Can I Sue Over Auto-Renewal Subscription Traps? (UK)

That free trial automatically converted to a £15/month subscription. Or perhaps you’ve been charged for a gym membership you thought you’d cancelled months ago. Auto-renewal subscription traps cost UK consumers millions each year — but you have stronger legal protections than you might realise.

This article is for informational purposes only and does not constitute legal advice.

Common Subscription Trap Tactics

Businesses use various strategies to keep you paying:

• Free trial conversions: Trials that silently become paid subscriptions
• Buried renewal terms: Auto-renewal hidden in lengthy terms and conditions
• Difficult cancellation: Easy to sign up, nearly impossible to cancel
• No renewal reminders: No notification before charges resume
• Price increases on renewal: Higher rates kick in without clear warning
• Continuous payment authority: Taking payment without ongoing consent

UK Legal Framework

Digital Markets, Competition and Consumers Act 2024

This recent legislation creates powerful new protections specifically targeting subscription traps:

• Pre-contract information: Clear disclosure of auto-renewal terms before sign-up
• Reminder notices: Businesses must remind you before renewal (and before free trials convert)
• Easy exit: Cancellation must be as easy as signing up
• Cooling-off periods: Right to exit after reminder notices

The CMA can now take direct enforcement action with significant fines for non-compliance.

Consumer Rights Act 2015

Contract terms must be fair and transparent. A subscription term may be unfair if:

• It wasn’t brought to your attention before you agreed
• It’s buried in small print or confusing language
• It creates a significant imbalance to the consumer’s detriment
• Cancellation terms are excessively onerous

Unfair terms are not binding on consumers.

Consumer Contracts Regulations 2013

For subscriptions purchased online, you have:

• 14-day cooling-off period: Right to cancel within 14 days of sign-up without reason
• Clear information rights: Total price and payment terms must be clear before purchase
• Explicit consent: Any payment beyond the main contract requires express agreement

Consumer Protection from Unfair Trading Regulations 2008

It’s a banned practice to:

• Demand payment for products/services never ordered
• Mislead consumers about their cancellation rights
• Use aggressive practices to prevent cancellation

When You May Have a Claim

You likely have grounds for a refund or claim if:

• Auto-renewal terms weren’t clearly disclosed at sign-up
• You didn’t receive reminder notices before renewal
• Cancellation was unreasonably difficult (phone-only, long hold times, multiple steps)
• Free trial conversion wasn’t prominently flagged
• Price increased on renewal without clear advance notice
• You tried to cancel but were charged anyway
• You never signed up at all (fraudulent or mistaken charges)

When It’s More Difficult

Claims may be harder when:

• Terms were clearly displayed and you clicked “I agree”
• Reminder emails were sent (even if you didn’t read them)
• Easy online cancellation was available but not used
• Significant time has passed since the charges
• You continued using the service after the renewal

What You Can Claim

Depending on circumstances, you may be entitled to:

• Full refund: Of charges made without proper consent or notice
• Partial refund: For periods after you attempted to cancel
• Contract cancellation: Exit the subscription immediately without penalty
• Interest: On money wrongly taken (8% statutory interest)

Steps to Take

1. Check your bank statements: Identify all charges and the subscription provider
2. Gather evidence: Screenshot the sign-up page, save any emails, document cancellation attempts
3. Request cancellation in writing: Email creates a paper trail — keep copies
4. Demand a refund: Write formally citing consumer protection law
5. Contact your bank: Request a chargeback for goods/services not as described or not received
6. Cancel the payment authority: Ask your bank to stop future payments to that merchant
7. Report to Trading Standards: Via Citizens Advice Consumer Service
8. Use ADR: Many sectors have ombudsman or mediation schemes
9. Small Claims Court: Money Claims Online for amounts up to £10,000

Bank Chargebacks and Direct Debit Guarantee

You have additional protections through payment providers:

Credit/Debit Card Chargeback

You can dispute charges with your card provider if services weren’t as described or you didn’t receive what you paid for. Usually available within 120 days of the charge.

Direct Debit Guarantee

If you pay by Direct Debit, you’re entitled to an immediate refund from your bank for any payment taken in error or without proper notification. The bank claims it back from the company.

Section 75 (Credit Cards)

For purchases between £100-£30,000 on credit card, the card provider is jointly liable with the merchant for breaches of contract.

Frequently Asked Questions

Can they charge me if I forgot to cancel a free trial?

Only if they made the conversion terms crystal clear at sign-up AND sent you a reminder before the trial ended. Under the new 2024 Act, businesses must provide reminder notices. If they didn’t, you may be entitled to a refund.

The company says “no refunds” — is that enforceable?

A blanket “no refunds” policy doesn’t override your statutory rights. If the term was unfair or you were misled, you can still claim a refund regardless of their stated policy.

I’ve been charged for months without using the service. Can I get it all back?

Potentially. If they failed to send required renewal reminders, you may be entitled to refund of all charges since the last proper notice. The longer the period and the clearer the lack of consent, the stronger your claim.

How do I cancel a payment authority?

Contact your bank directly — you can cancel continuous payment authority (CPA) at any time. The bank must stop future payments. The subscription company cannot charge you after you’ve cancelled payment authority, though they may pursue you for contractual obligations separately.

What if the company is based abroad?

UK consumer law applies when services are marketed to UK consumers, regardless of where the company is based. You can also pursue bank chargebacks and ADR regardless of the company’s location.