Free Trials Can Prove Very Expensive
From snack food to cosmetics, magazines to dietary supplements, internet providers to fitness consultants, free trials are a popular marketing ploy to gain new customers. It is appealing, after all, to try something new without having to pay for it.
But customers should be very careful: You may end up paying quite a bit for that supposedly free trial. Before signing up, consumers should make sure to ask themselves basic questions, according to the Federal Trade Commission: What am I getting? For how long? And how do I cancel?
Too often, consumers end up saddled with expenses they did not anticipate in a “free” trial, the FTC cautions. “Many people who have signed up for ‘free’ trials have wound up paying a lot of money and have been billed for recurring shipments they didn’t want.”
Consumer advocates urge the public to keep three things in mind when participating in a “free” trial:
- If you choose to cancel, make sure to do it on time. Mark the required date for cancellation on your calendar. Know that unscrupulous companies can make it hard to stop a subscription, even if they promised you an optional trial. If you are unable to cancel, your best option may be to ask your credit card provider to terminate payments.
- Watch out for unexpected fees. “If you have to pay for shipping or fees to get your “free” trial, it’s not really free,” the FTC points out. When a free trial ends, businesses have been known to impose higher charges than their customer expected and to bill them for products they did not order. That makes it important to monitor your credit card statements when participating in such a deal.
- Know that the free trial might be offered by a company that does not own the product. Such “affiliate marketers” aim to maximize clicks on their online ads, and may try to lure consumers with false promises, according to the FTC.
…And Auto-Renewals May Bring Problems of Their Own
Like free trials, auto-renewals can be a tactic to win and maintain consumers, and they may also prove to be convenient for customers. But consumer experts warn that unethical companies may use auto-renewals to mislead or cheat the public.
Consumers can protect themselves by adhering to these guidelines:
- Read a renewal notice with care. Of course, it may be legitimate. But unscrupulous businesses may try to trick consumers by sending renewal notices to people who have cancelled their subscriptions. If a “renewal
notice” asks you to fill in credit card information, watch out: Fraudsters may be trying to capture your personal financial data for use in identity theft. - Compare the renewal cost with what you have been paying in the past. If it is surprisingly high, you may have options to protect yourself. For example, companies may offer you a lower, promotional rate. If they do, be sure to know how long the promotion lasts and what you will pay when it ends.
- Steer clear of renewal notices for products you never ordered. Do not contact the sender, who may have included a phone number or online link. Such notices likely come from scammers who seek your personal financial information. If you’re curious about the sender, you always have the option of searching their name online to see if the company has been associated with scams or complaints.
Are You Mailing That Check? Make Sure it Gets There
EverSafe’s Scam Watch frequently warns our members to be careful about scams that involve online electronic payments. Scammers may try to capture your money through bank payment apps like PayPal and Venmo, which offer consumers only limited protections against fraud.
But old-fashioned paper checks bring risks of their own. In an email to constituents, the Maryland State Comptroller recently warned that a rise in postal theft has increased the risk of sending checks in the mail, and urged the public to pay their tax bills electronically. “Criminals are stealing checks directly from the mail and using the 
sensitive information printed on them to drain bank accounts and commit identity theft,” state officials warned in September. “Mailing a tax payment by check exposes your personal information in ways that online payments simply do not.”
In a joint statement earlier this year, the FBI and US Postal Service sought to highlight the problem. Fraudsters, they said, were taking advantage of requirements for banks to approve checks quickly, resulting in too many checks being approved with insufficient review. “As a result, the compromised checks clear, and the funds are withdrawn by the criminal participants before the fraud is detected,” government officials said.
Fortunately, check writers can take steps to protect themselves. FBI and Postal officials recommended a long list of measures, including the following:
- Write checks with bold, black, indelible ink, making it harder for scammers to alter them.
- Order checks equipped with modern safety features. Paper checks may be a technology that was used by our grandparents – or even great grandparents – but consumers can protect themselves by seeking products that feature holograms, watermarks, heat-sensitive ink, and other safety features, according to government officials.
- Do not add personal financial or identifying information to what is already on the check. Identity thieves may exploit credit card information, phone number, credit card information, driver’s license, and your Social Security number.
- Do not leave room for crooks to write new information on the check involving the amount or recipient.
- After you send the check, it is a good idea to follow up and make sure that the recipient received it.
