Can You Dispute a Subscription Charge at Small Claims Court? What You Should Know

Can You Dispute a Charge if You Forgot To Cancel a Subscription?

It’s easy to forget to cancel a subscription, especially if you sign up for a free trial and accidentally let the service run for longer than the trial period. Unfortunately, forgetting to cancel a subscription isn’t considered a valid reason to dispute a charge. You agreed to the service’s terms and conditions, including the cancellation policies, when you began your subscription. 

If you’ve decided to stop using a subscription service, it’s best to cancel it as soon as possible, ideally before the next billing cycle begins. After cancelling, you can contact the company to request a refund. Some companies may offer a goodwill refund, but they’re not obligated to do so.

What Kind of Subscription Charges Can You Dispute In the UK?

As a UK consumer, you have the right to dispute unfair charges for any subscription service, from digital content to beauty products, streaming services, gaming subscriptions and insurance. Many of these services include auto-renewal clauses or start with free trials, which can sometimes result in people being charged unexpectedly or getting locked into contracts they meant to cancel.

This is where your consumer rights protect you. If you believe a charge is unfair or was made without informed consent, you can dispute the charge with your credit card provider, and if that’s not an option, or doesn’t resolve the issue, you may also take your case to small claims court.

When Can You Dispute a Subscription Charge?

There are specific circumstances in which you can dispute a subscription charge, which include:

• Fraudulent charges – where you did not sign up for the subscription service, and your credit card has been charged. Make sure that someone else with access to your card, for instance, a household member, didn’t sign up for the subscription without your knowledge before disputing the transaction. If it is a fraudulent charge and your credit card was stolen or cloned, you should notify your credit card issuer immediately and request a new card number. Make sure to contact Experian, TransUnion or Equifax to place a fraud alert on your credit report.
• Post-cancellation charges – sometimes, technical issues, bugs, or system glitches can prevent a cancellation request from going through, resulting in unexpected charges even after you’ve tried to cancel. If you have proof that you attempted to cancel before the charge was made, you may be able to dispute it.

However, if you didn’t complete the cancellation process exactly as outlined by the company, and those steps were clearly communicated, you likely won’t be able to dispute the charge on the basis of a failed cancellation.

• Double subscription charges – when the merchant accidentally charges you twice in one billing cycle due to a system glitch or human error. 
• Unannounced price increases – where a subscription service provider did not announce price increases in good time before applying them, resulting in an unexpected outlay. 

How to Dispute a Subscription Charge

There are steps to follow when raising subscription disputes. First, you should dispute the charge with the merchant or supplier. If this fails, and you used a credit card to pay your subscription fees, you can ask the credit card company to investigate and and request that they process the refund of your money. If this is not an appropriate route, and the supplier refuses to acknowledge your claim, you can take the merchant to small claims for unfair cancellation charges and seek a legal resolution in court.

Disputing a Subscription Charge With the Supplier

Wondering, “How can I dispute a subscription charge?” Start by reaching out to the merchant directly; that’s usually the quickest way to resolve the issue. Clearly explain why you believe the charge is incorrect, and back it up with any relevant documentation. This could include a cancellation confirmation email if you cancelled before the billing date, or a screenshot showing you were charged twice for the same subscription.

Ask the merchant to reverse the charge, issue a refund, credit your account, or suggest a fair resolution that works for both sides.

If the merchant refuses to resolve the issue or denies your claim, you still have options. You can escalate the matter to your credit card issuer by filing a dispute. Just make sure to do this within 60 days of the charge appearing on your statement.

Disputing a Subscription Charge With Your Credit Card Issuer

If you spot a subscription charge you didn’t authorise, or one that just doesn’t look right, you can dispute the charge with your credit card issuer online, over the phone, or by mail. The Federal Trade Commission (FTC) recommends following up with a written letter sent via tracked mail to the billing disputes address provided by your card issuer. This creates a paper trail and confirms your claim was received.

Once your dispute is submitted, your credit card company must acknowledge it within 30 days and resolve it within two billing cycles or 90 days, whichever is sooner.

After your claim is lodged, your card issuer will reach out to the merchant involved. The merchant can either accept the dispute or challenge it. While the investigation is underway, you might receive a temporary credit to cover the disputed amount.

At the end of the review, your card issuer will make a final decision and notify you in writing. If they rule in your favour, the charge will be reversed, and the credit will remain on your account. But if they decide the charge was valid, the temporary credit will be removed, and you’ll be responsible for the full amount.

If you disagree with the outcome, you can appeal the decision. You also consult a legal professional for further action.

Taking a Subscription Supplier to Small Claims Court

If you are claiming less than £10,000, you have the option to file a case at small claims court. There’s no need to hire a lawyer – you can file the case online, and use a secure service like CaseCraft.AI to organise documents, stay on top of important court dates, and get advice on how to proceed with your claim. 

Small claims court is for simple cases that don’t involve large amounts of money or complicated issues. If the amount of compensation you’re claiming is within the stated limit, and you can clearly show that you attempted to reach an amicable resolution with the subscription service provider before filing your claim, the court may find in your favour and require the subscription provider to refund you, or even award you additional compensation for any expenses or impact to your daily life caused by the dispute. 

Small claims, or money claims, are designed to be simple. You can use small claims if you are owed a refund or received poor service, making it the most sensible legal route for securing compensation from a subscription provider. 

It’s important to be aware that court fees apply when disputing a subscription service charge at small claims court, and you will need to weigh up the cost of raising the claim against the possible compensation you hope to receive.

Remember that going to small claims court should be a last resort. You should first attempt to secure a refund from the subscription service provider before seeking support from your credit card company if the charge was made using a credit card.

