UK: What to Do if You Notice an Unexpected Transaction on Your Statement After Searching for Loans

A growing number of UK residents have reported unfamiliar monthly charges on their bank statements, originating from 'savings' websites they have never engaged with. The only thing they had in common was searching online for loans. In the process, they inadvertently signed up to subscriptions for shady 'savings' websites that started charging them £29.95 a month.

How hidden subscriptions work

One visits a loan broker website and is asked to approve a charge of 12p or 14p to 'verify' their bank account. Which?, a consumer protection organization, received reports of 13 different 'savings' sites appearing on bank statements, and you can check here.

While doing this, people unintentionally signed up for monthly subscriptions to various 'savings' sites that promised daily discount codes, exclusive deals, or even assistance with credit repair. Most likely, they 'opted in' to services by ticking a box or failing to untick one when searching for a loan.

Most of those affected admitted they only became aware of these sites after spotting charges on their bank statements.

What to do if tricked into an unwanted subscription

Trying to cancel these unwanted subscriptions may be challenging. Users have reported dead ends when attempting to log in or contact these 'savings' sites. None of the 13 websites approached by Which?, responded, and four of them have vanished completely.

If you ever spot an unexpected transaction/ subscription on your statement:

Reach out to the company. Before anything else, try to contact the site directly, either through their provided contact methods or through any account you might have inadvertently set up.

Contact your bank. Ask your bank or credit card provider to block future transactions from that particular site.

Know your rights: The Financial Conduct Authority clarifies that subscription payments, typically made through a continuous payment authority (CPA) using a credit/debit card, requires your consent. You're allowed to withdraw this consent anytime, either through the company or your bank. Any subsequent charges after withdrawal are deemed unauthorized.

Seek a refund.  If you're convinced a transaction was unauthorized, alert your bank immediately. Dispute the charge via phone or your banking app. If the bank doesn't acknowledge the error, escalate the matter, and obtain a final letter of deadlock.

Use the deadlock letter. Should all else fail, this letter allows you to present your case to the Financial Ombudsman (FOS).

In conclusion, always be cautious when sharing financial details online, especially when looking for loans. Always read the terms and conditions and be alert to what boxes you're ticking. A few extra minutes of vigilance can save you from unexpected financial hitches.

If you need help discovering all the websites, services, and data brokers that have your information, consider getting Digital Identity Protection. It continuously monitors your data (financial details included), alerts you in case of breaches, and offers efficient tools to manage your data, anything from retrieving, securing to deletion.