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Fast Company
6 days ago
- Business
- Fast Company
4 tips to end unwanted subscriptions now that ‘Click-to-cancel' is over
A 'click-to-cancel' rule, which would have made it easier for consumers to end unwanted subscriptions, has been blocked by a federal appeals court days before it was set to go into effect. But there are ways to end those subscriptions and memberships, even if they take some work. The rule would also have required companies to disclose when free trials and promotional offers would end and let customers cancel recurring subscriptions as easily as they started them. But even without the new federal guidance, here are some ways to stay on top of subscription and membership fees. Use calendar reminders and regularly review your bills Experts at the Consumer Federation of America recommend setting calendar reminders for whenever a free trial period ends, to alert yourself to cancel promotional offers before the real recurring costs kick in. The auto-enrollment process, in which the company does not remind the consumer via email that a trial is about to end and higher monthly payments will begin, was also at the heart of the FTC's rule. 'No subscription business model should be structured to profit from a gauntlet-style cancellation process,' said Erin Witte, Director of Consumer Protection for the Consumer Federation of America, in a statement on the click-to-cancel rule. Regularly reviewing your credit card and debit card bills can also help you keep track of any recurring charges—including price increases you may have missed or that you didn't anticipate when trying out a new membership or subscription. Know the terms and conditions of a given subscription 'Companies make it easy for consumers to click to sign up and easy for the companies to automatically withdraw funds from consumers' accounts,' said Shennan Kavanagh, Director of Litigation at the National Consumer Law Center (NCLC) in a statement on the FTC's click-to-cancel rule. 'People should not (have to) spend months trying to cancel unwanted subscriptions.' Given the FTC's vacated rule, though, companies may still legally require that customers cancel memberships or subscriptions by phone, even as they permit signing up, enrolling, and paying bills online. Consumer advocates say this places an extra burden of time and energy on the consumer to stop an unwanted recurring fee, but sometimes knowing the terms of the subscription and getting on the phone is worth the trouble. There are some services that unenroll you Apps like Rocket Money and services like Trim, which is accessed through a browser, can keep track of your recurring monthly fees and subscriptions, for free—or for a fee—and can help you catch new ones or even unsubscribe from some services. For parents, especially, a service like Trim could help inform them that a child has started a new subscription, game or membership before the fees recur. And Rocket Money will actively work to end unwanted subscriptions for you, for a monthly price. If the company can't successfully end or cancel the subscription or membership, it will give the customer the information needed to do so. Trim also provides this service, in its premium form, for an additional fee. Resist deals when canceling The FTC is currently moving forward with preparations for a trial involving Amazon's Prime program, which accuses the retailer of enrolling consumers in its Prime program without their consent and making it difficult to cancel subscriptions. Often, when a consumer tries to cancel a subscription for something like Prime, which offers free delivery and streaming video, the company will offer a month or more of the subscription at a promotional rate—half off, or at other, better-seeming values, to entice a customer to stay. Staying strong in the face of what may appear to be a good deal can help you stop recurring monthly fees before you forget to cancel them again. Agreeing to yet another trial or promotional rate, which is another on-ramp to auto-enrollment, just continues the cycle, according to consumer advocates. What would the FTC's rule have done? The FTC's rule would have required businesses to obtain a customer's consent before charging for memberships, auto-renewals and programs linked to free trials. The businesses would have also had to disclose when free trials and promotional offers would end. The U.S. Court of Appeals for the Eighth Circuit said this week that the FTC made a procedural error by failing to come up with a preliminary regulatory analysis, which is required for rules whose annual impact on the U.S. economy is more than $100 million. The FTC said that it did not have to come up with a preliminary regulatory analysis because it initially determined that the rule's impact on the national economy would be less than $100 million. An administrative law judge decided that the economic impact would be more than the $100 million threshold, and the court decided to vacate the rule. Former President Joe Biden's administration had included the FTC's proposal as part of its 'Time is Money' initiative, which aimed to crack down on consumer-related hassles. The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
