Beware of a anything that sounds too good to be true! That exactly what EPenzio and its affiliates are. Like other people who got rip-off by these companies, here is my story.
On March 26, I attended a seminar, called Web Success 2002. It was held by Bring-It-Home (BIH), Epenzio and Small Business Benefit Association (SBBA).
I came because on its brochure, it told stories from some people who participate in BIH and Epenzio offers (not sure whether these people are real or just their make-up effort). A representative from BIH was there promoting internet business opportunities. He described a business where you could make money while you sleep.
He showed us several web sites that looked very good and professional. He said that it would be very easy to build such a web site using their tools. He also showed us several useful tools that should be used if we would like to use our sites effectively (eg: Web Stat).
At the end of the seminar I signed up for web account ($99.00 sign up fee, $19.95 monthly hosting fee) and merchant account ($89.95 monthly payment for 3 years) because I had got a would-be customer that wanted to buy my products if I was able to receive her credit card for payment.
She (this customer) also said that she would like to do the business over and over again. That meant a continuous business for me. I didn't want to lose this chance. She gave me a 3-week time frame to get myself prepared to be able to receive credit card payment.
Everyone else also signed up for both accounts but nobody had a chance to read everything on the papers that had been signed, including me. It was almost 11:00 PM. I think they made the seminar last this long on purpose, so by the time all of us signed up it was already very late night.
They did say that I have 3 days to decide if I wanted to keep my merchant account or cancel it. But they didn't day about this to my web account (it has the same term) until I found out recently.
I came again two days later for the workshop. It was handled by completely different people, not like what they said at the first seminar. I started to feel disappointed.
They did explain the ways the internet businesses should promote their products but only in general. The rest of the time was used to promote their own business. They were selling web spaces and all supports (3 levels were offered, $3000, $4000, and $5000) at the end of the workshop.
Most people left after the workshop was finished. Only several people stayed to discuss about selling web space packages. I stayed for a while to see if they were going to buy 1 of those packages or not.
After 15 minutes I left because nobody bought anything yet and it was already 11:00 PM.
On April 3, I talked with epenzio customer service (CS) to ask about my merchant account. The CS told me that it wasn't ready yet.
I started to wonder why it took so long to process it. BTW, the first week of April was a second week of 3-week time frame that I got from my would-be customer. I also called to check the status of my web account. They said that I had to input the passkey that I got from the seminar to get access to my web account. I figured that my priority was the merchant account first.
Finally another CS called me to ask for my void check. I faxed my void check on 4/9/02. They said that this was necessary for me in order to receive the credit card and check payments, because they will be deposited directly into my checking account.
What I didn't know at all was that my checking account number was circulated to their affiliates too, so they could withdraw the money directly from my checking account instead of charging to my credit card.
They will debit the monthly payment of the merchant account (will be executed by Monterey Financial, maybe their affiliate too.
I received a letter from this company), the gateway access fee (by Pacific Web, their affiliate), the minimum discount & statement fees (from their bank, Bridgeview bank & trust) of the merchant account directly from my bank checking account.
I found out about this recently. I was very upset and disappointed with their business manner.
Then, between April 8 and April 19, I talked with the manager of marketing from BIH. He said that they contacted all people who attended the seminar to ask if they wanted to sell the web space accounts.
He said that this program was customized to suit a particular person's strength and weakness that would be chosen if he/she was qualified for that. He asked if I have a good credit history for this program and I have. He said that he would gave my case to his director to be reviewed and compared with other people.
I asked him how much investment was needed for this program. He didn't want to tell me. He just said that it depended on the type of customization of the program (I guess this is a lie). He said that don't take it personally if his director didn't choose me. Finally I and my wife talk to his director.
After several minutes my wife decided to stop discussing with him and let me continue without her. She got angry because he didn't respect her at all and he was very pushy. We then continued talking although I was getting upset with him, but I wanted to know more.
He began telling me that my web site would be built by his professional web development team so I can start selling my products immediately on the web and it will look professional for people so they would like to subcribe to web space that I'm selling.
He also told me that after my web site is built, it would be upgraded with all the whistles and bells of web site utilities, so I can use it very effectively and efficiently. He said that the package would cost me $8510.
I was shocked because it was so expensive, much more expensive than what was offered at workshop. He said that it was equipped with 1 year unlimited coaching and additional necessary help should I have more questions after 1 year. I felt confused for a moment.
I finally signed up and my creadit cards were charged for this amount. After hang up the phone, I started thinking why the director decided to choose me directly instead of taking time to review first.
I also thought why he said that when the web site was ready, it would be upgraded with more tools. The speaker at the seminar told all of us that the software that we will use has all these bells and whistles. I was getting courious because I had to pay more for them.
The following week (4/15/02 - 4/19/02) we finally cancelled this program. The director at first threatened me to give this case to their legal department because he said that I couldn't retreat anymore once I signed up (which sounds very ridiculous).
Hearing that my wife became very angry, threatened to get this case to a lawyer too, and we disputed the charge thru our credit cards company. For some reasons, he finally decided to let me go. The point that I'm trying to say is be very careful with this kind of marketing especially from this company. It looks like they just want your money.
By this week I already lost my would-be customer because I still couldn't receive credit card payment. She (my would-be customer) told me that her clients had been expecting the products and that forced her to find other sellers that have the same products like I do.
And I also lost the opportunity to have a continuous business with her. My merchant account package (its manual book of how to use it) arrived on April 19. It was useless because I had lost my would-be client a week ago.
I first considered myself very lucky to get a buyer like this in this kind of economic condition. Now I'm totally broke and I can't pay this monthly merchant account fee.
I wrote a first letter to epenzio cancellation committee and they already replied my letter with a refusal, saying that they didn't see any reason why I should cancel my merchant account.
Apparently they also think that I want to cancel my web account too because they forwarded my letter to BIH cancellation committee.
They suggested me to find a buyer who wants to buy my merchant account, call them with the new buyer to have the transfer process done, and I pay $50 transfer fee.
I had contacted the Bridgeview Bank to ask them to stop charging min. Discount and statement fees, and Pacific Web to ask them to stop charging gateway access fee.
Now I'm wondering if it is possible to sell a merchant account or it is just their excuse to keep me away from thinking about canceling it? I had already written a second letter explaining in detail my real situation. I hope this gets their attention.
I'm thinking of closing my local bank checking account to stop their debit effort next week for the 1st monthly debit of the merchant account.
I think this will get their attention more and probably make them angry because thay can't retrieve the money from me. If this still doesn't work, anyone out there can help me?
BTW, I'm unemployed now so going to a lawyer is an impossible option to me at this time.
Russ
St. Louis, Missouri
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