Summer 2006
As the use of automatic bill payments skyrockets, more consumers are finding it difficult to stop the recurring bills - in the event of a move, for example - charged to their credit cards and bank accounts. But many people attempting to stop these payments are confused by the rules they must follow.
Credit card companies say some consumers mistakenly believe they need to contact only their card issuer to stop recurring charges. In fact, it's up to the consumer to contact the vendor directly. If a vendor persists in charging a credit card, consumers can dispute the item in writing within 60 days after it shows up on a statement.
More protections are available for people who want to cancel recurring bills paid directly through a checking account or put on a debit card. Banks are required to stop making automatic deductions from your account upon request at least three days before the payment is made. Some banks also require written instructions, which they must tell consumers to provide.
Some credit card companies are upgrading systems to help banks and consumers more easily stop automatic payments. Visa, for example, says it offers a service that fully automates the cancellation process.