Recurring payments on credit cards

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GlasgowGirl

Facilitator
Jul 22, 2008
287
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I've just read an article that alerted me to a credit card problem that I've not heard of before. Recurring payments authorise companies to take a regular payment, just like a direct debit - but it doesn't automatically end when you close your account, and it's up to you to keep track of the recurring payments you've set up.

So a company with whom you have previously agreed a recurring payment can take a payment from a card that you have closed down, prompting a bill from the card company for a card that you thought was no longer operational. Apparently some people have had problems if they've moved house, as the bill has gone to their previous address and they've ended up with a poor credit score, because they haven't paid a bill that they didn't know existed.

Anyone been affected by this, or know anything about it?
 
J

Jorumian

Facilitator
Sep 1, 2008
347
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Birkenhead
Thanks for this Glasgow Girl.

I have a recurring payment on my credit card that I am about to cancel and I had no idea that it would keep accruing if I didn't get in touch with the company.

You've saved me a possibly expensive mistake, so thankyou very much.

Ian
 
G

GlasgowGirl

Facilitator
Jul 22, 2008
287
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No problem - delighted to help! I had no idea such things even existed so it was an eye-opener for me too.
 
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Georginazn

Moderator
Apr 22, 2009
290
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Had this happen with Egg - cancelled the card and nearly a year later they paid car insurance on it. Apparently cancelling this card didn't stop it's useso what DID it do??!! I won't ever agree to a recurring payment like that again - seemed simple at the time as I was quite happy to stay with the insurer.
Conversely - when I needed to stop Wanadoo (known to me as Don't-Wanadoo) taking my monthly payments for Broadband they never supplied - cancelling the card successfully prevented payment. How can you know whether cancelling is cancelling????
Yet again, the message is that you have to keep on top of all your financial transactions, know what happens regularly each year, know what your commitments are and know how to contact all the companies you deal with.
PS Egg agreed after some persuasion to forego the interest that had accrued on the payment and I do take blame for not thinking - Hmmmm I have insurance docs - which statement does payment appear on.....
 
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