Don't use your credit card for recurring payments!
While direct debits are an integral part of many people's financial lives, and can in some ways reduce expenditure by simply taking the exact money from your account on a regular basis, there are concerns that people believe their credit cards operate in a similar manner. An investigation by the Daily Mail has concluded that more and more people are using their credit cards to set-up what are known as "recurring payments", under the impression they operate in the same manner as direct debits.
Unfortunately, more and more people are paying the price for recurring payments on their credit cards because even if the service you subscribe to is cancelled, many companies have been known to continue taking payments. The problem is that neither the credit card company nor the credit card holder can themselves cancel the recurring payments, which can only be withdrawn by the underlying company involved.
There are numerous examples of Internet service providers taking monthly payments from credit cards even though services had been cancelled and accounts moved - this has been replicated in other areas of business. It is vital that you ensure payments stop as and when you unsubscribe to a particular service and if there are any problems you need to ensure that the underlying company is made aware of them as soon as possible. Failure to monitor and react to problems on your credit card can add up and potentially cost hundreds if not thousands of pounds.
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