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DirectBuy Sent Me to Collections With Beta Finance for a Membership I Can’t Afford Since I Lost My Job. – Rosie

Rosie

“Dear Steve,

I acquired an account with Direct Buy. I was making enough money and thought that i could someday use this, a short week later I lost one of my jobs and my income was cut in half. I never used the direct buy account it’s like a wholesale place to buy merchandise later at a lesser price but I can not afford the $248 a month for the next five months.

I tried to cancel they told me I was suppose to cancel within three days???It’s like a membership for ten years for discounts. I then started receiving bills in which I told them that i had sent an e-mail and a letter trying to cancel this account that I had never purchased anything from direct buy and that I would not be able to use their services, the lady pretty much told me too bad it’s still your account and it doesn’t matter if you used it or not is not a debt. You owe and must pay.

Well, now they have sent this account to Beta finance collections and they call me at least five times a day and are very nasty and mean. I told them I could not pay and that Ihad tried cancelling the account but none of this seems to matter..what can I do? wha steps can I take? I am so far behind right now that I can’t possibly afford to pay this account and now that I take the time i see how pointless it would have been to have that membeship..they don’t really save you any money and for the cash you have to pay for the membership it is outrageous and why can’t I cancel if I did not use it or buy anything? it’s not like a credit card?? i need help..this is one of my many questions while i try to get back on my feet..My name is Rosie and i am a single mother of four children.

Rosie”

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The Answer

 

Dear Rosie,

DirectBuy is a membership organization that is very focused on selling memberships with marketing. Some complain that the sales approach is high pressure towards selling memberships. You can see the video of the DirectBuy membership sales leader of the year online. I love the part where the owner or manager says you need to “Stick to the script” and “Make the first thing you do as an owner on the sales side, checking those numbers before you touch the voicemail button before you say hello to anyone then you are making a big mistake.”

I think you might have a chance at receiving a full refund and get out of collections if you do the following.

  1. File a complaint with your state Attorney General regarding DirectBuy.
  2. File a complaint with the Federal Trade Commission about DirectBuy.
  3. File a complaint with your local state or county consumer affairs office.

Keep copies of all your complaints and then send a letter to DirectBuy, nicely explaining your situation, enclose copies of your complaints, and ask to be removed from collections and request a full refund for any money you may have paid.

Send your letter to DirectBuy to:

DirectBuy Corporate Office
8450 Broadway
Merrillville, Indiana 46410

DirectBuy Sent Me to Collections With Beta Finance for a Membership I Cant Afford Since I Lost My Job.   Rosie

As Direct Buy Says on their website at DirectBuy.com, apparently “A DirectBuy membership comes with privileges you simply can’t get anywhere else.” In your case those membership privileges apparently included no accommodation or understanding of your unexpected financial situation.

If someone from DirectBuy reads this post, please respond in the comments section with the process and procedure to let Rosie out of her membership contract which she can’t afford.

Big Hug!

DirectBuy Sent Me to Collections With Beta Finance for a Membership I Cant Afford Since I Lost My Job.   Rosie
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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

DirectBuy Sent Me to Collections With Beta Finance for a Membership I Can't Afford Since I Lost My Job. - Rosie by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • sandra

    I had an account and tried to cancel it.  they said I couldn’t even after I explained that I could not afford it because of my husband being terminally ill and his medical bills were more important.  So I started sending in a minimal amount and they cashed the money order and then returned the others unopened stating it was sent to the wrong address.  I even used their envelope and still they returned it.  Now the had a collection company call me and I told her to stop calling me because they refuse to accept payments.  

  • Happy Member

    My questions to all you complainers is this: Have you ever used DirectBuy to purchase anything? I’ve been a member for 25 years and one thing for sure that my husband & I agree on, and that is we would never give up our membership! We joined when our daughter was 4 months old (she’s been out of college for 3 years now). We considered ourselves to be great bargain shoppers and so I always kept track of the money we’ve saved over the 25 years we’ve used the club. We’ve saved well over $150,000! We saved our dues on just a couple of purchases.  I suggest you guys stop whining & keep your membership. Unless you live under a rock, DirectBuy will be a great benefit to you at some point in time! They have great manufacturers and a friendly atmosphere when we shop there-very helpful all the time.  Happy Member

    • http://GetOutOfDebt.org Steve Rhode

      It’s odd that the only comments posted here are positive comments. That almost never happens in such quick succession unless they are planted.

