Father Sam Ghera complained to Microsoft after his 12-year-old son Nik spent £1150 on Microsoft Points over a six month period.
Ghera's son claimed he didn't know the Microsoft Points were being charged to his father's credit card, despite having spent £100 in a single day on games such as FIFA and Call of Duty.
"He didn't realise it was costing real money," Ghera, from Wolverhampton in the West Midlands, told the Daily Mail. "With sites like eBay and iTunes it always asks you for a password before you make a purchase, but with Xbox Live you just press a button and then your money's gone.
Sam Ghera and 12-year-old Nik.
"I contacted Microsoft but, six months down the line, they're still saying they're looking into it. I'm waiting for them to get back to me.
"An apology would be nice but I'm more interested in having this problem stopped so that we as parents can stop our kids from making payments on our cards."
Microsoft has responded to the report, noting that the price of downloadable content is stated throughout the purchasing process.
"There are multiple opportunities where consumers are asked to confirm their purchases. The price is clearly displayed on the screen," a spokesperson said.
"It should also be noted that Xbox Live accounts registered for children's use have online activity automatically defaulted to off, and these can be enabled, should the parents wish, in the family settings section.
Do you think MS is to blame for this?