How 'free trial' web offers can be credit card traps

[Britton30]

The offer was tempting: I could read exclusive online articles about my beloved Red Sox on ESPN Insider, for just $44.95 a year. And to be sure that it would be money well spent, I could sign up for a seven-day free trial. I bit, coughing up my credit card number as part of the deal.

Unfortunately, I couldn’t get off the hook.

How 'free trial' web offers can be credit card traps | PCWorld

 

[x BlueRobot]

Microsoft also offer Xbox Live at very low monthly rates, and when the offer expires, they begin to charge the full rate without you realizing, it happened to a friend of mine who had to cancel his Gold subscription when he realised he was being charged the full amount.

 

[jimbo45]

Hi there
Beware of some of these offers -- they often say XXX days free trial and then YYY per month -- and YOU HAVE TO SAY YOU WANT TO TERMINATE or your credit card will be charged automatically. -- THE ONUS IS ON YOU TO CANCEL. Shouldn't be but there it is.

Consumer groups should go after these types of deals but the Internet being an International facility - makes enforcement rather difficult especially if the contract is being serviced from some of the more "dodgier Countries".

If I were you -- NEVER EVER pay a SUBSCRIPTION of any sort on the Internet by credit card.

By all means PURCHASE 1-off items / travel etc. via credit card but NEVER use a standard credit card for a subscription or Monthly fees via the Internet.

If you MUST go for these type of deals use a "Pre paid" DEBIT / CREDIT Card -- and if you feel you might be getting stung just empty the card so there's no money left on it.


You can get these types of "Pre Pay" debit / credit cards all over the place -- very handy too as there's no stupid Credit checks or anything and you can top them up at your convenience.

You can get SEVERAL of these so emptying one doesn't mean you can't use another one for something else and these don't go through Experiian / Equifax or any of these other credit reference agencies so there's no data held about you which 3rd parties can get hold of --that's what I like. !!

For instance here's a UK based one which I use when I'm in London -- others in different countries are available too.

Cashplus Prepaid Card – the prepaid credit card alternative with no credit checks | Cashplus

Please though as for ANY Financial product PLEASE Read all the small print though before applying for these cards as they *might* not be suitable for some people.

Cheers
jimbo

 

[cryptoncore]

Microsoft also offer Xbox Live at very low monthly rates, and when the offer expires, they begin to charge the full rate without you realizing, it happened to a friend of mine who had to cancel his Gold subscription when he realised he was being charged the full amount.

Yeah, and it's also a very big pain to cancel. I know someone who has had the same problem, bad really.

 

[richnrockville]

FWIW my bank (bank of america) visa card has an option to create a time/money limited special card number which you can set to any amount that you want. also set the expiration date.

It works and the amount that they charged shows up on your regular credit card.

It is called ShopSafe.

Rich

 

[Britton30]

The thrust of the article I got is that the trials are very easy to start, and some companies make it nearly impossible to cancel and don't provide instructions to do so.

 

[brotherboard]

The thrust of the article I got is that the trials are very easy to start, and some companies make it nearly impossible to cancel and don't provide instructions to do so.

I would put Sky Tv into that category. I will never again sign up for their 'service' I found them appalling to deal with.

 

[richnrockville]

That is one of the best options about ShopSafe, You put a dollar amount and an expiration date on the temporary credit card that the bank issues..

If they try to put another charge against it, it will be declined as NSF or not valid.

Rich

 

[FuturDreamz]

That is one of the best options about ShopSafe, You put a dollar amount and an expiration date on the temporary credit card that the bank issues..

If they try to put another charge against it, it will be declined as NSF or not valid.

Rich

Not everyone's banks offer ShopSafe, and they may send a collections agency to hassle you.

 

[richnrockville]

FuturDreamz, Maybe it would help if you asked your bank. Or purchase a temporary visa/mc card that has a card limit. Sometimes the credit card companies don't tell you all the options.

