My credit card won’t die.
On August 1 I cancelled a Chase credit card. I cancelled it because I couldn’t get rid of fraudulent recurring charges by contacting the merchant.
A few months ago I had tried asking for a new card with a new number, in the past that always worked to clear out all the BS recurring charges (gym memberships, etc.). The charges blasted right through that new card.
I wrote the blog post because I was surprised in the change in the law that allows credit card banks to continue to push recurring merchant charges even after a card had been claimed lost or stolen.
But it turns out it’s even worse than that. Yesterday I received a bill for that cancelled credit card. The account was closed, said the bill, but there was a new charge for $40.
I called Chase. They told me that even though I had cancelled the card merchants could continue to bill me.
Basically, any merchant that had a recurring billing relationship with me can keep billing that card even though it is a closed account. All I can do is pay the charges or go through the dispute resolution procedure.
This raises an interesting philosophical question – How does Chase manage to continue to accept charges on my behalf when we’ve ended the contractual relationship? Can an account really be called “closed” when people can still run charges through it?
That’s something I’m going to explore by actually reading my credit card agreement. Shudder.
The merchant won’t deal with me because they don’t want to deal with me. My bank won’t stop them.
My only recourse is to go through the full dispute process and all the paperwork it entails.
The guy from Chase was interesting. He said that this was really necessary because so many people defraud merchants by getting out of recurring charges.
I really don’t think I’m going to be giving out my credit card so freely in the future.