Chegg may place authorization holds on payment methods for anticipated charges, and may place additional holds if fees exceed the initial hold. If a payment method is declined, Chegg may charge an alternative payment method on file without prior notice to the user unless applicable law requires notice.
This analysis describes what Chegg's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision authorizes Chegg to charge alternative payment methods on file without advance notice in the event of payment method rejection, and to place multiple authorization holds on user accounts for transactions including book rentals. This applies to fees from auto-extensions and unreturned or damaged materials.
Interpretive note: The applicability of Regulation E and state consumer financial statutes to specific transaction types depends on the payment method used and jurisdiction, introducing variability in the enforceability of the no-notice charge provision.
The agreement authorizes Chegg to charge any payment method on file without notice if a primary payment method is declined, and to place additional authorization holds automatically if incurred fees exceed the initial hold amount, such as for unreturned or damaged rental books.
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Compare across platforms →"If the fees incurred exceed the authorization hold (e.g., because of an auto-extension or unreturned, lost, stolen, or damaged book), we may automatically request additional authorization holds. If the provider for your method of payment rejects any authorization, you agree that we may charge any other method of payment we have on file for you (without notice to you, unless required by applicable law).Excerpt from Chegg's Terms of Use
1) REGULATORY LANDSCAPE: This provision implicates the Electronic Fund Transfer Act and Regulation E to the extent debit card payments are involved, which impose notice and authorization requirements for certain recurring and preauthorized transfers.
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This provision authorizes Chegg to charge alternative payment methods on file without advance notice in the event of payment method rejection, and to place multiple authorization holds on user accounts for transactions including book rentals. This applies to fees from auto-extensions and unreturned or damaged materials.
The agreement authorizes Chegg to charge any payment method on file without notice if a primary payment method is declined, and to place additional authorization holds automatically if incurred fees exceed the initial hold amount, such as for unreturned or damaged rental books.
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