The Independent
11-07-2025
- Business
- The Independent
One Tech Tip: 'Click-to-cancel' is over, but there are other ways to unsubscribe
A 'click-to-cancel' rule, which would have made it easier for consumers to end unwanted subscriptions, has been blocked by a federal appeals court days before it was set to go into effect. But there are ways to end those subscriptions and memberships, even if they take some work. The rule would also have required companies to disclose when free trials and promotional offers would end and let customers cancel recurring subscriptions as easily as they started them. But even without the new federal guidance, here are some ways to stay on top of subscription and membership fees. Use calendar reminders and regularly review your bills Experts at the Consumer Federation of America recommend setting calendar reminders for whenever a free trial period ends, to alert yourself to cancel promotional offers before the real recurring costs kick in. The auto-enrollment process, in which the company does not remind the consumer via email that a trial is about to end and higher monthly payments will begin, was also at the heart of the FTC 's rule. 'No subscription business model should be structured to profit from a gauntlet-style cancellation process," said Erin Witte, Director of Consumer Protection for the Consumer Federation of America, in a statement on the click-to-cancel rule. Regularly reviewing your credit card and debit card bills can also help you keep track of any recurring charges — including price increases you may have missed or that you didn't anticipate when trying out a new membership or subscription. Know the terms and conditions of a given subscription 'Companies make it easy for consumers to click to sign up and easy for the companies to automatically withdraw funds from consumers' accounts,' said Shennan Kavanagh, Director of Litigation at the National Consumer Law Center (NCLC) in a statement on the FTC's click-to-cancel rule. ' People should not (have to) spend months trying to cancel unwanted subscriptions.' Given the FTC's vacated rule, though, companies may still legally require that customers cancel memberships or subscriptions by phone, even as they permit signing up, enrolling, and paying bills online. Consumer advocates say this places an extra burden of time and energy on the consumer to stop an unwanted recurring fee, but sometimes knowing the terms of the subscription and getting on the phone is worth the trouble. There are some services that unenroll you Apps like Rocket Money and services like Trim, which is accessed through a browser, can keep track of your recurring monthly fees and subscriptions, for free — or for a fee — and can help you catch new ones or even unsubscribe from some services. For parents, especially, a service like Trim could help inform them that a child has started a new subscription, game or membership before the fees recur. And Rocket Money will actively work to end unwanted subscriptions for you, for a monthly price. If the company can't successfully end or cancel the subscription or membership, it will give the customer the information needed to do so. Trim also provides this service, in its premium form, for an additional fee. Resist deals when canceling The FTC is currently moving forward with preparations for a trial involving Amazon's Prime program, which accuses the retailer of enrolling consumers in its Prime program without their consent and making it difficult to cancel subscriptions. Often, when a consumer tries to cancel a subscription for something like Prime, which offers free delivery and streaming video, the company will offer a month or more of the subscription at a promotional rate — half off, or at other, better-seeming values, to entice a customer to stay. Staying strong in the face of what may appear to be a good deal can help you stop recurring monthly fees before you forget to cancel them again. Agreeing to yet another trial or promotional rate, which is another on-ramp to auto-enrollment, just continues the cycle, according to consumer advocates. What would the FTC's rule have done? The FTC's rule would have required businesses to obtain a customer's consent before charging for memberships, auto-renewals and programs linked to free trials. The businesses would have also had to disclose when free trials and promotional offers would end. The U.S. Court of Appeals for the Eighth Circuit said this week that the FTC made a procedural error by failing to come up with a preliminary regulatory analysis, which is required for rules whose annual impact on the U.S. economy is more than $100 million. The FTC said that it did not have to come up with a preliminary regulatory analysis because it initially determined that the rule's impact on the national economy would be less than $100 million. An administrative law judge decided that the economic impact would be more than the $100 million threshold, and the court decided to vacate the rule. Former President Joe Biden 's administration had included the FTC's proposal as part of its 'Time is Money' initiative, which aimed to crack down on consumer-related hassles. —— 'The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.'