To start a small claims case against a service provider, follow these steps for beginning subscription disputes:

1. Substantiate your claim: Make sure you have enough evidence to support your claim. Gather together any available evidence, such as the contract you signed when subscribing to the service, proof of any accidental double payments, or evidence that you submitted a cancellation request, and that you were still charged outside of the cancellation period.
2. Fill in the claim details: You will need to file a form called a ‘particulars of claim’ form with the court, providing full details of what you’re claiming for and why. There will be a court fee to pay, and you must include your evidence as supporting documents.
3. Attend mediation: If the subscription provider decides to defend your claim, you’ll be required to attend a one-hour telephone mediation, which is included in your initial fees. This will likely be a telephone call, and in most cases, an agreement will be reached through mediation, with a settlement agreement following. If you do reach an agreement and the subscription provider breaches the terms, you can go to court to ask for a judgment or hearing. 
4. Go to a court hearing: If mediation fails, you will be sent a ‘notice of allocation’ and need to prepare for a court hearing, where you will present your case, answer any questions from the judge, and hear what the subscription service provider is saying in their defence. 
5. Get a judgment: At the end of the hearing, the judge will give a judgment, which will either be for or against your claim. 

Once you receive a court judgment in your favour, the merchant will have a set amount of time in which to pay you or to agree a payment schedule with you. Should they fail to do so, you can seek support from the court in enforcing your claim, but bear in mind that enforcement actions are costly, and you could spend more than you receive in compensation once court, enforcement, and incidental fees are accounted for.

How Successful Are Payment Disputes?

Credit card payment disputes can be challenging due to the limited timeframe you have in which to request an investigation (you have 60 days to submit a dispute in writing from the date of the statement with the disputed charge), but the good news is that studies show the vast majority of credit card disputes are resolved in the consumer’s favour. 

When it comes to subscription disputes, the success of your claim will depend on whether you actively signed up for the service, and either forgot to cancel it or failed to read the terms and conditions properly. Assuming you correctly followed the merchant’s cancellation instructions and have evidence of this, or can show that the charge was incorrect or fraudulent, you stand a good chance of your refund request being successful.

Going through small claims court is considerably more complex and costly than processing a subscription dispute via your credit card company, and while it is possible to secure a favourable outcome at court, it is important to weigh up the potential gain when compared to the financial outlay and time involved in raising a claim at small claims court.

Understanding Subscription Regulations in the UK 

In the UK, subscription services are regulated by the Competition and Markets Authority (CMA), which sets clear principles for businesses using auto-renewing contracts. These rules protect consumers from being misled into subscriptions or facing unnecessary barriers when trying to cancel.

Companies that don’t follow these guidelines can face enforcement action, especially if they receive frequent complaints or subscription disputes.

Under consumer protection laws, businesses must clearly communicate key details such as subscription pricing, contract length, cancellation policies, and refund rights. Failing to be transparent or not offering a simple way for users to cancel or update their subscriptions could result in fines.

If you cancel your subscription, the provider must confirm in writing that your contract has ended, refund any overpayments, and ensure no further charges are taken after the cancellation period has passed.

Keep in mind, additional regulations may apply depending on the sector. For example, financial products and services are also overseen by the Financial Conduct Authority (FCA), which enforces its own set of consumer protections.

Upcoming Changes to Subscription Contract Regulations

From Spring 2026, UK businesses that offer subscription services will be required to follow new regulations aimed at protecting consumers from so-called “subscription traps.” These changes are part of the Digital Markets, Competition, and Consumers Act 2024, which introduces stricter rules for how subscription-based services are marketed, managed, and cancelled.

The updated legislation specifically targets auto-renewing subscriptions and free trials. Under the new rules, businesses must provide clearer pre-contract information, issue timely renewal reminders, and offer a straightforward way for consumers to cancel if they no longer want the service.

New protections will also include a cooling-off period for new subscriptions, giving consumers time to change their minds without penalty and greater transparency around subscription terms and billing.

These changes are designed to make it easier for consumers to stay in control of their subscriptions and avoid unexpected charges.

Avoid Fraudulent or Excessive Charges With Enhanced Privacy Virtual Cards

It is important to protect yourself against future instances of fraudulent or excessive charges, to help you avoid future subscription disputes or other unauthorised charges. Paying with virtual cards when you shop online increases security and helps prevent fraudulent activity by substituting your payment card data with randomly generated numbers, which adds a protective layer to your online transactions.

Virtual cards provide you with extra privacy when shopping online, and you can opt for an independent virtual card provider that offers you additional card controls, such as pausing payments or setting spending limits. You connect your debit or credit card to the virtual card, and significantly reduce the risk of unauthorised charges and billing errors. This is particularly helpful when shopping with unfamiliar merchants or those with unverified security measures. 

How To Get Started With Improving Your Credit Card Privacy and Avoiding Further Subscription Disputes

Here are five easy ways to improve your online purchasing habits and enhance data privacy:

• Regularly review all direct debits, standing orders, and recurring payments.
• Read the fine print of all online subscription services before signing up and make sure you are aware of when any free trials end, if auto-renewal clauses are in place, and what the cancellation policy is 
• Set up an enhanced privacy virtual card to benefit from extra privacy when shopping online
• Always ensure no one else has access to your cards or accounts – you may be surprised how easy it is to subscribe to a service using your credit card details as a member of your household with a Wi-Fi-connected device. Even your TV can be connected to subscription services nowadays, and it’s important not to share passwords for things like your PlayStation Network account or Amazon Prime account with anyone else.

Should you find yourself needing to raise a claim with small claims court, CaseCraft.AI makes it easier to manage subscription disputes via the simple, secure platform. There’s no need for any prior legal knowledge, and you can manage all your documents in one place, helping improve your chances of success.