Help me not lose $200!
May 26, 2011 5:12 PM Subscribe
I am being cheated for $200! What can I do!
I signed up for a 5 day, $5 trial at PrepMe.com. I did not use my trial account for more than 15 minutes. I forgot to cancel within the 5 day allotted period of time, and was charged $87.50, and signed up for a four month subscription. To cancel this subscription costs $99 (in the fine print)!
So I will lose nearly $200. Is there anything I can do, by calling the credit card company?
I have already begged via phone and email the company and explained my lack of use of the account, but they will not budge.
Here is the terms of the agreement: https://enroll.prepme.com/demo
Any help is appreciated.
I signed up for a 5 day, $5 trial at PrepMe.com. I did not use my trial account for more than 15 minutes. I forgot to cancel within the 5 day allotted period of time, and was charged $87.50, and signed up for a four month subscription. To cancel this subscription costs $99 (in the fine print)!
So I will lose nearly $200. Is there anything I can do, by calling the credit card company?
I have already begged via phone and email the company and explained my lack of use of the account, but they will not budge.
Here is the terms of the agreement: https://enroll.prepme.com/demo
Any help is appreciated.
Are you really being cheated? When a company sells a subscription, it doesn't matter if you read the magazine or watch the channel or whatever, they're selling access. You have the access. You had 5 days. You messed up.
While it would be nice for them to let you out of your contract, they are under no obligation to do so under the terms of the contract you agreed to. So, you're not being cheated, you're being taught a $100 lesson.
Let the contract run its course, then don't reup, saving yourself the extra $99.
posted by inturnaround at 5:19 PM on May 26, 2011 [12 favorites]
While it would be nice for them to let you out of your contract, they are under no obligation to do so under the terms of the contract you agreed to. So, you're not being cheated, you're being taught a $100 lesson.
Let the contract run its course, then don't reup, saving yourself the extra $99.
posted by inturnaround at 5:19 PM on May 26, 2011 [12 favorites]
You are not being cheated. You failed to read the very clear, highlighted-in-a-blue-box in-regular-size-text right above the "GO!" button:
posted by DarlingBri at 5:19 PM on May 26, 2011 [5 favorites]
After your trial period expires, your credit card will be charged 4 payments of $87.50 for the full PrepMe ACT or SAT course (4 payments of $175.00 - Both Courses).If you dispute this, your credit card will not ultimately approve a chargeback because the service is delivered exactly as you contracted for it, completely above board. Sorry.
You can cancel your account before the 5-day trial period ends by calling 312-239-8998, and you will not be charged an additional amount.
posted by DarlingBri at 5:19 PM on May 26, 2011 [5 favorites]
Oh, I forgot to add that there should be an option to block future charges from this company (for a fee). Alternatively, you can close the card and get a new one so the company can't charge it anymore.
posted by biochemist at 5:20 PM on May 26, 2011 [1 favorite]
posted by biochemist at 5:20 PM on May 26, 2011 [1 favorite]
Contact your credit card company, it is possible that this is contrary to the their merchant agreement. If not, you're probably out of luck.
posted by atrazine at 5:23 PM on May 26, 2011
posted by atrazine at 5:23 PM on May 26, 2011
Response by poster: atrazine, what do you mean contrary to their merchant agreement?
How would I explain this to the credit card company?
posted by ptsampras14 at 5:26 PM on May 26, 2011
How would I explain this to the credit card company?
posted by ptsampras14 at 5:26 PM on May 26, 2011
The merchant agreement is the contract between the merchant and the credit card company. Just call your credit card company at the phone number printed on the card, tell them you want to dispute a transaction, tell them about the situation and answer their questions.
FWIW, I'm not seeing anything about a cancellation charge in their terms & conditions.
posted by jon1270 at 5:33 PM on May 26, 2011
FWIW, I'm not seeing anything about a cancellation charge in their terms & conditions.
posted by jon1270 at 5:33 PM on May 26, 2011
To accept credit cards you have to sign an agreement with the card issuer that covers what you are and are not allowed to do. For instance, charging extra for paying by credit card is not allowed.
I don't know what your card issuer's policy is on high cancellation fees and/or trial periods that roll over into paying. Just call your CC company and explain your complaint to them. What they'll do about it will really depend on the kind of card you have and their policies. If you have a high limit Visa card they might lean on the merchant to pull the charge, because they want to keep you happy. If it's like a CapitalOne card or something then you're probably screwed because they have little reason to care.
posted by atrazine at 5:34 PM on May 26, 2011 [1 favorite]
I don't know what your card issuer's policy is on high cancellation fees and/or trial periods that roll over into paying. Just call your CC company and explain your complaint to them. What they'll do about it will really depend on the kind of card you have and their policies. If you have a high limit Visa card they might lean on the merchant to pull the charge, because they want to keep you happy. If it's like a CapitalOne card or something then you're probably screwed because they have little reason to care.
posted by atrazine at 5:34 PM on May 26, 2011 [1 favorite]
Where is the cancellation charge coming from? Sounds questionable.
posted by J. Wilson at 5:46 PM on May 26, 2011
posted by J. Wilson at 5:46 PM on May 26, 2011
Response by poster: Just fired off an email about the cancellation fee.
