beware: costco membership scam
sadiesmom
20 years ago
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janetwilson
20 years agolast modified: 9 years agosadiesmom
20 years agolast modified: 9 years agoRelated Discussions
national home gardening club is a scam!!!
Comments (4)My mother keeps receiving threatening notices from this company that she owes money for their membership. They state that she enrolled in February but, she fell and was the hospital and rehab during that month and has since moved to assisted living. She's still sharp of mind and insists she never enrolled and, since she was in the hospital, I'm sure she didn't. Additionally, she's been using a walker for at least two years and has RA and has not been able to garden in years. The company states they sent free gifts including gas cards, magazine, free member gifts and knee pads. I've been getting her mail since February and never received such items. I chose to ignore the notice last month for I've received two other similar "club" invoices also indicating she enrolled during the month she was in the hospital. I figured they're all scams trying to take advantage of elderly people. This month's invoice threatens to turn her over to collections! Well, just go ahead and try! These people are the scum of the earth!...See MoreDirect Buy - anyone have any experiences?
Comments (16)My husband and I had an appointment at a Direct Buy in New York City. After the sales pitch, we were given the opportunity to view the catalogs of affiliated manufacturers. We were mainly interested in furniture (case goods and upholstery) and home furnishing items (fabric, accessories, etc.). The highest quality level of these items were on the low end of what I would term "mid-quality" home furniture. Several furniture manufacturers were low-end mass-market type. I was disappointed to find that only a couple of the furniture manufacturers I was interested in were participants of Direct Buy. That said, the pricing structure of the two manufacturers I was interested in, which had a couple of case good pieces I wanted to price out, was virtually the same as what a smart shopper will negotiate at their local furniture store. The high membership fees become ridiculous in this scenario. We also saw that a number of products actually had surcharges applied to them. These surcharges make purchasing from Direct Buy more expensive. We also noticed that home electronics and applicance items were not competitve to what one could price out at the local PC Richards or other electronics stores. Direct Buy is not the place to go for appliances/electronics items--there is heavy competition for these items and many places one can go to find the best price. While we were sitting with the Direct Buy sales associate, my husband called his contact at the electronics/appliance store we have purchased from for years, priced the exact model of an item available from Direct Buy and found that the Direct Buy price was in fact more than $100 more expensive. All this said, the high membership fees that Direct Buy charges may be of value to individuals who first and foremost have many, many purchases to make, i.e., a whole house to purchase for and are the kind of people who: (1) Don't have the time or inclination to research the best price among retailers. This is quite understandable, it takes time and effort to get the best value for your money!! (2) Are willing to settle for lesser quality items (for the money) in purchasing items for their home--this is really a point about making sure you purchase enough items to justify that hefty membership fee! (3) Doesn't like to negotiate with sales people. This is really a good point to make in favor of a Direct Buy kind of place--many people in the United States don't like to do this & Direct Buy has already done it for you. You're not getting the best price or best quality for your $$ but at least you're not paying full retail!...See Moreanyone used direct buy?
