Subscriptions snare unhappy customers

Sir,

A new report from the Citizen’s Advice Bureau (CAB) has revealed that huge numbers of people are finding it very difficult to cancel continuous payment authorities (CPAs) which give permission for companies to take subscriptions out of people’s bank accounts, such as for gym memberships or TV packages.

Many customers told the CAB that they thought they had only signed up for a one-off payment before discovering money would be deducted from their bank account every month. In some cases, companies have tried to stop them cancelling by asking for more notice or saying they had to do it through a specific route, such as phone or email.

Their analysis of almost 600 problems found that in just three months consumers paid an average of £160 on unwanted services.  Of course, it’s important we all look carefully at terms and conditions – especially the small print – before signing up to a subscription.  At the same time, companies must act responsibly and listen to customers rather than simply taking their money.

Given that there are now 40 million people in the UK signing up to at least one product or service via a continuous payment authority, it’s important that consumers can shop with confidence – and be able to trust that those selling the product or service act responsibly.