Have Your Say: Recurring payments

Continuous payments have proved problematic for some customers

Two of Britain's biggest banks have failed to give some of their customers their legal right to cancel recurring payments set up to pay for services like gym membership, internet security or payday loans.

The admission came after Money Box raised the issue with Lloyds Bank and Santander who both admitted that they had not always complied with the law.

Lloyds has acknowledged that more than two years since the law came into force it has not updated the terms and conditions on all its accounts to reflect the rules.

Do you pay by continuous payment authority?

Have you experienced problems paying by this method?

Would you consider paying this way if you could cancel directly through your bank?

Tell us your views

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I tried to cancel a direct debit arrangement with my mobile phone provider, O2, so that I could make payments by debit card from another account. I was told it was 'not in their interests to do so'. So, I approached my bank, Santander, to cancel the direct debit. They said I would have to cancel it with O2 and that if they cancelled it, O2 could simply reinstate it. Astonished, I immediately closed the bank account.

Robert, Strabane

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Funny that Barclays say you can cancel CPAs with them. I was recently told that I would have to cancel my Debit Card to stop a CPA payment that was set up without my authorisation. I did this and had to change all my other debit card transactions as you get a new card with a new number, it was a total hassle but did make me make sure I was very careful never to allow another CPA again.

David, Nantwich

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Just been listening to the advice from Paul Lewis about the banks not being aware they can cancel debit card payments which you haven't authorised.

I had this problem recently where I tried to pay off my daughters debt with Wonga.com over the internet, this was unsuccessful, we spoke to Wonga who said they hadn't kept my details, but 6 months later unknown to me my daughter had another loan with them and Wonga took almost £600 from my account - it took 4 weeks for it to eventually be returned with involvement from the FSA but my bank, Lloyds TSB told me there was nothing they could do at this point.

After 30 days they would refer it to their retrieval department but they couldn't cancel this payment as I had set it up!

Bev, Huddersfield

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My recent experience with Barclaycard is that they say it is my responsibility to get the merchant to stop taking payments and refused to cancel the CPA. In this particular case for Internet Services the merchant refused to stop taking payments leaving me with a never ending monthly debit from my credit card.

Terry, Horsham

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I was refused the right to cancel a CPA claimed by a fraudulent company who said I had completed an on line order when I had not. Lloyds TSB initially said the company had to agree and I insisted they ask, they got no reply as did I when I understood the company did not exist and the address and telephone number on their website do not exist.

I have now been refunded the money although Lloyds reserve the right to re-charge me at a later date.

Ralph, Witham

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I had this issue with Lloyds bank last weekend. We asked them to cancel a payment to Sky and they immediately told me that we have to go back to Sky to stop the payment. Off to the bank this morning to argue this point!

Paul, Torquay

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I have tried this and got told the same thing by the bank. I cancelled a web hosting contract that was duplicated by the merchant, I run a small business part time until my youngest daughter goes to school in August.

I've been charged by the bank for going overdrawn on these payments, that I asked to be stopped.

Ky, St Andrews

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Surely the thing is that ANY instruction the banks receive about payments from your account MUST be able to be cancelled by the customer? After all, it's YOUR account!

The customer has the upper hand, however - they simply close the account. Then the bank loses the customer. It involves a hassle for the customer, but it solves the problem.

Graham, Bedford

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My mother(85) has had payments taken from her debit card by a online database even though her account status is free membership. She asked the bank to cancel the payments but was told to contact the company as they cannot cancel it. Her bank is Lloyds TSB.

Susan, Walthamstow

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I have recently had RBS deny they can cancel a CPA after reading a considerable amount about these arrangements and understanding that I was quite within my rights to cancel.

I explained in my letter to the bank that my account with the payee was now in dispute but they were still taking payment so please could the bank refuse any further payments, I was told no, you need to ask the payee to stop taking payment, we can't help.

I have had to resort to the inconvenience of setting up a new bank account so I can have all of my money paid somewhere it isn't going to be taken without my permission.

Annie, West Midlands

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We had a payment taken from our account by the RAC - despite the card details they used having EXPIRED three months previously. Lloyds bank said it was up to us to claim refund (which we got eventually) - but said the Bank was within their rights to accept debits from our account - even if the card had expired!! Seems the rules can be bent to suit the Banks.

Surely expired cards cease to be viable - how can it possibly be ok to take money out of our account with out-of-date details. The Bank official was flippant - says it is ok with them. Be aware!!

Peter, Lincolnshire

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Cancelling these payments has never been an issue for me.

Me: "Stop that payment."

Bank: "You need to contact the payee about that Sir."

Me: "Fine. Close my account then."

Bank: "We have cancelled the payment."

David, Brynmawr

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