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Banks forced to stand up to their responsibility to cancel recurring payments

28 Mehefin 2013

Consumers have been paying out for cancelled gym contracts, magazine subscriptions and unexpected payday loan repayments as some banks failed to end payments despite being asked to do so by their customers, says Citizens Advice as the Financial Conduct Authority clamps down on problems with continuous payments authorities.  

Citizens Advice Chief Executive Gillian Guy said:

“People have been left absolutely powerless when banks fail to stop continuous payment authorities that payday lenders have put in place to collect debts.  In many cases bank accounts are drained over night, without any warning, leaving people without money to get to work or pay for food.  Up to until now some banks have failed their customers by not stopping the payments when requested.  We’re pleased that, with the help of our evidence, the Financial Conduct Authority is forcing banks to take action.

“It’s good that people who have previously complained to their banks about the refusal to cancel a continuous payment authority will be able to get some sort of compensation.  Many people are caught out by ongoing subscription for things like magazines and gym membership and find themselves passed from pillar to post between banks and retailers when they try to cancel the payments.”

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.