Don't make our mistake
Complaint
Polly Globe
Country: United States
We attended their presentation and after some calculation decided to pay for the membership which was $4990. We wanted to update our kitchen and bathroom cabinets, as well as bedroom furniture. We put down about $1000, and the rest was financed through their lender Beta Finance.
A month later we started planning our purchases and realized we were about to pay more by buying through them than we would otherwise. What the don't tell you on their presentation is that while you save about 10% on furniture they add 8 % handling charge in addition to 7% tax, and that doesn't include shipping.
I am now trying to get our membership money back. Do not become a member! Buy from other stores.
A month later we started planning our purchases and realized we were about to pay more by buying through them than we would otherwise. What the don't tell you on their presentation is that while you save about 10% on furniture they add 8 % handling charge in addition to 7% tax, and that doesn't include shipping.
I am now trying to get our membership money back. Do not become a member! Buy from other stores.
Comments
I definitely understand your frustration
& THAT IS WHY I SAY 'no phone calls'
I SUGGEST A FOLLOW-UP FAX (IGNORE THE CONVERSATION ...can't cancel)
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'I AM CONFIRMING OUR AGREEMENT TO CANCEL,
as I requested by Registered mail, only 1 day (2 DAYS?) after signing
I am reminding you that
db has an obligation to honour this agreement to cancel,
according to your own company's corporate policy
I have not yet received written confirmation of the cancellation,
PLEASE send your response by mail only, within 5 bus. days of receipt of this follow-up fax.
=========================================================================
OR--tAKE your follow-up letter in to the office
Take a witness with you** *& 2 copies of the
boston channel article & INSIST to the receptionist
that she might need a reminder of company policies...
then read it aloud
of course, do this while the reception is very busy with potential victims
waiting for the presentation
hopefully you will get called in to an office quickly,
& THEY might give your refund to "shut you up"
then you will go back to reporting the good news "i expect"
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ON P. 91 -there is a direct link to the boston channel
did you print & send a copy to db with the registered letter?
IF NOT, then print a full copy TO FAX WITH THE LETTER
IF DONE, still print another copy & highlight the date at the top,
highlight the statement ...3 days...at the end of the articlE
any questions, please ask & I wish you good luck!
Is there anything I can do about being with direct buy for more than a year? Can i try to cancel or anything? I've never had this type of problem before but I don't use their service and I am paying beta finance monthly and my balance seems to not be going down at all!!!! I just need to get out of direct buy
I think you should consider contacting the corp. ofc.
Directbuy Corporate
8450 Broadway
Merriville Indiana 46410
219-736-1100
or Fax 210-646-7339
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address it to :
Bart Fesperman
Vice President, Sales& marketing
Directbuy, Inc.
Refer to the Boston Channel Article
Link on p. 91
There is a newer letter on p. 1 by Jennie in Montana
HER post is written on Sept. 9, 2010
-she mentioned speaking to Bart
so I am quite sure he would still be the right person
Demand your $$ back based on his info/
GOOD LUCK!
Bart Fesperman
8450 Broadway
Merriville Indiana 46410
My name is --------- and me and my fiance --------- signed a Direct Buy contract to be financed over 36 months at $100.88 a month after a $190 down payment on September 15, 2010 at the Fort Mill SC location. The following day I decided that I wanted to cancel the membership after reading numerous complaints and seeing that it wasnt going to save me any money. My contract states that it is not cancelable but I was suprised to find a statement from DirectBuy dated May 16, 2007 which states that there is a three day cancelation period for new direct buy members. I sent a certified letter on September 16, 2010 well within the three day period stating that I wanted to cancel my membership and wanted a full refund. On September 17, 2010 I received a phone call from someone from the direct buy that I signed the contract. They tried to talk me out of canceling but I assured him that thats what I wanted to do. He eventually said ok and that all I need to do is send back the pamphlet and its contents within the next several days and he would write a recission. On september 20, 2010 I sent the pamphlet and all the contents as instructed by certified mail. On september 22 I received a voicemail on my phone from ------ saying that he got the pamphlet and he didnt know who called me and said that I could cancel but in fact I couldnt cancel. After hearing that I called back but no answer. I then decided to go to direct buy and talk to john in person. When I got there ------- was extremely rude saying that I couldnt cancel and that there was no three day cancelation period. I assured him there was but he simply stated that he had been doing this for twenty-five years and they dont cancel contracts. He said I should just make the payments. After hearing that I decided to leave and they still have not returned the pamphlet to me which included the vacation and coupon cards.
