January is a month when many people would prefer not to look at their credit card or bank statements, but the Better Business Bureau serving Mainland BC (BBB) is cautioning people to check for unexpected subscription renewals and hidden fees, which often pop up at the start of the new year.
The start of the new year is a common time for people to notice these recurring charges, many of which were forgotten about, never cancelled, or quietly converted from so-called “free trials” after a set period of time.
“January is when many people begin reviewing their statements after the holidays,” says Neesha Hothi, Director of Marketing and Communications for Better Business Bureau serving Mainland BC. “A quick subscription audit can save families money, prevent unwanted renewals, and make budgeting easier for the year ahead.”
So-called “subscription traps” are misleading subscription models that often rely on tactics designed to confuse or discourage consumers. These can include:
– “Free trials” that automatically convert into paid plans with limited or unclear notice
– Fine print that hides renewal dates or billing frequency, which consumers don’t read or overlook
– Complicated or buried cancellation instructions
– Annual charges instead of monthly billing, which makes it easier to forget about fees or makes them harder to spot
– Customer support that is difficult to access or which takes a long time, meaning that timely cancellation isn’t possible
These practices can quickly add up and make it challenging for consumers who are trying to take control of their finances. The BBB has some tips to help you avoid hidden subscription charges:
– Review your bank and credit card statements regularly, so that you can spot unfamiliar charges early before they accumulate.
– Set reminders for the end dates of those free trials. That way you can cancel before the renewal window if you no longer want the service.
– Read the fine print, so that you fully understand billing cycles, renewal terms, and cancellation requirements before signing up.
– Research companies on www.BBB.org, where you can check reviews and ratings to confirm the legitimacy of the company and see any red flags.
As subscription-based services continue to grow, staying informed is one of the best ways for consumers to avoid surprise charges and protect their budgets. BBB encourages everyone to take a few minutes this month to audit subscriptions, clarify terms, and report misleading practices.