> turning off the card doesn't actually end the agreement between you and the company
I know of two hedge funds who buy these claims at a discount and pursue them. If you aren’t concerned with your credit score it probably isn’t a problem; I doubt either sues.
Businesses have customers whose cards have been declining, e.g. someone who used Privacy.com to rotate the card number but never actually cancelled their contract. The fund buys those claims for unpaid bills for pennies on the dollar. They then send collection notices to collect those bills. If you don’t pay, it goes to collections, which is reportable to the credit reporting agencies.
Came up in a personal discussion where I admitted I sometimes do this with my Apple Card.
I know of two hedge funds who buy these claims at a discount and pursue them. If you aren’t concerned with your credit score it probably isn’t a problem; I doubt either sues.