Many consumers still struggle to get
out of unwanted subscriptions such as gym memberships and online streaming
services, according to a new report by Citizens Advice.
Analysis of almost 600 problems
reported to the Citizens Advice service found that in just three months customers
paid an average of £160 on unwanted services.
Sometimes customers misunderstood
terms and conditions, while some companies make cancellation difficult. This is
despite the fact that under the Consumer Rights Act 2015 businesses can't
enforce terms on consumers that are unfair.
According to Gillian Guy from Citizens
Advice: "Subscriptions 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."
Some companies refused cancellations
by asking for more notice - stretching to six months in some cases - or told
people they needed to cancel through a specific route, such as phone or email.
Citizens Advice reported one case where a person tried to cancel a
subscription after they were made redundant, and were asked for proof from
their employer - including submitting a P45.
Most payments are made through a
Continuous Payment Authority, where companies can change the date or amount of
a payment without giving advance notice. But often customers said they felt it
was unclear they were being signed up to a recurring payment or that the
contract would continue on an aut-renewal basis.
Consumer Minister Margot James said that
the UK's consumer protection regime was one of the strongest in the world, but
there was always more to do. "With 40 million people in the UK now
subscribing to at least one product or service, this campaign from Citizens
Advice will help ensure consumers can shop with confidence and know what their
rights are should things go wrong."
Meanwhile, Leon Livermore, CEO of the
Chartered Trading Standards Institute said that customers should remember that
if an offer "sounds too good to be true, it generally is."
According to Livermore: "We're eagerly
awaiting the government's upcoming green paper that sets out their vision for
consumer protection in a post-Brexit landscape. We will continue to work actively
with our partners to build a safer future for UK consumers."
The Customer Service Blog is also
keeping a close eye on the progress of the Government’s forthcoming green paper
on consumer protection and we will be regularly updating our readers about its
progress through parliament.