A telemarketer contacted me in September about magazine subscriptions. How I would be saving tons of money. I would even get a free gift! Wow, sounded like a great deal.
Well, the total cost each month was 36.00 from my CC for 24 months. I have credit card statements to prove this. After doing research and finding 2 year subscription offers in these magazines for 20 bucks a pop, I became weary. I was going to end up paying over 800 bucks for 8 magazine subscriptions, when I could get em for under 200 dollars for 3 or 4 year subscriptions.
In April, a rep called me and tried to get my remaining balance (some 500 bucks) charged right away. I said no thanks. I cancelled my credit card.
In early May, I was contacted by a rep about 2 back payments that didn't go through. I owed 70 bucks. I told her I simply wanted to cancel. She said, and I quote "Unfortunately, when you started this subscription, and you signed a contract, you wouldn't be able to cancel this contract." She further proceeded to state "If we don't receive this balance, then we will process with further collections actions."
I filed a complaint with the BBB in Kansas. Here is the company manager brenda Giordano's response which was an outright lie
"May 27
BBB Serving Greater Kansas City
8080 Ward Parkway Ste 200
Kansas City, Mo 64114
Client Name: Tomas Camacho
Reference: File # 99163220
Attention: Complaint Department
Thank you for forwarding Mr. Camacho's information regarding our magazine service. I understand that you require further information pertaining to this file. I have reviewed our files, which indicate that Mr. Camacho does have accounts with our company. I have reviewed our files, which indicate that Mr. Camacho agreed to purchase this magazine service on August 13. All terms of the agreement were presented to his at length, both verbally and in writing, including his right to cancel. Mr. Camacho was given many opportunities during the sales and verification process to ask questions or to request cancellation.instead, he freely accepted all terms and conditions and agreed to complete his 36 monthly payments of $24.00 totaling $864.00 without cancellation. When continued his acceptance, his final service agreement was sent restating the magazine titles, the number of issues of each magazine, the monthly payment plan and the total sales price.instructions regarding Tomas Camacho' right to cancel were also included. When Mr. Camacho did not request cancellation in a timely manner, we relied on his earlier statements and trusted that he would honor his commitment to the agreement and honored this commitment to Mr. Camacho and purchased his magazine selections with the publishers in advance for the terms he had accepted. On April 12 Mr. Camacho received a promotional call offering a ten percent discount off the total balance of the amount due on his account if he paid the account in full. He also received a call stating the amount of $73.80, which was past due on his account on May 20.
Readers Source prides itself on it's commitment to customer service and because of the nature of Mr. Camacho's account has been discontinued. Please be assured that Mr. Camacho has no further financial obligation to this company and no credit reporting will be completed.
In conclusion, all obligations for Tomas Camacho with our company have been completed. Due to his disinterest and the nature of this complaint, I have listed him on our "Do Not Collect" List for future promotions.
Thank you for your attention with this matter, please let me know if you have any further questions, please feel free to contact me at 1-800-725-1729.
Sincerely,
Brenda A Giordano
Customer Service Manager"
First of all, Brenda is mistaken. It was 24 months of payments at 36.00 a month. Again, I have credit card statements to prove this. Also, I was told I COULDN'T cancel this contract.in this employee's own words. I was told I signed a written contract which stated I couldn't cancel. Yet Brenda lies in the response to the BBB that I had multiple chances to cancel. That is an outright lie. This company is already been in trouble for shady practices. An incident in Pennsylvania. Here is the link to that article.
Http://www.attorneygeneral.com/press2/months/sep98/sep15pr1.html
Also tell me why do they charge 860 dollars for 3 or 4 years worth of subscriptions on a mere 8 subscriptions. Do the math. At newsstand prices, most are 30 to 50 bucks. They are charging the full blown newsstand prices if not more.
If you got them at the promotional prices (tear out cards which offer 50 to 70% off newsstand for 2 years) on 8 magazine subscriptions for 2 years would amount to less than 250 bucks tops.
This is a shady company indeed. It is another shark in the subprime cess pools. Take First Premier credit cards, Financing Alternatives and Blue Hippo computer financers, Pay day advances, credit and bankruptcy repair companies, rent to own companies, ect. All of the above charge exhorbitant fees which otherwise would be cheaper if obtained with good conventional credit standards (prime credit for good credit) and well informed people paying in cash or with their good credit.
compare, readers source vs. Tearing out the subscription cards, mail em off... You save SEVERAL HUNDRED DOLLARS, for the same length subscriptions.
First Premier Credit cards (charge almost 200 in fees to first months statement, leaving less than 50 bucks in available credit, showing high utilization... Essentially a secured card, but advertised as unsecured) VS. Discover, Chase, or American Express (NO MONTHLY OR SIGN UP FEES, zero zip nadda)
Financing alternatives and Blue Hippo VS Dell
(Dell is 60% cheaper than Financing Alternatives, you don't pay over 2 grand for a low end laptop which is advertised for less than $600 at Dell and it's the same model!)
Credit repair companies (charge hundreds of dollars when you can do it your own at less than 20 bucks in stamps and envelopes!)
Payday advances (charge 400% interest when you can borrow from your own bank!)
See what I mean? Shady companies like Readers Source exist to make quick money off unsuspecting consumers, and continually deceive already subprime people into "irresistable offers of credit"
Oh one last note for Readers Source, I was told the 800 dollars was a line of credit issued to me. How can it be a line of credit? It sounds more like deferred billing to me. Not a line of credit which is defined as a credit line upon which consumer draws on, and repays it back, repeating the cycle several times. Sounds even more shady.
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