Automatic Renewal Billing a Consumer Ripoff!
Many subscriptions, online services and other services have an auto billing renewal program which is anti consumer. These should be state and federal laws to prohibt these actions. Basically the company who has your account automatically renews additional tyears every time the contract is up. This was they can auto bill your credit card. In some cases they can even bill a closed credit card! For example Yahoo Greeting has a online greeting card service. This service costs $13.99 per year. When the one year term is up you get an email telling you that to cancel this service you must call an 800 number. I called and was on hold for 15 minutes. This tactic is so you give us and dont cancel the service. It can run for years. If you delete the email telling you it will auto renew, it will continue to renew unless you see the bill on your credit card statement and have it disputed. If you cna sign up with Yahoo Greetings online why can’t you cancel online? There can only be one reason. To make it harder for you to cancel. Imagine if at sign up you had to call and be on hold for 15 minutes. Nobody would sign up. Magazine companies do these auto renewals all the time. I try not to have my credit card on file directly with magazine companies and generally try to avoid these auto renewals if at all possible. Sometimes it is unavoidable. Watch those credit card statements and dispute any unknown charges on your credit card statements. I can only feel that these policies are against best interest of the consumer. I will probably followup this article in the future with updates