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“Free” Trials Can Result in Hundreds of Dollars of Credit Card Charges!

December 8, 2017

 

At some point or another, we’ve all been tempted to take advantage of free product or service trials offered by various companies online. And why not? After all, it’s a great way to determine if you like a product and want to continue subscribing to it. Nevertheless, before signing up for any such a trial, you should be aware that it could result in months of credit card charges. 

Most of the "free offers" that you find online are a kind of "negative option" marketing. This is a system where consumers’ credit cards are charged if they forget to cancel a subscription after the trial period has expired.

This kind of marketing is questionably legal, and even when 100% legal, it has the potential to mislead customers. For example, let’s say you come across an ad that says you can receive a free 15-day supply of a product by paying a nominal shipping fee of $4.95. Since it sounds like a one-time purchase, you sign up for it, mentally congratulating yourself on the wonderful bargain. Imagine your consternation when you receive your credit card bill next month and find that along with $4.95, you’ve been charged for an entire month’s supply – and at full price!

This is not an uncommon occurrence. Many online consumers fall victim to such ploys because they fail to carefully read the fine print. The terms and conditions usually contain a clause which states that unless you opt out within 12-14 days, your credit card could be charged for additional purchases once the trial period is over. And since the cancellation period is so short, most consumers don’t even realize that they’ve been charged until the figures show up on their card statements! 

So, what can you do to avoid such charges?

For starters, before giving out your credit card number for a free trial, read the terms and conditions carefully. If you have trouble locating these details, you can safely assume that canceling the subscription will prove to be a hassle too, so reconsider whether you want to sign up for it in the first place. Always look for the duration of the trial period and, to be on the safe side, cancel the subscription at least one day before it is scheduled to end.

How to cancel a free subscription

Most of these subscriptions can be canceled online. For instructions, you may need to hunt for the Terms of Service or FAQ page on the company’s website. You can even search for the information on Google – by typing "how to cancel" (or some variant), along with the product or service name.

If you can’t find a way to cancel online, you’ll have to call customer service. Insist on the cancellation no matter how much the representative tries to convince you to continue with the subscription. Make a note of the time and date of your call. In case you’ve canceled online, retain a screenshot of the confirmation for your records.

Follow-up

Make sure you carefully check your card statements to determine if the company is billing you even after you’ve canceled the subscription. If so, call up the company, provide proof of your cancellation, and ask for a refund of the charges.

In case the company continues to bill you or refuses to refund your money, you can take the matter up with your credit card issuer, the Better Business Bureau, the Federal Trade Commission, and/or the Consumer Financial Protection Bureau. One or more of these institutions may help you get your dollars back.

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I take tremendous pride in building positive and lasting relationships in my businesses and personal life. Every member of my team is committed to helping our clients get the maximum amount of funding possible and achieve their highest growth potential.

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