Friend of mine closed a CC about a year ago. Recently, he was sent a bill for a charge from a magazine that renewed. Again, the account was closed, the charge went through and he was billed. Are there violations here?
All that they can do is CHARGE IT BACK TO THE MAGAZINE...(or pay the bill)--THEN NOTIFY THEM IT MUST BE 100% CLOSED TO 100% OF ALL CHARGES... When you close an account they ALWAYS say notify ALL automatic billing companies for you card to give them a new account number... VIOLATION??? LIKE $1,000??? I DON'T THINK SO
Section 162 of the Fair Credit Billing Act (15 USC 1601) protects your friend against negative credit reporting associated with non-payment in this circumstance if he disputes the charge as incorrect with the creditor (the "obligor" in FCBA-speak). Doc
