Expiring/Cancelled cards on a Continuous Payment Authority (CPA)

[bowlandwalks2013]

Good evening,
Any advice on this would be very much appreciated.
Some customers abuse us by cancelling their card after we've fitted their kitchens. And also, when a card expires, we can never get hold of them.
Does anyone who takes CPA's have a way of automatically updating the card details? Or any tips generally?
Thank you so much in advance,
Tim

 

[Ozzy]

I'm afraid I don't see a simple solution using CPA, it's the nature of the beast. The same would be of using direct debit or even standing orders too.
Your best option would be to look at working with a finance provider instead, in my opinion, considering the nature of your service and typical money involved.

You can then either allow your customers to pay direct in full, or offer them a payment plan with the payment provided by a finance company. They take on the debt and you cut them a percentage of the deal. You lose a cut but at least you know what money you do have coming your way.

I don't know if this is his bag, but he's in the finance industry so may have more knowledge on the matter - @Ian J

 

[Ian J]

I don't know if this is his bag, but he's in the finance industry so may have more knowledge on the matter - @Ian J

I'm afraid that it's not one for me as the companies that I deal with won't get involved if the customer is a private individual as they don't hold Consumer credit Licences.

This isn't something that I have come across before as I assumed that customers either paid cash or arranged their own finance. Certainly when I had my kitchen rebuilt I paid cash in weekly instalments as the work was done

 

[bowlandwalks2013]

Thanks chaps.
We allow people who don't really have good credit to pay weekly, which is why a portion stop paying. The % of non-payers is manageable, but we're just looking for ways to improve it, and I heard that in the US the cards automatically update if a customer cancels or the card expires. I was hoping there might be something similar we can do in the UK.

 

[Newchodge]

Thanks chaps.
We allow people who don't really have good credit to pay weekly, which is why a portion stop paying. The % of non-payers is manageable, but we're just looking for ways to improve it, and I heard that in the US the cards automatically update if a customer cancels or the card expires. I was hoping there might be something similar we can do in the UK.

I think the FCA may have something to say about that. The customer has the right to not pay, just as you have the right to take them to court over it.

I had this happen in reverse about 10 years ago. I had a CPA on a card for some kind of subscription that I wished to cancel. The organisation deliberately made it extremely difficult to cancel, even though I had the right to do so. As my card was due to expire I reported it lost so got a new one with new details, so ending the troublesome subscription. My bank gave the new number to the subscription organisation resulting in a conversation in which the bank said they did this automatically so that I would not have the inconvenience of notifying my suppliers. They agreed that they should not have done that, apologised, refunded and paid compenation.