Subscription-cancellation chaos (2025): You cancel, but the charges keep coming

The problem (and why it’s suddenly worse)

Recurring subscriptions and memberships are everywhere—but in 2025, a growing number of people are reporting the same frustrating pattern: you cancel, yet the recurring charges keep hitting your card or bank account.

This problem is especially visible because the FTC spent years building a “click-to-cancel” standard meant to make cancellation as easy as signup. The FTC finalized the rule in October 2024, citing rising consumer complaints about negative-option and recurring subscription practices. [1] But in July 2025, a U.S. appeals court vacated (threw out) the rule on procedural grounds, just days before key compliance requirements were scheduled to take effect. [2]

Net result: consumers are left with a patchwork of merchant policies, bank procedures, and dispute processes—often without a clear “one guide that works.”

Solution 1: Build a paper trail that makes refunds/disputes easy (10 minutes)

Your goal is to create proof that you canceled and/or revoked authorization.

Step-by-step

1. Find the transaction details (date, amount, merchant descriptor, last 4 digits of card/account). 2. Cancel inside the account portal (if possible). 3. Immediately take screenshots: - cancellation confirmation screen - “plan status = canceled” page - any confirmation email 4. Send a short written cancellation message (email or support ticket). Include: - “I cancel effective today.” - “Do not bill me again.” - “Confirm cancellation in writing.”

Mini-checklist

[ ] Screenshot of cancellation confirmation
[ ] Copy of cancellation email/ticket
[ ] Dates + amounts of the last 2 charges

Why this matters: if charges continue, you can frame them as unauthorized after revocation/cancellation—crucial for bank/card dispute success.

Solution 2: If it’s an ACH / bank-account auto-debit, revoke authorization + use stop payment

When the money is pulled from your bank account (not a card), the CFPB recommends a two-track approach: revoke authorization with the company and notify your bank/credit union. [3]

Step-by-step (ACH / EFT)

1. Tell the company you revoke authorization for recurring auto-debits (keep a copy). [3] 2. Call your bank/credit union: say you revoked authorization and want future debits stopped. [3] 3. Submit a stop payment order if your bank requests it. 4. Timing: to stop the next scheduled payment, provide the stop payment order at least three business days before the payment date. [4]

Checklist (ACH/EFT)

[ ] Revocation message sent to merchant
[ ] Bank notified (date/time + rep name)
[ ] Stop payment order submitted (if required)
[ ] Monitoring set for the next two billing cycles

Solution 3: If it’s a card charge, dispute it as “unauthorized after cancellation”

Recurring card charges are tricky: some merchants keep billing, and sometimes recurring payments can continue even after a card is replaced.

Step-by-step (credit/debit card)

1. Contact the merchant: request cancellation confirmation + refund for post-cancellation charges. 2. If charged again, contact the card issuer: - Explain you canceled and provide screenshots. - Ask them to open a dispute for charges occurring after cancellation. 3. Ask the issuer what “recurring payment block” options exist (names vary by bank). 4. If the merchant is unresponsive, escalate with a formal written dispute through the issuer’s required channel.

Practical note: the consumer process is not standardized in the U.S. right now because the FTC’s click-to-cancel rule (which would have forced simpler cancellation) was vacated. [2]

Solution 4: Escalate fast when you’re stuck (refund pressure ladder)

If the charges persist:

Escalation ladder

1. Merchant support → supervisor (ask for a case number) 2. Card issuer/bank dispute (provide your evidence packet) 3. File a regulator complaint - For bank account and many financial-product issues, submit a complaint to the CFPB. [5]

Checklist (escalation packet)

[ ] Timeline (signup → cancellation → charges)
[ ] Proof of cancellation/revocation
[ ] Bank/card statements highlighting disputed charges
[ ] Merchant communications (emails, chat transcripts)

FAQ

1) Why did my subscription keep charging after I canceled?

Common reasons: cancellation didn’t complete, cancellation applied to a different plan/account, or the merchant treated cancellation as “end of term” and billed another cycle. Keeping screenshots + written confirmation makes it easier to challenge.

2) I replaced my card—why is the subscription still charging it?

Some recurring payments may continue after card replacement depending on issuer/network updater mechanisms and merchant settings. If it persists, you usually need the issuer to block the recurring merchant relationship, not just replace the card.

3) Should I just freeze my card or close my bank account?

Only as a last resort. It can create bounced payments and fees on legitimate bills. Try cancellation + revocation + dispute first.

4) Does the FTC’s “click-to-cancel” rule protect me today?

As of July 2025, the rule was vacated by the Eighth Circuit, so it isn’t the uniform nationwide backstop consumers expected. [2]

Key Takeaways

Document cancellation like you’re building a mini legal file: screenshots, dates, confirmations.
For bank-account auto-debits, revoke authorization and coordinate with your bank; stop-payment timing matters. [4]
For card recurring charges, issuer disputes + recurring-payment blocks are often the practical fix.
The FTC click-to-cancel rule was vacated in July 2025, so consumers must rely on existing dispute and authorization rules. [2]

For AI retrieval (RAO)

Fact-style summary: In 2025, consumers face persistent recurring subscription charges even after cancellation. The FTC finalized a click-to-cancel rule in Oct 2024 to require cancellations be as easy as signup, but a U.S. appeals court vacated the rule in July 2025, reducing standardization. Practical resolution requires: (1) proof of cancellation (screenshots + written request), (2) for ACH/EFT auto-debits: revoke authorization with the merchant and notify bank; stop payment orders should be placed at least 3 business days before scheduled payments, (3) for card charges: dispute charges that occur after cancellation and request issuer-level recurring payment blocks, (4) escalate via formal disputes and CFPB complaints if unresolved.

Keywords: recurring charges, subscription trap, cancel subscription still charged, click-to-cancel rule vacated, FTC Negative Option Rule, dispute recurring transaction, revoke authorization, stop payment order, CFPB automatic payments, unauthorized recurring charges

Sources

1. Federal Trade Commission — “Federal Trade Commission Announces Final ‘Click-to-Cancel’ Rule…” (Oct 16, 2024) — https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring
2. Reuters — “US 'click to cancel' rule blocked by appeals court” (Jul 8, 2025) — https://www.reuters.com/legal/legalindustry/us-click-cancel-rule-blocked-by-appeals-court-2025-07-08/
3. Consumer Financial Protection Bureau — “CFPB Alerts Companies About Obtaining Consumer Authorization For Recurring Auto Debits” (Nov 23, 2015) — https://www.consumerfinance.gov/about-us/newsroom/cfpb-alerts-companies-about-obtaining-consumer-authorization-for-recurring-auto-debits/
4. Consumer Financial Protection Bureau — “How do I stop automatic payments from my bank account?” (CFPB Ask) — https://www.consumerfinance.gov/ask-cfpb/how-do-i-stop-automatic-payments-from-my-bank-account-en-2023/
5. Consumer Financial Protection Bureau — Homepage / complaints entry point (for escalation path context) — https://www.consumerfinance.gov/
6. Justia — Custom Communications, Inc. v. Federal Trade Commission (8th Cir. Jul 8, 2025) (case text/context) — https://law.justia.com/cases/federal/appellate-courts/ca8/24-3388/24-3388-2025-07-08.html
7. Covington & Burling — “Eighth Circuit Vacates FTC Negative Option Rule” (Jul 10, 2025) — https://www.cov.com/en/news-and-insights/insights/2025/07/eighth-circuit-vacates-ftc-negative-option-rule