Continuous Payment Authority

[fkofilee]

Hi Guys

 

Another ridiculous scenario (In theory)

 

I was speaking to Barclay's because something hit me about this very topic.

 

A) Does CPA "Override" a card that has been lost or stolen? IE Payment being taken on a blocked card?

B) What if the card is active and you have insufficient funds in the account?

 

I had this discussion with Barclays as I had a major issue with them holding transactions back. But the above is just theoretical.

[renegadeimp]

Cpa is attached to an account. Not a card.

 

A. Yes.

B. Depends on the type of account you have. In any case if you cancel the cpa and the bank still allows the transaction, then the bank is wholly liable for any errors and charges that may occur as a result of their failure to follow regulation

[fkofilee]

Really? I was informed it was via card.... Barclays again...

Also thought what's shocking is i did some test calls to other banks and they all informed exactly the same.

[citizenB]

People used to advise that a bank (debit) card had been lost or stolen.

 

A debit card is associated with the account so IMHO, if your card is lost/stolen, it could compromise the account. Which is why CPAs were cancelled when set up with the debit cards.

[fkofilee]

So based upon that above is that still in effect? How would a company take payment if the car is cancelled?

Its interesting when you look at these small things and you look at what the regulators etc say and then the companies actually have their own ideas... Sometimes not even 1% accurate.

[citizenB]

So based upon that above is that still in effect? How would a company take payment if the car is cancelled?

Its interesting when you look at these small things and you look at what the regulators etc say and then the companies actually have their own ideas... Sometimes not even 1% accurate.

 

 

I would think so? However, if you ask a bank to cancel a CPA, regardless of the way in which it is set up they MUST cancel it and if they make a payment after you have cancelled it, they are responsible for refunding the money to your account and any associated charges. There is a link somewhere that explains this.. I will go and find it.. BRB

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?395493-Been-refused-cpa-cancellation-since-nov-2009-Go-get-your-money-back-now!!

 

All the associated legilsation and regulations should be in the link as well, if not then have a look at the other stikkies in the PDL forums.

[renegadeimp]

CB is right. WHen the card is cancelled the CPA SHOULD be cancelled too. However, many banks dont adhere to this and say it was attached to the account, among many other excuses. Sadly, various regulators let it slide by so in effect the CPA is now more or less acknowledged to be attached to the account and not the card.

 

The only surefire way to stop payments are:

 

Cancel the card. Report it as compromised. Not lost or stolen.

Specifically cancel the CPA. This MUST be done in writing and you must get it signed and stamped by the bank in person. No other way around it.

Close the account and move to a new bank.

[fkofilee]

Agree Wholeheartedly.

 

Thanks guys for the info.... It just cast some doubt after what companies tell you.

[topcat1802]

Bets solution - NEVER set up a CPA in the first place, if a creditor wants regular payments then pay using a Standing Order that way you have full control over (1) the date of payment and (2) the amount of payment. If you use a DD then the creditor usually has it in their conditions that they can "vary" the amount and date of the direct debit.

[renegadeimp]

You have no say so in regards to the CPA. Some things are done by direct debit, or a single payment for a subscription, and as already stated thousands of times, the company then generates a CPA themselves. Even if the card is cancelled and blocked, the CPA will still be active. Thats why the regulators signed the law in 2009 to stop this from happening. Sadly though, the banks still think the law does not apply to them, and the inept government we have refuses to do anything to stop them.