free trials and subscriptions
Before you sign up
Research a company before you sign up for a free trial or subscription. Check BBB.org for the company’s rating and customer reviews, find it on social media and review its account, and search its name with the words “scam” or “complaint.” The FTC points out that “complaints from other customers can tip you off to ‘catches’ that might come with the trial.”
Before signing up, find out how long the trial period lasts, what exactly you agree to, and how and when to cancel if you decide not to subscribe. If this information is confusing or unavailable, take your business elsewhere.
Even if you heard about an offer through a radio, TV, or print ad, the company should still provide the details on its website. As many Scam Tracker reports show, you shouldn’t sign up if you can’t find the terms and conditions or understand exactly what you’re agreeing to.
If you sign up for a free trial online, look for boxes that have already been checked, advises the Federal Trade Commission. That checkmark “may give the company the green light to continue the offer past the free trial or sign you up for more products.”
Subscriptions can make great gifts. Before you buy one for someone else, check how long it lasts, whether it renews automatically and whose card any renewal charges go to.
Free trials
During a free trial
Your free trial probably has a time limit. Once that passes, if you haven’t canceled your “order,” you may be on the hook for more products. Know the cancellation date and put it on your calendar.
Understand how to cancel future shipments or services first. Know the policies for canceling or pausing your subscription. Do you need to respond or cancel by a certain time each month?
subscriptions
Once you subscribe
Auto-renewals are a convenient way to keep your subscription current if you like the service. The company charges your credit or debit card on the expiration date, and the subscription renews for another period. Remember that companies must send you a renewal notice, a brief reminder that your subscription is about to renew, ahead of time. Always check your bank and credit card statements to ensure the cost is what you expect. If you notice a price jump, it could be that you were signed up for a promotional period that ended.
This will help you know immediately if you are being charged for something you didn’t order. If you see charges you disagree with, contact the company directly to sort out the situation. Call your credit card company to dispute the charge if that doesn’t work. Ask the credit card company to reverse the charge because you didn’t actively order the additional merchandise.
If you aren’t careful, you could lose track of what subscription services you are paying for. To maintain your financial health, Forbes reminds consumers to determine how much they spend on subscriptions. Periodically review your subscriptions to make sure you’re still using them. If you are signed up for multiple subscriptions, a subscription management app can help you keep track of and manage them.
tracking tools
Thinking about a subscription management app?
These apps can find and track your subscriptions, but most need access to your bank or card accounts to do it. Before you download one:
Read the privacy policy before you connect any financial accounts.
Pick an app with only the features you need. Some just track payment dates; others add budgeting tools.
Compare the cost with what you expect to save. Many apps are free at sign-up but charge for upgrades.
Subscriptions
How to cancel
There are three ways you can stop automatic payments from your bank account, according to consumerfinance.gov: Contact the company to revoke payment authorization, call and write your bank or credit union informing them you’ve revoked payment authorization, and/or give your bank a “stop payment order.” Usually, contacting the company to revoke authorization is sufficient to cancel a subscription, but monitor your bank statements closely anyway. You may need to take further action if you still see unwanted charges.
Instead of waiting until the last minute to cancel a subscription or free trial, The New York Times says, “There is generally no drawback to ending payments ahead of time.” You can cancel early and enjoy the remaining time left on your subscription for that billing period. Calendar alerts can also help you track when to cancel a subscription so you don’t forget and end up paying for an extra subscription term.
scams
Watch out for scams
Scammers may offer you free trials or deals on subscriptions that seem too good to be true, hoping you’ll sign up and hand over your credit card number. Don’t believe deals that seem outrageously good. In addition, if you receive a “renewal notice” that asks you for your credit card information, think twice before you reply. It’s likely the message is a scam. Renewal notices are reminders from a company that already has your payment information. Always contact the company directly to verify suspicious messages.
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