Trying to cancel, no luck

ComplaintsScamsDirect Buy Fresno, CA

Complaint

0
Miranda
Country: United States
My husband and I joined Direct Buy on december 2,2010.  After reading the emails on this site and having second thoughts, we cancelled on December 9.  They will not let us out of our contract, and after putting 1200.00 down we are now being billed for the remaining 5300.00.  My husband and i have agreed that we will not give the company any more money and are prepared to fight collections, and file Bankruptcy if we have to.  We both have excellent credit, and just want out.  We have now written two letters sent via certified mail rescinding the contract.  We have not used the service at all.  We are at our wits end.  We would like to picket the business, but we are only two people and think it would have more effect if we could get a large group to picket.  We also need to contact local law enforcement and verify it is legal to picket on Shaw ave in Fresno.  See our second correspondence to the company below:

Seaver group LLC
DBA Direct Buy of Fresno
4150 West Shaw Ave.
Fresno, CA 93722
559-476-2300


Dear Troy Seavers,

I am writing to respond to your letter dated December 17, 2010.  

As you know, we signed our contract with your business on December 2, 2010 and called to cancel the membership on December 9, 2010 as well as sending you written notification of our wish to rescind the contract on December 9, 2010.  My husband and I have notified Beta finance company that we cancelled our membership with Direct Buy and that we would not be paying any further amount toward the membership.  The response from the finance company was that they would continue to bill us until they received notification from Direct Buy that the account was cancelled.  Now, in addition to having paid a down payment of 1200.00 to your company for services not utilized, Beta finance will continue to bill us and eventually send us to collections for a membership we simply want out of.

In addition to not receiving our username and password in the agreed 3-5 business days, as discussed in our previous letter, we also have not received our membership cards to access other Direct Buy clubs.  We believe that you are in violation of the contract and therefore we require a full refund from you and cancellation of our membership.  Above all, we believe that Direct Buy puts undue duress and pressure on all clients thereby making the contract invalid.

We have been attempting to contact the Better Business Bureau regarding this dilemma, and will continue to do so.  We also would like to prevent other people from making this same costly mistake, so we are sending copies of this correspondence to local newspapers and television stations as well as telling our story by word of mouth.

Sincerely,


CC:  Channel 17 Eyewitness News, Bakersfield Californian, Kern Valley Sun, Fresno Bee


Any help or advice is greatly appreciated!

Comments

  • 0
    tj
    | 1 reply
    This type of predatory contract is generally structured similar to predatory "health club" membership contracts, using a "loan" and "finance company" to place a barrier in the way of cancelling once the oversell wears off.  Requiring signing at the same time as the pitch, without opportunity for review by a legal advisor, is aimed at the same goal.

    Contact your state Attorney General or local District Attorney consumer protection unit.  See if the company is subject to any consent agreement.

    Look at any fraudulent misrepresentations made in the sales pitch, that might make it a "bait and switch" deceptive trade practice.  

    What did the salesperson overpromise, that the company is failing to deliver?  
    Did they deliberately create confusion between different "membership products" and their costs?
    Did the salesperson attempt to interfere with your reading of the contract, at the same time he was pressuring you to immediately sign?
    Were pages of the contract withheld, being added later, perhaps, when they sent you your copy?
    Did the "membership contract" obscure that it was actually a loan, failing to clearly disclose the financing costs?  Did it fail to comply with state or federal law, such as TILA?

    In particular, look at any cancellation clauses, any limitations on cancellations, any ambiguous cancellation wording that they are now applying to your detriment, and any sales misrepresentations or deceptive tactics used to block cancellations allowed under the contract.  

    If there was a short cancellation period, did the other party withhold your copy of the contract under a pretext ("We can't give you your copy until we get it signed by the corporation", etc.) so that you would not have the information you would need to actually exercise a cancellation clause within an allowed contractual or statutory time period?


