Related Credit Card Article
"Firms that make monthly credit card charges to consumer causing problems"
By admin | August 26th, 2009 | Credit Cards
According to a recent report many consumers in the UK who have credit cards are getting trapped by firms that take money from the card on a monthly basis.
Officials believe that whilst in some cases firms may be making a genuine mistake by continuing to take monthly credit card payments after a service has been cancelled in other cases consumers appear to be getting scammed.
Worryingly these payments cannot be stopped by either the cardholder or the credit card company.
Concerns have been highlighted that some of the firms that continue to take payments in this way are difficult or impossible track down, or in some cases take no notice at all of the cardholder’s request to stop taking payments and cancel the service.
Many Internet schemes have come to light where cardholders have money taken out of their accounts each month despite asking the service provider to stop.
Some firms have been known to continue taking payments off consumers’ credit cards for many months or even longer after the service has been cancelled, and the cardholder as well as the credit card company will be powerless to do anything to stop this from happening. In some cases cardholders have not even realised that the money is being taken for many months.
One industry official said: ‘The cardholder has entered a contractual agreement with the business who has sold them the goods or services. A recurring transaction can be cancelled only through the retailer concerned and credit card companies cannot currently cancel the agreement or suspend payment on a cardholder’s behalf.’
Officials from Barclaycard said that they are also powerless to do anything other than request from the company that the payment is stopped.
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I HAD A BALLANCE OF $86 I PAID MY PAYMENT LIKE NORMAL THEN THREE DAYS LATER FIRST PREMIRE BANK TOOK AN ADITIONAL $500 OUT OF MY CHECKING ACOUNT WITHOUT MY PERMISSION TO PAY A $86 DOLLAR BILL (THAT HAD ALREADY BEEN PAID) !!!!!!!!! IT CAUSED ME TO BE OVERDRAWN ON MY CHECKING ACOUNT AFTER ALL MY BILLS CLEARED BANK THAT WEEK I WAS MORE THAN $2000 DOLLARS OVERDRAWN AND POWERLESS TO STOP IT FIRST PREMIRE BANK APOLAGIZED FOR MISTAKE PUT $0.00 BACK IN MY ACOUNT BUT THEY DID CREDIT MY MATERCARD FOR $200 THE MAXIMUM CREDIT ALLOWED ON THAT CARD FOR AN ACOUNT THAT HAD BEEN PAID IN FULL
Comment by JIMMY GRUBBS — September 4, 2009 @ 4:33 am
Sorry to hear for this Jimmy, it sounds as if the banks in the US have the same mentality as here in the UK.
Comment by admin — September 4, 2009 @ 6:04 am