This bites, the company seems quite nice, somewhere I'd want to bring my business in the future but they are just not granting any exception.
I guess in the future I'll use a prepaid Amex card to prevent fiascoes like this.
posted by ptsampras14 at 5:52 PM on May 26, 2011
This bites, the company seems quite nice, somewhere I'd want to bring my business in the future but they are just not granting any exception.
I guess in the future I'll use a prepaid Amex card to prevent fiascoes like this.
posted by ptsampras14 at 5:52 PM on May 26, 2011
Did you pay with an Amex? Call them. Tell them you're not satisfied with the service (and clearly you're not, especially not at this price – otherwise you wouldn't mind paying for it), and you should get your money back.
posted by halogen at 6:00 PM on May 26, 2011 [2 favorites]
posted by halogen at 6:00 PM on May 26, 2011 [2 favorites]
IANYL.
This is a fairly uncertain area of law right now. This company seems to be flirting with negative option billing. I wonder what happens when consumers call that number. If the number is always busy, disconnected, etc, you might find some relief. The fact that they won't credit your account is somewhat helpful as well.
Some state Attorneys General have been very aggressive about addressing these situations and you might find some help there. If that doesn't work, you can contact the FTC. This situation may be governed by the Restore Online Shoppers' Confidence Act, which is relatively new, so it's hard to predict what will happen. Good luck.
posted by allen.spaulding at 8:35 PM on May 26, 2011
This is a fairly uncertain area of law right now. This company seems to be flirting with negative option billing. I wonder what happens when consumers call that number. If the number is always busy, disconnected, etc, you might find some relief. The fact that they won't credit your account is somewhat helpful as well.
Some state Attorneys General have been very aggressive about addressing these situations and you might find some help there. If that doesn't work, you can contact the FTC. This situation may be governed by the Restore Online Shoppers' Confidence Act, which is relatively new, so it's hard to predict what will happen. Good luck.
posted by allen.spaulding at 8:35 PM on May 26, 2011
You made an error and fell into a trap. They are not refunding your money because people in your situation are an important part of their business model--although I have no data in this particular case they may make as much money from people like you as they do from people who actually want their service.
This bites, the company seems quite nice,
No. They are assholes, as can be seen by how they structured their terms (it's a trap!) and how they marketed them (join for only $5! Cancel and there's no obligation! And the $99 cancellation fee is not mentioned on the front page).
I contend than the important lesson of this experience is this: Some companies are assholes, and you will regret transacting with assholes, so read the terms and ponder before giving anyone your credit card information. If you think this company (not just their product, but the company) is "nice," then I feel you haven't really learned this lesson quite yet.
The mature thing to do may be to accept your responsibility here, cancel the contract, pay the $200, learn your lesson and move on.
Maybe I'm getting ornery in my old age but I honestly feel that maturity can be an overrated virtue. In a hypothetical world where almost everyone cooperates and plays fair, the few people who cheat will be highly rewarded, usually resulting in more cheating the next day, and more the next, until the system is dominated by the cheating strategy. To counteract this, (I think) a more nuanced strategy is called for: Cooperate with cooperators, and punish cheaters.
This reply is getting too long so I'll get to the point: You have options other than honesty. Are you sure you didn't call them and cancel within the five day period? If you did, and they charged you anyway and are now saying you didn't call--well, surely that is a situation where your credit card company would help you refuse the charge.
I feel the company has acted in bad faith, this kind of "free trial" lures are a shitty way to do business, and as consumers we're obligated to push back. I also believe that honesty is very important when dealing with other cooperators, but that when dealing with cheaters it can be ethically acceptable (if a bit gray) to retaliate by cheating.
That is to say, I've developed a whole, convoluted rationalization as to why dishonesty may be ethical and why this company deserves it. But it may not be worthy of you. You may strive to conduct yourself better than this. And hey, it's certainly dishonest and possibly illegal, I don't know.
But it's one option.
posted by kprincehouse at 9:55 PM on May 26, 2011 [1 favorite]
This bites, the company seems quite nice,
No. They are assholes, as can be seen by how they structured their terms (it's a trap!) and how they marketed them (join for only $5! Cancel and there's no obligation! And the $99 cancellation fee is not mentioned on the front page).
I contend than the important lesson of this experience is this: Some companies are assholes, and you will regret transacting with assholes, so read the terms and ponder before giving anyone your credit card information. If you think this company (not just their product, but the company) is "nice," then I feel you haven't really learned this lesson quite yet.
The mature thing to do may be to accept your responsibility here, cancel the contract, pay the $200, learn your lesson and move on.
Maybe I'm getting ornery in my old age but I honestly feel that maturity can be an overrated virtue. In a hypothetical world where almost everyone cooperates and plays fair, the few people who cheat will be highly rewarded, usually resulting in more cheating the next day, and more the next, until the system is dominated by the cheating strategy. To counteract this, (I think) a more nuanced strategy is called for: Cooperate with cooperators, and punish cheaters.
