Think before you sign – top 10 tips for saving on subscriptions

Think before you sign

Don’t fritter away your hard-earned money on unwanted subscriptions

top 10 tips for savings on subscriptions with picture of contract

It’s National Consumer Week and this year’s theme is “Before You Sign.”

Citizens Advice research revealed this week that in just three months consumers spent an average of £160 on unwanted subscriptions, including gym memberships, television and online streaming services. The consumer organisation also found that between June and August 2017, 9 out of 10 people were initially refused by companies when cancellation of an unwanted subscription was requested.

So what are your rights and the best ways to deal with these subscriptions? Here are my top 10 tips.

1) Be aware of the “free” and very cheap trials of subscriptions. Most, if not all, will ask for payment information when you sign up. Set yourself a reminder to cancel a day before the first payment is due.

2) Check the cancellation rights before signing up to anything but be aware that you may still be able to challenge these in certain circumstances.

3) Under the Consumer Contracts Regulations 2013, you are entitled to a 14 day “cooling off” period, so if you have signed up to something off premises (e.g. online) you can cancel with no penalty.

4) Under the Consumer Rights Act 2015, consumers are protected from unfair contracts. So, for example, if a company says that you must give 6 months’ notice to cancel a subscription, that would be unfair.

5) The Consumer Protection from Unfair Trading Regulations 2014 state that companies must provide accurate and sufficient information for consumers to make a purchasing decision. For a practice to be unfair under these rules, they must harm, or be likely to harm, the economic interests of the average consumer. For example, when a shopper makes a purchasing decision he or she would not have made had he or she been given accurate information.

6) If you are going to sign up to a subscription, try and use Direct Debit where possible. With Direct Debit, a company cannot change the regular payment amount. Using a Direct Debit or credit card is known as a Continuous Payment Authority which can be of varying amounts which can be changed without your consent.

7) When you cancel with the company, also inform your bank to ensure that the subscription payment is cancelled. You will then also be covered by the Direct Debit Guarantee, which ensures a full and immediate refund of the amount paid from your bank or building society if a mistake is made.

8) Check that the site is genuine. The website address should begin with “https”, have a padlock symbol, a full correspondence address (not a PO box number) and any trade logos should be genuine. Also, search the Internet for reviews and check for warning signs like lots of grammatical errors or a domain name that uses a well-known brand/product but isn’t the official website or ends in .net or .org as these are rarely used for online shopping sites. You can also check who registered the domain via the com website.

9) If you want to cancel, do so quickly and in writing so you have evidence. If you are prepared to discuss the matter because you want to haggle for example, telephone helpline numbers cannot cost the consumer more than the basic rate, so no 084 and 087 numbers. If companies do use these then they are in breach of the The Consumer Contract (Information, Cancellation and Additional Charges) Regulations 2013 and Ofcom regulations.

10) When writing to cancel, provide all details of the policy/memberships etc., dates of subscriptions and request that the cancellation is made with immediate effect. Name the laws above and describe how the company is in breach, if relevant.

More at How to challenge terms & conditions (even those you’ve agreed)

Top 20 Tips How to Complain!

How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

For masses more information, advice, tips, consumer laws and template letters get the GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!

 

 

 

6 facts you should know about direct debits

1) Your bank or building society monitors and protects the efficiency and security of your direct debit. Those using the system go through a careful vetting process before they’re authorised, and are closely monitored by the banking industry. The efficiency and security of direct debit is monitored and protected by your own bank or building society.

2) If there are any changes to the amount, date or frequency of your Direct Debit the organisation will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed. If you request the organisation to collect a payment, confirmation of the amount and date will be given to you at the time of the request.

3) If a mistake is made with your direct debit you are covered by the Direct Debit Guarantee.

4) If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.

5) If you receive a refund to which you are not entitled, you must pay it back when the organisation asks.

6) According to the Financial Ombudsman, common fob offs made by banks and building societies when a direct debit is wrongly paid are; “The customer didn’t give enough notice”, “We don’t operate the direct debit guarantee”, “You’ll have to contact the originating company for a refund” and “The guarantee doesn’t apply – because you haven’t suffered a loss”. None of these are correct and should you not receive a refund take the matter to the Financial Ombudsman.

For more information on how to complain see the Tips. Also see the book for more information guidance and template letters for complaining about direct debits.