Unwanted subscriptions are costing us £56 a month

UNWANTED subscriptions are costing people an average of £56 a month because they are too difficult to cancel, research has found.

Citizens Advice said that many companies made it very difficult for consumers who have signed up for services such as gym memberships, TV and streaming services to break contracts.

It said one person who contacted the service said they tried to cancel a subscription after they were made redundant at work only to be asked for proof from their employer – including a P45.

Another lost almost £160 over two years as she did not realise she had signed up to an online delivery service. The company agreed to refund her half the amount because it acknowledged she had never used the service.

Companies refused cancellations by asking for more notice or told people they needed to cancel through a specific route, such as phone or email.

Citizens Advice analysed almost 600 problems related to unwanted subscriptions reported to them over a three-month period in the summer.

It found that over that time period, consumers paid an average of £160 towards unwanted subscriptions and around 90 per cent were initially refused when they tried to cancel.

Gillian Guy, chief executive of Citizens Advice, said: “Subscriptions are very easy to sign up to but can be difficult to get out of. We know people are wasting time and energy trying to cancel subscriptions while still paying.

“As part of National Consumer Week, we want to make sure consumers are aware of the terms and conditions of subscriptions before signing up and companies act responsibly when customers want to end their services.”

The amount people spend on subscriptions, from on-demand TV to car club membership, audiobooks and meal plans, has risen to an average £56 per person and £62 per month for adults between 35 and 64. The most common subscription complaints arise where consumers are offered “free” products and later discover they are charged recurrent fees.

Firms are frequently based overseas and terms might include details of future charges, but in many cases the documents are so long and complex that such details are overlooked.

Margot James, consumer minister, said: “With 40 million people in the UK now subscribing to at least one service, this campaign will help ensure consumers can shop with confidence and know their rights should things go wrong.”

Citizens Advice urged consumers to be aware of the terms and conditions of any contract before agreeing to recurring payments and companies to act responsibly when customers want to end their services.

It said suppliers can set their own cancellation policies and so did not need to offer the right to end a subscription early.