digidiverdeb:is it legal for them to automatically put me on a credit account

Yes. If you don't pay, they can put put your details in a black folder and stick whatever colour stickers they like on the cover. There are a few abusive terms that they wouldn't be allowed to write on the drawer with similar folders in it but "credit accounts" is not one of them.

You haven't entered into a credit agreement though. All that has happened is that, by virtue of the money becoming owed, the company had become your creditor.

I agree that they should have communicated the situation a lot lot better. Any business that lasts will have found out that it is always best to try saying "please" a few times before getting nasty. A handful of repeat orders or recommendations to friends is always going to be worth more than the value of a single small purchase.

Thanks for your advice. One more question is it legal for them to automatically put me on a credit account if a credit card payment doesn't go through even though I had not agreed to it - don't both parties have to agree a credit contract?
I believe, because I was an online shopper, they should have notified me by email that the card payment didn't process and offer me an alternative option of paying for the goods.
Any further advice would be appreciated.
Thanks

If you hadn't paid then yes, you owed them the cost of the goods. You are within your rights to dispute any unreasonable charges. I believe that 8% per year is considered reasonable but £12 per month is not. You should check that your cheque has cleared and, if it has, you can ask your bank for a copy of the cleared cheque to prove payment to anyone who comes knocking at your door.

Your case is strong but you could have written "eighteen pounds and 49p to pay in full for item 123456 purchased 1 March 2006" on the cheque to make your case even stronger.

Hi I need some help and advice! I originally shopped online with Oxendales in Dec 2004 and paid for the goods on checkout using my credit card - all well and good. In May 2005 I moved to Spain but in March 2006 I wanted to order again from Oxendales so logged in using my account number and proceeded to the online checkout paying £18.49 and using my mothers address for the delivery (UK). I paid once again using my credit card (or so I believed). The goods arrived and I thought nothing more about it until now. My mother has received a debt recovery letter from an agency employed by Oxendales saying I owe them £119.85. I have since had several email contact with Oxendales and the debt agency explaining my belief that I paid using my credit card and Oxendales have responded with it likely that the credit card payment did not process and therefore they automatically opened a credit account on my behalf. Another complication....my mother moved house just after the goods were ordered and therefore no communication about the non payment was received and now they have added £12 per month for non payment. I have tried to argue with the following points but I'm not sure how I stand legally. 1. I believe I had paid for the goods using my credit card 2. At no time did I sign up for a credit account 3. I had no reason to advise a change of address as I had no plans to make any further purchases with them - although they could have made contact with me by email as this is registered with them - they tell me its not their policy to make contact in this way. 4. Even now when I log onto my account there is no note of any monies outstanding with them. 5. Having explained everything to the debt recovery agency they replied stating that they had handed the account back to Oxendales - do they think they are onto a loser? 6. I can find no record of the payment being made on my credit card statement so I have since sent them a cheque for £18.49. Have you heard of similar complaints - perhaps Oxendales don't take the credit card payment intentionally so they can charge 39% apr on the outstanding debt. I would be grateful of any advise on this situation as a matter of principle I won't be bullied into paying something I had no knowledge of. Thanks digidiverdeb