Im am now writing you instead to resolve this situation since you are the one that released the statement regarding the cancelation period. I want confermation by mail within ten days that I will recieve a full refund of the down payment and will not owe any money to DirectBuy or any companies DirectBuy they may try to submit the Retail Intsallment Contract.
Does this sound ok? I may have rambled on too much I think...
It's crazy Direct Buy stays in business. But they do and they have. I hope the one National class action suit in the States gets settled sometime soon but I'm not holding my breath. It'd be nice..
Interesting read here but the remarks are not at all new or earthshaking. I'll proceed ahead, there's nothing to give up.. Need to hold on to my peace of mind. don't have the time or energy to gather price comparisons and submit paperwork continuously. And if so, sending paperwork to them time after time, certified ltrs to the owners or corporate ofc, I do still doubt they'll respond. That's why we have lawyers.
The 'members' are signed, sealed and delivered. DB's clutches are knucklebreakers. (gettin silly, it's late)
The Agreement having been signed; and whether under duress, false promises, etc, it was just pure STUPIDITY to sign it in the first place. . I joined !! Not forced, gullible. Then there were those 3 days to cancel.
== unless cancelling within 3 days, it's seems one long, horrible struggle and poor Tom, who was told his refund was coming since it was within 3 days, now he's saying they're giving him a hard time and he's now asking again what to do? What's up with that???
Good for you Trudy, I'm glad you were refunded back in the day. Roger, it's interesting, if you haven't been refunded with all you've tried I'm sure we won't be either. I wanted to picket as a last resort but it's not in my blood. Yup, lawsuits should come about eventually.
I had begged, pleaded, took in price comparisons, showed all the items we wanted to buy which they DON'T HAVE and what can I do? We were refused the cancellation. Owner swears the membership will be worth it even if it takes years to recoup.
So be mad forever or write it off and learn by making mistakes.
This website is around 3 yrs old now and HOW MANY won a cancellation, I'd like to know? If you blow the 3-day cancellation policy it's not likely the owner will hand back over five or six grand. Poor future victims. I know they'll be more of them as they keep appearing on this site asking for help. It's a shame. Peace
I am a proud (LOL) owner since 2008 of a useless $7000 membership card which gives me the privilege of driving to a dumpy, dirty converted warehouse (their showroom) to partake in the opportunity of being further ripped off by ordering something which I could purchase locally for the same price or even less (after figuring in all the associated costs like shipping, etc) , while supporting local merchants with better support and less hassle.
I have never been ripped off until now but they are slick and they got us - I am ashamed to say and angry about that. But eventually they will get their just rewards.
DB should be investigated by the US Attorney General!
I'm not getting what you mean by choosing a penalty instead of paying the fifty-five grand ? ? ? If you don't cancel within 3 days, you're in the same boat as the rest of us.. sorry bout that.. let us know what your lawyer comes up with for you and a membership with DB, ok?
On the reverse side of our AGREEMENT - contract whatever it is, our's says Agreement (same thing as a contract)
A Paragraph in large bold print says 'IF A MEMBER WANTS TO CANCEL' -- doesn't your contract have that on it?
Per a search of the BBB for 'DirectBuy.com' (without quotes) there are 100+ reports for the various DirectBuy outlets. Most of them are 'Accredited Members' and have B- or better ratings, some are not BBB members and have equally good ratings. But, not all, some of the non-BBB members have F ratings.
Standard reporting period is 3 years.
Here are the reports for the three nearest my location,
Direct Buy of Metro Detroit North
Accredited BBB member, B rating with 10 complaints.