CBS News
03-07-2025
- Business
- CBS News
Home renovations that can cut insurance costs
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Making a few strategic renovations could have a big (and positive) impact on the cost of your home insurance policy. Westend61/Getty Images Home insurance costs have skyrocketed over the last couple of years. Case in point? Data from the Consumer Federation of America shows homeowners have seen their home insurance premiums jump by about 24% on average over the last three years as insurers adjusted to inflation and experienced an increase in weather-related claims. As a result, many homeowners are looking for ways to cut their insurance expenses without sacrificing essential coverage. And, while there are a few ways to try and do that, making smart renovations may be the answer. After all, certain home improvements could slash your homeowners insurance premiums by reducing the risks that drive up coverage costs. Though not every home upgrade will improve your rates, insurance experts say the right projects could put money back in your pocket each year. Find out how affordable the right home insurance policy could be today. Home renovations that can cut insurance costs "Generally, insurers give [discounts] for renovations that reduce either the chance of an insurance loss or the size of it, or both," says Peter Piotrowski, chief claims officer at Hippo Insurance. Discount amounts vary by home insurance provider. But these four home remodeling projects consistently catch insurers' attention, experts say: Getting a new roof "A full roof replacement is a project that most insurers love to see," says Nick Christensen, an insurance agent at Goosehead Insurance. Your roof is your home's first defense against weather damage, and insurers factor its age into premium calculations. If your roof is 15 to 20 years old (or older), replacing it could lead to noticeable savings on insurance costs. According to Katie Irey, senior vice president at Allstate, the roof materials you choose matter. For example, "insurers may offer discounts for impact-resistant materials [such as] Class 4 shingles," Irey says. "[These] can better withstand hail and high winds." In some states, insurers are required to offer discounts for wind-mitigation features. To get your discount, "let your insurer know about the upgrade and provide documentation so they can adjust your policy," Irey says. Your insurance company will calculate savings based on your roof's age, materials and resistance ratings. Learn more about your home insurance coverage options online now. Upgrading electrical and plumbing systems "Water damage and electrical fires are major claim drivers," says Irey. That's why upgrading old wiring or plumbing can earn you meaningful discounts on your home insurance policy. Replacing aging systems before they fail shows insurers you're preventing the expensive claims they worry about most. "A modern system reduces the likelihood of filing a claim related to either hazard," Christensen says. Beyond replacing core systems, consider adding protective features, such as leak detectors and sump pumps. These can reduce water damage risks and boost your savings. Don't expect automatic recognition for your upgrades, though. "A major utility upgrade may require [you to submit] photos or [do an] in-home inspection to qualify for a discount," Piotrowski says. So, be prepared to document your upgrades with permits, contractor receipts and before-and-after pictures. Adding monitored alarm and security systems "A monitored security system is a reliable way to lower your home insurance premium," says Christensen. These systems reduce the risk of major losses by deterring theft and enabling faster emergency response to fires. When sensors detect trouble, operators can dispatch emergency services immediately. This often prevents small incidents from becoming expensive claims. Piotrowski emphasizes that smart technology makes these systems even more effective at reducing claims. Modern alarm systems send instant alerts to your phone when hazards arise. This means you can respond quickly and mitigate damage before it becomes a costly insurance claim. Installing storm shutters If you live in a hurricane-prone area, "installing permanent storm shutters or impact-resistant windows can lead to insurance discounts," Christensen says. These barriers shield your home from wind damage and flying debris during storms. From an insurer's perspective, homes with storm shutters are far less likely to suffer severe damage that triggers expensive claims. Like other renovations, securing your discount requires official documentation. Insurers usually apply discounts after a wind mitigation inspection, which documents your protective features. This inspection creates the paper trail that insurers need to justify reduced premiums. Home improvements that typically won't cut insurance costs Not all valuable home renovations translate to insurance savings, though, experts say. "Cosmetic upgrades [won't] lower your home insurance premium," says Christensen. "They may even raise it, as the cost to replace your home has now increased." The following projects likely won't cut your insurance costs, according to Irey: Swimming pools increase liability risk, often requiring more coverage. increase liability risk, often requiring more coverage. Kitchen and bathroom remodels raise replacement costs due to high-end materials. raise replacement costs due to high-end materials. Solar panels add to replacement costs and create new storm damage risks. add to replacement costs and create new storm damage risks. Architectural changes (e.g., garage conversions, open floor plans, exposed brick) can elevate fire, wind or liability risks. Only renovations that reduce risk may be eligible for lower premiums. The bottom line Smart renovations can deliver real insurance savings, but success depends on proper planning. "If you're [renovating to save] on insurance, have a conversation with your insurance agent before you start swinging a hammer," Christensen advises. They can let you know which upgrades will have the most impact on your premium based on your location and risk profile.
