Surging Consumer Damages from Automatic Extension of Monthly Payment for Using Anti-spyware

More and more consumers who used Anti-spyware, find their money has been paid continuously from their bank account even after they stopped using the service, through automatic extension of money transfer, which requires consumer caution.

The Korea Consumer Agency is receiving a growing number of complaints from consumers, who subscribed anti-spyware just for one time or one month, but the monthly charges were continuously drawn from their account even after the termination of the subscription.

** Automatic Extension of Monthly Payment refers to the system through which monthly money transfer or payment is automatically extended without additional actions if once consumers complete authentication or payment just one time. Usually, consumers who use the system get discounts up to 30~50%.

Consumers need to be pay special attentions on this, since it is often impossible to cancel the automatic payment for 3 to 4 months even after they find out the unduly payment, and sometimes it is impossible to contact the service providers. 

□ Current Status of Consumer Damage
The number of consumer complaints related to anti-spyware service received by the KCA during the first half of this year reached 499, up 80.1% from 277 during the same period last year.

< No. of Consumer Complaints related to Anti-spyware>

Among anti-spyware related damages, 92.6% were involving automatic extension of service charge payment or service termination. Most of the consumers said that the service fees were charged and paid as automatic money transfer was extended regardless of intention or while they were not aware of the fact.
This kind of damage usually occurs when consumers do not confirm the contents of terms and conditions stated on the contract when they subscribe a service.

For example, information about automatic extension of monthly payment is usually stated at the bottom of web pages, which is often unnoticeable. Sometimes the information is stated just on the contract paper and not on the initial screen for the payment, which makes it easy for consumers to miss the provision.

If consumers find their money has been continuously paid through the automatic transfer system and request contract cancellation, service providers would refuse to do it, saying that everything is on the contract. Sometimes, they lured consumers to use their service for 3 to 4 months, saying that 30~50% discount will be provided for a longer-term contract.

Some consumers simply cannot contact service carriers or get access to their homepages, which makes them not be able to cancel the service, while their money is continuously transferred from their account.

<Type of Consumer Damage related to Anti-spyware during the First Half of 2007>

           
Consumer Caution
Δ Make sure to check the contents of terms and conditions thoroughly including the mandatory subscription period or automatic extension of monthly fee payment before you sign the contract.

Δ Check the details of your monthly mobile phone bill. If there is any unduly payment charged, ask a correction and other necessary actions immediately to the mobile carrier and PG(Payment Gateway)s.

Δ Subscribe a “small amount payment blocking service” to prevent damages from the automatic money transfer arrangement.

Δ Contact the Korea Consumer Agency (02-3460-3000) or Mediation Center for Mobile Phone Payment (02-563-4033) if you have difficulties to solve your problems.

Aug 14, 2007 [Consumer Dispute Settlement Department II ]