Can Credit Cards Be Auto-Charged Forever?

[webmaster]

What is the name of your state? Wisconsin

I had a company that auto-charges my credit card every 5 months. Even when the the card expired in 1998 they were able to still charge it as I never gave them the new expiration date. About a year ago I stopped paying on the card. In January 2004 they still were still able to auto charge it despite the account being closed. Now just a few days ago they auto-charged it again despite the fact that the credit card company charged off the account to a collection agency which I got rid of with a cease communication letter. How is this possible? Can a company charge a card forever without the correct expiration date? I never bothered to cancel this auto-charge because I thought there was no chance the card could be used. I was unable to use it myself after it went over the credit limit and I stopped paying a year ago. I am just curious if the credit card company is insane or what? Just for the record I have noticed this before where companies could keep charging despite not having the correct expiration date and its only with this card company, Direct Merchants Bank.

[JETX]

"I had a company that auto-charges my credit card every 5 months."
*** What is the charge for?? And what EXACTLY do you mean by 'auto-charge'?? Is this a charge being made for some type of service or contract??

"Even when the the card expired in 1998 they were able to still charge it as I never gave them the new expiration date."
*** They don't need the new expiration date for a continuing charge.

"About a year ago I stopped paying on the card. In January 2004 they still were still able to auto charge it despite the account being closed."
*** Your simply stopping payment does not close the account. Did you close the account in writing with the card issuer??

"Now just a few days ago they auto-charged it again despite the fact that the credit card company charged off the account to a collection agency which I got rid of with a cease communication letter. How is this possible?"
*** Several ways. As asked above, did you close the account in WRITING?? The cease and desist letter to a 3rd party collector has nothing to do with the status of the account.

"Can a company charge a card forever without the correct expiration date?"
*** Yep. You need to take further action to prevent this from occurring. The first of which is to WRITE the charging merchant and advise them of your wish to stop their services. Whether they are actually required to or not will depend on what authority (contract??) they are charging under.

"I never bothered to cancel this auto-charge because I thought there was no chance the card could be used."
*** Your mistake.

"I was unable to use it myself after it went over the credit limit and I stopped paying a year ago. I am just curious if the credit card company is insane or what?"
*** Nope. They just process the charges that are submitted. It is up to YOU as the consumer to monitor your accounts and take appropriate action.
So, exactly what actions have you taken??

[webmaster]

The item is a skin care solution that I get every five months. I was just surprised to get it since the credit card account is delinquent I thought nothing could be charged on it. I'm trying to work out a payment plan with the credit card company since my balance on the card is over $12,000 I was unable to make the old minimum payments which was over $300 and mostly interest. Since I have only two accounts I have not paid on I would rather not claim bankruptcy over two credit cards. I guess I will have to cancel the skin care solution. Frankly I still think its odd that a credit card company accepts charges on a card that has been delinquent for a year, and was charged off to a collection agency months ago. Months before that the credit card company said they closed my account due to non-payment. Seems rather foolish to accept charges on an account that is closed.

[HomeGuru]

I repeat the question by JETX; "What action have you taken?"
Did you cancel the card by sending a certified rrr letter along with the card instructing the credit card company to cancel your account?
I doubt that you did.

[webmaster]

No I never canceled the account. I just stopped paying. The company canceled the account because I haven't paid for a year. Kind of pointless now to cancel the account. I tried to close another credit card account one time, but I was told I couldn't unless I paid the balance in full which I can't do on any of my credit cards.

[HomeGuru]

Oh brother. JETX, go for it.

[JETX]

Originally Posted by HomeGuru

Oh brother. JETX, go for it.

No need.
Clearly, the writer has/had a credit card account.
Clearly, the merchant had the writers account information.
Clearly, the writer ordered and accepted the product shipments.
Clearly, the writer has NO claim against the merchant.... or credit card issuer.
Seems clear to me!!

[HomeGuru]

I can see clearly now****************************...
it's a bright, bright, bright sunshiney day.

[HomeGuru]

No**************.since you mispelled my email address;
it is [email]homeboy@americanidol.com[/email]

Originally Posted by webmaster

No I never canceled the account. I just stopped paying. The company canceled the account because I haven't paid for a year. Kind of pointless now to cancel the account. I tried to close another credit card account one time, but I was told I couldn't unless I paid the balance in full which I can't do on any of my credit cards.

So, you still get the product, but you didn't want to pay for it?

You need to first cancel your obligation with this company that is sending you the product. NO MORE SKIN CARE! And you need to do it in writing, delivery receipt mailing. In the same cancellation, you need to tell them to cease charging your account for said product.

Now, you need to freeze your card so that charges that are trying to go through are no longer valid. Call the credit card company, explain the situation and hope that they help you. Since you just "'quit paying" the card though, you are at their mercy.

I can't believe you are still getting the product, never cancelled it, but thought "ha, they can't charge me for it anymore!". Did you really think you were getting something for nothing?