A recent study, published by Citizens Advice, shows that two million people across Great Britain have experienced problems cancelling recurring payments which are often used for buying products online.
The study also reveals that people are often signed up to these type of recurring payments (also known as Continuous Payment Authorities) without their knowledge.
According to the UK Cards Association customers can cancel recurring payments with their seller or with their credit or debit card issuer. However, the report finds that many customers have difficulties getting these payments cancelled.
Of the 500 respondents to the Citizens Advice survey who had a problem with recurring payments:
- Just 12% of those who asked their card issuer for a refund got all their money back.
- 36% had difficulties getting their bank or card issuer to cancel the recurring payments.
- 25% contacted their seller but the seller refused to stop charging them.
- 24% were unable to contact the seller.
- 53% said they did not know they should be able to cancel recurring payments with the seller or credit or debit card issuer.
Citizens Advice is calling on credit and debit card issuers to notify customers when a recurring payment is taken. This would give customers the option to cancel or dispute the payments.