Autopay is a convenient system that automatically deducts subscription services from your credit card or bank account. Not all auto pays are the same, however—some are billed weekly, monthly, annually, or even every few years. Keeping track of these auto pays can be difficult, and it’s easy to find yourself in a situation where you are paying for a service long after you no longer want or need it.
If done incorrectly and not in accordance with the company’s user agreements and billing policies, you may find yourself receiving calls from a debt collector. If you’ve recently gotten calls from a debt collector for a debt that isn’t yours, you might consider seeking the services of a licensed credit repair company in Atlanta, Georgia.
How to Cancel Auto Pay the Right Way and the Wrong Way
The Right Way
Before canceling an autopay, it’s important to read the company’s terms and conditions and billing policies. Look for any language regarding cancellation and follow the instructions to the letter. Some companies will require an email, others will want a letter to be sent via certified mail. Other companies will allow you to cancel with a single click, though these companies are difficult to find nowadays.
The most important part is that once you have requested cancellation, you get it in writing from the company that your subscription has been canceled. It doesn’t matter if it’s an email or an actual letter. You should also make a copy of your original cancellation request before you send it–you can do this via email by BCCing yourself.
Should you have any further issues, you’ll have a well-established paper trail to bolster your case.
The Wrong Way
Some people think that simply letting your card expire is a great way to cancel autopay. However, many people may not know that when a card expires, the account numbers aren’t changed, and companies may still continue to bill the card even when the expiration date has changed.
In many cases, the only way to have your card canceled entirely is by telling your bank that your card has been lost, in which case they’ll cancel the account number entirely and issue a new card with a new number. This might work, but you should always read the terms and conditions before canceling. In some cases, failure to pay does not constitute cancellation of your subscription.
In cases where no formal cancellation notice is sent, it’s entirely possible that the subscription service can take you to court or send your account to collections— oftentimes with late charges and interest tacked on. You may not even know about this until years later, which may be why Credence keeps calling you.
Credit Repair to the Rescue
Working with a legitimate credit repair company like The Phenix Group can help you fight the collections agencies. We’ll work with the credit reporting bureaus, as well as the banks and the collectors, to get to the bottom of their claims. Don’t allow companies like LVNV Funding to Pay for Delete without talking to us first.
Any debts that are found to be illegitimate will be erased from your credit report ASAP. This can lead to a serious rebound in your credit score, oftentimes enough to allow you to be approved for loans with lower interest rates.
An experienced credit repair company will also work with you side by side to evaluate your personal credit profile and make recommendations on how you can improve your credit score. You can do this through many of the things you’re already doing, such as paying your bills on time and maximizing how you utilize your credit cards.
Auto Pay and You
Auto pay is a helpful feature, but it’s important that you end it the right way. If you get into trouble, The Phenix Group is here to help you sort it out and get your credit back where it belongs.