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ClearValue Lending

AI Paperwork Confrontation Oracle

How to Use AI for Subscription Cancellation / Chargeback

Use AI to draft an escalation letter when a company ignores your cancellation or charges you after you cancel, and to prepare a chargeback dispute.

Federal law overview

The FTC's 'Click to Cancel' rule (effective 2024) requires that cancellation be as easy as signup. The FTC Act (15 U.S.C. § 45) prohibits unfair or deceptive acts in commerce. Chargebacks are governed by the Fair Credit Billing Act (FCBA) for credit cards and Reg E for debit cards.

Generic AI prompt template

I cancelled my subscription to [COMPANY / SERVICE] on [CANCELLATION DATE] via [METHOD — email, online portal, phone]. Despite my cancellation, [COMPANY] charged me $[AMOUNT] on [DATE(S)]. I have [documentation: cancellation confirmation email / screenshot / call log reference number]. Draft a formal demand letter to [COMPANY NAME, ADDRESS] that: (1) documents my cancellation and the unauthorized charges, (2) demands a refund of $[TOTAL AMOUNT] within [14 / 30] days, (3) states that I will file a chargeback dispute with [BANK NAME] and a complaint with the FTC at ReportFraud.ftc.gov if the refund is not issued, and (4) cites the FTC's Click to Cancel rule and the FCBA if applicable.

State-specific guides — Subscription Cancellation / Chargeback

5 states live now. All 50 states in progress — updated annually.

Frequently asked questions

What is a chargeback and how do I file one? +

A chargeback is a reversal of a charge initiated through your bank or card issuer. For credit cards, you dispute the charge under the Fair Credit Billing Act — contact your card issuer within 60 days of the billing statement date. For debit cards, Reg E gives you 60 days from the statement date.

What is the FTC Click to Cancel rule? +

The FTC's rule, finalized in 2024, requires that businesses make cancellation as simple as signup. If you can cancel with one click online, you must also be able to cancel with one click — not phone calls and runarounds. Violations can be reported to ReportFraud.ftc.gov.

What documentation do I need for a chargeback? +

Keep everything: the cancellation confirmation email or screenshot, the date you cancelled, any subsequent charge receipts, and any customer service correspondence. Banks evaluate chargebacks on the documentation provided.

Can the company retaliate by sending me to collections? +

A company may dispute your chargeback. If your chargeback succeeds, they typically absorb the loss. If they later attempt to send a legitimately disputed charge to collections, you can dispute that debt under the FDCPA. Having your documented cancellation is your strongest defense.

https://clearvaluelending.com/paperwork/subscription-cancellation

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