The discussion in an earlier thread about your right to cancel/money-back etc. is true for direct debits from your current account.
However, the equivalent debit authority from credit card accounts is different. It can only be cancelled by the other party, and not you.
Even if you cancel your credit card, the credit card company can demand payment from you in future as you remain liable for "direct-debits" taken months after the card was cancelled.
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A couple of years ago I bought a mobile phone using my credit card. The monthly call charges were debited from the credit card account. At the end of the contract period I decided not to renew the contract. The credit card company were unable to cancel the agreement and the Phone company were reluctant to end it. I had to pay for 3 months unused line rental before the debits stopped.
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Just to set the record straight now Mrs B has read the previous thread she pointed out I was talking b*ll***s, and her story in conjunction with J Todd's comments explains why it happened.
I got confused, its the strain of replying to these multi line Bogush posts.
Madame's version, which *is* correct.
The AA direct debit was on a credit card, a GM card in fact. After we.... we? *she* (ouch!) had taken advantage of the umpteen Debenhams and Next vouchers courtesy of choosing a GM company car we cancelled the card.
We also cancelled in writing the two DD's on it. The other was OK but as I said before the AA screwed up. First we knew about it was when GM contacted asking why we had not paid the minimum amount on the bill. We asked, "What bill?" Ah came the reply, you don't get a bill because the account has been cancelled. Catch 22? So they tried to sting us for an amount they should not have paid out plus an interest charge for not paying a bill they had never sent us.
In the end it worked out and they waived the charge, but can someone explain the logic why its different for credit card DD?
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Hi All
As it was I who brought up the subject of the Direct Debit Guarantee,I will try to find out the answer to this one
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I will admit to being a Bank manager and beg your forgiveness in advance. It's a dirty job but someone has to do it.
The difference between a Direct Debit and a Credit/Debit card payment is;
A Direct Debit is a standing instruction to your bank to accept the collection of payments by an organisation. This can be cancelled by instructing your bank ( to whom you gave the original instruction for payment). It is just the same as writing a cheque to pay a bill, where you do not guarantee the payment by adding your card details. If , for any reason, you do not wish the transaction to proceed, you can 'stop' the cheque as no guarantee of payment has been given.
When you set up a standing instruction using your debit/credit card you are giving the organisation that you are buying from, a guarantee of payment, just the same as when you profer your card in a store in payment or pay by cheque and add your card details, this is guaranteed to the accepting retailer. These instructions can only be cancelled by withdrawing your guarantee of payment by writing to the organisation collecting the payment. Your card provider cannot cancel because you have guaranteed payment to that organisation. You cannot instruct a bank or card provider to cancel a guarantee of payment.
Clear?
If, when you have given written instructions to cancel this type of payment to the organisation providing the goods/service, this is ignored, you should then contact your card provider with proof of the instruction and demand that they reimburse you and ensure that the organisation comply with your instruction.
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