Re:Using Zipcar may damage your credit
by tzs on Sunday September 19, 2010 @04:47PM
(#1706919)
> Your credit card failed processing and Zipcar kept your service up and prompted you to update the card. That seems like a great way to go.
How about threatening to send it to a collections agency? Was that a great way to go too?
I work at a company that offers a subscription service. If someone failed to re-bill and we threatened to send them to collections, most of our customers would react to such a threat in one of two ways.
1. Immediately cancel their account.
2. Quickly cancel their account, but after one of our re-billing attempts had gone through, in which case they would also demand a refund (if we are lucky) or would complain to their credit card company and we'd end up with a chargeback. Enough of the later and the banks get annoyed.
We've found in fact that a lot of people who have stopped using our service forget that they are on automatic billing. We successfully charge them, and then they cancel. We give them a full refund if they cancel reasonably soon after the renewal.
How about threatening to send it to a collections agency? Was that a great way to go too?
I work at a company that offers a subscription service. If someone failed to re-bill and we threatened to send them to collections, most of our customers would react to such a threat in one of two ways.
1. Immediately cancel their account.
2. Quickly cancel their account, but after one of our re-billing attempts had gone through, in which case they would also demand a refund (if we are lucky) or would complain to their credit card company and we'd end up with a chargeback. Enough of the later and the banks get annoyed.
We've found in fact that a lot of people who have stopped using our service forget that they are on automatic billing. We successfully charge them, and then they cancel. We give them a full refund if they cancel reasonably soon after the renewal.