Los Angeles TikToker @maxedoutmommy posted a viral clip sharing that she’s paid $90 a month for a four-year subscription, but got nothing in return.
@maxedoutmommy (a.k.a. Ray Lee) believed she canceled her subscription to a designer clothing rental service in 2019, but never received a single item or email from the company. He claimed in the video that he had not received it. since then. On the other hand, she paid around $3,990 during that time.
Do not miss it
Ms. Ray Lee said she has not been able to recover the money so far and has not been charged because her husband is in charge of the household.
Regardless of who was responsible for overseeing the incident, the video seemed to resonate. Since it was posted last month, it has received over 800,000 views and more than 1,300 comments, many from people who have dealt with similar situations.
According to a new survey by consumer trends giant Deloitte, 47% of Americans have cut their monthly entertainment subscription due to “current economic conditions.”
If you’re in the same situation, here are some quick tips to make sure you’re not. run out of monthly budget At a sneaky surcharge.
Are you paying subscription fees without knowing it?
According to recent data, what happened to Ray Lee is far more common (and likely more costly) than you might think.
2022 study by market research firm C+R Research Subscription service and costs We found that 42% of respondents stopped using their subscription service but forgot they were still paying. The average person spends $219 a month on subscriptions, more than double her average respondent’s initial estimate of $86.
That’s a difference of $133 a month, or $1,596 a year, retirement nest egg or other financial goals.
Forgetfulness may play a major role in the rise of these often-overlooked charges, but it is not the only cause.
In July, The Hollywood Reporter conducted an experiment in which subscribers tried to unsubscribe from several streaming services. We found that Prime Video, Disney+, and Paramount+ all required six steps to cancel a subscription, each containing two offers for alternative subscription plans.
In other words, they conclude that customers are often stuck because companies are making it much easier than canceling sign-ups for their services.
read more: ‘Now is not the time’: Suze Oman warns 4 financial failures that will crush you Broadly speaking, it is a way to “be strong” against money.
How to Avoid (Unexpected) Compensation Payments
1. Always check your financial statements
You don’t have to pay for a subscription management app to find and stop recurring charges. Just read your bank or credit card statement. Get into the habit of reviewing at least once a month.this is already important monitor your credit score It also helps you find and fix unwanted or wrong transactions.
If you discover a charge that you did not receive and the vendor is not cooperating in resolving it, follow Rae Leigh’s instructions to request a chargeback (refund or statement credit) with your credit card company.
Please note that you have 60 days to submit your request after the subscription or service has been billed.
2. Check the cancellation policy
Please review the cancellation process before signing up for the Subscription Service. If the process is more complicated than clicking “Cancel”, or if the process is difficult to navigate, it may be a red flag. There are a few things you can do before signing up.
-
The nitty-gritty: The Federal Trade Commission (FTC) recommends reading a company’s return and cancellation policy before subscribing to an auto-renewing service.
-
Customer Reviews: Take the time to read reviews online, especially those about cancellation issues and recurring fees.
3. Be careful with free trials
There’s a reason many companies offer free trials. In exchange for free product or service for a limited period of time, you usually have to provide your credit card information. Also, if you forget to cancel, you will be charged a new monthly fee that you did not expect.
If you signed up for a free trial, be sure to cancel before the free period ends. Add a reminder to your calendar or smartphone at least one day before your trial ends to avoid being charged for services you don’t want.
what to read next
This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
