How to get rid of a CPA
Paul Lewis reveals a quick and easy way to cancel Continuous Payment Authorities.
I never gamble, but I am prepared to bet that if you search your credit card and bank account statements, you will find at least one recurring payment that you will not recognise. They are officially called Continuous Payment Authorities (CPAs) and they are how online firms, which are often based abroad, take money from your bank or credit card account.
It’s easy to set up one of these payments without realising it when you order something online that appears to be a bargain. But it may not be made clear that you are not just buying that one bargain-price item but are committing yourself to pay something every month to belong to that particular bargain club. CPAs can also be taken for gym membership, insurance premiums, online newsletters or tip sheets.
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They are different from direct debits or standing orders that you can only set up by explicitly agreeing to them. With a CPA, all it takes is to tick (or sometimes just not to untick!) a box when you are paying for something online and the payments will be taken directly from your bank account or credit card.
When you find one in your statement it can be hard to work out exactly what it’s for or who is taking it. At that point many people give up because they cannot see a way to cancel it with a firm that may be overseas or not give a working phone number or email address.
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However, the law gives you a very simple way to end them – tell your bank or credit card provider to cancel. It must act on your instruction and if you have told them by close of business the day before the payment is due, it has to refund you if it allows another payment through. If the bank tries to tell you to cancel with the business, remind it of your rights under regulation 67 of the Payment Services Regulations 2017.
After that you can inform the business that is taking the money – or try to. If they are legitimate they will come back to you when the payment is missed. But if they say you have a contract to keep paying you should always dispute it.