This TikToker says she paid nearly $4K over 4 years for a subscription service that gave her absolutely nothing — and she can’t get the money back. 3 simple tips to avoid getting blindsided

Los Angeles TikToker @maxedoutmommy posted a viral clip in which she shared she’d been paying $90 a month for a subscription for four years — with nothing to show for it.

Despite believing she’d canceled her subscription to a designer clothing rental service in 2019, @maxedoutmommy (who also goes by Rae Leigh) claimed in her video that she hasn’t received a single item — or even a single email — from the company since then. Meanwhile, she’s paid out roughly $3,990 over that time.

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Rae Leigh says she has so far been unable to recoup that money and she didn’t catch the charges because her husband handles the household finances.

Regardless of who is responsible for the oversight in this case, the video appears to have struck a chord. It has more than 800K views since it was posted last month, with over 1,300 comments, many from people who’ve dealt with a similar situation.

The latest survey from consumer trends giant Deloitte shows 47% of Americans are cutting down on their monthly entertainment subscriptions because of “current economic conditions.”

If you’re in the same boat, here are some quick tips to make sure you’re not blowing your monthly budget on sneaky extra charges.

Are you unknowingly paying for subscriptions?

Recent data shows that what happened to Rae Leigh is far more common (and can cost you a lot more) than you might think.

A 2022 survey from market research firm C + R Research on subscription services and costs showed 42% of respondents had stopped using a subscription service but forgot they were still paying. The average person spent $219 a month on subscriptions, more than twice respondents’ average initial estimate of $86.

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That’s a difference of $133 a month or $1,596 a year that could be better spent on your retirement nest egg or any other financial goals.

While forgetfulness can play a big part in racking up these often-overlooked charges, it’s not the only culprit.

In July, The Hollywood Reporter ran an experiment in which they subscribed to several streaming services and then attempted to cancel. They found that Prime Video, Disney+ and Paramount+ all required six steps to cancel a subscription and each included two offers for alternate subscription plans.

In other words, they concluded that customers often get stuck because companies make it much easier to sign up for a service than to cancel it.

Read more: ‘Now is not the time’: Suze Orman warns these 4 financial blunders will set you back in a big way — here’s how to ‘be strong’ with your money

How to avoid paying the (unexpected) price

1. Always review your financial statements

You don’t have to pay for a subscription management app to find and stop recurring charges; simply read your bank and credit card statements. Get in the habit of reviewing them at least once a month. This is already important for monitoring your credit score and it can also help you catch and remedy those unwanted or incorrect transactions.

If you discover a charge for something you didn’t receive and the vendor won’t work with you to resolve it, follow Rae Leigh’s lead and request a chargeback (a refund or statement credit) from your credit card company.

It is worth noting, you only have 60 days from when you are charged for the subscription or service to submit your request.

2. Look into the cancellation policy

Before signing up for a subscription service, take a moment to check out the cancellation process. If the process is more complicated than clicking “cancel” or you find the process difficult to navigate, that could be a red flag. Here are a couple things you can do before you sign up:

• The fine print: The Federal Trade Commission (FTC) recommends reading a company’s return and cancellation policies before subscribing to a service with automatic renewal.

• Customer reviews: Take the time to read reviews online, especially ones that mention cancellation issues or recurring charges.

3. Beware of free trials

There’s a reason so many companies offer free trials. In exchange for the free use of their product or service for a limited time, you usually have to provide your credit card information. And if you forget to cancel, you end up with a new monthly charge you may not have planned on.

If you do sign up for a free trial, make sure you cancel it before the free period ends. Be proactive and add a reminder to your calendar or smartphone for at least one day before your trial is set to end so you avoid getting charged for a service you don’t want.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.