Government plans stricter rules on subscription services

Many households are losing money on unwanted subscriptions. In the UK, people waste about £1.2 billion a year on these services, which averages £168 per person. Some subscriptions are easy to forget, like gym memberships or TV packages. Others are known as subscription traps, where companies make it difficult to cancel. The UK government plans to introduce new rules to help consumers. Companies will need to give clearer information when signing up and send reminders before renewals. These rules may not take effect until 2026. Dame Clare Moriarty, from Citizens Advice, says it is crucial for consumers to manage their spending. She argues that companies that rely on people forgetting to cancel their subscriptions are exploiting consumers. To avoid subscription traps, people should be cautious of a few tactics. For example, fake QR codes at restaurants can trick customers. Some ads on search engines can also mislead users by appearing similar to legitimate brands. Free trials often lead to trouble, as they can make cancellation difficult. Additionally, premium rate texts can sign users up for recurring charges. Checking bank statements regularly can help identify unwanted subscriptions. Financial educator Gabriel Nussbaum recommends looking through monthly accounts for recurring charges, including credit cards and mobile bills. If you want to cancel a subscription, check how to do it on the company's website. Consumers legally have 14 days to cancel a subscription without questions if they signed up online. After this period, look at your contract for cancellation details. Citizens Advice can provide assistance if needed. If cancellation is still a problem, consumers can ask their credit card providers to stop payments. There are also options to report misleading subscriptions to the Financial Ombudsman Service for possible refunds.