WINTER PARK, Fla. (WOFL FOX 35) - Sandy Giaclone has a counter full of fitness shakes. They automatically show up at her home once a month. “I love this product,” she said.
She just can’t use it fast enough. Her cabinets are full of the stuff, so she’s spending money on product she doesn’t need, because cancelling the recurring shipment is a hassle. “It's too much trouble. And I don't want to talk to people. This is why I do everything online!” Giacalone said.
Instead of making that uncomfortable call, she logged on to Truebill. Truebill is an app that finds, tracks and cancels your unwanted subscriptions. "I've saved 250-some dollars a month. Almost $3,000 a year. And there's probably more to come,” Giacalone said.
Yahya Mokhtarzada thinks a lot of consumers could save money by cancelling unwanted subscriptions and payments for everything from fitness shakes to movies to cable. So he created Truebill.
He said his average user has 11 products or services on autopayment. "Immediately the feedback we got that really struck us was just how many people had subscriptions they were paying for but either didn't know about, had forgotten about, or simply didn't want anymore and weren't ready to go through the headache of actually getting on the phone and cancelling,” Mokhtarzada said.
Putting off the task means you’re leaving money on the table. Steve McKean is the CEO of a company that partners with Truebill called Billshark. "We negotiate with your providers to get you savings,” McKean said.
Autopay makes it easy for companies to get rate hikes part you. "Probably their favorite method is to slowly creep up their price. A dollar here a dollar there, two dollars here and suddenly you've gone from a 70 dollar a month bill to a 90 dollar a month bill,” McKean said.
By his calculations, that allows the companies to make billions of extra dollars. "They do about 400 billion dollars a year in revenue and we estimate that of that revenue 50 to 60 billion is generated from that pricing,” McKean said. That works out to-- on average-- $500 per household per year.
Billshark has found that when consumers notice those rate hikes 20 percent negotiate to get lower rates, 20 percent switch to another provider, and 60 percent of us do nothing.