      • Mjmaxey

        If someone can barely afford a monthly payment why on earth would they think they will have the disposable income to make purchases? I was a happy member of Directbuy for 9 years. I furnished my entire house through Directbuy. I saved my membership fee on my first purchase. I found a bedroom set at my local furniture store that was on sale for $9500…I purchased the exact same set thru Directbuy for $2500. No, it is not for everyone…but you need to make that decision for yourself. If you are in the market for large purchases( my husband and I had just built our first home when we joined) AND you have disposable income to make said purchases, then Directbuy is for you. If you can barely scrape together enough money for the membership fee maybe common sense would tell you this isn’t a good investment. I hate to see people say this is a scam when it absolutely is not. People who use the club will tell you you can get incredible deals…and the only reason I am no longer a member is because I have furnished my entire home & I no longer see large purchases on the horizon so it wasn’t worth keeping the membership. It is not a scam. Unfortunately people don’t think before they sign up for things and obviously they don’t read the paperwork because the right to cancel information is right there on the paperwork in black & white. If you are feeling pressured to join, walk out! No one can make you sign anything!

      • Kj2301

        I do believe that Direct Buy is fully a scam.  I have been a member for the past 2 years and we hate it.  It is a monthly payment that we can not stand.  We feel we were fully lied to about the whole club and how “good” their deals were.  I tried to cancel our membership as well, but was told NO! The never told us that we would be given to Beta Finance and have to pay 17% interest.  They said they could sign us up to just make the monthly payments and that was it.  One of the main reasons we even signed up was because the night we were there they told us that they just got a new deal that night where we could buy cells phones without having to sign a new contract with the phone companies.  Since I loved having new cell phones we thought hey what a deal!  Well that too was a lie!  Once my membership info and login came in the mail (a month later) I was able to log in and see that was not true.  I tried calling right then and told them I wanted to cancel because I was lied to she told me that never came out of her mouth and I needed to cancel within 3 days.  I said I would have if this information would have come to light sooner.  Also I looked at purchasing a new furniture set from them.  While we were there signing up she showed us an add from a big furniture store here in town and said how much lower direct buy was in price.  Well we went to the furniture store to pick out what we wanted so we could see it in person and then figured we would go home and order from direct buy.  Well needless to say I could purchase the whole set from the furniture store and have it delivered to my house all for $200.00 less than if I was to order from direct buy.  And with direct buy I still had to go pick it up an hour away, so please tell me how they would have saved us any money!!!  
        The only reason we still have the membership is because we are still making the monthly payments.  When I had called beta finance they told me that if I stopped it was going to go on my credit.  Since I dont want my credit messed up I am paying the bill.  But please believe everyone we talk to we let them know how much direct buy is a rip off!!  My mother even runs a B&B and she too cant believe how much we have been ripped off, and she makes sure to tell everyone as well!!!!  

  • Alia

    We are having the same issue! Thanks for the advice. We never even bought anything. If you get to a point where you can’t afford it you should be able to cancel your membership, just like a gym or any other membership!

    • http://GetOutOfDebt.org Steve Rhode

      Past readers have reported being sent to collection by DirectBuy. DirectBuy reports their HQ contact information is 8450 Broadway, Merrillville, IN 46410 (219) 736-1100. You may want to contact them for assistance but don’t be surprised if they kick it back to their franchise office you signed up with.

  • Johann

    Thaks for the tips! I will file immidiately.

  • http://www.facebook.com/Kattria Julie Baker

    I am in Texas and the clostest directbuy to me was in Bosier city lousiana i have called and asked to get out of the contract and they said i cannot since i did not cancel in the 3 day time frame and i have been paying the first payment of nearly $300 and now for the last 6 months paid
    $169.14 a month i will call them again and if this does not work i will send in complaints as sugested
    Julie

  • http://www.facebook.com/Kattria Julie Baker

    I am in Texas and the clostest directbuy to me was in Bosier city lousiana i have called and asked to get out of the contract and they said i cannot since i did not cancel in the 3 day time frame and i have been paying the first payment of nearly $300 and now for the last 6 months paid
    $169.14 a month i will call them again and if this does not work i will send in complaints as sugested
    Julie

  • PG

    I guess I am new to this, I signed up to direct buy while I was in the military with a gauranteed paycheck so I thought but I was discharged a few months later because I didn’t pass a test and I am trying to get out of this because I can’t pay it anymore along with my other debts. Thanks for info I hope that I don’t have to go through all this.  I don’t have the money and I don’t know if I have the fight anymore. I will be visiting my directbuy store constantly and recording every visit and result as much as I can before my next bill.  

  • Mobolatp

    thanks so much for this information… i also got caught in this scam… I agree completely that what they are interested in is the money.. and not the “so called cheap access to furniture”..else why should it be add to leave a club?… interestingly..i also saw online that Beta Finance is a subsidiary of DirectBuy. The Information has helped me and depending on the feedback i get from the formal letter i wrote to them to terminate my membership. i will pursue the process… 

    Am a student and cant just pay again…

  • Arlene

    I AM IN THE SAME SITUATION WITH DIRECT BUY. THE WAY I SEE IT DIRECT BUY IS A PLAIN RIP OFF. I PAID $248. FOR THE FIRST MONTH, I NEVER USED THEIR FREE $100 VOUCHER SO I ACTUALLY OWE THEM NOTHING. THEY HAVE BEEN PAID FOR AN IN HOUSE DEMONSTRATION TO SUCKER ME AND I THINK IF THEY HAVE A CONSCIENCE THEY WOULD TELL THEMSELVES IT’S UNFAIR OF THEM TO DEMAND THIS KIND OF MONEY FROM PEOPLE AS THOUGH WE ARE IN POSESSION OF ANY GOODS FROM THEM. OUR FINANCIAL CIRCUMSTANCES CHANGED AS WELL AND WE WERE PRESSURED INTO MAKING A DECISION OR ELSE WE COULD NOT COME TO AN OPEN HOUSE UNTIL ANOTHER 7YRS. WE REALLY NEEDED A STOVE AND A FRIDGE AT THE TIME AND WERE JUST GIVEN PAPERS TO SIGN NOT REALLY CONSCIOUS THAT WE COULD NOT CANCEL MEMBERSHIP. WHO REALLY GET’S TIME TO READ THE FINE PRINTS UNDER THESE CIRCUMSTANCES. I NEVER EVEN RECIEVED THE EMAIL I WAS SUPPOSED TO IN 3 DAYS TO VIEW THE ONLINE CATALOGUE. WHEN I CALLED THEY TOLD ME I WILL GET IT IN 3-5 DAYS. IT’S PAST 2 MNTHS AND I’VE NEVER SEEN AN EMAIL BUT I WAS RUDELY INFORMED THAT I SHOULD MAKE PAYMENTS TO SOME OTHER PARTNER CO. THEN I RECIEVED MAIL TELLING ME TO PAY BETA FINANCE. I’M SORRY BUT I WON’T BE INTIMIDATED TO PAY $8000 AND I DON’T HAVE GOODS TO SHOW FOR IT!

  • Arlene

    I AM IN THE SAME SITUATION WITH DIRECT BUY. THE WAY I SEE IT DIRECT BUY IS A PLAIN RIP OFF. I PAID $248. FOR THE FIRST MONTH, I NEVER USED THEIR FREE $100 VOUCHER SO I ACTUALLY OWE THEM NOTHING. THEY HAVE BEEN PAID FOR AN IN HOUSE DEMONSTRATION TO SUCKER ME AND I THINK IF THEY HAVE A CONSCIENCE THEY WOULD TELL THEMSELVES IT’S UNFAIR OF THEM TO DEMAND THIS KIND OF MONEY FROM PEOPLE AS THOUGH WE ARE IN POSESSION OF ANY GOODS FROM THEM. OUR FINANCIAL CIRCUMSTANCES CHANGED AS WELL AND WE WERE PRESSURED INTO MAKING A DECISION OR ELSE WE COULD NOT COME TO AN OPEN HOUSE UNTIL ANOTHER 7YRS. WE REALLY NEEDED A STOVE AND A FRIDGE AT THE TIME AND WERE JUST GIVEN PAPERS TO SIGN NOT REALLY CONSCIOUS THAT WE COULD NOT CANCEL MEMBERSHIP. WHO REALLY GET’S TIME TO READ THE FINE PRINTS UNDER THESE CIRCUMSTANCES. I NEVER EVEN RECIEVED THE EMAIL I WAS SUPPOSED TO IN 3 DAYS TO VIEW THE ONLINE CATALOGUE. WHEN I CALLED THEY TOLD ME I WILL GET IT IN 3-5 DAYS. IT’S PAST 2 MNTHS AND I’VE NEVER SEEN AN EMAIL BUT I WAS RUDELY INFORMED THAT I SHOULD MAKE PAYMENTS TO SOME OTHER PARTNER CO. THEN I RECIEVED MAIL TELLING ME TO PAY BETA FINANCE. I’M SORRY BUT I WON’T BE INTIMIDATED TO PAY $8000 AND I DON’T HAVE GOODS TO SHOW FOR IT!  

  • Karen

    My husband and I are in the same boat. Except we just sent a check to them for over $5000 because they have threatened our credit. Is there anything we can do to retrieved our money (last of our savings) and become a part of the class action suit. My husband is 73 yrs old and we live on a fixed income. I hate that fact that we were dumb! Please tell us there is help for us.

  • Karen

    My husband and I are in the same boat. Except we just sent a check to them for over $5000 because they have threatened our credit. Is there anything we can do to retrieved our money (last of our savings) and become a part of the class action suit. My husband is 73 yrs old and we live on a fixed income. I hate that fact that we were dumb! Please tell us there is help for us.

