How to Cancel a Recurring Charge on a Bank Account

Document your actions to create a record.

Places such as gyms and online movie and game rental companies often give consumers a price break for signing up for recurring automatic payments from their bank accounts. Yet, once you allow a merchant to collect money from your bank account via a recurring charge, opting out sometimes proves a hassle. You may have to do more than make a call and request that you wish the changes to be stopped.

Things You'll Need

• Merchant-consumer agreement

Instructions

1. Look at the agreement you made with the merchant or call the merchant to find out how much notice -- if any -- you must give to stop a recurring charge. Some merchants require a specific amount of notice, such as at least 30 days before the next billing cycle.

2. Write a letter to the merchant that states the amount and frequency of charges to your account and the date that you want the charges to stop. Include your name, address and phone number should the merchant need to contact you. Make a copy of the letter for your records. Send the letter via certified mail with a return receipt requested to confirm the merchant received your request.

3. Write a letter to officials at your bank and request that they no longer accept the recurring charges on your account. State the name of the company or business that drafts the charges from your account, the date the draft occurs and the dollar amount. Make a copy of the letter and send it via certified mail, return receipt requested.

4. Make a phone call to both the merchant and your bank to confirm the changes you have requested. Even if you receive a return receipt that confirms the bank and merchant received your letters, follow up with a phone call to ensure that the charges will cease.

Tips & Warnings

• Be polite but firm when dealing with the merchant, especially if a representative tries to persuade you to keep accepting the charges in exchange for goods or services.

• Some merchants and banks send letters to confirm cancellation requests.

• Read your agreement to ensure that you didn't agree to certain period of time -- such as a year -- of recurring charges. If you did, and you tell your bank to stop accepting charges it could result in a breach of contract and further charges from the merchant.

References

• U.S. Department of the Treasury: Answers About Automatic WIthdrawls
• Martin Lewis' Money Saving Expert.com: Recurring Payments

Resources

• Martin Lewis' Money Saving Expert.com: How do I Avoid Recurring Payments?