Rich

 

[jimbo45]

That is one of the best options about ShopSafe, You put a dollar amount and an expiration date on the temporary credit card that the bank issues..

If they try to put another charge against it, it will be declined as NSF or not valid.

Rich

Not everyone's banks offer ShopSafe, and they may send a collections agency to hassle you.

Hi there
Collection agencies have about as much legal right as my late Grandmothers Dead Cat to collect money or hassle you in any way whatsoever.

On this side of the pond they are usually known as DCA's or "Debt Collection Agencies". These people are the lowest of low life's usually sending out loads of "Threatograms" saying Court action or possibly other sanctions -- they have absolutely no legal right whatsoever and you can safely ignore these vile scum.

The ONLY time people can legally attempt to collect money from you is when they actually PURCHASE the debt -- and these small time agencies don't do this stuff for trivially small amounts of money --they just prey on people's ignorance.

In the UK if these people turn up on your property --just tell them to leave and if they don't they are TRESPASSING.

Case law in the UK has established that the ONLY people who have a right to enter your property are THE POSTMAN and people asking for directions.

(The Police with a warrant can of course enter as can Emergency services like Gas / Water repairmen to fix leaks although the Gas and Water people don't actually have an automatic right - but nobody would prosecute them for entering a house to prevent a gas leak causing major fires / explosion etc).

The same Laws operate in All US states as well as in Europe and loads of other countries as well --NEVER EVER get scared of or pay any money to debt collection agencies.

There are loads of places you can get "Stand alone Credit cards" or top up credit cards --you don't have to get them from your local bank.

Cheers
jimbo

 

[FuturDreamz]

They are still a royal pain. And do you honestly thing everyone will g through the hassle of setting up temporary accounts for each thing they buy online?

 

[Britton30]

Actually DCAs are allowed to operate in the US, they have to force of law though. As said, they can only threaten and are supposed to do it within the rules of time of day and no calls to a person's workplace.

 

[FuturDreamz]

"supposed to"

I highly doubt that companies that refuse to let you cancel would ensure the DCAs they use follow the letter of the law.

 

[Britton30]

It only takes a phone call to the FTC, they can handle them well. I've done it a time or two. We also have a Do Not Call list that one may enter a phone number and if spammer still call, the FTC intervenes again, it also works. At leat in my case, CA may be different though.

 

[HammerHead]

Judge

If it is free, what do they need a credit card no. for? When I sign up for something free and am asked for a charge card, I immediately dump the transaction. If you can get by the word "free" and operate this way you won't need the FTC.

 

[Britton30]

If it is free, what do they need a credit card no. for? When I sign up for something free and am asked for a charge card, I immediately dump the transaction. If you can get by the word "free" and operate this way you won't need the FTC.

True enough. I wasn't speaking of a free offer issue in my case, just how things are.

 

[Borg 386]

I read an article recently that says collection agencies are now turning to FB & Twitter to try to collect from someone. If I remember right, one of the cases involved a collector that friended the person under a alias, then sent notices through FB to her family & friends, making them "aware" that the person owed a debt. Naturally, the person was highly upset over this is taking them to court over this.

We're going to see a whole new set of laws written here soon concerning online methods of collection practices.

 

[Abouscent1961]

I agree 100% with jimbo45 - the way to handle these offers is with prepaid cards. I've been signing up for free/trial offers that require credit card numbers all over the Internet since the late '90s, and since prepaid cards have become widely available in the past few years I've shifted to using them exclusively for these types of trials and have never had a problem. The site jimbo45 referenced looks great for the UK. If you're in the US like me I'd recommend creditparrot.com (which is where I found both of my own prepaid cards, click on the "Debit Cards & Prepaid Cards" link on the left for a large variety).

FuturDreamz, these aren't temporary accounts and you don't need to set up a new one for each thing you buy online. You only need one, and then you pre-load it with only a small amount of money so that if someone tries to charge you for something you didn't agree to and it exceeds your balance, the transaction won't go through.

 

[D3LL]

That's why I always say to myself nothing is free in this world !