Looking at a free trial? Here are some things to remember to make sure it doesn't cost you
A couple years ago I signed up for a grocery delivery service. At the time, I was careful to make sure I had un-checked the auto renew box. When I received an email saying it was time to renew, I did. However, now on my third year, I wasn’t as careful, and I discovered the auto renew went into effect.
Auto renew subscriptions can be a convenience or a rip-off it all depends on whether or not you really like the product or service.
Even though I missed a courtesy email telling me my subscription was going to auto-renew, the Federal Trade Commission wants you to know, “Before a company can auto-renew, it has to send you a renewal notice.” That notice is not a bill so it’s your call what you do next.
If you choose to renew, the FTC also advises that you check to make sure the cost hasn’t changed. Sometimes it will be more than what you paid previously.
The FTC also has some pretty good info on a couple other topics that can hit you in the wallet.
How many times have you signed-up for a free trial offer only to forget to cancel before the billing starts? In all transparency I have.
When you’re dealing with an honest, ethical business you can usually still cancel. But if the company is not quite on the up and up, they may make the process difficult or charge an exorbitant early cancellation fee.
The FTC says here are something to consider about “free trial” offers.
That free trial may not be free at all if you have to pay anything to receive it. That includes shipping fees.
When you sign up for the offer make sure you understand how you can cancel future shipments or services. Look for pre-checked boxes and mark your calendar.
What about the “negative option?"
The consumer watch dog says that’s when you’re automatically billed for something when you didn’t specifically say not to bill you.
That happens a lot with magazine subscriptions. You will continue to receive the publication and be billed for it when the initial subscription expires. That’s a negative option.
The FTC explains, “Your silence is taken as consent to be charged.”
The agency says, “Most of the problems arise because the business doesn’t clearly explain they’ll continue billing you unless you do something."
Often a business that operates that way will also make it nearly impossible for you to cancel. Make sure you read the fine print to know what you're getting yourself into.
If you decide you want to cancel a subscription, be sure to contact the company, follow their cancellation instructions and keep a copy of your cancellation request.
Monitor your bank or credit card statements to make sure there are no further charges after you've canceled. If there are charges, file a dispute with your bank or credit card company.
Dennis Horton is director of the Rockford Regional Office of the Better Business Bureau, which serves Winnebago, Boone and Stephenson counties among others in northern Illinois.
This article originally appeared on Rockford Register Star: Think you're saving money with that free trial? That may not be the case
