Distance selling regulations on subscriptions/recurring payments

Discussion in 'Ecommerce Forum' started by Johnston91, Oct 9, 2020.

  1. Johnston91

    Johnston91 UKBF Newcomer Free Member

    2 1
    I have a website which sells services, and I offer quarterly, 6 monthly, or annual subscriptions.

    I have been told I can't automatically invoice/bill customers unless they have checked a box or signed a form to say that they agree to a recururring service.

    I have in my terms that they are entering in to a subscription and will be billed until 2 months after they cancel. On the description I state that price is recurring.
    Do I then also need the customer to state that I can bill them on a recurring basis?

    Does anybody have a link to these rules as I can't find them.

    Posted: Oct 9, 2020 By: Johnston91 Member since: Jul 26, 2020
  2. Scalloway

    Scalloway UKBF Legend Free Member

    16,485 3,489
    Posted: Oct 9, 2020 By: Scalloway Member since: Jun 6, 2010
  3. SillyBill

    SillyBill UKBF Regular Free Member

    263 142
    My question would be: Why would a checkbox be an "obstacle" unless of course customers are not aware that they're being signed up to a recurring charge for something they wouldn't agree to otherwise (if they were aware). Too right this protection should be in place IMO, such things like that should be made abundantly clear, not hidden in T&Cs you're counting on no-one reading. If the service is worth paying for and sustaining people would pay. And tick the box.
    Posted: Oct 9, 2020 By: SillyBill Member since: Dec 11, 2019
  4. Johnston91

    Johnston91 UKBF Newcomer Free Member

    2 1
    Hi. No, they make the first payment on card and a minimum of 1 recurring payment as deposit. So if they miss the second payment which they make manually then I take it out of the deposit.

    I send an invoice a week before the second payment is due for the client to make payment manually. However I have put in my terms that if they miss payments they can incur admin fees.

    Due to my service I usually break even on the first month as I have to set up the clients account and do back ground checks. Then make a profit on the second payment.

    However a client has complained and asked for a refund, said it wasn't clear that it was a subscription they was paying and thought it was a one off. As I have also said they owe admin fees they have said they are reporting my company and seeking legal advice.

    Hi most of my clients are aware they are paying for a subscription. I've had one recently who claim they wasnt aware and let it run without realising we were adding charges to their account. Now they have said it wasn't clear and they didn't know they were signing up to a subscription and want a full refund.
    Posted: Oct 10, 2020 By: Johnston91 Member since: Jul 26, 2020
  5. Underline Digital

    Underline Digital UKBF Newcomer Full Member

    18 1
    I don’t see the issue with having a check box informing the customer of the recurring services/charges. Without prior agreement and client acknowledgement you definitely cannot charge anyone on a regular basis. You would need to send them clear communications about the recurring service and your customer would definitely agree to it; whatever the mode - online via a tick box, via email, using an agreement, signing a DD form.
    Posted: Oct 17, 2020 By: Underline Digital Member since: Sep 11, 2020