk to the company involved and ask then to remove it. If they refuse, look elsewhere next renewal. Simples

 

[ProfJohnL]

Communicating with company can be a problem at times during to long waiting times, but why should you have to do this as it would not be necessary if you had the option?

Poor customer service and Long waiting time is another reason to look elsewhere.

 

[Jcloughie]

You don’t need to go to the merchant to cancel. Contact whoever issued the credit or debit card. The have to follow your instructions.

See this

John

 

[otherclive]

Trying to contact the card provider could be times more frustrating than contacting the seller of the product or service. They are likely to cancel the seller in which case if you should wish to use that seller again your card will not work.

I do think this is a mountain- molehill issue that’s not that difficult to sort out if anyone inadvertently finds themselves in a CPA situation that they didn’t want.

 

[Dustydog]

Then there is a bright side to the CPA. How many on here have forgotten their road tax or insurance renewal? Assuming the renewal papers came through over sights do happen. Have a mishap? You be inadvertently grateful for a CPA. Not saying I like it but iI an extra safeguard 😉

 

[Jcloughie]

Trying to contact the card provider could be times more frustrating than contacting the seller of the product or service. They are likely to cancel the seller in which case if you should wish to use that seller again your card will not work.

I do think this is a mountain- molehill issue that’s not that difficult to sort out if anyone inadvertently finds themselves in a CPA situation that they didn’t want.

Yet that is the advice provided by CAB

———————————

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 on unauthorised payments from your account.

——————————-

But personally I would always deal with the merchant in the first instance if only out of politeness, but the OP was having difficulty contacting his merchant, which is why I suggested contacting the issuer.

Can‘t say I have had a frustrating job contacting my card issuers. If I did I would go elsewhere. The issuer would only cancel the seller if they were shown to not be applying the FCA rules.

CPA’s have been around a long time now. There are some abuses reported, but I think they are rare and for the vast majority of the time it works trouble free. Which is in the interest of seller, customer and issuer.


John

 

[otherclive]

Thank you for the Ombudsman info which repeats what I had read in the link to your post # 9.

 

[Jcloughie]

Contacting the card issuer in most cases is a waste of time as they cannot see who has a CPA against your card. Also a security issue with a company storing your card details for a year.
Just to add last year I contacted the insurance company to advise them to remove a CPA on my card. This was agreed and I kept a copy of the chat. Imagine my surprise when I found out that they still kept my card details.
All I am saying is that a CPA should be optional as I cannot remember when last I stayed with the same company when renewing.

I understand where you are coming from but the system totally depends on trust backed by vigilance, regulation and enforcement. If you simply paid for something by card over the phone a shop, pub or on line. You have to trust that the company and the operator do not retain your numbers.

The system sounds like it is very open to abuse but it seems to work nearly all of the time.

John

 

[ProfJohnL]

It seems you are happy with the cover provided by the company and would be happy to continue to use them, so if the deal breaker is the CPA, then I suggest you wait to see if the CPA is applied or not in your case.

If it isn't then all well and good.

If it is then you have a letter confirming they were going to remove it, so you have a great case to take to the FCA and/or the Insurance ombudsman.

It does seem your making a mountain out of mole hill about this issue.

 

[otherclive]

It seems you are happy with the cover provided by the company and would be happy to continue to use them, so if the deal breaker is the CPA, then I suggest you wait to see if the CPA is applied or not in your case.

If it isn't then all well and good.

If it is then you have a letter confirming they were going to remove it, so you have a great case to take to the FCA and/or the Insurance ombudsman.

It does seem your making a mountain out of mole hill about this issue.

Why bother going to the FCA/Ombudsan. Just ringing the insurer would be better. Preferably some days before payment is taken if planning to go to another provider.

 

[Jcloughie]

Now I have the hassle of contating them and telling them where to stick it!

This may be the case, but it is certainly not my experience. The renewal letter should provide a dedicated number. It is in the insurance companies interest to man this for a few reasons.

To keep within the FCA terms I quoted earlier.
To allow you to make alterations to your policy.
To allow you to cancel.
To attempt to keep your business.

Give it a go. You may be pleasantly surprised. And it will give you the opportunity to lodge an official complaint.

John

 

[otherclive]

I think some are over thinking my issue. I contacted the current insurer last year and requested that the CPA be removed. I was assured in writing that CPA had been removed.
However this year the insurer stated that they would automatically renew the insurance using my card details even though the CPA was supposed to be cancelled.
What is the point of making contact to have data removed and the other party simply ignores your request. I am fairly certain that not removing data when requested to do so is an offence especially when there is no valid reason for the data to be held.

So what is your proposed action then?

 

[ProfJohnL]

I think you should look up what details companies are allowed keep. and what they can legally do with it.

Consider:- If you make a payment using a particular card, they are required to to retain the payment details for both financial and legal reasons and that is permitted under the DPA. They can't simply forget or loose that information. Just think how many frauds could be operated if that were the case.

If you so unhappy with the process this company uses, simply move on!

The fact you haven't moved on, suggests you like the product they sell, or its the best price.

The balls in your court now, Stay and live with the slight inconvenience, or take you business elsewhere.

 

[Dustydog]

Has this pudding been well and truly over egged😜😜😜

 

[Damian]

Obviously this topic is going nowhere, except perhaps to become personal, therefore it is locked as there is no point carrying on a pointless non argument.