Looking for advice on this situation. Company Keeps Debiting My Account After I Canceled - $1,400 Taken Any guidance would be greatly appreciated.
Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?
This happened to me with a different processor. The demand letter approach works — cite their Terms of Service provisions about timely disbursement and threaten arbitration. Most processors settle to avoid the cost.
File a complaint with the CFPB immediately. Payment processors and banks respond much faster to regulatory complaints than to customer service tickets. I've seen $20K holds released within a week after a CFPB complaint.
This happened to me with a different processor. The demand letter approach works — cite their Terms of Service provisions about timely disbursement and threaten arbitration. Most processors settle to avoid the cost.
For anyone in this situation: don't rely on a single payment processor. Always have a backup processor ready to go. Diversification isn't just for investments.
Keep in mind that payment processor disputes are governed by the contract you signed, not consumer protection law (since you're a merchant). Read your merchant agreement carefully for the dispute resolution process.
This happened to me with a different processor. The demand letter approach works — cite their Terms of Service provisions about timely disbursement and threaten arbitration. Most processors settle to avoid the cost.
This happened to me with a different processor. The demand letter approach works — cite their Terms of Service provisions about timely disbursement and threaten arbitration. Most processors settle to avoid the cost.
For anyone in this situation: don't rely on a single payment processor. Always have a backup processor ready to go. Diversification isn't just for investments.
Keep in mind that payment processor disputes are governed by the contract you signed, not consumer protection law (since you're a merchant). Read your merchant agreement carefully for the dispute resolution process.
Update: Thanks everyone for the guidance. I consulted with an attorney and we're moving forward. The advice here helped me understand what questions to ask and what to expect. Will update when there's a resolution.
Canceled a gym membership 6 months ago. They're still debiting my bank account $49/month via ACH. I've called them 3 times — each time they say it's canceled but the charges continue. I've filed disputes with my bank for the last 2 months and they reversed those charges, but the gym keeps re-initiating the debits. How do I stop this permanently?
@ConsumerVictim_Laura — Several options: (1) ACH block — tell your bank to place an ACH block on the gym's originator ID. This prevents them from debiting your account regardless of what they try. (2) Reg E complaint — file a formal Regulation E dispute with your bank for all unauthorized debits after your cancellation date. (3) CFPB complaint — file at consumerfinance.gov. This gets attention. (4) State AG complaint — unauthorized recurring charges after cancellation are a violation of state consumer protection laws in virtually every state. (5) Demand letter — send a written demand for refund of all post-cancellation charges, with a deadline. If they don't comply, file in small claims. (6) Document everything — your cancellation confirmation, call logs, bank statements showing continued charges. This pattern (continued billing after cancellation) is one of the most common consumer fraud complaints and regulators take it seriously.
I went through this exact situation with a gym that kept charging me $79/month for 18 months after I canceled. Total unauthorized charges: $1,422. Here is the step-by-step process that got me a full refund plus additional compensation.
First, understand your rights under the Electronic Fund Transfer Act (EFTA), codified at 15 U.S.C. Section 1693. For unauthorized ACH debits, you have 60 days from the date the statement showing the unauthorized charge is sent to you to notify your bank. If you notify within 60 days, your liability is limited to $50 per transaction.
I immediately called my bank and requested an ACH stop payment on the company originator ID. Under Regulation E (12 CFR 1005.10), your bank must honor a stop payment request if received at least three business days before the next scheduled debit. I followed up in writing as required by the regulation.
For past unauthorized charges, I filed disputes with my bank under EFTA/Reg E for each charge within the 60-day window. For older charges, I sent a formal demand letter to the gym citing the EFTA and my state consumer protection statute. The gym corporate office responded within 10 days and refunded all 18 months of charges plus a $200 goodwill payment. Always file with the CFPB as well, as companies respond much faster to regulatory complaints.