3 ms·
I think you could still do it but it would involve some clever financial engineering.
by deadbabe 1y ago
I think you could still do it but it would involve some clever financial engineering.
- jolmg 1y agoPrepaid annual (or 3-year) contract. No refund once period started. I think that's how it's generally been. I don't see how this changes things.
- StopDisinfo910 1y agoI don't know how the law is framed but generally no refund is illegal because it would be too easy to create loopholes in the law otherwise. What's customary is forfeiting any discount, then a partial refund with eventual early termination processing fees. So if you had an annual subscription with a 10% discount which you stop after 3 months, your refund would be what you have paid minus three months at full price plus a token processing fee. It's a very common setup for mobile phone and internet subscriptions here. You generally end up paying roughly the equivalent of one additional month when you cancel which competing providers often actually refund when you switch.
- mytailorisrich 1y agoNo refund is perfectly legal. Just continue to offer the service/product, i.e. cancellation only takes effect at end of term as was contractually agreed.
- deleted 1y ago[deleted]
- dh2022 1y agoSomeone will have to take the risk that the customer will walk away from the deal. Insurance companies maybe would pool different customers in some insurance pool? An alternative would be to ask the customer to pay in advance for 3 years. This way both the customer and the producer have an incentive to keep this deal going (if the producer reneges on the deal the consumer can take the producer to court. My reading implies only the consumer can walk away with 2 months notice). But in the world of 6% interest rates who would want to front that much money?
- petesergeant 1y ago20 years or so ago a gym made me take out a loan from them to pay for a year’s contract in advance, presumably for exactly this reason.