Comments (43)From the Connecticut Post, May 18,2011: A Connecticut federal judge has rejected as "meager" the proposed settlement of a nationwide, class-action lawsuit against DirectBuy Inc. for fraudulent pricing practices. "The court cannot conclude that this settlement falls within the range of reasonableness," U.S. District Judge Janet C. Hall said yesterday in a written opinion. Judge Hall explained her decision by noting that the proposed settlement called for DirectBuy to provide free memberships worth some $3,000 each to approximately 800,000 class members. "The best possible recovery...may amount to well over $2 billion," Judge Hall wrote. "In light of this best possible recovery, the Settlement Agreement -- which the court has calculated as being worth, at most, between $15 million and $27 million -- appears quite small." In late April, the attorneys general of 27 states, as well as those from the District of Columbia and Puerto Rico, objected to the proposed settlement, arguing in a 36-page amicus curiae brief that it "offers no real benefits to consumers. "The proposed settlement is, in essence, a sales vehicle for defendants designed to drive current and former customers into membership renewal contracts and to the same manufacturers and suppliers from whom defendants have acknowledged receiving kickbacks and incentives," the brief stated. DirectBuy promotes itself as an insider's buyers' club where members can purchase brand-name goods directly from manufacturers at wholesale prices. In addition to annual fees, members pay anywhere from $3,000 to $7,000 to join the privately held company's "clubs." The 2009 lawsuit (Wilson et al v. DirectBuy, Inc., et al) accused the Indiana-based company of fraudulent misrepresentation, alleging it received tens of millions of dollars in kickbacks and incentives from suppliers and manufacturers, inflating the cost of its goods well above the advertised wholesale prices. The lawsuit accused DirectBuy of failing to disclose this arrangement to customers until early 2009. DirectBuy spokesman Mike Georgeff told Consumer Ally in April the company was confident Judge Hall would approve the settlement. While yesterday's decision was disappointing, he said it wasn't completely unexpected. "We were disappointed to learn of Judge Hall's decision, but not entirely surprised given the great deal of publicity that has surrounded this case," Georgeff told Consumer Ally. "We were hopeful for a quick resolution to this matter which would have ultimately benefited class members. While we disagree with the decision, we look forward to successful closure of the matters at hand, and will continue to work with the attorneys general of any state to ensure we remain compliant with all state consumer protection laws," he added. The consumer advocacy group Public Citizen, which represented a class member who objected to the terms of the proposed settlement, applauded Judge Hall's decision. Had the proposed settlement stood, the group said a statement, more than 836,000 class members would have been forced to relinquished "a broad set of claims" against the company in exchange for extended DirectBuy memberships. "We are pleased that the judge agreed with our argument that the proposed settlement was essentially a coupon of little or no value to the class," Michael Kirkpatrick, the Public Citizen attorney representing one of the objecting class members, said in a statement. "Absent class members should not have valuable claims released in exchange for so little." Public Citizen also cited other class-action suits against the company, which alleged a number of abuses, including high-pressure sales tactics to pressure consumers into spending thousands of dollars on DirectBuy memberships, as well as prices that often result in little or no savings compared to traditional or online retailers. "Within the last several years, a number of lawsuits have been filed in addition to this one, accusing DirectBuy of misrepresentation, fraud, and coercion, " Judge Hall noted in her decision. Consumer Ally wrote about several of the lawsuits in an October 2010 feature on the company....See MoreCostco Lennox Unit a Good Deal?
Comments (46)I recently purchased the Lennox unit from Costco and it is not a good deal and also buyer beware. I was looking to have a 3-ton mini-split unit installed in my garage. One of my requirements was an external smart thermostat. Costco does not do the install and is a middle man. They sub contract the work out to my local HVAC contractor who said the unit would support an external smart thermostat of my choice. This was confirmed 3 times. After the install was completed, they were unable to support an external smart thermostat (not Lennox). I am now in a battle to get the unit removed and refunded and Costco is a total pain in the ass and refused to refund me even though the contract specifically states install customer provided smart thermostat. I'm working through other channels right now before suing them for the refund. Couple of lessons learned: 1. Lennox is dated and doesn't support external smart thermostats. This is important so you can control all your HVAC through a single app and also gives you added features from a tech company. 2. The "deal" itself is not a deal. After getting quotes for a new unit (that does support an external thermostat), I found that you are getting ripped off. Costco gives you a 10% rebate to buy stuff from Costco but even after all of that you can get units installed cheaper from others 3. Go buy a Mitsubishi or Fujitsu unit as they are more current with features and support of things. Everyone has been telling me that Lennox is the lowest end brand/units 4. Do not buy any contractor services from Costco because #1, they don't do the work and it's hard to get a refund if anything goes wrong. They are just a middle man taking a cut that you can get better pricing elsewhere....See Morejoyfulguy
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