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Citizens Advice reveals consumers spend an average of £160 on unwanted subscriptions during National Consumer Week
Posted 27/11/17
New analysis shows that in three months consumers paid an average of 拢160 towards unwanted subscriptions like gym memberships, television, insurance and online streaming services.听
With the rise of subscription services available to consumers, Citizens Advice is warning consumers that while it may be easy to sign up for these services, they can be difficult to get out of.听
An analysis of cases to the Citizens Advice consumer service between June and August 2017, shows 9 in 10 people were initially refused by the company when they tried to cancel their subscription. People are tying themselves into contracts for subscriptions and are struggling to deal with the company鈥檚 terms and conditions to cancel, all the while paying out of pocket.听
As part of National Consumer Week, Citizens Advice and the Consumer Protection Partnership are urging consumers to be aware of the terms and conditions of any contract before agreeing to recurring payments and companies to act responsibly when customers want to end their services.听
Companies refused cancellations by asking for more notice - stretching to six months in some cases - or telling people they needed to cancel through a specific route, such as phone or email. One person who contacted the Citizens Advice consumer service said they tried to cancel a subscription after they were made redundant at work only to be asked for proof from their employer - including a P45.听
Under the Consumer Rights Act 2015, businesses can鈥檛 enforce terms on consumers that are unfair.听
Most payments are thought to be through a Continuous Payment Authority, where companies have the ability to change the date or amount of a payment without giving advanced notice.听
Consumers told the consumer service they felt it was unclear they were being signed up to a recurring payment in the first place or that the contract may continue on an auto renewal basis.听
One person said they felt 鈥渢ricked鈥� into signing up to a free trial of Amazon Prime, found it very difficult to cancel and contacted Citizens Advice consumer service for help.听
Gillian Guy, Chief Executive of Citizens Advice, said:
鈥淪ubscriptions are very easy to sign up to but can be difficult for consumers to get out of. We know people are wasting time and energy trying to cancel subscriptions while paying out of pocket.
鈥淎s part of National Consumer Week, we want to make sure consumers are aware of the terms and conditions of any subscription before they sign up and companies act responsibly when customers want to end their services.鈥�听
Consumer Minister Margot James said:
鈥淭he UK鈥檚 consumer protection regime is one of the strongest in the world, but there is always more to do to tackle the issues that could cause the greatest harm.
鈥淲ith 40 million people in the UK now subscribing to at least one product or service, today鈥檚 campaign from Citizens Advice will help ensure consumers can shop with confidence and know what their rights are sho