this was a post of mine on digg.com
http://digg.com/tech_news/Just_Cancel_the_Account_2#c4614103QUOTE
aahpandasrun mentioned Xbox Live gold monthly being a pain... but let me tell you a story about Xbox Live gold for a year and a mom buying it for her high school aged son for his birthday.
A co-worker of mine had me come over and help her with getting her sons 360 connected to their network and on Live. Everything went fine until we got to the credit card. We got the American Express card entered and charged the $50 okay. Informing her that her son could buy anything from the marketplace with her credit card she decided it was a good idea to delete the card from the profile. We struggled for about an hour trying to get the card removed or at the very least password protecting the ability to charge stuff via the parental controls. We gave up and called Xbox Live support.
The customer service lady informed me that we are not able to remove any billing information off of the Xbox Live profile once it's entered. So I questioned her that in twenty years I could potentially have multiple dead credit cards listed on my own profile every time I get a new numbered issued to me when the old one expires? Her answer was yes. So what has happened, and what the Live customer service rep is telling me is that her son now has access to her credit card to buy anything from the Live marketplace... and there is no way to get rid of that. Her solution was to create a new gamertag and purchase the Live service via a Xbox Live card at Wal-Mart or some other local store (she did offer a refund to the American Express). I said that's not feasible with all the time, game saves, gamer points, and friends tied to this profile. He had friends built up because he used his Xbox Live silver membership (and free one month gold membership) at his other parents house (they are divorced) that he had his 360 set up on. She actually said something like "Oh, he's young and probably wouldn't mind playing all those games again". I said, "That's a pretty general thing to say isn't it? How do you know he didn't rent the games, sell them on eBay, or borrow them from friends? And why would someone want to play a lot of these games over again that have no single player replay value?"
When the customer service rep suggested using the four keypress passcode to block Live access we told her that we have tried that and it's not going to work. When she went ahead and told us that it would solve the problem we said no, the child here is 17, not 7... we're not concerned with him getting on Xbox Live whenever he wants, we just don't want him to have access to the credit card now tied to his profile for life. This is a kid who will be going off to college in about a year and will most likely have roomates that would easily be able to charge stuff to this card using his profile (very bad and very insecure).
I asked multiple times to speak to another service rep or a manager. Each time I asked she would put me on hold for five minutes or so and come back and say no one else is available.
Finally, we decided to take the $50 refund and buy a one year membership from our local Wal-Mart (for $60) and use that. However, that did nothing for her credit card info still being listed in his profile. Sadly, she had to call American Express the next day and cancel the card and have a new one issued to her. When she explained the situation to Amercian Express they were flabbergasted and glad she called to cancel.
Now that's a pain in the @#%$*!!!