Direct Buy of Miami Valley
Accredited BBB member, A+ rating with 1 complaint.
DirectBuy of Greater Cincinnati
Not a BBB member, A rating with 3 complaints.
Here are some random others;
Direct Buy of Sacramento
Not a BBB member, B+ rating with 18 complaints.
Direct Buy of Brooklyn & Queens
Not a BBB member, F rating with 35 complaints.
DirectBuy of Houston Southwest - Franchise
Not a BBB member, F rating with 31 complaints.
DirectBuy of Indianapolis
Not a BBB member, B rating with 12 complaints.
DirectBuy of North Texas
Accredited BBB member, A- rating with 14 complaints.
DirectBuy of Kansas City
Accredited BBB member, A+ rating with 1 complaint.
Since you are dealing with franchisees here. Some will be great to deal with and others may be a nightmare. And they are buying club, so the rules can be tricky. If you have every dealt with Columbia House for videos you know what I mean.
Also, remember that the number of complaints a company receives is not the major factor in the BBB rating. Unless of course the company does not respond or fails to resolve the complaint. The natural of the complaint and how the company deals with the complaint are much more important here.
I threw this one in due to the note in the report, this one is also in Ohio, but does not use the name DirectBuy.
Condon Direct, LLC
Not a BBB member, F rating with 13 complaints.
Quote:
Government Actions
On February 13, 2008 Ohio Attorney General Mark Dann reached an agreement with DirectBuy, Inc (Corporate Headquarters for Condon Direct, LLC). The Ohio Attorney General reported that consumers complained of high pressure sale tactics and alleged that certain terms and conditions of their membership were not disclosed during the initial sales presentation. DirectBuy Inc. voluntarily agreed to provide a 3-day right-to-cancel for consumers who sign up and purchase the company's buying club services. Also as part of the agreement, DirectBuy, Inc. will pay the State of Ohio $20,000 for materials to be used in connection with consumer education in the areas of financial literacy and related consumer protection rights.
Dealing with 'DirectBuy' appears very similar to dealing with 'Radio Shack'. Check each individual franchise out in you area and go to the better one.
very few people actually get their contracts cancelled so then why not just make sure the offending dbs do not trick more people to join.
they have reworded their 'no oral promises' to read 'i am making my decision to join db based on this contract'. db is on the run, keep after them.
In light of comments and testimonials soliciting others to “be like me, I’m a member and I’m saving money”, this scam, which is nothing more than and a variation of the “Advance Fee Fraud” scheme, is parting yet more of the “something for nothing” crowd from their money.
Here’s how it works: the potential victim is baited to call for more information after seeing a tempting infomercial and how on the “inside” someone can get better deals or a telephone “tickler” call is made to a potential victim and an informative letter or brochure is sent afterwards inviting them to an open house so they can see for themselves how much others like them have saved and how much they themselves would save, along with some form of an invitation to join. The letter and subsequent follow-up telephone calls promise rich rewards of savings by buying direct from the manufacturer, at cost, with no Mark Up, No Middleman if only they were “members” of this so called highly esteemed and long time in business organisation. Typically, the pitch at the open house includes mention the so called fact that tens of thousands of other smart and savvy consumers have saved along with a slick selection of what they have saved on — and you, too, can begin saving as soon as you join this elustrous group by signing a “membership agreement” costing thousands of dollars payable in advance of receiving any benefits – you are told that amount is paltry compared to the savings you will obtain over a 10 year period – and you must sign the contract on a now or never basis. You are even made to feel stupid if you don’t sign – only a fool would not take advantage of the savings – spend a little to save a lot sort of thing.
If you’re not saying “scam” by now, you should be. Should you agree to participate in this Advance Fee savings scam, something will go wrong. Savings evaporate … or.. Wrong or defective merchandise will be ordered … or … Order delays … or … Order mishaps and screw-ups. You will not be allowed to cancel your “membership” and get out of the deal.
