diff --git a/app/models/customer.rb b/app/models/customer.rb
index 3c792ea35f7..3711d160243 100644
--- a/app/models/customer.rb
+++ b/app/models/customer.rb
@@ -190,6 +190,14 @@ def overdue_balance_cents
     invoices.payment_overdue.where(currency:).sum(:total_amount_cents)
   end
 
+  def reset_dunning_campaign!
+    update!(
+      dunning_campaign_completed: false,
+      last_dunning_campaign_attempt: 0,
+      last_dunning_campaign_attempt_at: nil
+    )
+  end
+
   private
 
   def ensure_slug
diff --git a/app/services/customers/update_service.rb b/app/services/customers/update_service.rb
index cbb58a178de..127ae608217 100644
--- a/app/services/customers/update_service.rb
+++ b/app/services/customers/update_service.rb
@@ -105,12 +105,6 @@ def call
           customer.exclude_from_dunning_campaign = args[:exclude_from_dunning_campaign]
           customer.applied_dunning_campaign = nil if args[:exclude_from_dunning_campaign]
         end
-
-        if customer.applied_dunning_campaign_id_changed? || customer.exclude_from_dunning_campaign_changed?
-          customer.last_dunning_campaign_attempt = 0
-          customer.last_dunning_campaign_attempt_at = nil
-          customer.dunning_campaign_completed = false
-        end
       end
 
       ActiveRecord::Base.transaction do
@@ -119,6 +113,10 @@ def call
           customer.payment_provider_code = nil
         end
 
+        if customer.applied_dunning_campaign_id_changed? || customer.exclude_from_dunning_campaign_changed?
+          customer.reset_dunning_campaign!
+        end
+
         customer.save!
         customer.reload
 
diff --git a/app/services/dunning_campaigns/process_attempt_service.rb b/app/services/dunning_campaigns/process_attempt_service.rb
index 9875c0622ca..2408fa0a901 100644
--- a/app/services/dunning_campaigns/process_attempt_service.rb
+++ b/app/services/dunning_campaigns/process_attempt_service.rb
@@ -16,7 +16,7 @@ def call
       return result unless applicable_dunning_campaign?
       return result unless dunning_campaign_threshold_reached?
       return result unless days_between_attempts_passed?
-      return result if dunning_campaign_completed?
+      return result if customer.dunning_campaign_completed?
 
       ActiveRecord::Base.transaction do
         payment_request_result = PaymentRequests::CreateService.call(
@@ -30,6 +30,7 @@ def call
 
         customer.increment(:last_dunning_campaign_attempt)
         customer.last_dunning_campaign_attempt_at = Time.zone.now
+        customer.dunning_campaign_completed = last_dunning_campaign_attempt?
         customer.save!
 
         result.customer = customer
@@ -64,7 +65,7 @@ def days_between_attempts_passed?
       (customer.last_dunning_campaign_attempt_at + dunning_campaign.days_between_attempts.days).past?
     end
 
-    def dunning_campaign_completed?
+    def last_dunning_campaign_attempt?
       customer.last_dunning_campaign_attempt >= dunning_campaign.max_attempts
     end
 
diff --git a/app/services/invoices/update_service.rb b/app/services/invoices/update_service.rb
index 2232755179d..27b81bb140f 100644
--- a/app/services/invoices/update_service.rb
+++ b/app/services/invoices/update_service.rb
@@ -44,11 +44,7 @@ def call
           invoice.payment_overdue = false
 
           if invoice.payment_requests.where.not(dunning_campaign_id: nil).exists?
-            invoice.customer.update!(
-              dunning_campaign_completed: false,
-              last_dunning_campaign_attempt: 0,
-              last_dunning_campaign_attempt_at: nil
-            )
+            invoice.customer.reset_dunning_campaign!
           end
         end
 
diff --git a/app/services/payment_requests/payments/adyen_service.rb b/app/services/payment_requests/payments/adyen_service.rb
index 89545a7eecd..0b25168ebfa 100644
--- a/app/services/payment_requests/payments/adyen_service.rb
+++ b/app/services/payment_requests/payments/adyen_service.rb
@@ -272,11 +272,7 @@ def reset_customer_dunning_campaign_status(payment_status)
         return unless payment_status_succeeded?(payment_status)
         return unless payable.try(:dunning_campaign)
 
