[Phil №❶]

Last year I chose to pay motor vehicle insurance over the telephone by credit card. The transaction proceeded with no problems at all.

This year, we elected to proceed with a different insurer and also paid by credit card by phone, this transaction also proceeded with no problems.

I notified insurer 1 on the day of policy expiry of our intention to go to a different company.

On my statement this month, insurer 1 has processed a charge for insurance. I have enquired with the 4 major banks, only 1 has responded so far and this is part of their response.


When providing your credit card details to a merchant over the phone this is an agreement between you and the company concerned.

Generally you receive documents confirming the policy and payment agreements and you should keep a record of all regular payment arrangements you have established with the company and store it in a safe place.

Until you notify the company, the bank is required to process transactions from the merchant.

To cancel these payments you must contact the company directly as the bank is unable to stop the payments.

This is contrary to my thinking that paying by credit card is a one off authority to debit an account. My thinking is that when you use you card at a supermarket to buy groceries, you are not giving the store permission to charge you again, week after week. This is obviously different for phone / online transactions.

I have contacted the insurer and a credit is forthcoming.

Just thought I'd let our members know. 

[Dazzler]

Hi Phil as discussed by PM, most companies have fine print somewhere in the contract to say that unless they hear otherwise they will renew the policy (using the excuse that it is to avoid it lapsing inadvertently)

These things do need a few days notice if you want to stop them happening as the way I understand it (from my work) the electronic debit request is sent from the service provider's bank a day or so before due so that it comes out on the due day or next working day.

I use paypal or a cheque when I subscribe to magazines and such so I don't cop auto renewal.

Don't get me wrong (I am on your side) 

[Just Rick]

Phil this has always been the case as far as I was aware,each time I have done something like this,I have been either informed that payments would be taken automatically on a periodic system,but you can state that the payment you are making IS TO BE A ONE TIME PAYMENT it is then up to the company to acknowledge and honour this agreement,but good warning for those who are not aware of how phone payments work.

[Doggie 1]

And, unusually for me, wandering just slightly off topic, we have had our home & contents insurance policy with a particular insurance company who do their best to not pay out on claims made.
For several years, we have had the premiums deducted on a quarterly basis from our credit card but recently decided to change that to a monthly basis.
So same company, same policy, same cover, just monthly payments instead of quarterly. One simple phone call to arrange. 
They told Sue that the only way it could be done was to cancel the old policy and start a new one. No problem.
Next thing, they charged us $8 for the privilege off our credit card!
Only $8 but it's the principle of the thing.
They are just thieving bastards in every respect IMO.
Anyhow, after asking to speak to a manager they decided that maybe they shouldn't have done that and that they will be refunding the $8.
I will be watching closely. 

[Aussie Keith]

Got to watch those T&C's. Who knows whats really in the fine print.

[kittikat]

At work we direct debit people's rates out of bank accounts and credit cards.  They have to apply in writing, make changes in writing (including expiry dates ) and cancel in writing.  It just covers everyone's backsides in case of a dispute.  We always say 2 working days notice, but with emails we can be a bit more flexible on timing.

[Phil №❶]

In my case there was nothing in writing, from me at least, giving permission to debit in the future, however, it seems that most people are aware of this, so I'll have to brush up my awareness a little. No harm done in the long run, I guess.

[Surferdude]

A few years ago, in Sydney, my daughter took out a personal loan with the bank for a car. The loan was for a specific period of 12 months. ie. 12 equal payments. Actually IIRC it was 11 equal payments and #12 was marginally less to round out the total amount.
The month after the contract finished, the bank deducted to usual amount again. 

"Oh!" they said. "You have to tell us when to stop the deductions".

WTF. 

[FatBoy]

A few years ago, in Sydney, my daughter took out a personal loan with the bank for a car. The loan was for a specific period of 12 months. ie. 12 equal payments. Actually IIRC it was 11 equal payments and #12 was marginally less to round out the total amount.
The month after the contract finished, the bank deducted to usual amount again. 

"Oh!" they said. "You have to tell us when to stop the deductions".

WTF. 

I had the same happen to me a few years ago.  After going overseas and have people throw bits of lead at me, I was, how do you say "cashed up".  So I decided to payout a loan we had for a car with a bank that sounds like "enn ay bee".  I asked for the pay out figure, transferred the funds over in front of the teller, to which she thanked me.  The next week they took the same allotment out of my account.  When I questioned it they said, "You must tell us when you finish the loan."  WTF!!

[Doggie 1]

 
I love the way you kept the identity of the bank a secret, FB. 

I just love banks.

And insurance companies.

[Surferdude]

A few years ago, in Sydney, my daughter took out a personal loan with the bank for a car. The loan was for a specific period of 12 months. ie. 12 equal payments. Actually IIRC it was 11 equal payments and #12 was marginally less to round out the total amount.
The month after the contract finished, the bank deducted to usual amount again. 

"Oh!" they said. "You have to tell us when to stop the deductions".

WTF. 

I had the same happen to me a few years ago.  After going overseas and have people throw bits of lead at me, I was, how do you say "cashed up".  So I decided to payout a loan we had for a car with a bank that sounds like "enn ay bee".  I asked for the pay out figure, transferred the funds over in front of the teller, to which she thanked me.  The next week they took the same allotment out of my account.  When I questioned it they said, "You must tell us when you finish the loan."  WTF!!

Funny that.
Your bank rhymes with our bank.


Which reminds me of the joke about the Irish unit of currency rhyming with bank manager.

[Doggie 1]

Merchant Banker = ? 

[Dazzler]

I might have said it before on here .. but many years ago when I worked in the ANZ bank we used to sometimes buy cash off Westpac with a bank cheque. We had a lot of Business Customers in a particular town that paid their staff with cash...

On several occasions we put Westpac Wanking Corporation on the cheque (they never noticed) 

[The Gonz]

 

[Doggie 1]

 

[FatBoy]

What about the Vietnamese?

[eye30]

What about the Vietnamese?

Why.

 are they important?

[FatBoy]

What about the Vietnamese?

Why.

 are they important?

No, but their currency sounds rude.

http://en.wikipedia.org/wiki/Vietnamese_dong

[Surferdude]

That's the one.

[Surferdude]

Actually my sister in law told me that joke years ago. The kicker was that, she worked at a Brisbane university and they told that joke to an Irishman they had on staff there for a while.
He didn't get it.
He's sitting in the staff room going, "Bank manager - punt. Bank manager - punt. Bank manager - punt.  I don't get it. Why is that funny?"
By this stage the whole staff room was in fits of laughter.