    Your other approach is, as you may already be doing, to focus attention on the company's practices from local consumer reporters.
    • 0
      Direct Bust replies to tj
      Miranda, did you ever get it resolved?
  • 0
    Ruth
    | 1 reply
    My two sons & I just signed up with Directbuy this past Saturday late in the afternoon. We kept asking them for a written statement from the State of Virginia concerning our rights of cancellation and the 72 business hours cooling off period. We are in the City of woodbridge, VA The young salemsman, Nick O'connor never did visibly show us any such cancellation papers. According to the Federal Trade commission, in this statement:
    "Under the “Cooling-Off Rule, the salesperson must tell you about your cancellation rights at the time of sale. The salesperson also must give you two copies of a cancellation form (one to keep and one to send) and a copy of your contract or receipt."
    Mr. O'connor did not give us these copies. In case they do not respect this cancellation letter, who do we appeal to?
    • 0
      Bruce replies to Ruth
      Hello Ruth,
      There is no easy way to get your money back because VA has no cooling off period.  You will have to sue and win the action to get your $.  Good Luck!
  • 0
    Trudy
    | 2 replies
    HI RUTH
    I Hope that you get this message right away,
    your contract is supposed to allow you 72 hours,  not business hours,
    PLEASE SEND REGISTERED MAIL IMMEDIATELY,
    THAT is the only official proof of notification (don't talk to them, &DO NOT GO THERE)
    Adress it to the owner of the location where you joined
    & you are RESCINDING the contract, were not given proper paper work re:
    cancellation
      I am guessing that you have not received your password/and or/access to the db website of prices,
    you can also mention this as a major point, that during the cooling-off period, you were unable to compare prices due to that fact,
    good luck, don't give up!!
    • 0
      me replies to Trudy
      | 1 reply
      i got a card in the mail from these scammers telling me i cud receive a free i pad and android software and as i thought i looked it up and they r scammers... ive never even heard of them...FUK OFF get a job stop stealing peoples monies!
      • 0
        SLewis replies to me
        Just got the same letter.  I decided to do some research before calling to get my free I pad! Thanks so much
  • 0
    Terri
    I joined DB and these are my issues: I went to Direct Buy on a Saturday and signed the membership contract as I believed all the savings were on the up and up. I was told I would get an e-mail Monday with login information to check prices, which was not sent to me for nearly a week? There were no savings, in fact the cost was higher after shipping and taxes. I was told to call Monday if I had concerns or questions about the contract or to speak with someone about cancellation for a "full refund of our deposit."

    We were told if we did not sign at the time we were there the we would not be invited back, nor would we be able to take the packet with us when we left. I signed as I believed what they told me.

    When we returned home I read all the information within the packet. I found that hours of operation were Tuesday thru Friday to speak with anyone, so speaking with anyone about canceling would not be possible. Also within the contract the right to cancel states "by the close of the next business day following the day contract was signed by delivering or mailing the buyers club written notice." due to DB being closed on the only business day, I could not hand deliver. My fiancé, who is a Postal Carrier, took the written letter so the postmark would be "deemed to be given as of the date of cancellation."

    I know the written letter was postmarked within the time stated on the contract but when I received a bill from Beta Finance and called stating I sent a cancellation letter I was told it was never received. What can I do to end this contract?

    I sent this same mail to the AG in Colorado requesting 855.68 back. Haven't heard back yet. What else can we do?
  • 0
    RC
    I am in the same boat with all of you,  I joined and called the next day
    telling them I was blindsided by it all, but I just cant afford it and want
    to cancel, they told me to email them and gave me an email address,
    they responded and said they would get back with me in a couple days, they
    never did,  they just ignored my pleas to cancel because I decided it was
    just not the right time.  and I cant afford it.  Direct buy is a scam
    and is only out to get your money.  I think we should start an anti-direct buy website and warn the rest of the country about what a scam they are.

    run them out of buisiness and help protect our american brothers and sisters, We must stand together and fight
  • 0
    David
    I have been a member of Direct Buy for a while now, and have had no problems with them at all. The savings are very good, and the service is exactly what i was promised. What i do have a problem with is people who make rash decisions then think they can just weasel their way out. Take responsibility for your actions people. No one held you at gunpoint and forced you to sign anything, so who's responsibility is it that you are currently under contract? And as far as protecting our American brothers and sisters? I was in the Army for 9 years until I received my medical discharge and I believe that you should take a long hard look at what is actually important.

