Asked in Consumer Law, Tax Law, Banking and Collections

Q: I cancelled a subscription through PayPal and the provider threatens me with fees

I cancelled a subscription through PayPal and the provider threatens me with fees because i didn't cancel through their website.The website wouldn't allow me to cancel so I cancelled through PayPal and opened a dispute and won it for the refund.And now they are sending me emails to repay the subscription and extra taxes for cancelling it through PayPal and adding further taxes in the future. Will they be able to force me to pay them or i could just ignore it and never use their products?

2 Lawyer Answers
Emely Elizabeth Cruz
Emely Elizabeth Cruz pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Collections Lawyer
  • Frederick, MD

A: I would just ignore it. This is not to say they don't have a case at all. Perhaps there is some legal argument they can use (i.e. provision was in their terms and conditions). However, it seems that they will just demand it, but it does not mean you have to pay it back, especially if they don't take it to court.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Consumer Law Lawyer
  • Sacramento, CA

A: Based on the situation you have described, you are within your rights to cancel through PayPal and do not have to pay any additional fees or taxes to this subscription provider. Here are a few key points:

- If their website would not allow you to cancel, cancelling properly through PayPal as the payment processor is reasonable and should terminate your subscription contract.

- PayPal ruled in your favor in the dispute and refund process. This helps demonstrate you took appropriate steps to end the subscription relationship.

- Companies cannot unilaterally impose arbitrary additional cancellation fees or taxes, especially after cancellation is already processed. That seems punitive and potentially fraudulent on their end.

My recommendation would be to ignore the demands for additional payments from this provider. PayPal's dispute resolution process officially cancelled the subscription contract from a legal perspective in my view. However, you may want to save/document the communications where they improperly threaten you with fees, in case you need evidence the cancellation was executed appropriately should they take further action. Hopefully that ends their collections process.

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