Startups like TomoCredit and Albert, the latter valued at hundreds of millions of dollars, are the subject of hundreds of consumer complaintsThe fintech app trap: Angry customers try to cancel their subscriptions

In recent years, fintech apps have revolutionized the way we manage our finances, offering convenience and accessibility to millions of users. However, this booming industry is showing a dark side: growing dissatisfaction among customers, who find the process of canceling their subscriptions or services frustrating. As users face hidden obstacles and unclear policies, complaints and anger are on the rise. What is happening to these apps that seemed to be the perfect solution?

The appeal of fintech

Fintech apps have become a popular option for managing payments, saving, investing and making transfers quickly and easily. Companies like Revolut, PayPal, Robinhood, and many others have captured the attention of users looking for alternatives to traditional banks. With intuitive interfaces, lower fees, and the promise of a better experience, it's not hard to see why fintechs have gained traction.

Plus, many of these apps offer unique features like fee-free investment accounts, virtual cards, and automatic savings plans. All of this sounds great, until it comes time to do something as simple as cancel a subscription.

The Hurdles of Trying to Cancel

While signing up for these apps is extremely easy and quick, cancelling a subscription or unsubscribing can be a real ordeal. Many users report confusing processes, hard-to-find cancellation policies, or the inability to unlink bank accounts or credit cards without having to go through several verification steps.

One of the biggest problems is the lack of transparency. Often, cancellation options are buried in submenus within the apps, making them difficult to access. Additionally, some apps don't allow cancellation directly from the platform and require users to call or email customer service, adding more time and frustration to the process.

In some cases, fintechs have been accused of using "forced retention" tactics: a process in which users, despite cancelling their subscriptions, continue to be charged for several months. This lack of control breeds distrust among consumers, who begin to feel trapped by the very apps that once promised them financial freedom.

The problem of customer support

Another recurring complaint is poor customer service. Many users have reported long waits for a response or, in the worst cases, no support at all. Since many fintechs rely on automated algorithms and digital solutions to manage their operations, human support is limited, which makes matters worse for customers looking for personalized help.

For example, users of certain investment apps have reported that their withdrawal or cancellation requests are delayed for weeks, with significant financial consequences, such as losing investment opportunities or being unable to access their own funds.

What can users do?

While the outlook may seem grim, there are some steps users can take to protect themselves. The first thing is to carefully read the terms and conditions before signing up for any fintech app, making sure you understand how cancellations are handled and what requirements are necessary to complete the service. It is also advisable to research the company's reputation and review other users' experiences.

Another option is to use single-use virtual cards or dedicated bank accounts exclusively for these subscriptions, which makes it easier to control charges and prevents fintechs from accessing primary bank accounts if any problems arise with cancellation.

Fintech apps have transformed the world of finance, offering fast and accessible solutions. However, a lack of clarity in cancellation processes and poor customer service are creating a trap for many users. As complaints mount, it is critical that these companies address transparency issues and improve their customers' experience, or risk losing their hard-earned trust. In the meantime, consumers must be cautious and proactive to avoid getting caught in a spiral of unwanted subscriptions.