    Yours.
  • 0
    Jenn4mTexas
    I just signed up for Directbuy on 12/9/11.. I went in on 12/13 to cancel thinking i had the 3 days cancellation provided by Texas but apperantly this doesnt apply to us, because I walked into the showroom due to a promotion in the mail for free tablet by the way... i took it home to charge, it doesnt even turn on. When i looked inside the box it had a small disclosure stating it had no warranty and once handed over to the new owner they are not liable for the tablet. If i joined i should have had a good lasting tablet, not a cheap one. either way i was not allowed to cancelled!!! I am out $4000. I really want out too. They savings are not as I expected, they quoted me cell phone for as low as 50 dollars, that is what caught my attention. Now that i am signed up, yeah they are about 100.. but you need to extend your contract with your service provided.... that is not a bargain.. I would give up my down payment as long as they let me out of the contract..
  • 0
    FromNYC
    We were also forced to join and because they kept saying that if we don't sign, we cannot join for 7yrs made us fooled into thinking this is a life or death situation and signed up.  But the only safety we have is a letter saying we cam cancel within a month without any obligation, and when we went back to cancel, they said we can only cancel between Tues and Thurs, and they only sign up during the weekends... How odd? We also went for the tablet promotion. This is a piece of junk!
    We will try again to cancel as we have this letter and will update you all.  Don't be afraid to ask for a written statement!
    The Sales lady was a total nut as she would get angry if we asked questions.
    We researched the prices and this is the conclusion: unless you want VERY high end items, then you will get a good deal and if you remodel, it is worth it.  Otherwise if you can do with mediocre furnishings or antique shopping, then don't bother with Direct Buy as you can invest that $4k to $5k membership price elsewhere.  Also, they wouldn't tell us how we are to pay for the products as they were saying it may be financed or pay up front - that is insane!
    Hope this helps!
  • 0
    fresno145
    Wow..I cant believe each and everyone of you are having this many issues.  My wife and I have been members for over 7 years and we have saved well over our membership cost on alot of everyday items......gifts for birthdays ...Christmas.  I believe in the complete opposite Directbuy is the most tranparient company out there.  A scam is not knowing what a retailer is making on you.  My wife and I understood that Directbuy was going to save us the difference between what the buyer bought the product for and and what he was willing to sell that item to the consumer for.  2% 10% 50% 10000%  anything over 0 is too much for me to give away.   I think the biggest challenge for us was trying to find the things that we wanted.  After our new member orientation that fixed that right up.  I have no problems with the club and the services becuase I know what it can and cant do.  I hope this helps.
  • 0
    Bruce in VA
    | 1 reply
    WOW,  went to the hard sell appointment today in Woodbridge VA. Nothing but fun!  Clues of an unsavory deal were everywhere.  1. Franchise Owners Black Porsche Carrera sitting in first reserved parking spot right in front when we arrived.  2.   Fake warm greeting with "you folks" used 4 times in one minute.  3.  Video Tape presentation was slick and filled with promises of savings and many warnings that what we were about to see was so secret that we could ruin Buy Direct if we talked about it.  4.  Presenter Chris rolled through his presentation so smooth and had memorized all the prices and yet feigned a lack of knowledge about pricing details to prompt eager participants to calculate and read out loud the savings we were all about to be bequeathed by joining.  5.   Laminated example cards of competitor ads pulled from the cork boards had maybe 1 thousand pin holes in them, hmm... wonder how many times they had been used in this same spiel?   6.  Chris asked, who’s building a deck?  I said me, he handed me a much handled laminated card for the framing package quote from a competitor and the prices from BD to compare.  Showed a huge savings but when I questioned the BD price of the Trex for one 12' piece he muttered that they were old high prices and the new prices were much better....hmmm... 7.  When we broke up for our showroom tours and the more affluent white candidates got first attention while the minorities were asked to wait....hmmmm....   8.   The wife and I compared prices that we knew from recent purchases on Toto Toilet,  Nikon Spotting Scope,  BBQ Grille, water filter cartridges for fridge, and Bikes and we could not decipher the catalogs-  No pricing shown- Model #s were different-Manufacturers names were unknown-  Each time Chris disappeared and said he checked the website and verbally told us the price we would enjoy from the online BD store.  Tried to get quotes for lumber, Sherwin William Paints, Shaw carpets etc.  Lots of words said about savings and when really pushed, was told BD guaranteed to be at least 15% below any apples to apples written quote on any contracting products,  windows, drywall,  carpet etc.  Lets see the agreement....hmmm.  The contract had no such guarantees....  Contract fine print was all aimed at making sure we would pay all of the membership fees even in the event of divorce...spousal death...and NO Cancellation or Refunds...  Hmmmm.  No thanks.  Now can we get the two free nights at Marriott we were promised. sure if you pay $50 by money order...GREAT DEAL!
    • 0
      Rickey Dean replies to Bruce in VA
      Thank you for the warning. I knew this sounded to good to be true. I normally hang up on sells call but I want to hear her sales pitch and it was pretty good. But I use to be involved with sales and I know the only reason people get involved is to make money. So, the fact they kept saying not to worry about money i knew something wasn't right!
  • 0
    Rickey Dean
    Something told me to check on this company before I attend their presentation this up coming Saturday! Once again, if something is to good to be true you can bet there is a scam behind door number 2! lol Thank folks for the warning!
  • 0
    bm -Fresno, CA
    This past weekend, I received one of those postcards titled "Parcel Pick-Up Notice" in the mail from DirectBuy stating the package contents: New Android 4.0 Touchpad Tablet with camera and WiFi; call for pick-up 559-519-5865. I don't know why I received it because I didn't sign up for anything or they bought my information from another company and now are trying to solicit me as a customer. Please opt me out because i'm not interested. Thank you.

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