-        customer.update!(
-          dunning_campaign_completed: false,
-          last_dunning_campaign_attempt: 0,
-          last_dunning_campaign_attempt_at: nil
-        )
+        customer.reset_dunning_campaign!
       end
     end
   end
diff --git a/app/services/payment_requests/payments/gocardless_service.rb b/app/services/payment_requests/payments/gocardless_service.rb
index e88b209d3c7..3628fb51cce 100644
--- a/app/services/payment_requests/payments/gocardless_service.rb
+++ b/app/services/payment_requests/payments/gocardless_service.rb
@@ -212,11 +212,7 @@ def reset_customer_dunning_campaign_status(payment_status)
         return unless payment_status_succeeded?(payment_status)
         return unless payable.try(:dunning_campaign)
 
-        customer.update!(
-          dunning_campaign_completed: false,
-          last_dunning_campaign_attempt: 0,
-          last_dunning_campaign_attempt_at: nil
-        )
+        customer.reset_dunning_campaign!
       end
     end
   end
diff --git a/spec/models/customer_spec.rb b/spec/models/customer_spec.rb
index eacf44194dd..00a92c01183 100644
--- a/spec/models/customer_spec.rb
+++ b/spec/models/customer_spec.rb
@@ -594,4 +594,22 @@
       end
     end
   end
+
+  describe "#reset_dunning_campaign!" do
+    let(:customer) do
+      create(
+        :customer,
+        dunning_campaign_completed: true,
+        last_dunning_campaign_attempt: 5,
+        last_dunning_campaign_attempt_at: 1.day.ago
+      )
+    end
+
+    it "changes dunning campaign status counters" do
+      expect { customer.reset_dunning_campaign! && customer.reload }
+        .to change(customer, :dunning_campaign_completed).to(false)
+        .and change(customer, :last_dunning_campaign_attempt).to(0)
+        .and change(customer, :last_dunning_campaign_attempt_at).to(nil)
+    end
+  end
 end
diff --git a/spec/services/dunning_campaigns/process_attempt_service_spec.rb b/spec/services/dunning_campaigns/process_attempt_service_spec.rb
index 6060d148e60..ec61314f743 100644
--- a/spec/services/dunning_campaigns/process_attempt_service_spec.rb
+++ b/spec/services/dunning_campaigns/process_attempt_service_spec.rb
@@ -68,9 +68,28 @@
 
     it "updates customer last dunning attempt data" do
       freeze_time do
-        expect { result }
-          .to change(customer.reload, :last_dunning_campaign_attempt).by(1)
-          .and change(customer.reload, :last_dunning_campaign_attempt_at).to(Time.zone.now)
+        expect { result && customer.reload }
+          .to change(customer, :last_dunning_campaign_attempt).by(1)
+          .and change(customer, :last_dunning_campaign_attempt_at).to(Time.zone.now)
+          .and not_change(customer, :dunning_campaign_completed).from(false)
+      end
+    end
+
+    context "when dunning campaign max attemp is reached" do
+      let(:customer) do
+        create(
+          :customer,
+          organization:,
+          currency:,
+          last_dunning_campaign_attempt: dunning_campaign.max_attempts - 1,
+          last_dunning_campaign_attempt_at: dunning_campaign.days_between_attempts.days.ago,
+          dunning_campaign_completed: false
+        )
+      end
+
+      it "updates customer's dunning campaign completed flag" do
+        expect { result && customer.reload }
+          .to change(customer, :dunning_campaign_completed).to(true)
       end
     end
 
@@ -117,13 +136,13 @@
       end
     end
 
-    context "when the customer reaches dunning campaign max attempts" do
+    context "when the customer has completed the dunning campaign" do
       let(:customer) do
         create(
           :customer,
           organization:,
           currency:,
-          last_dunning_campaign_attempt: dunning_campaign.max_attempts
+          dunning_campaign_completed: true
         )
       end