CBS News
02-07-2025
- Climate
- CBS News
Home insurance tips for weather-proofing your home
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Weather-proofing your home could help protect it from damage while also helping to lower the cost of your home insurance year, there were a total of 27 weather and climate disasters in the United States with losses of more than $1 billion each, according to NOAA National Centers for Environmental Information (NCEI). These types of issues can be devastating to your finances, but home insurance coverage provides homeowners with valuable and often necessary protection from damages related to things like hail, hurricanes, fires, lightning and other perils listed in their policies. But while that insurance coverage can help protect your finances, those benefits also come at a cost. As extreme weather events become more common, many home insurance providers have hiked up rates or pulled out of certain areas. Over the past three years, home insurance premiums have increased by an average of 24%, according to the Consumer Federation of America (CFA). If you're a homeowner who's navigating higher home insurance costs, the good news is that there are some things you can do to reduce the likelihood of filing a claim because of a weather event. While you don't have control over when and what happens with the weather, you can work on weather-proofing your home. Here's how to do that. Find out how affordable the right home insurance policy could be now. Home insurance tips for weather-proofing your home Weather-proofing will vary based on your region's specific threats, but wind and hail are common weather events. In fact, every year, about one in 35 insured homes has a property damage claim from these events, according to the Insurance Information Institute. The goal with weather-proofing homes is to add a layer of protection so you're less likely to file a claim, as doing so could increase home insurance costs. Some home insurance companies may even offer discounts for doing so. Here are some of the top ways you can weather-proof your home: Keep up with roof maintenance Your roof plays a crucial role in protecting your home during severe weather. Having a sturdy roof can help lower the risk of potential storm damage. The last thing you want is a pesky leak or a damaged roof that affects the structure of your home. Replacing an older roof with a new one is one of the best ways to weather-proof your home, Brent Thurman, president of Keystone Insurance, says. "Many insurance carriers will give substantial discounts for this, knowing that the probability of a roof claim is greatly diminished," says Thurman. Buying a new roof can be costly, though, so if it's not a necessity yet, there are other ways to strengthen your roof. Fortifying your roof or getting a new one can reduce the likelihood of damage and may help you qualify for home insurance discounts. "Some of the standard approaches that homeowners take are using roof tie downs," says Mark Friedlander, senior director of media relations at the Insurance Information Institute, a national nonprofit research and education organization. "So you don't necessarily have to replace the roof, but you're just fortifying the roof system," adds Friedlander. Compare your home insurance coverage options to find the right ones for you. Consider storm shutters Depending on where you live, you might consider purchasing storm shutters as an extra layer of protection. Also referred to as hurricane shutters, these types of shutters help safeguard windows and doors from extraneous debris during storms and can help keep you and your belongings safe as well. These benefits may lower the likelihood of filing a claim. "Common ways to mitigate risk against wind include a wind radar, garage door and storm shutters, especially in the hurricane [prone] states. They have storm shutters, and not only will it make your home more resilient to these weather events, but it could potentially generate savings," says Friedlander. These benefits may lower the likelihood of filing a claim. And, in New York state, home insurance companies must offer discounts if policyholders install storm shutters that meet certain specifications, according to the Department of Financial Services. Seal gaps in windows and doors It's essential to keep your home protected from the elements during severe weather events. When weather-proofing your home, you want to close any gaps in windows and doors that could let water or wind in and damage your home. Plus, these steps can make your home more energy efficient as well. Friedlander suggests "weather stripping and caulking to seal gaps around windows, doors, and other openings that prevent air leaks and drafts, adding insulation to attics, walls and crawl spaces can significantly reduce heat loss in the winter and heat gain in the summer." Remove outside debris As the seasons change, the area around your home can be full of debris that could damage your home in more ways than one. "We also encourage clients to remove leaves and other debris to prevent ice damming, potentially hurting their shingles or allowing water into their attics, which can damage their ceilings and walls," says Jesse L. Kohlbecker, vice president of claims and client services at COUNTRY Financial. Clearing debris may also lower the risk of a fire breaking out. "Removing dead leaves, needles, twigs, and other debris that could easily ignite, removing low-hanging branches that can carry fire from the ground to taller vegetation," Friedlander says. Clean out your gutters Weather-proofing your home requires some maintenance, too. And, one of the best things you can do is regularly clean your gutters. "We encourage them [clients] to clean their gutters and keep their downspouts open to prevent water backups," says Kohlbecker. In a storm event, it's not just your roof that can be damaged — your gutters are at risk too, Kohlbecker says. If your gutters aren't working properly, water can back up, and if it does, it may damage your roof. Not only that, but it may also lead to a water leak, which can be fertile ground for mold growth and end up multiplying your problems. Taking proactive steps can help, though. "It's so important to have those annual inspections and make sure that you're comfortable and your home is in good condition in the event that you experience a storm," adds Kohlbecker. The bottom line As home insurance costs continue to rise and the weather becomes more unpredictable, weather-proofing your home is more important than ever, and following these home insurance tips and protocols may reduce the likelihood of a claim. In some cases, you may even qualify for a discount with your insurance company. If not, remember that you can shop around for policies to compare options and ensure you're getting a competitive rate and are taking advantage of the discounts you qualify for. It's also important to be aware of your home insurance limitations and what's not covered under your standard homeowners insurance policy. While home insurance policies cover many weather-related events, standard coverage typically doesn't include damage from earthquakes or certain types of floods. So, when comparing home insurance companies, check to ensure whether they offer optional coverage to cover these and the other additional risks that could impact you.
