How to escape subscription traps and save £186 in just five minutes

MILLIONS of households waste £1.2billion a year on unwanted and hard-to-cancel subscriptions. 

That adds up to a drain on £168 each on bank accounts.

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You could save £186 in just minutes by avoiding subscription traps[/caption]

Subscriptions are a quiet drain on your bank account with companies taking money from your current account, credit card, phone bill or e-account every month.

Often for services you’ve long since stopped using – if you ever did at all.

Some are subscriptions you deliberately signed up for and simply forgot to cancel, like TV packages or gym membership.

But others are more devious – these are known as subscription traps.

The government is planning a crackdown on firms who will have to provide clearer information when customers sign up and send reminders before renewals as well as making it easier to cancel. 

But the rules won’t come in until 2026 at the earliest.

“With budgets increasingly squeezed and living costs often exceeding the amount people have coming in each month, it’s vital consumers feel in control of their spending,” says Dame Clare Moriarty, chief executive of Citizens Advice. 

“Companies relying on people forgetting to cancel at the end of a free trial is an unacceptable business model that exploits busy, cash-strapped consumers.”

FOUR TYPES OF TRAPS TO AVOID

Hijacking QR codes

Pubs and restaurants often ask customers to scan QR codes to access menus – but Which? has heard of scammers putting fake codes on top to dupe people.

Fake ads on search engines

Firms who pay to appear at the top of search engines are an easy way for scammers to trick you into signing up by looking similar to real name brands.

“Free” product trials

Free trials, often for beauty and health products, trick you into signing up and then make it hard for you to cancel.

Premium rate texts

Firms will sign you up for recurring texts and make it difficult for you to cancel. Ask your mobile firm to block them.

HOW TO GET OUT OF A SUBSCRIPTION TRAP 

Start by checking your bank statements.

“Scroll through your bank accounts at the end of the month and look for recurring charges,” says Gabriel Nussbaum, a financial educator also known as That Money Guy.

“I do this monthly to catch the sneaky annual renewals too.”

Don’t just stop with your current account. Check your credit card, phone bills and PayPal too.

Many subscriptions are linked to these accounts, and you may not even realise they’re still active.

Also look at your Apple account or Google Play for hidden app subscriptions.

Use apps such as Emma or Snoop.

Revolut can use its app and Lloyds Bank customers can ask customer services for help with finding subscriptions. 

HOW TO CANCEL

Firms should explain clearly how to cancel but some make it hard for you to do so. 

Research from Citizens Advice found that one in four of us have taken out a subscription by accident.

If you signed up for a subscription online, over the phone or by post, you have 14 days to cancel by law, no questions asked.

After that time is up, check your contract or the company’s website to see how to cancel. 

You may be able to get help from Citizens Advice. You can call them on: 0808 223 1133. 

If this doesn’t work, then ask your credit card provider to stop any payments you’re unhappy with. 

You could use Chargeback on debit cards and Section 75 on credit cards to get a refund from your bank on any subscriptions that have tricked you into signing up. 

If your card provider doesn’t help you, you can complain to the Financial Ombudsman Service.

When it reviews your complaint the FOS will look at whether the firm explained its pricing and made it clear that you were signing up for a subscription. 

If it didn’t it’s likely payments would be considered unauthorised and should be fully refunded. 

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories