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
Don't hesitate to vent here anytime, as long a response as you like...
again, so sorry for the delay, I am really sorry to hear about your situation, I hope that your kids are better soon,
I hope that your situation improves some how, because I believe in miracles, or I wouldn't still be here after about 2 years later...
As you know by my responses, I hate lawyers because they just seem to make things worse *unfortunately you know this too well
ONe thing that comes to my mind,is for you to inquire about credit councelling, most are non-profit & no obligation,
also, sometimes you might get help from the most unlikely family or friends, when they hear how desperate your situation is
As for DB, the scum of the earth!!!!
The advice is to try to get price comparisons is writing,
you need to get the WHOLE price from db =that is their dirty trick,
when they tell you to accept the "catalogue" price, then add insanely, unheard of shipping & other illegal taxes,
so the best way, seems to be to ask for confirmation of a price by e-mail, & inc. "what are your shipping...etc. fees, & do i need to get a 3rd party to pick up at your warehouse???
***THIS IS THE ONLY TIME YOU CAN SAFELY USE E-MAIL
then you are armed with the WHOLE price, so you can make an accurate comparison, becasue no-one else charges these repulsive FEES
One way to get a retail price, is to ask for a price scan check at the register, & then ask them to ring it in & then ask for it be refunded (over ride)
then ASK FOR THE RECEIPT, then you have the date & the u.p.c. code
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remember THAT it takes time, but if you do want to go to court in the future, they always want to know what you have done so far
& WHAT PROOF YOU HAVE...
COLLECT & PHOTOCOPY...NEVER NEVER TALK TO THE SCUM!!!
THEN you must use Registered mail
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db is commiting fraud,
refer to FLORIDA CONSUMER PROTECTION LAW
GUIDE TO FLORIDA LAW (the site with the eyes that fade in & out
click on 1st para. CONTRACT LAW (underlined in purple)
***MISTAKE DURESS & FRAUD...
READ THIS & LET ME KNOW HOW YOU ARE DOING!
GOOD LUCK & DON'T GIVE UP!!!!
i just responded to you, above...finally...let me know how you are doing,
hope to hear from you soon, Don't Give Up!!!
Am I correct about the open house presentation being the Benefit Summary? I didn't receive any paperwork titled Benefit Summary. It specifically mentioned in the contract as one of the three things Directbuy is bound by. Furthemore, we're supposed to get a copy of everything we signed so if turns out to be a form, did anybody else get a copy of it and can anybody tell me what it says?
I have my registered letter ready and I'm hoping to send it tomorrow. I'm hoping it works.
I have demanded written communication... with Perry at DB... although he continues to call me demanding a call back. He has left several messages stating he will not let us out of our contract but wants us to come in so he can explain the process and what the company offers better (basically another sales pitch.) He even had the audacity to (frustratingly) tell me that I was the culprit of the problem because... he is receiving mail but I cant even return a phone call. What an *ss!
I have heard in the past that this meeting is essential to use as evidence that I have attempted to resolve the problem. But... Im up in the air and trust your advise over others...
And you are right about lawyers... not only did he not help me with DB ...(and putting it off for over 3 months)... my landlord stopped paying the mortgage a year ago... so we hired a lawyer to help us out... he actually got us evicted sooner almost immediately after hiring him. :(
As far as the Florida Consumer Protection Law ...I have reviewed it but cannot seem to understand it ...or find the laws pertaining to this case. (I am left brained... a writer and a photographer.) I have found references specifically to the FCPL on this site but cannot find that specific information within the Florida Consumer Protection Law.
I also have contacted the Florida Consumer Protection Agency but have not received a response... yet.
P.S Im not sure they will give us prices to compare ...since I have already notified them of my desire to leave the company. They have already kicked us out of the website.
Thanks for your help... I will try to help as well... to shut down the monster....(I really dont know how they are still in business)
Oh Im sorry,... one more thing. What I've heard/researched once they realize you are trying to null the contract they begin the process of suing you for non-payment. So I'm not sure about credit counseling or if it will help. DB is the only account we have in (potential) default ...and that is the main thing ...we are trying to buy a house and we dont want our credit screwed up... which is why we have been paying the payments ...to keep our credit clean.
Sorry for another long post. Thank you sOo much for your response. This site gives me hope.
We don't have access to any catalogs yet so we can't make a case in terms of their not having the lowest price. It is my understanding that their high pressure tactics violate the PA Unfair Trade Practices.
