Every year I grit my teeth and go back through all of my accounts to look for sneaky subscriptions hiding in my regular payments, says consumer rights expert Martyn James
If you want to save some cash, then cancelling subscriptions and regular payments that you no longer want or need is the most effective way to do it. In fact, you can even claim money back.
Every year I grit my teeth and go back through all of my accounts to look for sneaky subscriptions hiding in my regular payments. This is worth doing, because a few years back I managed to save over £1,300 by getting rid of subscriptions I didn’t want or need and by renegotiating contracts.
Spotting regular and unauthorised payments isn’t easy. Most of the banking apps I’ve seen that list subscriptions seem to only highlight obvious direct debits, standing orders or utility bills.
However, businesses are often able to disguise the money they debit from you in the depths of your accounts with cryptic terms. So for now, you’ll still need to go back through your bank and credit card accounts for a year to find all these debits. Shockingly, payments can even be taken from your mobile phone bill! Above all else, keep an eye out for subscription traps.
What is a subscription trap?
The term ‘subscription trap’ is most commonly used to refer to offers where you sign up for a free trial, like an online shopping membership scheme or an annual contract for goods or services.
Many subscriptions are legitimate, but others are outright rip-offs, charging you for things you neither want or need. Citizens Advice estimated that people were forking out £160 on average on unwanted services.
The good news is the law is clamping down on subscription traps, thanks to the Digital Markets, Competitions and Consumers Act 2024.
We are still waiting to find out precisely how the new law will work, however, anyone trading in the UK should be aware that trapping people in to regular payments and making it hard to get out of these agreements is going to be more or less banned – so you can fight back now!
What are my rights with subscriptions?
A subscription is any service where you pay up front or a regular fee to receive a product or service in return. Subscriptions most commonly bill you monthly, annually or irregularly.
When you buy things, you enter in to a contract with the business or organisation. A contract is any agreement where the seller agrees to provide goods or services in return for payment.
This doesn’t have to be in writing. A contract occurs when you buy in a shop, online or over the phone – even if you don’t get a formal, written agreement.
I often mention them in this column, but the Consumer Rights Act and the Consumer Contract Regulations are the laws that protect you when you are paying for goods and services. These laws cover things you’ve bought and paid for don’t turn up, aren’t as advertised, are damaged or don’t work or don’t last a reasonable period of time – and that includes subscription services.
You may find that some subscriptions charge you different amounts each month, but only businesses are only allowed to do this if they give you advance notice or seek your permission.
One of the most notorious subscription trap scams is where you sign up for a free trial of goods or services, only to be hit with major debits when the trial period ends – often for substandard goods or things that don’t even turn up.
This practice is likely to be massively clamped down on in the coming year. But if you’ve been affected now, cancel the payment with your card provider or bank straight away and demand your money back.
Can I cancel a contract or subscription if I’m not happy?
You certainly can! If you want to leave a contract that you are ‘locked in to’ for a longer period, like a gym membership or a magazine subscription, you can leave without paying a penalty if you demonstrate you aren’t getting what you paid for. For example:
- If you aren’t getting what you were explicitly told you would get when you signed up to the subscription.
- The service has changed significantly over time.
- The quality of the goods or services has been misrepresented.
- You can also ask for a refund if you’ve paid up front for an annual subscription.
Dealing with a difficult retailer
Sometimes shops refuse to refund you or let you out of contracts even though you have every right to. They are usually gambling on the fact that you’ll shut up and put up. Don’t!
If the business isn’t playing ball, ask for an email address so you can make a formal complaint. Cite the laws I mentioned in this article and why you are unhappy with the service and why you don’t think it’s what you paid for.
Make it clear what you want to resolve the complaint too. This might be a full refund, a partial or proportional refund or simply to exit the agreement without fees or charges.
If they are still being difficult, you’ll need to threaten the business with the Small Claims Court. You can read my guide about how this works.
How do I deal with dodgy subscription trap firms?
If you’ve spotted that you’ve been paying for a subscription trap after a free trial – or even when you’re being debited for a service you never wanted or needed – play hardball.
These contracts can be cancelled immediately with your bank, card provider or e-payment service. If you were misled in to taking out a contract or you didn’t authorise a business to charge you, you can ask for a full refund.
The firm has to be able to prove you agreed to the contract. Even if you signed up to a free trial, you can ask for your money back if you are being charged amounts that you never agreed to.