Can A Cancelled Credit Card Still Be Charged? Exploring The Possibilities

What are the consequences when charges are made on a closed credit card account? The responsibility for any outstanding balance on a closed credit card account falls on the primary cardholder. It’s important to note that even after closure, the primary cardholder is still accountable for any remaining balance. However, there’s an additional scenario to consider: if the account was in serious delinquency and the credit card issuer decided to sell the debt to a third-party collection agency, the debt now becomes payable to that third-party collector. This means that you would owe the outstanding balance to the collection agency, rather than the original credit card issuer. Please keep in mind that this information was last updated on March 11, 2021, and it’s essential to consult the latest regulations and terms regarding closed credit card accounts.

“Is it permissible for a merchant to charge a cancelled card?” is a common question, and the answer depends on specific circumstances. In cases of pre-authorized automatic billing, where you’ve entered into a contractual agreement with the merchant, cancelling your card may not necessarily prevent future charges from the merchant. This situation frequently arises with services like gym memberships, magazine subscriptions, and various types of memberships. It’s essential to be aware that simply cancelling your card may not be sufficient to halt these recurring charges. (Note: The date mentioned in the original passage, May 15, 2015, does not provide relevant context and has been omitted in this rewrite.)