Charges on a canceled card?

philip1427

What happens if you cancel a credit card but have forgotten that there is a recurring payment set up with it? Would the credit company notify you of this or would the service you should be paying for just be cut off? What would be the scenario if there was say a gym contract for a year set to be charged monthly to your account - I would presume the company would cancel their service.

This entirely hypothetical. Just something that popped into my head after cancelling a card. I think I have changed over my subscriptions to a new card.

[Deleted User]

It would (or could) be charged and will then appear on a statement that would be generated.

If in doubt, cancel the CPAs at both ends - card and supplier. Never assume any automatic cancellation.

Caz3121

from previous posts on here (there was one about apple music where someone had card that was cancelled) I would expect the supplier to contact you for alternate payment method.
A failed payment on a gym contract would not end the gym contract, the process to cancel would need to be followed and payment would be due until then.

forgotmyname

You may run up a debt until the payments are made in full.

The RAC still take payments even though my card number changed.

If you fail to cancel the gym then the card is likely to be charged at first and then declined when you dont pay. Then you may end up with 2 debts. One for the gym and another for the payments made on the card so far.

A few threads where people have forgotten the final payments on credit cards and received bills or not noticed until they check their credit files.

There is a chance the payment and card cancellation overlap. When you cancel the card its not instant. They will be waiting to see if more bills come in.

eskbanker

Caz3121 wrote: »

from previous posts on here (there was one about apple music where someone had card that was cancelled) I would expect the supplier to contact you for alternate payment method.

I think this is the thread you're referring to, and in answer to OP's question about 'what happens', it would appear that the answer is that you get very stressed!

https://forums.moneysavingexpert.com/discussion/5638958

A_T

Only three things are certain in life: death, taxes and continuous payment authorities

philip1427

That was an example.

Here is what really happened...

Upon cancelling my Amex Gold Credit Card I changed over all my recurring payments, iTunes, Netflix etc etc. The advisor confirmed I have completed all the transfers.
I received an email from 1and1 Internet about a failed payment for a service I had cancelled. I have email confirmation of the cancellation. I rang Amex to see if the payment had gone through on my account. The advisor said they had declined it based on the fact the card was cancelled. I then proceeded to request they block future purchases from this company. She explained this is only possible if an unauthorised charge actually gets put on my card.

My understanding is Amex will continue to block their charges month on month and they will block the merchant if a charge ever comes through as I have proof of cancellation.

Does this seem the correct understanding of the situation? I have not have credit cards for a long time. In fact this is the first time I have canceled one. I worried about accruing interest on a card I have cancelled.

[Deleted User]

If they are successfully blocking any further payments, and you have evidence that you also cancelled the contract with 1and1, all seems well.