Below is the feedback from microsoft.................

Hello Lee,



Thank you for writing Xbox Customer Support!



We have received your email and I understand that you would like to turn off the Xbox Live auto-renewal feature. I am sorry for the inconvenience.



Lee, there are two ways you can do this. One is by calling Xbox Customer Support, and two is by entering a pre-paid card, which will extend your subscription and deactivating auto-renewal altogether. The card will remain available on the account even if it has been removed as the renewal. For example, the card may be used for future MS points purchases or for future subscriptions.



With the original Xbox system, unless the customer entered a pre-paid card as a renewal type, Xbox Live customer accounts are automatically renewed on the anniversary date by using the credit card that is on file. The following information describes the options for activating and deactivating auto-renewal for Xbox 360 Live subscribers.



Non-credit card subscribers: Xbox 360 pre-paid Xbox Live customers are not required to associate a credit card with the subscription during sign-up. Therefore, these customers do not have a payment instrument on file to which a credit card charge for a membership renewal can be charged. The default setting for pre-paid customers is for the auto-renewal feature to be deactivated. For these customers, an auto-renewal date is not set. However, these customers can still see the current end date in the Memberships area of Xbox Live Marketplace. These customers will receive an e-mail message reminder and a message in the Message Center 30 days before the membership expires to remind the customer to renew the membership. The reminder in Message center will alert users that they have other subscriptions stacked and a reminder to make sure that payment instruments are up to date.



With the original Xbox system, unless the customer entered a pre-paid card as a renewal type, Xbox Live customer accounts are automatically renewed on the anniversary date by using the credit card that is on file. The following information describes the options for activating and deactivating auto-renewal for Xbox 360 Live subscribers.

Non-credit card subscribers: Xbox 360 pre-paid Xbox Live customers are not required to associate a credit card with the subscription during sign-up. Therefore, these customers do not have a payment instrument on file to which a credit card charge for a membership renewal can be charged. The default setting for pre-paid customers is for the auto-renewal feature to be deactivated. For these customers, an auto-renewal date is not set. However, these customers can still see the current end date in the Memberships area of Xbox Live Marketplace. These customers will receive an e-mail message reminder and a message in the Message Center 30 days before the membership expires to remind the customer to renew the membership. The reminder in Message center will alert users that they have other subscriptions stacked and a reminder to make sure that payment instruments are up to date.

Credit card subscribers: For customers who selected to associate a credit card with the subscriptions during sign-up, the default setting is for the auto-renewal function to be activated. For these customers, the account will auto-renew on the one-year anniversary date.



Activating auto-renewal

During sign-up: When a customer adds Xbox Live to her profile, the customer is asked whether she wants the membership to renew automatically. At this point, the customer can select to activate the auto-renewal feature.
After sign-up: To activate auto-renewal after signing-up for Xbox Live, such as for pre-paid subscribers, the customer must use a separate subscription card or enter a payment instrument. Entering a new subscription card will extend the customer's existing subscription by adding the specified time from the pre-paid card to the end of the customer's current subscription.


If you need to reply to this e-mail, please reply 'with history' (include any previous e-mail) so we can expedite our service to you.



You may also call Xbox Phone Support at 1-800-4MYXBOX (1-800-469-9269) at your earliest convenience, and we'll be happy to help you. We are open everyday from 8am to 12mn US Central Time.



To expedite service, please provide Service Request Number 1053381825 when you call.



Thank you for visiting Xbox.com. If you should have future questions on Xbox products or services, please be sure to revisit our Web site as we are continually adding information to enhance our service.



Sincerely,



Martin

Xbox Customer Care