Canceling charges are difficult with automated payments

It is the modern amenities and facilities that make life extremely smooth. But in case of a small error, these facilities can make life extremely difficult as well. I know you are probably wondering why I’m trying to sound philosophical when we are here to discuss credit cards. Well, this little bit does have something to do with credit cards, or rather, the automatic payment facility offered by certain credit card companies.

If you are one of those who make use of automatic payments to pay your bills, then here’s a bit of news for you. It can be extremely tiresome to cancel such arrangements. I know this should actually be a cakewalk. Now there didn’t seem to be any hitch when you signed up for the service so why the trouble now? Well, all one can say is, ‘such is life’. According to certain debt counselors, lawyers and Better Business Bureaus around the country, the number of complaints from consumers is increasing considerably. Most of them complain about their inability to stop the recurring bills charged to their bank accounts and credit cards. And to make matters worse, these rules differ depending on whether your payments are linked to a bank account or credit card. Now, unable to stand the frustration any longer, people have even begun filing lawsuits against vendors or their banks to keep the charges from recurring.

Meanwhile banks, which have been bearing the brunt of complaints, say that they are unable to cancel recurring credit-card charges when a consumer has signed a long-term contracts like an extended gym membership. However, things are not as bad as they sound. In response to this troublesome issue, credit card companies Visa USA and MasterCard International say they've upgraded their systems. The new system is supposed to help banks and consumers more efficiently stop automatic payments.

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April 13, 2006 in Mastercard, Tips & Advice, Visa | Permalink




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