Zombie Subscriptions: When the Bank Keeps Paying After You Said Stop

You signed up for a gym membership or a streaming service. You tried to cancel, but they kept charging you. So, you called your bank and said: “Stop payment. I revoked my authorization.”

The next month, the charge went through anyway. The bank says, “You have to work it out with the merchant.”

The bank is lying.

Your Right to Stop Payment (12 C.F.R. § 1005.10(c))

Under federal law, you have the absolute right to stop payment on any preauthorized electronic fund transfer. You simply need to notify your financial institution (orally or in writing) at least 3 business days before the scheduled transfer.

The Bank’s Duty

Once you notify the bank that you have revoked authorization, the bank must block the charge. They cannot pass the buck to the merchant. If they allow the charge to go through after you told them to stop it, the bank is liable for the amount of the transfer and any damages caused (like overdraft fees).