Beware when signing up for online realty services [Updated]

The Times David Lazarus' column, "Real estate company's pitch leads to unexpected bill," may strike a chord with some readers. Here's an excerpt:

Maria Casanova, an assistant professor of economics at UCLA, toyed with the idea earlier this year of buying a foreclosed property near the Westwood campus. She signed up for a prominent listing service called RealtyTrac.

Casanova, 31, canceled her subscription not long after. Yet a few days ago she discovered that some other real estate company she'd never heard of has been billing her almost $45 a month for the last eight months.

Consumer advocates say it's an all-too-common problem: People signing up for one thing online and inadvertently signing up for something else that comes with recurring monthly charges.

It's worth a read in its entirety as a cautionary tale. (And Casanova is chagrined for not having noticed the charges sooner, in case you are wondering.) Has this happened to you? Personally I'm too paranoid to sign up for any paid services online, though I will do a little shopping.

-- Lauren Beale

Thoughts? Comments?

[Update: Here's a video of David Lazarus on the subject.]

Comments

[Ace]

It took her 8 months to catch on that someone is billing her for something she didn't order?!?!?! Sounds like this is the kind of responsible person that should buy a house. I mean, buying a house must be easier than looking at a credit card statement, right?

[Laker]

Ace,
I used to check all my CC statements both online and paper.
But as i gotten busier and instead of 2 credit cards, i have more than 10, it is very hard to find the time to check every line of the bill....
I can see how she missed the charge for 8 months....
Also, my experience with Realtytrac was good, but with them selling my info bad...
There is a company called TCS foreclosure that share the info with Realtytrac. I think they sell them the info....
So, after being a member of Realtytrac for 2 months i canceled, but that TCS company started calling me every week offering to "teach" me how to make money by investing in foreclosures...they claimed i don't need to use my money...and they will teach me how.
That lesson will only cost me $20,000, and since they are doing a promotion, i could get that lesson for HALF PRICE at $10,000.....

[johnnyb1]

This is what the BBB has to say about realtytrac:

"This company sells real estate and foreclosure information on a monthly subscription plan billed at $39.95 per month with a negative option cancellation policy. The company's website also offers the service as a 7 day free trial. Upon the expiration of the 7 day free trial, you will be enrolled in a subscription program and billed monthly for the $39.95 subscription fee until you cancel.

We urge caution before agreeing to trial offers or giving your credit card number to unfamiliar companies with unfamiliar products. This company requires those responding to the free trial offer, to provide a payment method as a condition of using the free trial period. Once your credit card number or other payment information has been has been provided, it will remain on file with the seller for billing purposes. If you forget to cancel, or for any reason fail to do so, your card or account number is readily available to bill for your first month's membership fee. Other offers advertised on the website by third party companies also offering free trials may also utilize your billing information.

This company's free trial is conditional upon providing payment information. FTC Guidelines for advertising this type of offer require that all terms and conditions of the offer, as well as cancellation instructions, be clearly and conspicuously displayed in at least 10 point type before asking for payment or obtaining the customer's consent. Clearly and conspicuously means, NOT disclosed in microscopic print accessed by a web blink to another site, but rather, disclosed along with the free trial solicitation."

My question is, what can realtytrac can give a consumer that a realtor can't? At any rate, buying foreclosures is NOT recommended for the novice, so why are these people paying $45/mo.for listings when an agent will give you this information for FREE?

[Laker]

"an agent will give you this information for FREE?....."
3%-6% commission on a sale of a house you call that free?
WTF?
You're comparing $40 per month for say a year $500 to $5000-15,000 RE agent commission???