ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

TikToker Shocked After Paying for Subscription She had Cancelled; Here's how to Avoid Such Costs

Explore the financial journey sparked by Rae Leigh's $4K subscription mishap, revealing key tips to shield your wallet in the digital age.
UPDATED JAN 22, 2024
Cover Image Source: TikTok | @maxedoutmommy
Cover Image Source: TikTok | @maxedoutmommy

In the social media landscape, where trends surface and fizzle out faster than you can say "viral," one Los Angeles TikToker found herself in a less-than-enviable spotlight this summer. With a username @maxedoutmommy, or Rae Leigh in the real world, she shared a cautionary tale that resonated with millions who scrolled past her video. In a nutshell, Rae revealed she'd been unwittingly shelling out $90 a month for the past four years on a subscription to a designer clothing rental service. She hadn't received a single stitch of couture or even an email from the company during that time. A jaw-dropping $3,990 down the drain without so much as a fashionable scarf to twirl. How did this happen? Turns out that a subscription she had pulled the plug on back in 2019, wasn't really inactive for all these years.

TikTok | @maxedoutmommy
TikTok | @maxedoutmommy

Rae's TikTok video, posted in July, struck a chord, amassing over 1.5 million views and a barrage of 1,600 comments. It's a tale of financial oversight that many could relate to, as Rae admitted she didn't spot the charges because her husband usually handled the household finances. The video's impact goes beyond a personal anecdote; it sheds light on a widespread issue.

A recent survey by Deloitte reveals that 47% of Americans are trimming down their monthly entertainment subscriptions due to "current economic conditions." It seems Rae's experience is not an isolated case but a symptom of a broader trend in the era of subscription services.

TikTok | @maxedoutmommy
TikTok | @maxedoutmommy

A 2022 survey from C + R Research exposes a startling reality that 42% of respondents who had stopped using a subscription service, continued paying for it, purely out of forgetfulness. The average person, like Rae, spent $219 a month on subscriptions—more than double their initial estimate of $86. That's a hefty difference of $133 a month and $1,596 a year.

Forgetfulness isn't the sole culprit as companies also play a role in enabling this mixup. In an experiment by The Hollywood Reporter, canceling subscriptions to Prime Video, Disney+, and Paramount+ required a labyrinthine six-step process, complete with enticing offers for alternative plans. It seems signing up is a breeze, while the exit door is hidden behind a maze.

TikTok | @maxedoutmommy
TikTok | @maxedoutmommy

Always review your financial statements

Financial vigilance doesn't require a subscription to a management app. Simply peruse your bank and credit card statements monthly. Not only is this vital for monitoring your credit score, but it also helps uncover those pesky, unnoticed transactions. If you spot a charge for an elusive service, request a chargeback from your credit card company within 60 days.

Look into the cancellation policy

Before diving into a subscription, take a moment to scrutinize the cancellation process. If it's more complicated than a game of chess or you find it reminiscent of a quest in a fantasy novel, that's a red flag. The Federal Trade Commission recommends delving into a company's return and cancellation policies, and customer reviews can be a goldmine for insights into potential cancellation headaches.

Beware of free trials

Free trials can be alluring, like a siren song tempting you towards a rocky financial shore. Many companies bank on you forgetting to cancel, leading to unexpected charges. If you succumb to the lure of a free trial, set a reminder on your calendar or smartphone a day before it ends. This way, you can dodge the financial pitfall of an unwanted subscription.

In the words of Rae herself, "It's worth being proactive and guarding your hard-earned cash. After all, no one wants to be paying for a service they didn't even know they had."

MORE ON MARKET REALIST
According to the expert, personal letters and a signature from Tolkien himself added to the value of the book.
7 hours ago
Chistina and Katie Currie won over $88,000 in cash and two exotic vacations with their stunning performance.
8 hours ago
After everyone backed out, the billionaire Shark stepped up to help the founder of Diaper Dust.
1 day ago
Sun kept repeating the incorrect phrase but couldn't identify the error in time.
1 day ago
After almost closing a deal with Mr Wonderful, the founder of 'Simply Good Jars' pivoted hard.
1 day ago
The host thought it was the "worst possible answer" to give even as the team felt it was good enough.
2 days ago
Adding to the controversy, the owner of Dr. Mudd's lapdesk asked Harrison for $100,000.
2 days ago
With just milliseconds to spare, Sarah LaPilusa pulled off an incredible Bonus Round win.
2 days ago
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 days ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
3 days ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
3 days ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
3 days ago
Jennings had a record-setting winning streak as a contestant before he became the host.
4 days ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
4 days ago
The former kids champion, Skyler Hornback knew what was coming.
4 days ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
5 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
5 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
5 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
6 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
6 days ago