Membership
Complaint
Charles Suppus
Country: United States
This is a copy of an email sent to Rep. John Duncan of Tenn.:
Rep.John Duncan, Jr.
2207 Rayburn House Office Building,
District of Columbia 20515-4202
April 20, 2011
Dear Representative Duncan,
This letter concerns a consumer issue involving a nationwide business known as Direct Buy and two gullible consumers, myself and my wife.
Over the airwaves Direct Buys advertises about calling into get a key that will open a lock to a possible $50,000 home makeover. My wife called in for the key and they called to set up an appointment to come to their showroom in Knoxville, TN to try it. Of course, the key didn’t work. We also were shown a presentation of all the wonderful benefits of low prizes being a Direct Buy member. After that, couples sit down for their sale pitch about how wonderful a membership will be and how we can purchase items at amazing low prices beating out all competition.
Well, we didn’t have the money for the down payment. They said that’s okay we can take post-dated checks, which amounted to a considerable sum and after that the full benefits of membership would begin. Somewhere in all of this presentation both of us came out believing we could end our membership if it didn’t work out. So, we sign papers to this wonderful opportunity.
Before going any further, I continue to hear their ads on the airwaves. To this day I wonder if anyone has won the makeover? Also how many makeovers have been done? If they have given them out, what are the chances of winning one? Both my wife and I believe this is scam that needs to be stopped. Given the amount of money to gain a membership, the supposed savings is lost in the membership. It would take many years to recoup that money if then. What is the business income percentage is product sold to membership payments? What percentages of members actually make full use of it? If the membership remained stagnant or limited membership, this business would die. That is the key question. It is the new memberships that drive this business.
Direct Buy knows that their glitzy presentation will hook a certain percentage of listeners. It all sounds good till the reality of paying comes to be. All of what Direct Buys offers can be found with good research.
If Direct Buy is such a wonderful bargain and legitimate company, why don’t they offer membership like Sam’s Club and Costco. Millions of members paying low yearly membership dues would be the same as the huge sums paid by a few. They don’t because they require a continuous drive to gain huge sums for membership to keep the doors open. The benefit of lower prices is nothing but a scam, new membership dues pays for cheaper prices for those that buy, salaries and the owners of the business. It requires gullible listeners. This is nothing more than a Ponzi scheme.
Communication with this business is non-existent. They are more interested in collecting money than customer relations. No one called to thank us for joining and when my wife called about ending the membership, it took several days before a return call came. In that call they said there no quitting. My wife told them to do what they had to do, for we are paying no more.
We feel that all moneys should be returned to us and there should be an investigation of their Ponzi scheme business practices. It is our hope that you will look into this matter, not only for us, but also for all foolish people who fall for this scam.
Respectfully,
Charles and Brenda Suppus
3668 Camelot Dr.
Maryville, TN. 37803
Rep.John Duncan, Jr.
2207 Rayburn House Office Building,
District of Columbia 20515-4202
April 20, 2011
Dear Representative Duncan,
This letter concerns a consumer issue involving a nationwide business known as Direct Buy and two gullible consumers, myself and my wife.
Over the airwaves Direct Buys advertises about calling into get a key that will open a lock to a possible $50,000 home makeover. My wife called in for the key and they called to set up an appointment to come to their showroom in Knoxville, TN to try it. Of course, the key didn’t work. We also were shown a presentation of all the wonderful benefits of low prizes being a Direct Buy member. After that, couples sit down for their sale pitch about how wonderful a membership will be and how we can purchase items at amazing low prices beating out all competition.
Well, we didn’t have the money for the down payment. They said that’s okay we can take post-dated checks, which amounted to a considerable sum and after that the full benefits of membership would begin. Somewhere in all of this presentation both of us came out believing we could end our membership if it didn’t work out. So, we sign papers to this wonderful opportunity.
Before going any further, I continue to hear their ads on the airwaves. To this day I wonder if anyone has won the makeover? Also how many makeovers have been done? If they have given them out, what are the chances of winning one? Both my wife and I believe this is scam that needs to be stopped. Given the amount of money to gain a membership, the supposed savings is lost in the membership. It would take many years to recoup that money if then. What is the business income percentage is product sold to membership payments? What percentages of members actually make full use of it? If the membership remained stagnant or limited membership, this business would die. That is the key question. It is the new memberships that drive this business.
Direct Buy knows that their glitzy presentation will hook a certain percentage of listeners. It all sounds good till the reality of paying comes to be. All of what Direct Buys offers can be found with good research.
If Direct Buy is such a wonderful bargain and legitimate company, why don’t they offer membership like Sam’s Club and Costco. Millions of members paying low yearly membership dues would be the same as the huge sums paid by a few. They don’t because they require a continuous drive to gain huge sums for membership to keep the doors open. The benefit of lower prices is nothing but a scam, new membership dues pays for cheaper prices for those that buy, salaries and the owners of the business. It requires gullible listeners. This is nothing more than a Ponzi scheme.
Communication with this business is non-existent. They are more interested in collecting money than customer relations. No one called to thank us for joining and when my wife called about ending the membership, it took several days before a return call came. In that call they said there no quitting. My wife told them to do what they had to do, for we are paying no more.
We feel that all moneys should be returned to us and there should be an investigation of their Ponzi scheme business practices. It is our hope that you will look into this matter, not only for us, but also for all foolish people who fall for this scam.
Respectfully,
Charles and Brenda Suppus
3668 Camelot Dr.
Maryville, TN. 37803
Comments
I agree with many of the statements you have made. The bottom line is always buyer beware. If something sounds too good to be true, it probably is. I myself have been to a Direct Buy presentation. What annoyed me the most was the initial membership fee they are hoping for is $7,990, then $159 annually. However, because you are so special and have attended the presentation, you are eligible for the discounted price of $4,990 if paid in full on the spot, or $5,990 paid in increments over 3 years time. Even further, if you are still on the fence is an internet only membership at a fraction of the $7,990 regular price, or an additional lower cost membership that can be upgraded after 2 years. Being in the sales/advertising business the majority of my life, this was painful for me to sit through and reminded me of my Amway days............a whole other story.
Bottom line is, I walked away with my checkbook intact and a 3o day trial membership, which I have not yet tried, as I suspect it will not be all I expect. I wrote to you because I related to you. I wasn't sure by your letter if you had in fact purchased the membership, I hope not. For some people I believe there are benefits, but for the average working class person, not so much.
I wish you well :)