When I was younger and lost a long-held job, I had to move back into my family home. I had to cut back or sever every non-essential expense.
So, I’m back in my mom’s house and I am checking my bank account and I notice I have an overdraft fee. I was being charged by a company for a magazine service I canceled. I called the bank and proved I didn’t live at my former address and the bank canceled the transaction.
This situation is called a “negative option.”
A free trial offers asks you to choose the free trial. But if you forget to cancel, then the company assumes that you want to continue and start paying for the product or service.
There are many reasons why you should avoid free trial offers at any cost. In most cases, they are a scam. And in others, the company will make you jump through several hoops or make it impossible to cancel the offer.
Nothing in life is free, but consumers love the prospect. And when advertisers say “free” consumers pay close attention.
We inherently want something for nothing. We want to believe in “free trial offers” when we know better. Free trial offers are a deceptive way for businesses to offer a minimal cost, limited-period, risk-averse introduction to a service or product.
And that is when we, as consumers, get in trouble.
But free trial offers can unexpectedly switch from asking the consumer to consider buying the product to forgetting to remember to cancel automatic renewal payments for products or services they forgot they were interested in initially.
The average consumer lost $140 in a free trial offer scam.
So, here is what you need to know about free trial offers and why you should avoid them.
They are basically a bait and switch scam where you end up paying for an unannounced long-term subscription for a product or service.
Data Mining
What is the first requirement to enjoy a “free trial offer?”
You need to give the company offering the service your credit, debit, or bank account information.
This process is like hooking a fish while it is underwater. A business, which exists to profit, is not going to request your personal financial information, even for a free trial offer, and then NOT use it,
Be wary of any free trial offer that asks for your financial information. In this scenario, even if you don’t take up the offer in the free trial, or forget you accepted, the business won’t forget your credit, debit, or bank account information.
Forgetting to Cancel
Most free trial offers last a week, a month, or several months.
However, we don’t usually think about the length of time for a free trial offer, we just think of the word “free.”
Payment (Intended or Not)
Here is the crucial thing – if you forget about the free trial offer you signed up for, you will probably be automatically billed for a month or one installment of the initial offer.
Remember – the company has your credit, debit, or direct bank account information.
If you notice that you are automatically billed for your free trial offer, you should contact the business immediately and make sure you won’t be automatically renewed for future payments.
Shipping and Handling Payments
Some free trial offers will give you a product or service for free as long as you pay for shipping and handling.
But if you have to pay anything for a free trial offer, then how is it free?
And if you are willing to pay for shipping and handling, then the company could decide that you won’t mind paying for the product or service indefinitely.
Automatic Payment Renewals
If you don’t cancel the free trial offer, the business will assume you want it, or that you forget. And that works for them either way.
You will then find yourself automatically renewed every month for a product or service you forgot about and don’t need or want in the slightest.
(If you needed or wanted it, you would not have been blindsided by any automatic renewal payments.)
And not here comes the worst part of being tricked into a free trial offer…
No Clear Answer on How to Cancel
A legitimate free trial offer will provide you with a clear answer on how to cancel the service. You may need to send an email, click a button, or call a customer service representative.
However, many companies won’t tell you how to cancel your free trial offer. They may make you jump through hoops, give contradictory instructions, and make you too bureaucratically exhausted to follow through.
How to End a Free Trial
Call the company directly, don’t rely on email. Find out in no uncertain terms how to cancel the free trial offer and any automatic renewal payments.
Call your bank or credit card company and make them aware of the problem. It might even be a better idea to write a letter with a return receipt request so you have written proof of the issue. Thereafter, it should not be an issue to get contested charges canceled or reversed.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.