By Chron Contributor Updated September 17, 2020
Paying for things like gym memberships and magazine subscriptions with recurring credit card payments can leave you with a big headache. Recurring card payments let vendors circumvent expiration dates and CVV and card numbers, allowing them to take money from your account even if you've changed your card details. This system can allow unscrupulous merchants to carry on taking your money after you've tried to cancel their services.
Review Your Contract
U.S. News and World Report recommends checking through the service agreement you signed with the vendor that's charging recurring fees to your credit card account. If you signed up to a minimum contract, you'll have little choice but to carry on paying if it hasn't run its course. Stopping payments while you're locked into a contract could have a serious impact on your credit score and could lead to legal action. Even if you are out of contract, you may need to give notice before your service can be canceled.
Contact the Vendor
Write to the vendor that's charging your card and request an end to your service or subscription. Ask for a response in writing. Send your letter by certified mail stating that you want no further money taken from your credit card account once any notice of termination period has expired. You may have to make one more payment if you are required to give notice. Keep copies of any letters you send and any responses you receive.The Federal Trade Commission recommends sending a letter via postal mail to the company's "billing inquiries" address to ensure that your request is processed appropriately.
Contact Card Issuer
If the vendor in question continues to take money from your account despite your request that it stop, you'll need to get in touch with your card issuer and ask that they block the company from charging your credit card. You may need to provide proof that you're not locked into a contract and that you've asked the vendor to stop taking payments from your card. Once you've requested a recurring payment to be stopped, each occasion the offending merchant takes money from your account becomes an unauthorized transaction.
Taking Further Action
Write to your card issuer and demand that the rogue payments be stopped if it fails to act. You're entitled to protection under the Fair Credit Billing Act. Send an automatic payment cancellation letter to your lender's billing inquiries address by certified mail no later than 60 days after the last recurring charge was taken from your account. Your lender must acknowledge your complaint within 30 days of receiving it, and resolve your issue within 90 days. Contact your local Better Business Bureau and your state's attorney general to lodge complaints about the merchant.
