LOCAL NEWS

How does a company know your new credit card number before you give it to them?

May 11, 2023, 10:53 PM | Updated: 11:04 pm

SANDY, Utah — If you cannot stop automatic payments from hitting your credit card, you might cancel that card and get a new number. However, when Kevin Patterson tried that, his credit card company gave his new number to the very company he was trying to stop.

Patterson is making payments on a debt that he owes. Every month, he pays $150 towards that debt using his Capital One credit card. When he was ready to make the final payment to pay off the balance, he says he checked with Capital One to ensure those automatic payments stop.

“They’re my credit card company,” he said. “I can say, ‘pay this guy’, or ‘don’t pay this guy.’”

Patterson says Capital One told him that the best way to stop the payments is to cancel his credit card and set up a new one. He did. The thing is, the payments did not stop. The new card with a new number has been charged by his lender – twice!

“I’m like, well, what if it was fraud? What if it was a fraudulent charge? How do I shut that down? What do I do?” he asked.

This is a subject we have reported on before. Back in 2020, Grant Larimer was a victim of identity theft. Someone used his name and Capital One credit card to sign up for a membership at a Planet Fitness in California. Larimer told us had never been a member.

“Certainly not in Los Angeles.”

He reported the fraud to Capital One which issued him a new card. But then Capital one gave the gym Larimer’s new card number, allowing the bogus charges to continue. Turns out, Capital One as well as other major credit card issuers, will share a customer’s new credit card number with a merchant.

“It’s a service to make sure the customer doesn’t miss a payment just because they got a new card,” said LendingTree chief credit analyst, Matt Schulz. “It allows that card to be updated automatically without you having to take the time to go in and do it.”

But it can backfire when the whole point of cancelling the card was to make the payment stop.

“Updating services can throw people off and can seem a little intrusive for folks,” Schulz said.

“We’re $300 into these guys now,” Patterson said the recurring charge hitting his credit card.

He was able to get in touch with the merchant and get the company to put the kibosh to the automatic charges. But he offers this warning: Just because you cancel a credit card, that does not guarantee the charges will stop.

In a statement, Capital One told us they have digital tools to help customers manage their recurring charges. That includes the creation of a virtual card for a specific store. Then, cardholders can set custom expiration dates that automatically lock their virtual card after a specific date and thus preventing additional charges.

KSL 5 TV Live

Local News

Matt Gephardt working with Bona Rose on the CarChex documents....

Matt Gephardt and Sloan Schrage, KSL TV

Get Gephardt: West Valley woman says her extended car warranty claim was denied unfairly

Many drivers buy an extended auto warranty to cover unexpected repair bills. But when a West Valley City woman turned to her warranty provider for major help on her car's transmission, they turned her down - repeatedly.

1 hour ago

Moments before a Salt Lake City woman is hit by a white car in the Avenues....

Eric Cabrera, KSL NewsRadio, Garna Mejia and Michael Houck, KSL TV

Doorbell camera captures another hit-and-run in Salt Lake City

New doorbell camera shows bystanders rushing to save a woman who may be another victim of an alleged serial hit-and-runner.

2 hours ago

A view of the West Temple and 200 South intersection in Salt Lake City....

Michael Houck

A major downtown Salt Lake City intersection will close from April to May

Starting April 1, the West Temple and 200 South intersection will be closed as crews replace natural gas lines.

3 hours ago

Researchers gathered in a Weber State University room for a Air Quality Summit....

Mike Anderson

Air Quality Summit puts focus on Utah air pollution and solutions

Many of the researchers who study Utah's air pollution problems are sharing what they've found while working to find solutions during Thursday's Air Quality Summit.

4 hours ago

Keith Stebbings (right) confronting Loren Richardson (left) after Richardson allegedly entered his ...

Shelby Lofton

‘He wasn’t intending to hurt anybody’: Brighton homeowner attorney says snowboarder confrontation was a misunderstanding

The Brighton man armed with a gun while confronting a snowboarder in a viral video is now facing criminal charges. But his attorney says he had the right to protect his property.

5 hours ago

Follow @KSL5TVLike us on Facebook...

Eliza Pace

VIDEO: Watch the moment a UHP trooper stops a 12-year-old driving on the freeway

Utah Highway Patrol responded to a call of a reckless driver. They didn't know until after they stopped the car that it was a 12-year-old driver.

6 hours ago

Sponsored Articles

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

How does a company know your new credit card number before you give it to them?