The agreement we signed said "that we acknowledge that our membership is not cancelable and our membership is not refundable, except as may otherwise be provided by applicable law or disclosed in this agreement."
On the back of the agreement there is a Notice of Cancellation. The membership director did not fill in the transaction date or the date the cancellation notice expires.
The showroom was open today (Sun.), but is closed tomorrow (Mon.) except for pickups. I'm assuming under these conditions, our 72 hrs is up on Wed., 10/27 since we can't access the showroom on Monday. Does that sound right?
I wrote a letter stating that we request a recission of the agreement based on PA Unfair Trade practice of high pressure tactics used to obligate you to join today, a full refund within 10 days by mail or reversal of our credit transaction, and a written confirmation of cancellation of our membership.
I further stated after verifying their receipt of the letter, we would only communicate with them in writing and we were prepared to contact the BBB, a lawyer and /or the State Attorney General's Office if necessary.
We will send this letter as well as a signed, dated copy of the notice of cancellation as well as the copy of the agreement that shows the date that we filled in when we signed via certified mail first thing in the morning. I am concerned that they will not get the letter by Wednesday. We will pay for overnight delivery, but the USPS website makes it sound like you can't do overnight delivery with certifed mail. We thought about Fed-Ex but they can refuse that.
We have also called our credit card company. DB has not sent the charge through yet and as soon as they do, we were told that we can call the credit card co. back and initiate cancellation of the charge proceedings.
I can't think of anything else to do.
Trudi, in your opinion did we leave anything out. Thank you for reading this and any help you can offer.
as long as you send Registered or Certified mail, NO SIGNATURE REQUIRED
the date that you actually send the mail is the valid date,
your proof is your receipt from the post office,
the date that they receive it, is not your concern
BUT, The response you are asking for, is a request
within 10 Business days of db's receiving of your letter,
response in writing only
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DB loves a challenge & will do anything in their power to delay you,
& burn you out, so that you will be too intimidated to fight back,
so don't mention BBB, lawyer, or gov't
their response is go ahead, see how much it costs & how long it takes...
NO 3 day cooling-off... IS AGAINST DB'S OWN CORPORATE POLICY (not the law) REF:
1. print copy of the link on p. 91 Boston Channel-highlight ref. at bottom of the article
2. CBC MARKETPLACE THE PRICE CUIT PROMISE -MAR.27, 2009
Video- Christine DeMarsh db owner
stated db was printing new contracts inc. 3 day cooling-off
===your contract does not inc. so invalid & obsolete
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NO CANCEL AT ALL, IS AGAINST THE LAW
THE ACtual LAW is
Pensylvania unfair trade practice act & consumer protection act
no cancel forces you to give up your right to complain
Good Luck!!
I will eliminate the BBB, lawyer and AG as you suggest.
The letter is going out today, the second day after the transaction so we are good on that point. If the showroom is closed to members, I would think that can not be counted as a business day, but we will be within the 3 day period so it's a moot point - one less thing to fight about with them.
Here's details on PA recission for those who need it.
73 P.S. §§201-1 - 201-9.2 PENNSYLVANIA UNFAIR TRADE PRACTICES
AND CONSUMER PROTECTION LAW §
§201-7. Contracts: effect of rescission
(b)At the time of sale or contract the buyer shall be provided with:
(1)This needs to be on the front of the agreement in bold and 10 point and it was in my case:
“You, the buyer, may cancel this transaction at any time prior
to midnight of the third business day after the date of this
transaction. See the attached notice of cancellation form for
an explanation of this right.”
(2)A completed form in duplicate, captioned “Notice of Cancellation,” which shall be attached to the contract or receipt and easily detachable, and which shall contain in ten-point bold face type the
following information and statements in the same language
(Spanish, English, etc.) as that used in the contract:
Notice of Cancellation
(Enter Date of Transaction)
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do
so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a
telegram, to (name of seller), at (address of seller’s place of business) not later than midnight of (date).
I hereby cancel this transaction.
(Date)
Buyer’s Signature
**THis was on the back of the agreement veratim.
(c) Before furnishing copies of the “Notice of Cancellation” to the buyer, both copies shall be completed by entering the name of the seller, the address of the seller’s place of business, the date of the transaction, and the date,
not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.
**The seller DID NOT fill in the date of transaction or the date by which the buyer can give notice by.
(d) Each buyer shall be informed at the time he signs the contract or purchases the goods or services, of his right to cancel.
(e) The cancellation period provided for in this section shall not begin to run until buyer has been informed of his right to cancel and has been provided with copies of the “Notice of Cancellation.”
Thanks Trudi for all your help.
I would just include that their is a clause in the contract that agrees to allow a 3 day cooling-off period,
for some reason this part has been left blank,
but you are sending the registered mail, within the 3 day cooling-off period
& requesting a rescision of the contract within the allotted time
Acc. to the PA UTP & CPA, this is part of the Act...
I am doing my best, to respond quickly since you want to send this today
Good Luck
Any after thoughts can be faxed tomorrow, if there is anything missed
as a follow-up...
I thought you & others might find the following article interesting.....We're not backing down!
DirectBuy complaints mount, but company says its big fee is worth it
Jorgen Wouters
Oct 11th 2010 at 9:00AMText SizeAAAPrint this page | Filed under: Home, Shopping, Consumer Ally
What would you say to the following offer?
Join our shopping club and we'll promise you below-retail prices on thousands of brand-name products – but we can't let you compare our prices with competitors until you join. You'll shop for most items through a catalog, but once you place your order, you can't cancel or return your purchase. Our membership fee is several thousand dollars, usually non-refundable. Finally, if you refuse our offer, we'll never make it again.
More than 400,000 consumers in the U.S. and Canada have said "yes" to a similar pitch by DirectBuy, including a 72-year-old retiree who visited a showroom in Hauppauge, N.Y., sat through a two-hour presentation, and despite an "inner voice" warning her not to do it, paid the $5,900 membership fee.
When the woman (who we'll call Shirley due to her desire to remain anonymous) returned home, she started Googling DirectBuy and didn't like what she found: several class-action lawsuits and hundreds of complaints from dissatisfied DirectBuy members who said the company's guaranteed lowest prices weren't any cheaper than retail outlets. Several stressful days later, Shirley asked for a refund, which was denied because her three-day cancellation period had expired.
"Once you sign up and pay the dues, there is very little you can do to get your money back," Shirley told Consumer Ally. "Even if you die, there is no refund, but you can leave the membership to someone else in your estate."
Shirley left multiple messages for the Direct Buy store manager, contacted the Better Business Bureau, her local consumer advocate and an attorney, all of whom told her there was little they could do, and advised her to contact the Attorney General's office. "I called several times and my calls were never returned," she said. "I went back in person and was told (the manager) was too busy to speak to me."
Shirley's son got involved at that point and contacted Consumer Ally, filed a complaint with the New York State Attorney General's Office and started leaving messages for the store manager as well. After six months of phone calls, e-mails, threats and a letter from the Attorney General's office, DirectBuy finally agreed to refund Shirley's $5,900 in September – minus a $100 "administrative fee."
"I truly regret being taken in by the beautiful sales presentation, and not listening to my inner voice telling me to get out of there and go home," Shirley said. "To this day, I'm still embarrassed that I could be influenced into doing something that was so wrong for me."
DirectBuy, which operates 150 franchises in the U.S. and Canada, bills itself as an insider's buyers' club where members can purchase brand-name goods directly from manufacturers and suppliers, sidestepping retail markups and saving as much as 50% or more on brand-name merchandise. Membership fees vary from location to location, ranging from $3,000 to $7,000. Although DirectBuy spokesman Mike Georgeff declined to answer a question about the company's revenue, the privately-held, company reportedly generates more than $500 million in revenue each year.
Because each DirectBuy franchise is independently owned and operated, said Georgeff, the corporate offices in Merrillville, Ind. don't know what percentage of new members decide to cancel – or how many experience ordeals similar to Shirley's. He did note that more than 75% DirectBuy customers renewed their memberships in 2009, which he added was "an extraordinary percentage when compared to other membership organizations."
But unlike other buying clubs like B.J.'s or Costco, DirectBuy members cannot return items or cancel orders, which are also subject to shipping and handling fees. Although DirectBuy does reveal products and prices during its "now or never" sales pitches, prospective members are forbidden from using them to comparison shop elsewhere before joining. According to a DirectBuy FAQ: "This policy is in place out of respect for our members, manufacturers and the retail industry. It prevents consumers from asking traditional retailers to match DirectBuy prices."
As for DirectBuy's "insider prices," a consumer magazine said its reporters found a flat-screen TV at DirectBuy selling for almost $500 less elsewhere, while a Kohler bath faucet was also $300 less on a kitchen-and-bath website. However, the magazine did report steep discounts on high-end furniture. While DirectBuy can't monitor the price of the more than one million products available to members at every retailer, Georgeff said, the company regularly conducts retail price comparisons to make sure members get the savings they expect.
"Ninety-nine percent of all orders placed through DirectBuy have no identified pricing issue. In the unlikely event a member does find an identical product from an authorized retailer at a price lower than at DirectBuy, we ask the member to make us aware through our Pricing Promise," he said. " Upon confirming a valid comparison, we'll work with the manufacturer to obtain the best possible price as quickly as possible," which he said resolves more than 95% (3,800) of member complaints. Since 1% of 400,000 is 4,000, and 95% of 4,000 is 3,800, by that math, there must only be about 200 dissatisfied DirectBuy members at any one time.
According to one popular estimate, at an average savings of 25% on each purchase, you'd need to spend more than $20,000 to break even with Direct Buy's membership fee. Georgeff disputes that assessment, saying many members join to take advantage of huge savings on home furnishings, which he said average 40%. "This means a member would recoup their membership fees on approximately $7,500 in purchases at DirectBuy, representing an estimated $12,500 retail price, or two to three rooms of furniture," Georgeff said.
Cancellation policies vary from state to state, and consumers in states with no mandatory cancellation period aren't eligible for refunds. After receiving numerous complaints from consumers in 2007, Ohio Attorney General Marc Dann looked into allegations of strong-arm sales tactics and a failure to disclose upfront certain terms and conditions of DirectBuy memberships. In February 2008, DirectBuy agreed to settle with the state of Ohio and offer consumers three days to cancel new memberships.
DirectBuy has also faced a number of class-action lawsuits over allegations of failing to pass all savings to directly customers.
An October 2009 lawsuit filed in Indiana District Court alleges that DirectBuy pressures people into paying a $5,000 membership fee and charges exorbitant mark-ups, excessive shipping fees and withholds millions in annual manufacturer rebates. Similar allegations were made in an April 2009 class-action suit filed in Connecticut District Court, which claims DirectBuy pockets tens of million in of dollars in kickbacks from manufacturers and suppliers by charging consumers more than the "direct prices" they pay for items.
"We show members the cost of an item, freight, and any applicable costs up front for every member purchase, all of which are fully disclosed to both members and franchisees," Georgeff said, while acknowledging DirectBuy does receive certain incentives from suppliers.
"Our Membership Agreement specifically informs prospective members that DirectBuy's Corporate Headquarters and franchisees reserve the right to accept prompt payment discounts and other incentives from suppliers, so long as pricing available to members is not adversely affected," he added.
A September 2009 class-action filed in New York District Court accused DirectBuy of keeping millions of dollars in "kickbacks" from manufacturers, as well as overcharging members for shipping and taxes in order to pocket the difference. The suit also claims DirectBuy delays placing orders for prepaid items an average of two months in order to earn interest on orders that total some $1 billion annually.
"Any such allegations are false," Georgeff said.
Although Shirley the shopper in Hauppauge is now $100 poorer and ashamed she gave in to a hard sell, she got off lightly compared to other frustrated DirectBuy customers who weren't able to wrangle a membership refund.
Despite healthy renewal rates, quite a few members have been airing grievances online, and various complaint boards are full of stories claiming to be from rueful DirectBuy members warning others not to join, sporting headlines such as: "Rip Off," "Scam," "Misleading/Hard Sell," "We are very sorry we ever joined them."
One thread on the ComplaintWire site contains 98 pages of complaints from DirectBuy members, dating June 2007 until September of this year. Here's a typical post, titled "Don't make our mistake." Polly Globe, 21 Jun 2007:
We attended their presentation and after some calculation decided to pay for the membership which was $4990. . . 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 they 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.
Although DirectBuy obviously enjoys substantial numbers of satisfied members, it's clearly not for everyone.
"It is a company that might be good for some people who are planning to spend a lot of money on remodeling their home or who like to spend money on luxuries for themselves or others," said Shirley. "If you are planning on spending less than $10,000 to 15,000, it isn't worth it, because the membership fees are so expensive."
Thanks for telling us your story. I only wish my senses were as heightened as yours! I am so glad you didn't fall for DirectBuy's tactics. Consider yourself $6000 richer! Please warn others to stay away from this crooked business.
You are the best! Your dedication in helping everyone on this site is inspiring. Let's keep at it. DB will go down in the end.
I also apologize to you if I sounded harsh. I know what you're up against as we are all in the same FRUSTRATION boat together. Yes, this is a good place to let off some steam....especially because we all understand how you feel.
Trudy is truly a ray of hope and has much experience in helping people. Unfortunately, this site is a bit difficult to navigate because all of the information floats on to the next page. It's difficult to reference past information as it's sometimes impossible to locate. Now there are 108 pages! That goes to show you that you are not alone!
