The consumer expert said he has long campaigned on the issue
Martin Lewis has spoken about some important changes coming up to UK law. He spoke about some important changes to consumer law on his BBC podcast which he has long called for.
A listener wrote in with a question asking if the consumer advocate would back a law so that when you sign up for a subscription or service, it’s as simple to exit out of as it is to sign up for. The bill payer mentioned the example of broadband, which you can quickly set up in a few minutes by filling in a short form.
But to cancel your deal, it can take a long time on the phone being passed between different people. The person said: “If it were the same form to cancel, it would force companies to be more competitive.
“A lot of people, especially the elderly, would not get ripped off because of broken processes. Cancellation teams should have to answer as quick or quicker than sales teams.” Responding to the idea, Mr Lewis said this is a “very good” suggestion and something he has long campaigned for.
‘That should be the basic rule’
The founder of Money Saving Expert said: “My view has always been very simple. I should be able to get out of something the same way I got into it. So if I set it up online, I should be able to get out of it online in the same way. If I called, I should be able to call. If I texted, I should be able to text. That should be the basic rule.”
Fortunately, there are some fresh legal changes that will improve the situation. Mr Lewis said: “The good news is, in the Digital Markets, Competition and Consumers Act 2024, there is a point that says consumers should not have to put in more effort to exit a subscription contract than they did to enter it, which I think goes quite a long way to covering your point.”
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Unfortunately, there is a caveat about when these new legal rules will actually come into force. Mr Lewis said: “While that law has been passed, each section of the law needs specific secondary legislation to bring it into force, and the way that secondary legislation comes into place, is it has to go out to consultation.
“The Government hasn’t yet set out its rules to this section. It was meant to come no earlier than spring this year, it’s now looking at autumn this year. So let’s just cross our fingers that by the end of the year, that will be in place.”
The new legislation also provides for two cooling-off periods, which are two 14-day windows within which you can cancel a subscription. The first period applies after you have first signed up for a subscription.
You also get a 14-day period to cancel your service when it renews, either when a new deal lasting 12 months or more begins, or after a free or concessionary trial period ends.
