As a business, we are not going to notice a $20/month recurring expense. If it was $1,000 or $2,000 a month? Yeah, ok, we are going to pay much more attention. But think about all the different levels here. There are plenty of companies that won't even bat an eye at a recurring expenses unless its much higher than that-- 5k, 10k, etc.
This is just one more way that corporate America defrauds people (and defrauds other companies): The recurring charge that never cancels. You know what I call this? The LA Fitness model. I tried canceling my LA Fitness membership for YEARS. And they made it impossible. I mailed them forms. I emailed the company. I stopped by the gym. But they JUST KEPT CHARGING ME.
That's corrupt corporate America strategy 101: Just keep charging people. If you've got their bank account number or credit card? Just keep charging them. Their entire philosophy is basically âCome stop us bro.â Because THEY KNOW that in order for you to stop them from billing you, you will have to jump through several hoops to block them. You might even have to cut off your credit card, get a new credit card number, change all your auto-pays, etc. Corporate America is banking on this! This isn't accidental. It is a calculated corporate strategy.
Think about it: The latest company that did this to me made $20 a month for 3.5 years. That's $840 that they stole from me. Wow. If they steal even an extra $200 from 10,000 people, that's $2 million. This is corporate economics 101.
These sorts of companies (1) hide behind arbitration provisions and (2) assume that nobody will sue them over $100, $200, or even $840. And usually they are right.
BUT--- (1) Charging people after they have canceled a subscription violates basically every state's unfair/deceptive trade practice act. And those have attorneys' fee provisions. And - perhaps more importantly this time - (2) I own a law firm.
So I'm suing them to make an example. Stay tuned.