Wondering how to avoid gray charges? Last month, BillGuard, a personal finance protection company, released a report that found that American cardholders paid $14.3 billion in so-called gray charges in 2012. The report estimates these gray charges cost US card holders $562 million.
What are Gray Charges?
Gray charges are the unwanted charges that show up on your credit card, but that you may never protest or may never effectively have reversed. Those small charges add up over time, though. Gray charges are legal, but they’re sneaky and expensive.
The most common type of gray charge is “free-to-paid.” Let’s say you receive a good or service for a free trial period, but then if you don’t cancel by a certain date, you are automatically enrolled in a monthly paid membership.
NBC Bay Area interviewed our own Hilary Martin, MBA, CFP® to find out how consumers can avoid gray charges, which are costly in terms of both time and money.
Click the link below to watch the segment, which aired on the nightly news the day the report was released.