This is the ONLY site where email accounts do not need to be entered to comment. So far, DB hasn't really been that effective in infiltrating. There have been "positive" comments that I am sure an intern, staffer or franchise owner's mom writes. Other than that, this site is legitimate.
Yes, let's continue to stick together and fight against the DB crooks who stole our money. Right is might! I hope your children are feeling better. Keep telling others about your experience and help them stay away from DB and their scheming ways!
Just to help someone else:
I researched state law and regulation for the state the contract falls under and for my state including attorney general sections. I researched Federal Trade Commission. I looked at examples business letters so I could format it correctly. I read about how to write an effective cancellation letter, their advice was short and to the point. I didn't really adhere to that one because I added my proof in the letter.
In the process I discovered a wealth of information that will hopefully prevent me from becoming a victim of any of these kinds of organizations again. Again, Thank you Trudy.
Everything you need is contained within these pages!!!!
Everyone please do not give up! Trudy and Roger have been working tirelessly to address each and every question that comes across the site.
Everyone keep up the fight!!!! Send DB packing!
MY Responses are delayed lately, but I will catch up a.s.a.p.,
YES, YOU CAN use your prices from db site, be as specific as possible:
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$ db + (ship & handle)= $ total (NOT INC. State/Prov. Tax)
COMPARE TO:
$ RETAIL PRICE (no ship/...) NO TAX
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IF YOU DO NOT DO THIS ABOVE CALC., THEY WILL INSIST ON USING THE WEB. $$$
THEIR dirty trick is that they ignore/refuse to add their TAXES TO THE PRICE...
DB HAS ALL THIS EXTRA $$$ THAT THEY ADD AFTER THEIR "PRICE"
BEFORE THE LEGAL/REAL TAX...
we are so overwhelmed, & they depend on their intimidation techniques to throw you off, that's why they refuse to put anything in writing...
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As for your debate on whether or not you need to go back in to meet in person, or return phone calls,
YOU HAVE NO OBLIGATION TO GO BACK INTO THEIR TURF
STICK TO YOUR GUNS!!!!
YOU HAVE THE UPPER HAND BECAUSE
*IF DB HAS TIME TO CALL, THEY HAVE TIME TO WRITE
*DB ONLY WANTS A MEETING, BECAUSE IT IS VERBAL,
& THEIR CONTRACT IS SO "BEAUTIFUL" THAT IT SAYS THEIR NOT BOUND BY VERBAL!!
YOU can argue in a follow-up FAX that,
you have been getting continual phone calls from_______ requesting you to attend a meeting but, you have made your points very clearly in writing,
& you deserve a written response in order to prevent any further missunderstandings & misscommunications.
If you have time to make unnecessary & unwanted calls, then you should have no problem writing.
UH HUH, "TOO AIR TIGHT FOR YOUR OVER EDUCATED,
MORONIC LAWYER, WHAT THE @#%*$&%*# DO THOSE SCUM BAGS LEARN IN UNIVERSITY!!
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GOOGLE: FLORIDA Consumer Protection Law (site with the flashing eyes)
"Consumer protection law "
1st para. Contract law
MISTAKE, DURESS, & FRAUD
** DURESS- use of force or pressure or duress to MAKE a
party sign a contract
Obligates you, you cannot come back for so many years
------------------------------------------------------------- FRAUD- INTENTIONAL MISREPRESENTATION OF AN IMPORTANT ISSUE OF AN IMPORTANT ISSUE OF THE CONTRACT...makes a contract voidable.
--------tHE LEGAL REF. IS short but powerful & directly relative...
DB deliberately omits the details re: the total price before tax
...no refund, no returns: does not allow you to complain
contract does not specify that you must pay in full, up front,
this is Fraud because db lies about excess savings,
paying a high-risk, high % loan, robs you, you cannot save $$
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DB does not have the right to cut your access to the website,
due to the fact that you have not recieved confirmation in writing of any type of agreement to cancel & refund any money to you...
especially they cannot cut you off, because they still demand mo. payments.
so you are still obligated to db,
this is a form of INTIMIDATION BY DB!!!actually this & the phone calls are harrassment, (I think??)
Unfortunately, you must keep paying until they agree to your terms...
any other ?, please post at the end of the file, & let me know you saw this
I just responded to your post (okay...) on p. 107
please let me know that you got it, by responding at the end of this file,
if I missed anything, let me know...Don't give up!!!!