The Independent
26-06-2025
- Business
- The Independent
Your credit score might soon be impacted by Buy Now, Pay Later loans
Millions of Americans who rely on 'Buy Now, Pay Later' (BNPL) schemes for everything from clothing to concert tickets will soon see these short-term loans directly impact their credit scores, marking a significant shift in how consumer creditworthiness is assessed. Scoring giant FICO announced on Monday that it is rolling out a new model that will factor these popular payment plans into its consumer scores, which are used by the majority of lenders to determine a borrower's financial reliability. Previously, BNPL loans were largely excluded from credit reports, though Buy Now, Pay Later provider Affirm began voluntarily reporting 'pay-in-four' loans to Experian, a separate credit bureau, in April. The new FICO scores will become available to lenders as an option from the autumn, aiming to provide increased visibility into consumers ' repayment behaviour. However, widespread adoption may take time, as not all BNPL companies share data with credit bureaus, and not all lenders will immediately opt into the new models, according to Adam Rust, director of financial services at the non-profit Consumer Federation of America. The move comes as BNPL loans, typically structured as four interest-free instalments over six weeks with minimal or no credit checks, have become an increasingly significant part of the US credit ecosystem. FICO stated that its new model accounts for this growing trend. Julie May, vice president and general manager of business-to-business scores at FICO, said: "Buy Now, Pay Later loans are playing an increasingly important role in consumers' financial lives. We're enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products." FICO believes the new model will responsibly expand access to credit, particularly for younger consumers or those with limited credit histories. A joint study with Affirm, which trained FICO's new scores on over 500,000 BNPL borrowers, found that consumers with five or more loans typically saw their scores increase or remain stable under the new system. For those who consistently repay their BNPL loans on time, this could lead to improved credit scores, potentially enhancing access to mortgages, car loans, and apartment rentals. Currently, these loans do not typically boost scores, though missed payments can negatively affect them. However, consumer advocates have raised concerns. While BNPL providers promote these plans as safer alternatives to credit cards, critics warn of "loan stacking," where consumers take on multiple loans across various companies simultaneously. The previous opacity around this practice has led to warnings of "phantom debt" that could mask a consumer's true financial health. Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, expressed concern that integrating these loans into scores could have unforeseen negative effects on individuals already facing credit constraints. "There isn't a lot of information out there about how integrating BNPL into credit scoring will work out," Ms Chabrier said, noting that while FICO's simulation showed some users' scores increasing, the overall consequences are hard to predict without more detailed modelling information. She cited research indicating that many BNPL users already have revolving credit card balances, lower credit scores, delinquencies, and existing debt, with women of colour disproportionately using these loans. "This is a credit vulnerable community," Ms Chabrier added. Despite the changes, Adam Rust does not anticipate an immediate "game-changer" for consumers with established credit profiles. "Are we at a point where using BNPL loans will dramatically alter your credit profile? Probably not," he said, explaining that the average BNPL loan is around \$135, and consistent repayment of such small amounts may not significantly move the needle on a credit score. "It's not about going from 620 to 624. It's about going from 620 to 780," he clarified, referring to the substantial score jumps that impact credit card offers and interest rates. Nevertheless, Mr Rust acknowledged that increased transparency around BNPL loans could create a more accurate picture of a consumer's debts, potentially improving underwriting and preventing individuals from over-extending themselves. "This addresses the problem of 'phantom debt,' and that's a good thing," he concluded. "Because it could be something that keeps people from getting too deeply into debt they can't afford." The shift comes as millions of Americans have already seen their credit scores decline steeply since March, following the resumption of student loan payments.