If you decide to order merchandise, money from you, in advance of receiving the merchandise — an insignificant sum, really, in light of the windfall of savings about to land in your lap — will be required to order merchandise without any written guarantees of actually saving money.. You pay, you wait for the merchandise . . . and all you’ll get in return are more excuses about why the order is held up and assurances that everything can be straightened out if you’ll just be patient and wait a little while longer or send a bit more to pay for this or that price increase. Once you start making threats, these scammers will threaten to sue you if you don’t make good on your end of paying for the membership contract in full.
Beware that the Membership Agreement is in reality nothing more than a legally binding sales contract that may have been glossed over in light of all the savings you are excited about expecting. Carefully look at it – it contains NO GUARANTEES OF SAVINGS – instead there is a “NO ORAL PROMISES” clause: “No oral promises or statements not contained in this Membership Agreement shall bind or obligate the club.” It’s like a get out of jail free card – they can tell you anything pie in the sky in the open house tour or over the phone to get you to join, but once you sign the sales
or Membership Agreement, you agree to the NO ORAL PROMISES clause! So what happens if it turns out not to be what you expected? Ouch. Too late. You’re stuck. That NO ORAL PROMISES clause comes back and bites you. Want a refund? Beware that the Membership Agreement states: “Members understand this program is not sold on a trial basis and that no refund of membership fees will be made.” So you only partially paid on your contract and think that you’re just not going to pay the rest of the contracted amount? — beware that the Membership Agreement states further: “Members do not have the right to terminate the Membership Agreement without paying the amount remaining for this Membership.” And if you think you’re going to get a refund because you never found anything cheaper and therefore didn’t use the club, think again. There’s a clause in the Membership Agreement about
this too: “The Membership Agreement is not conditioned on the use of this Membership.”
In a nutshell, the con works by blinding the victim with promises of an unimaginable fortune of what others like them have saved, what they could have saved if only they joined earlier, and what they can expect to save by joining now and simultaneously keeping certain information secret from the intended victim. Once the sucker is excited and sufficiently glittery-eyed over the prospect of what he or she would do with all the money he will save, he is then squeezed for however much membership fee in full at the time of “joining” or have the sales contract balance immediately financed by a separate finance company, actually a subsidiary of the parent scam company. The money the victim parts with willingly, thinking “What’s $5,000 here when I’m going to end up saving over $50,000 when this is all done?” He fails to realize during the sting that he’s never going to actually get the promised savings because all of savings are expressly disclaimed in the fine print of the contracts and merchandise ordering materials. The very sales contract, which the victim was at first eager to sign, now comes back to bite him with all those adverse terms and conditions.
The scam involves their very effectivly hiding the fact that not all savings are passed on directly to members. This is accomplished by the franchisee agreeing in the franchise agreement (the terms of which are unknown to the victim member) that the franchise OR can keep all discounts and rebates and not pass them on the the member. It is only by reviewing the 260-plus page agreement with the franchisor that the victim would every learn that the franchiseOR reserves “the right to keep rebates, discounts and other payments from manufacturers and suppliers.” They also keep early-pay disccounts and all members’ purchases are paid by the member at the time of ordering. All of this messing around is designed to part the victim from his money. This marketing scheme is now the subject of a numer of class action lawsuits around the country.
Once the scam is explained, it seems so obvious a con that you’d wonder who would fall for it. Yet fall for it people do because they’re mesmerized by the wealth that will soon be theirs in the form of all the savings by not paying any markup or middleman costs – and how smart they are by taking advantage of the join now or never opportunity. They also fail to realize there’s a hook hanging just out of sight; at first all they see is that others are getting savings and they want to join this cadre, thus they’re ill-prepared to mentally shift gears when the con artists turns the tables.
Because the premise of “saving tons of money” is wholeheartedly swallowed early on, it’s not at a later point questioned when things begin to go wrong with the transaction and the dupes who have been targeted find out the hard way that there is a no refund policy on all the money they have paid in advance of receiving these now questionable “savings.”
Beware paying in advance for something for nothing – no written guarantees of promises made should send you running – especially in light of the tactics of “Be like me, I’m a member and I’ve saved money.” — You may not!