Credit Card..? Still Valid When Expired?! ‘…LAZARUS’ !! #CPA’s Part II

From No More Excuses

Well it seems so…

After lengthy talks with the retailer concerned in this retail fiasco of using EXPIRED Credit Cards – for whatever reasons – it seems they intend to carry on happy with that format (their representative was based in the Phillipines just so you know).

Which is a woeful shame and pity (the practise not the place).

So we have a major impasse by a major worldwide retailer ready to flounce what Laws we have here in the UK – and the EU – and I suspect elsewhere too.

Quick recap then. MAJOR Retailer is using EXPIRED Credit Cards to force through payments by getting previous details of the card from a MAJOR CREDIT CARD operator.

They claim this is permitted under a ‘Continuous Payment Authority’. (They make no apology for doing so…)

It ISN’T.

Ever since I’ve been in Retail & Finance (and banking) some flourtiy years…err, Hmmm! Anything done with Credit Cards via normal retail and now online retail is and has been covered by the Consumer Credit Act. That clearly states that such any and all transactions can only be done using a VALID…. I’ll repeat… *VALID* card.

It is drilled into merchants up and down the land and Banks and other card issuing Institutions.

Thus when this rouse was explained to my bank they initially baulked and shuddered in disbelief. Subsequently after speaking again to them they admitted to having a system in place where they will ‘flag up’ ANY ‘Continuous Payment Authority’ irrespective if notified by customers.

Do I still want to call it ‘ILLEGAL’…

Well what do you call using  EXPIRED credit card details? I called it ‘Lazarus’! Literally raising the dead. So you tell me, using an INVALID Credit Card is correctly BANNED by the Act.

It is FRAUD should you contravene the Consumer Credit Act. Any card transaction not covered by the Act is BANNED (and to be sure, by implied terms using an INVALID card is BANNED).

I suspect the real reason I couldn’t speak to the Credit Card company concerned is the mere use of the word ‘illegal’. Hope they did shudder. But then again the whole of using Continuous Payment Authority as a means to make a card transaction is still contentious despite being refined in 2009. A sore point.

However, here we are. You must use a valid card at all times, they can only accept a valid card at all times. I do not see it any other way. There is no excuse not to.

My bank/card issuer is to be applauded if they can stop EXPIRED cards from being used within their system. Right answer deserves a mention for good service. Well done Tesco Bank.

Now to stop the Credit Card company. No More Excuses. No more Pandora’s box.