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riahon

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#189031 14-Dec-2015 19:09
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We cancelled our BNZ credit several months ago. I foolishly thought that would stop all charges, including anything that was set up automatically. I was surprised to find that in case of a Direct Debit......specifically a BNZ Life Insurance, then they can force a charge against a cancelled Credit Card. 

My intention was to update all those services that I wished to continue with a new credit card, and those that I didn't would duly contact me or I would proactively contact them to advise that I was cancelling that service.

We had tried to cancel the BNZ life insurance in store, thought it was done and assumed to pay the last premium on the final account. We have been charged since and we have been battling this for the last few months and their advice was to "Go to the bank and see if you can find the person that was supposed to cancel it" 

I spoke to them today and they said it was their policy to continue a direct debit against a payment method but I have tried to read the Terms and Conditions and I can't find (or maybe misunderstand) anything that states this is allowed.

Does anyone here work in the banking industry that can clarify their position?

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JamesL
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  #1450310 14-Dec-2015 19:29
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I suspect the terms and conditions would be different for each bank.

Your best best would be to speak to someone higher up than the CSR to clarify their position.

gzt

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  #1450321 14-Dec-2015 20:17
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If you did not cancel it then it was still a debt, which they would then collect anyway. Cancelling the card makes no difference to that.

But if yiu did cancel the life insurance that is the key. Can you retrieve/calculate the exact date you did that. From there I would either call, snail mail or fax is sometimes preferable to hanging on the phone. Imho sometimes handoff is bad for different services and maybe they can trace any missed ball.

 
 
 
 


Geektastic
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  #1450396 14-Dec-2015 22:02
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If you truly cancelled a credit card, it should be dead in the water and accept no charges from anyone for anything.

Whilst I may want to pay a life insurance premium, I would certainly be refusing to reimburse the bank for any charge they permitted after my written instruction to cancel was issued.





gzt

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  #1450400 14-Dec-2015 22:15
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Imho direct debit authority is different and since it was from the same bank that liability exists if it was charged to the card or not. So I would not get too excited about seeing that go away until the insurance cancel is dealt with.

richms
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  #1450401 14-Dec-2015 22:16
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Geektastic: If you truly cancelled a credit card, it should be dead in the water and accept no charges from anyone for anything.

Whilst I may want to pay a life insurance premium, I would certainly be refusing to reimburse the bank for any charge they permitted after my written instruction to cancel was issued.


You need to have a read of the terms and conditions I think.




Richard rich.ms

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  #1450413 14-Dec-2015 22:41
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I had the same thing happen with an ANZ card about 10 years ago. Cancelled it, and then had a direct debit for a life insurance policy still go through about 6 weeks later. I was away on an extended holiday, and when I got back ANZ were sending me letters threatening to cancel my card unless I paid!
They were pretty good when I spoke to them on the phone, I paid them, cancelled the insurance properly, and didn't end up with any black marks on my credit history.
Since I wasn't dead, I didn't feel that I had received very good value for my life insurance premium, and would have preferred not to pay it. However I don't think you have a very good case for the bank to refund the money, it's really up to you to sort it out with the insurance company. In my case the insurance company was unrelated to the bank.

Linuxluver
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  #1450415 14-Dec-2015 22:46
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riahon: We cancelled our BNZ credit several months ago. I foolishly thought that would stop all charges, including anything that was set up automatically. I was surprised to find that in case of a Direct Debit......specifically a BNZ Life Insurance, then they can force a charge against a cancelled Credit Card. 

My intention was to update all those services that I wished to continue with a new credit card, and those that I didn't would duly contact me or I would proactively contact them to advise that I was cancelling that service.

We had tried to cancel the BNZ life insurance in store, thought it was done and assumed to pay the last premium on the final account. We have been charged since and we have been battling this for the last few months and their advice was to "Go to the bank and see if you can find the person that was supposed to cancel it" 

I spoke to them today and they said it was their policy to continue a direct debit against a payment method but I have tried to read the Terms and Conditions and I can't find (or maybe misunderstand) anything that states this is allowed.

Does anyone here work in the banking industry that can clarify their position?


If all else fails, go to the banking ombudsman. 




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gzt

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  #1450425 14-Dec-2015 23:30
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If you can, take a look at the direct debit authority. Imo the relevant conditions will be found there.

GregM
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  #1450469 15-Dec-2015 07:36
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If you set up re-occurring payments, then you are liable.  It will be the same for all Banks as its how credit cards work.  The authority needs to be cancelled with the merchant.  Banks terms and conditions may or may not be very specific on this, but all they have to do is say they accept a payment authorised by you, and it is, as you agreed to the re-occurring payment with the merchant.  It would pay to check the Merchants Terms and Conditions.  Re-occurring payments have different rules and requirements to normal transactions, therefore will go through on cancelled cards.

sbiddle
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  #1450473 15-Dec-2015 07:44
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Cancelling a card should never be used as a method of preventing charges - the one exception to this being if it's fraud.

If you cancelled the insurance and they're still charging you that's a very different issue altogether.


scuwp
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  #1450482 15-Dec-2015 08:30
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Direct debit is when you give someone the authority to access and make deductions from your account.  IME these continue regardless of your account status and will only cease upon completion of the terms of service or if cancelled by either party.  It's your responsibility to cancel if you want the person to stop making the deductions.  

This is completely different to an automatic payment which the bank makes on your behalf (no access form the 3rd party)

 




Always be yourself, unless you can be Batman, then always be the Batman



Geektastic
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  #1450610 15-Dec-2015 09:55
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gzt: If you can, take a look at the direct debit authority. Imo the relevant conditions will be found there.


Logically the DD should fail if the account no longer exists.

Assume it was a current account and you closed it and moved to another bank. You would not expect a letter from your old bank saying that they had paid your direct debit using their money, you'd expect a letter from the DD originator telling you it failed and asking for alternative payment.





richms
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  #1450616 15-Dec-2015 09:59
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If the payment did go thru you would be liable to pay the bank for the payment. Same as when a authorisation to charge your card is processed after you have closed that card.




Richard rich.ms

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  #1450638 15-Dec-2015 10:27
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richms: If the payment did go thru you would be liable to pay the bank for the payment. Same as when a authorisation to charge your card is processed after you have closed that card.


I don't agree particularly. If the bank permits a charge against any kind of account after receiving a letter that says 'cancel said account with immediate effect. No further payments are to be made using said account' and they then ignore that, the liability is theirs not yours.





richms
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  #1450644 15-Dec-2015 10:33
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You have already made an agreement that you are, you can't just write a letter saying that. May as well send them one demanding cookies and beer.




Richard rich.ms

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