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Complaint regarding early cancellation fee

New Here ,
Jul 20, 2021 Jul 20, 2021

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When you try to cancel you get charged £30 , how can a company rob so many folk where they just want to terminate. 

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Adobe Community Professional ,
Jul 20, 2021 Jul 20, 2021

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Why do so many people sign a contract without reading?

 

When you 'click to agree' to the subscription terms while buying a subscription, that means that you really do need to read BEFORE you enter your credit card number to buy a subscription... See this page for more information, including a highlited section from the subscription page https://community.adobe.com/t5/account-payment-plan/cancellation/m-p/12153645
-Purchasing FAQ https://community.adobe.com/t5/Get-Started/Purchasing-FAQ-How-do-I-purchase-a-Creative-Cloud-members...

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Adobe Community Professional ,
Jul 23, 2021 Jul 23, 2021

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Do you remember what it looked like when you signed up? This is the page and button you would have clicked:

 

creative cloud subscription and cancellation terms.png

 

The cancellation fee is mentioned there, and clicking on "Subscription and Cancellation Terms" right before "Agree and subscribe" will pop up the exact terms (4-5 short paragraphs) for the subscription you purchased:

 

https://www.adobe.com/legal/subscription-terms.html

 

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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It's not really a fee. You paid a discounted price every month because you agreed to an annual subscription. When you decide to break that agreement and cancel the contract prematurely you're asked to pay the difference between what you actually paid and what a monthly subscription would have cost you.

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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That's a good and interesting point. It gets at the gist of the cancellation fee, but is not entirely accurate. It it were, then nobody would ever have reason to go with the Monthly plan instead.

 

Example:

If you cancel an Annual plan after 2 months, you would owe 10 months left x 50% = 5 months fee.

If you cancel an Annual plan after 10 months, you would owe 2 months left x 50% = 1 month fee.

 

So it's kind of the reverse. The idea is the incentivize longer subscriptions (buying in larger quantity) by granting the discounted monthly price.

 

The breakeven point of which to select is at the six-month mark:

 

Creative Cloud Annual vs. Monthly Plan: Which Should You Choose?

 

So the Monthly plans do still have their place, as being more cost-effective for any duration shorter than that.

 

 

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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Not sure why you're saying it's the reverse. That's exactly what I said. The yearly plan is cheaper (per month) than the monthly plan, to encourage people to go for it. You pay the difference when you cancel it.

If it were not the case no one would use the monthly option, as you could get a discounted price with the yearly subscription and just cancel it willy-nilly when you don't need it any longer.

At least you can cancel it. Many such subscriptions do not allow you to cancel prematurely and you have to pay the full amount you signed up for, no matter what.

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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PS. I don't know the exact amounts, but it's possible the fee is slightly higher than the actual difference, to prevent people from "gaming the system".

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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Hi @try67, you wrote: "When you decide to break that agreement and cancel the contract prematurely you're asked to pay the difference between what you actually paid and what a monthly subscription would have cost you."

 

The notion is right, but the math doesn't work out quite like that, per the example given above.

 

In other words, if you cancel an Annual plan after 2 months, you don't pay the difference between what a Monthly subscription would have cost for 2 months – it's more.

 

If you cancel an Annual plan after 10 months, you don't pay the difference between what a Monthly subscription would have cost for 10 months – it's much less.

 

Completely agree on Adobe's plans being structured so that not everyone selects Annual (i.e., Monthly still has its place and use), plus the fact that many other contracts don't give you any break at all if you cancel them early!

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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OK, I see what you mean, and we agree, I think.

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Adobe Community Professional ,
Jul 24, 2021 Jul 24, 2021

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Indeed!

 

For customers, it should also be noted that any applicable fee is waived when changing from one Creative Cloud plan to another:

 

https://helpx.adobe.com/manage-account/using/change-plan.html

 

Something to keep in mind.

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