Wrong advice being given on Recurring Payments!
It has emerged today that nearly 50% of bank advisors give wrong advice when asked to cancel a recurring payment set up on a credit or debit card!
These payments are often set up when you get a gym membership, magazine subscription or sign up to an online distance learning course and payments are taken on a regular basis, usually monthly.
The confusion occurs when you need to cancel the payment. Prior to November 2009 banks were not authorised to stop these payments being made, they had to be stopped by the organisation that set them up. Depending on what organisation you set the payment up with this gave the consumer no power whatsoever to cancel the payment and left it completely at the discretion of the organisation. Many stories surfaced of customers paying high monthly amounts for services they neither wanted nor used and companies refusing to stop the payments!
Since November 2009 banks were told they had to stop these payments at the account holders request putting the power firmly back into the hands of the consumer.
An investigation by Consumer Watchdog group Consumer Focus has revealed that nearly 50% of bank customer service advisors still tell account holders they are unable to stop these payments and need to contact the business who set it up.
My advice is be persistent with your bank when you need to cancel a repayment, they are required to stop the payment for you. If they still refuse mention the consumer focus study and you’ll soon see a change in their willingness to help! Also when setting up any payment try to make sure you do it by direct debit or standing order, this will allow you to easily cancel at any time!
Another tip if the payment has been set up on a credit card is to cancel the card saying it’s been lost or stolen, this then invalidates the details the originator of the payment holds and no more money can be taken!