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

In November 2017, Citizens Advice research revealed 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 debit card 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!

 

 

 

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

The One Show today covers Terms and Conditions. Who reads them? Would you follow them if told?

There are pages and pages of small print. How many of us tick the box that says “Agree to terms and conditions”, only to fall foul later when we need to complain?

The Government thought so too and there was a call for evidence from the Department for Business, Innovation & Skills for consumers to provide feedback regarding their experiences. The open consultation ended on 25 April 2016 but there is still no response. I’ve requested details of when this will be forthcoming but as yet not heard anything.

So what can you do in the meantime if you feel that the terms and conditions you agreed to actually turned out to be unfair? Don’t worry, all is not lost!

Consumer Rights Act 2015 and unfair contracts
The Consumer Rights Act 2015 (CRA) creates a ‘fairness test’ to stop consumers being put at unfair disadvantage. A term is unfair if it tilts the rights and responsibilities between the consumer and the trader too much in favour of the trader. The test is applied by looking at what words are used and how they could be interpreted. It takes into consideration what is being sold, what the other terms of the contract say and all the circumstances at the time the term was agreed. There is an exemption for the essential obligations of contracts – setting the price and describing the main subject matter – provided the wording used is clear and prominent. There is also an exemption for wording that has to be used by law. If you have been misled into making a decision that you would otherwise not have made then the company is in breach of this law.

The Consumer Protection from Unfair Trading Regulations 2008 (amended 2014) (CPUTRs)

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 or not put under unfair pressure to do so.

The regulations prohibit trading practices that are unfair to consumers. There are four different types of practices covered:

A general ban – on conduct below a level which may be expected towards consumers (honest market practice/good faith).

Misleading practices  a practice misleads through the information it contains, or its deceptive presentation, and causes, or is likely to cause, the average consumer to take a different transactional decision specifically; general misleading information, creating confusion with competitors’ products or failing to honour commitments made in a code of conduct.

Aggressive sales techniques using harassment, coercion or undue influence– significantly impairs, or is likely to significantly impair, the average consumer’s freedom of choice or conduct in relation to the product through the use of harassment, coercion or undue influence – and  thereby causes him to take a different transactional decision.

31 specific practices (that would be two long boring pages of  post! It is pretty thorough though and all of them are listed in the book ). 🙂

How to use
Say for example, your mobile ‘phone is constantly losing signal and you can’t use it like any customer would want to, that is a breach of the Consumer Rights Act 2015 because it has not supplied you with services carried out with reasonable skill and care and you have every right to terminate the contract. If however, the company tells you that in the terms and conditions of the contract that you signed, you can’t break a contract early under any circumstances, that’s a breach of the above laws, because they have not kept to their side of the bargain! In fact, the telecoms sector is downright awful for customer service so here is some more advice on them. All you need to know about complaining to telecom providers.

Another example. You were told that you could have a free cup of coffee and cake for giving your email address. You signed up. You had your coffee and cake they then tell you that in the terms and conditions you have to clean the floor. You argue that you didn’t know but they say “It’s in the terms and condition”. Tough. For them. Under the CRA it could be an unfair contract, because cleaning the floor could be considered as worth more in payment than the coffee and cake (maybe it would depend how big the floor was?!) But under the CPUTRs it is a big fat breach. You would argue that you were misled into giving your email address.

When you complain use the Top 20 Tips.

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For more information, advice, tips, consumer laws and template letters covering the majority of issues you might incur with most sectors  GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!