Can a hotel charge a stopped debit card?

[charles1975]

I have been renting a room in a B&B for some time.

 

I was initially part of a large group so I know many ex-lodgers.

I made my initial booking via website,

then I extended my booking verbally every week and paid by debit card.

The initial booking was for myself only and no special authorization was made by me for the hotel to recover any money from my account in case of damages,

as it would be otherwise normal is case of large groups.

 

Evidence is now emerging that some of my colleagues and other former lodgers have been charged on their debit/credit card weeks

or even months after they left the hotel on the ground of 'damages'.

 

We know that our colleagues are disputing these charges.

One of them stopped his debit card (before the charges) but it looks he has been charged anyway.

Some other colleagues are foreign citizens and have left the country or maybe don't know the law (I confess I don't know it either).

 

We also know that the hotel is on the verge of default and these fraudulent charges come out of desperation.

I have stopped paying by card and I pay only cash now, but the manager has reminded me he has my card details

and that if I leave he can charge me if he wants to.

I and my remaining colleagues are obviously thinking of leaving but are afraid they can play a trick on us.

 

Of course if something happened I could request a chargeback but we would like to avoid all the hassle and stop our debit card altogether.

So I went to my bank and I have been told that even if I stop my debit card or issue a new one,

the hotel can still force a charge on the account.

It seems that the only sure way is to cancel the whole bank account.

 

I wonder if this is true and if there's another way to protect ourselves from these criminals.

[dx100uk]

they will probably [and have already] used CPA

[continuous payment authority]

 

you can cancel that

and p'haps get back past charges

 

by:

We have been telling people to put a letter into their bank instructing them not to make any payments under any circumstances to these companie

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

 

banks MUST follow written intructions from their customers !

This fsa guide has now been updated:

 

http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

 

Here's the text:

 

Cancelling a regular

card payment:

 

When you give your credit or debit card details to a company and authorise them to take regular payments from your account,

such as for a gym membership or magazine subscription,

it is known as a ‘recurring transaction’ or ‘continuous payment authority’.

These are often confused with direct debits, but do not offer the same guarantee if the amount or date of the payment changes.

In most cases, regular payments can be cancelled by telling the company taking the payments.

.

However,

you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments.

Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments.

Be aware, though, that you will still be responsible for paying any money that you owe.

.

see: http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority(2-Viewing)-nbsp

.

http://www.fsa.gov.uk/pages/consumerinformation/product_news/banking/know_your_rights/solving/index.shtml

 

 

specifically write to your bank

 

and remove the authority for the hotel to use CPA

specifically state that they are not to honour any CPA

from the hotel

without your written consent

 

should sort it.

 

dx

[charles1975]

Thanks for your reply dx100uk. I did not set up any CPA with them. I only paid week by week swiping my debit card, same as my (ex) colleagues. Would this offer me more protection? I would like to avoid cancelling my debit card or my current account altogether. Nothing has been charged to me yet, but my ex colleagues have had charges.

[dx100uk]

you don't have too

they automatically do it once they have card details

 

dx

[Migster]

Would a B&B even know what a CPA is? They probably just have the card details stored on their system, so can put through a transactions should they need to do so (which could then be disputed via a chargeback).

[renegadeimp]

Any business can set up a cpa. It's one way of getting around card blocking as the vast majority of people have no idea that this even exists.

[Migster]

Any business can set up a cpa. It's one way of getting around card blocking as the vast majority of people have no idea that this even exists.

Well in theory yes, but I believe that it would need to be specifically set up with their acquirer, as opposed to being a default transaction available to all merchants.

[renegadeimp]

Most companies do it all the time. If they have access to your card, then can easily instruct the bank to set up a CPA. Gym's/magazine subscriptions/payday loan companies regularly do it. Thats why the FSA even created a booklet detailing your rights, as it is becoming a major thing lately.

[Migster]

The business types you mention though all have a need to take regular payments and therefore would have their merchant accounts set up to do so. As I said previously, I don't think this would be the default for all merchant accounts e.g.

Continuous Authority

Also called Periodic billing / Recurring Payments. Continuous Authority applies to you if you process regular, recurring or subscription payments (only available with Visa, Visa Debit and MasterCard). In order to process these kinds of payments a Continuous Authority merchant account is required from your Merchant Bank.

 

http://www.sagepay.com/glossary/13/letterc

[renegadeimp]

Thats the technical definition. Reality is different.

[charles1975]

Thanks all for your input, however I'm still a bit confused.

 

In the case of my ex colleagues they did not set up any CPAs but they just issued a one-off charge for 'damages'.

 

Allegedly one got £400 in extra charges but this is third hand information.

 

The bottom line is: am I better off just cancelling the debit card or the current account altogether?

[Migster]

Thats the technical definition. Reality is different.

I give up.

[Migster]

The bottom line is: am I better off just cancelling the debit card or the current account altogether?

Personally, I would do neither. They may never put through a bogus charge to your card in the first place, and if they do you can simply go down the chargeback route.

[renegadeimp]

You may give up, but it is the honest truth. Hop on over to the PDL forum. We see it multiple times every single day. They are authorised to set up one debit from an account, the rest ( if needed) to be done in individual transactions. They all use CPA's.