12-March-2010

Cancelled credit card still pays out

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Did you know that if you pay off or transferred the outstanding balance on your credit card, then cancel the card that that isn't necessarily the end of the story? Did you know that you could still receive a bill months or even years later?

Mastercard, Visa, Switch, American Express

No? Neither did I until I received an unexpected statement with a very positive balance this morning. I was more than a little surprised because I had cleared the balance and rang to cancel the card several months before. Under the assumption that they had made some kind of mistake I rang their customer service to find out why I had received another statement. I discovered that an online retailer I make regular payments to was still using the old card number instead of my new card.

Apparently if you have used the card to make regular payments, for example signing up for a magazine subscription or a web hosting account that those companies can still extract payment from that card even though you specifically asked the credit card company to cancel the card? Unlike a direct debit, you can't simply tell them to no longer make payments from that account.

The bottom line is folk’s be-ware when making regular payments with a credit card, because you don’t have the same level of protection as you would with direct debit and an even scarier scenario exists. What if the retailer or dodgy company refuses to cease requests for payment on that card? Where do you stand then? It seems the onus is on you to cancel regular payments, and should things go sour again the onus is on you to prove that payments on that card have not been authorised.

Morgan Stanley Gold and Platinum Credit Cards

In my case the balance was less than £30, which wasn't too severe a penalty for not keeping my finger on the pulse. Lesson learned though. It’s your responsibility to cancel payments when a service is no longer required, and it’s your responsibility to keep account details up to date.

Credit card companies after all don't really care how they get money from you, but they are decidedly less forgiving than banks.

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JJ Ireland here againThe company I had the problem with was ACIHERBALNUTRITION as well...

Step 1.....clear balance on card
Step 2.... Stop using card
Step 3... inform your credit card bank you did not recieve the product you paid for..
Step 4.....Write a letter cancelling the product to the last known adress of the company...put on whatever date you wish. Send a copy of the cancellation to your credit card bank.
Step 5....Inform your Bank you phoned these people on such a date and talked to Tom and cancelled the product.
Step 6....Cancell your card..
Step 7....Report it stolen
Step 8... tell them you dont want it re-newed, until they sort out the problem and return your money to you.
Worked for me.
not only did they cancell it, they refunded all money taken by these crooks.
Hope this helps,
The only way...believe me.
Thank you.

JJ IRELAND 03-Dec-2009 02:46

Hello JJ here from Galway Ireland, After a few months struggle I was refunded 120 euro today by MBNA.
The way I managed this was to tell MBNA if I did not receive my money I would stop using their card...I paid off my balance with a Credit Union Loan..I told them they were the ones loosing out because of this Crook.
It worked! I got no satisfaction at the beginning, but the minute MBNA realised they were going to loose a good customer...No problem..
They went after him...It is the CREDIT CARD BANKS that have the power to frighten these crooks.
But as long as you have a balance on your card and keep using it, it is not in their interest to reduce your balance. Why would they? They come up with all kinds of excuses like not being allowed to stop him taking money, no good changing a card, excuses, excuses, excuses...But the instant they realise your not going to use your card until it is sorted out...BINGO!

JJ IRELAND 03-Dec-2009 02:21

I appear to be the victim of a "scam" in that I ordered a health product from USA company Acai Herbal Nutrition. It was originally supposed to be a "Free Trial" (pay shipping only) but I weas charged US$84.98. I have not received anything and cannot contact the company as no-one answers the phone. My credit card company refuses to cancel any future payments and jus this week I have been charged another $84.98. How can I stop this happening each month

Brigray 03-Oct-2009 12:51

If a bank cancels a credit card on their own initiative - and payments have been and are being made - does this mean the amount is no longer owed?

shopper 05-Dec-2008 16:13

What happens if you report your card stolen?

Surely that should cancel any 'regular payments'

Caroline 14-Mar-2008 13:24

I ma having the same problem at the moment between my Royal Bank of Scotland Mastercard and a company called 'Capital Directories', London.

The company get's about £45 each month to pay for advertising services I have never received. To make matters worse, they have vacated their business premises and I have no way of getting hold of them.

Now I am trying to get RBOS to sort out and stop any further payments to that company. But they insist, that unless I cancel my DD with Capital Directories myself, there is nothing they can do...
I cannot cancel my DD with Capital because as far as I have been able to check them out, they do no longer have an office, but seem to collect money at the other end.

And RBOS won't even let me cancel my card!!! and hold me wholly responsible for any further charges made against my card by Capital Directories. They even threatened to blacklist my credit rating!

So where does that so called 'Purchase Protection' come into effect when customers are being ripped off????

GermanMan 07-Feb-2007 11:31

I was in a very similar situation myself. I had paid for a magazine subscription online using my credit card and then cancelled it and so I thought the credit card. About a year and a half later (I had moved house by then) I happened to swing by and pick up my mail and lo and behold, a credit card bill for a card I had thought I had paid off and cancelled. The bill including all the missed payments was at nearly £400. How on earth can they let that happen. Surely they must insist that there is some sort of contact after a couple of missed payments and then freeze things until they estiblish where the person that owns the card has gone? I was also very annoyed that the magazine (I wont nane names) used the old card details instead of cashing the cheque that sent them. I think perhaps I should have taken that further.

Geoff 25-May-2006 16:46

another daniel lazarides eh?

Daniel Lazarides 04-Feb-2006 20:31

I totally agree with everything that is being said. Yeh I agree with the article.

Daniel Lazarides 25-May-2005 14:34

I must admit, I'm preoccupied with worrying about the UCL Final tonight. After that, I'll start thinking about politics again.

nom 25-May-2005 14:07

Hi room poliical issues ayyy! chat to me ill save you!!

superman 25-May-2005 09:36

What is everyone talking about? I really don't understand why everyones moning about hings get out of our house and sort it out!

happy as can be 25-May-2005 09:35

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Cancelled credit card still pays out

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