This reply is getting too long so I'll get to the point: You have options other than honesty. Are you sure you didn't call them and cancel within the five day period? If you did, and they charged you anyway and are now saying you didn't call--well, surely that is a situation where your credit card company would help you refuse the charge.
I feel the company has acted in bad faith, this kind of "free trial" lures are a shitty way to do business, and as consumers we're obligated to push back. I also believe that honesty is very important when dealing with other cooperators, but that when dealing with cheaters it can be ethically acceptable (if a bit gray) to retaliate by cheating.
That is to say, I've developed a whole, convoluted rationalization as to why dishonesty may be ethical and why this company deserves it. But it may not be worthy of you. You may strive to conduct yourself better than this. And hey, it's certainly dishonest and possibly illegal, I don't know.
But it's one option.
posted by kprincehouse at 9:55 PM on May 26, 2011 [1 favorite]
Does this not apply to you?
If you have not used any course materials as detailed above, you may receive a refund if you request one within 72 hours of your enrollment. For course purchases where a refund is requested within 24 hours of the order, we will refund the purchase amount in full minus any book orders that have already shipped. If we can cancel your book order prior to its shipment, you will receive a refund in full. For course purchases where a refund is requested within 72 hours of the order, you may request a refund where we will refund your purchase amount minus a $40 restocking fee for books. To claim your refund, please request a refund via email at support@prepme.com.
posted by obiwanwasabi at 10:55 PM on May 26, 2011
If you have not used any course materials as detailed above, you may receive a refund if you request one within 72 hours of your enrollment. For course purchases where a refund is requested within 24 hours of the order, we will refund the purchase amount in full minus any book orders that have already shipped. If we can cancel your book order prior to its shipment, you will receive a refund in full. For course purchases where a refund is requested within 72 hours of the order, you may request a refund where we will refund your purchase amount minus a $40 restocking fee for books. To claim your refund, please request a refund via email at support@prepme.com.
posted by obiwanwasabi at 10:55 PM on May 26, 2011
Next time, do what I did when I signed up for a month's access to Consumer Reports which would auto-bill: Set a reminder in your calendar program of choice several days before the trial subscription period ends (ok, so 1 day in a 5-day trial) to cancel your subscription. If you have options such as "remind daily until complete" and/or "important," set these attributes. Do not ignore or "snooze" the alert when it comes up, just do it.
posted by IndigoRain at 11:55 PM on May 26, 2011 [2 favorites]
posted by IndigoRain at 11:55 PM on May 26, 2011 [2 favorites]
Some credit card companies might fight this, and the only way to find out is to try.
posted by twblalock at 11:57 PM on May 26, 2011
posted by twblalock at 11:57 PM on May 26, 2011
That is to say, I've developed a whole, convoluted rationalization as to why dishonesty may be ethical and why this company deserves it.
...Anyway, the defense rests.
If you're ever justifying something and can imagine a judge looking at, taking off his glasses and saying "Son, you a damn fool", then don't do that thing.
posted by atrazine at 1:42 AM on May 27, 2011 [2 favorites]
...Anyway, the defense rests.
If you're ever justifying something and can imagine a judge looking at, taking off his glasses and saying "Son, you a damn fool", then don't do that thing.
posted by atrazine at 1:42 AM on May 27, 2011 [2 favorites]
Contest the charge with your credit card company. You can probably do it online without talking to anybody. The credit card company normally (maybe has to?) give you the benefit of the doubt and refunds the money while they investigate. Many merchants, especially the ones that might know they are on the edge of the rules, won't fight it as they don't want to bring undue attention to their billing practices.
posted by COD at 5:19 AM on May 27, 2011
posted by COD at 5:19 AM on May 27, 2011
You are being taken advantage of. Just because a recurring subscription is disclosed at signup with a cancellation fee hidden away in a little corner of the website doesn't make it OK. Legitimate companies don't trick customers into subscriptions: they send reminders.
Contest the charge with the credit card company. Start the process online, but then do everything in writing. The credit card company will expect you to do some of the legwork. So contest the charge with the prep company, too. In writing. In every letter say the same thing, which is that you did not understand that you'd be automatically subscribed and certainly didn't consent to the cancellation fee.
posted by Nelson at 8:51 AM on May 27, 2011 [1 favorite]
Contest the charge with the credit card company. Start the process online, but then do everything in writing. The credit card company will expect you to do some of the legwork. So contest the charge with the prep company, too. In writing. In every letter say the same thing, which is that you did not understand that you'd be automatically subscribed and certainly didn't consent to the cancellation fee.
posted by Nelson at 8:51 AM on May 27, 2011 [1 favorite]
My layman's prediction is that if you fight the $99 cancellation fee, they will waive it, because that seems particularly bogus (also I can't see it anywhere on the site). The $87.50 seems quite thoroughly disclosed and IMO you ought to pony up for that, whether or not you could somehow get out of it.
posted by dixiecupdrinking at 11:44 AM on May 27, 2011 [2 favorites]
posted by dixiecupdrinking at 11:44 AM on May 27, 2011 [2 favorites]
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posted by biochemist at 5:18 PM on May 26, 2011 [6 favorites]