Credit card Details

[Chrisi]

Does anyone know just how long an insurance company, or anyone else for that matter is allowed to keep details of the credit card used to pay the premium? I thought they had to be deleted as soon as the transaction was completed. I paid for the whole year, so it was not a case of monthly installments.

Two years ago I paid my daughter's car insurance with Budget on my Goldfish card. The next year they automatically renewed before I was aware that they were doing it, but as the car needed to be insured I let it go.

Fortunately during the year my old card cancelled when it was lost and a new one issued. They only have the details of the old card.

This year they wrote to say they would be automatically renewing again. A letter was sent to them revoking any permission they had and telling them not to apply for the premium from the card details they had on file. They have subsequently tried to debit my account, failed, still issued documents and included a threat to charge a cancellation fee if the policy is canelled.

Today I have drafted a letter to them pointing out the error of their ways and returning all documents.

What I would like to know is can I tell them that by keeping the details of my credit card on file that they are in contravention of the Data Protection Act? I think I'm right, but can anyone confirm this for me before I put pen to paper?

[Bookworm]

That depends how it was set up in the 1st place. There is something called a rolling authorisation, if memory serves, which means a company can keep on taking payment. AOL for instance does this and they're the devil to get cancelled. When my card got cloned, the fraudster set up an account with AOL, and despite my card getting cancelled and a new one issued,my bank account kepy on getting debited. It took 4 months for them to finallly stop.

As for the insurance, tell them to see you in court if they want their cancellation fee.

[Chrisi]

Thanks Bookworm,
I've got no interntion of paying them anything. I can prove that I wrote to cancel well before the due date so hopefully they don't have a leg to stand on. I'll come back with whatever result I get.

[Chrisi]

Well, you could have knocked me down with a feather! I was just about to start composing a strong letter to them when I decided to phone on the off-chance that I got someone sensible to talk to. What a nice lady. She offered to cancel the policy immediately and apologised for any inconvenience. She asked me to send back all documents and assured me that there would be no charges involved. The papers went in the post about a week ago with a covering letter and so far I have heard nothing further from them.

Whilst trying to sort this out I had a long conversation with customer services at Goldfish. I told him that I had written asking the debit to be stopped, but he said it was not possible for them to do anything about an authorised payment which had been set up. The only reason it had not been paid was because the card acount they were applying to had been closed. (I'm glad I lost my card now). He also told me that the only way to stop one of these automatic renewal authority is to write to the company concerned and then if they take a payment,the card issuer will claim it back from them on receipt of written proof that the company had been informed that their authority had been cancelled.

[zara_goza]

This may help.

I used to work for the RAC Motoring Services, and if you were paying by DD or Credit Card as they called continuously, then they price of the premium was from £10 to £20 cheaper. The no so honest sales reps, used to give the continuos method price always, rather than explained the customer the options and what it means. Of course some people was shocket when the renewal go through and took the money from the DD or the Credit Card. I must say they sent automatically a renewal letter where it states that they will collect the premium if you don't contact them to stop. But you have to do it as soon as you got the letter. The best option is to cancel the DD after of a month of have been paid the full premium. Then normally they will send you a letter letting you know that they have been informed by the bank that the DD is cancelled. About the Credit cards, I recommend you contact them at least twice to cancelled and re-check is been cancelled and ask them for written confirmation. It is a hassle, but you cover youself for the future.

Also since they were introduce the FSA into the company we were having to go through the legal procedures with each customer, what it means this or that and explain them what it means pay in one way or the other, including the sales reps. Also as from 2005 the call are recorded, so they should be able to find the recording...

I hope this helps...