Can a hotel keep my credit card "on file" without my permission?

Question Details:

I just got my credit card statement and noticed there was a charge from a local hotel for $220. When I called them to contest the charge (I had not stayed there) they said it was a mix-up as my credit card is on file with them from my wedding the previous year when I reserved a block of rooms. One of the guests had come back to stay and somehow even though he had paid for his room previously it kicked it back to my card when he said charge it to my card for this trip! I did not give them permission to keep this card on file and especially not for this long! Can they do this? What can I do? Important Notice