When Georgia consumers sign up for gym memberships or classes of any kind, they often put a credit card on file with the service provider. This way, the company can automatically collect monthly payments. Also, the participant normally signs a contract with the service provider. So, what if a Georgia consumer becomes dissatisfied with the service before the contract ends? If the gym or studio in question won’t let them out of the contract, they may think of canceling the credit card on file. However, that isn’t a great option. Luckily, there are better ways for consumers in Georgia to cancel service contracts and end unwanted credit card charges without damaging their credit scores.
Why Canceling Credit Cards to Stop Service Contract Payments is Bad for Georgia Credit Scores
Typically, the best way for Georgia consumers to cancel service contracts is to submit a cancellation form. If the company doesn’t honor your request, canceling the credit card used for automatic payments is NOT the best plan of attack. Unfortunately, when Georgia consumers take this tactic, two negative things can happen.
First, is the credit card is an older and established account? If so, cancelling it reduces the overall age of your credit history. It also brings down your total amount of available credit, and both of these things can cause credit score drops.
Next, if the service provider doesn’t receive payment, they can turn your account over to debt collections. Then, the debt collector reports the delinquency to the credit bureaus, and your credit score can fall by as much as 100 points if it is in the 700+ range. In addition, unless challenged, this negative item may stay on your credit reports for up to seven years.
The Best Ways for Georgia Consumers to Stop Payments on Unwanted Service Contracts Without Damaging their Credit Scores
If a Georgia service provider won’t comply with your requests to cancel a contract, using a chargeback might (safely) stop charges to your credit card. A chargeback is a service offered to card holders by issuers to protect consumers against faulty goods or services. To initiate a chargeback, simply file a complaint with your credit card provider.
Once a customer issues a complaint, the credit card issuer credits the credit card in question with the challenged amount. Then, the credit card company issues the debit to the service provider. It then gives them an opportunity to challenge the chargeback. During this part of the process, the card issuer also stops negative credit bureau reporting on behalf of their customer.
Finally, once the challenged company responds, the credit card company weighs both sides of the argument. If it finds that the New York consumer is in the right, the charge stays off their credit card. However, if the merchant prevails, the credit card issuer withdraws the chargeback and puts the contested charge back on the customer’s account.
If a credit card user in New York attempts a chargeback and fails, they can always take the service provider to small claims court. Luckily, even if your credit card issuer enforces a mandatory arbitration agreement, it is likely that they make exceptions for small claims court cases. Most credit card companies do.
Why Georgia Consumers Who Use Automatic Credit Card Payments Should Regularly Check their Credit Reports
Whether you are happy with your services or not, if you keep a credit card on file with a company for automatic payments, you should monitor your credit reports. This is the best way to ensure that all of this credit card activity is reported correctly. Reviewing your credit reports also allows you to check for signs of identity theft.
Fortunately, the Fair and Accurate Credit Transactions Act (FACTA) makes it free for consumers to check their credit reports from the three major credit reports once every 12 months. Just visit www.annualcreditreport.com to request credit reports from TransUnion, Equifax, and Experian all in one place.
Then, while going over your credit reports, if you spot fraudulent charges or bogus accounts that indicate identity theft, file a police report immediately. New York consumers need copies of these police reports in order to repair identity theft damage on their credit reports. Next, contact Credit Repair Lawyers of America in New York. If, on the other hand, you see credit score damaging errors on your credit reports, call the credit pros at Credit Repair Lawyers of America right away.
When you contact our firm, an experienced credit attorney will do whatever it takes to fix your credit issues and get you clean credit reports – for free.
The Free and Legal way to Get Better Credit in Georgia
Don’t let identity theft damage or errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (404) 591-6680 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit www.creditrepairlawyersam.com/credit-repair-free/. Or, for more information about Free Credit Repair After Identity Theft, check out https://www.creditrepairlawyersam.com/fixing-identity-theft/.