  • Na

    We had an open house at the Toronto North location.

    We came happily as a family to check out what direct buy has to offer. However, we ended up leaving early, without even having the tea and coffee as we were treated with extreme disrespect!

    William Kim did an excellent job of the orientation presentation,
    However, we felt deeply offended by the attitudes of our server Kevin McKewny. He seemed to imply that we do not have the money to become the member and probe us into our personal matters like where we were originated along with how long we’ve been in canada…etc in a very offended manner. He even question my parents’ ability of speaking english!

    We come to direct buy to become a member initially but is treated with extreme disrespect.

    After the orientation, Mr. Kevin offered to speak to us again and we obviously didn’t want to speak with him anymore. He immediately send us out the door in an extremely bad attitude!

    And obviously we didn’t join as a member, not due to directbuy, but due to this kind of bad customer service of this gentlemen.

  • DirectBuySUCKS

    DO *NOT* JOIN DIRECTBUY IN COLUMBUS!!!! This place is such a total scam!

    I just saw a commercial for a DirectBuy $50,000 home makeover contest. Just so you know, the winner of the contest is getting a home makeover paid for with $5,000 of my family’s hard earned money. I hope you enjoy your home make over while my family goes hungry because DirectBuy ripped me off!!!

    We went to their location in Worthington and didn’t join because of their HIGH PRESSURE TACTICS!!! They said we could only join then or NEVER. We didn’t join and decided to test their “one time only” tactics and went to their other location in Hilliard and joined a year later only to have them shut down without any notice in 2009 and run off with our $5,000 membership! We then shopped at their other location by the airport only to have it shut down in 2010 without any notice. This place is just ripping you off of your $5,000 membership.

    It’s a pyramid scheme at its finest!!!! They lied about the join “now or never policy” and then they ran off with my money.

    RUN!!!!! DO NOT JOIN DIRECT BUY IN COLUMBUS!!!! I have no doubt they will try to open again in Columbus sometime soon because it’s all about the greed of getting other people to join and then running off with their money.

    I did some research. Just Google what happend to DirectBuy in California to see that what I’m saying is true. They don’t do what they promise and if you become a member then you are throwing your money away!!

  • DirectBuySUCKS

    DO *NOT* JOIN DIRECTBUY IN COLUMBUS!!!! This place is such a total scam!

    I just saw a commercial for a DirectBuy $50,000 home makeover contest. Just so you know, the winner of the contest is getting a home makeover paid for with $5,000 of my family’s hard earned money. I hope you enjoy your home make over while my family goes hungry because DirectBuy ripped me off!!!

    We went to their location in Worthington and didn’t join because of their HIGH PRESSURE TACTICS!!! They said we could only join then or NEVER. We didn’t join and decided to test their “one time only” tactics and went to their other location in Hilliard and joined a year later only to have them shut down without any notice in 2009 and run off with our $5,000 membership! We then shopped at their other location by the airport only to have it shut down in 2010 without any notice. This place is just ripping you off of your $5,000 membership.

    It’s a pyramid scheme at its finest!!!! They lied about the join “now or never policy” and then they ran off with my money.

    RUN!!!!! DO NOT JOIN DIRECT BUY IN COLUMBUS!!!! I have no doubt they will try to open again in Columbus sometime soon because it’s all about the greed of getting other people to join and then running off with their money.

    I did some research. Just Google what happend to DirectBuy in California to see that what I’m saying is true. They don’t do what they promise and if you become a member then you are throwing your money away!!

    • Na

      We had an open house at the Toronto North location.

      We came happily as a family to check out what direct buy has to offer. However, we ended up leaving early, without even having the tea and coffee as we were treated with extreme disrespect!

      William Kim did an excellent job of the orientation presentation,
      However, we felt deeply offended by the attitudes of our server Kevin McKewny. He seemed to imply that we do not have the money to become the member and probe us into our personal matters like where we were originated along with how long we’ve been in canada…etc in a very offended manner. He even question my parents’ ability of speaking english!

      We come to direct buy to become a member initially but is treated with extreme disrespect.

      After the orientation, Mr. Kevin offered to speak to us again and we obviously didn’t want to speak with him anymore. He immediately send us out the door in an extremely bad attitude!

      And obviously we didn’t join as a member, not due to directbuy, but due to this kind of bad customer service of this gentlemen.

  • Usetobe3

    We went to Hagerstown, Md for DirectBuy and it was a pressure sale. Were NOT allowed to go home and think about it. We were trying to redo our kitchen and thought it would be a deal. Buy the time you pay the fees to be a member what you might save in the cabinets you lost to be a member. For what we are paying we would have to spend about $50k to re-coop the membership fees. So its NOT a good deal, its a rip off. We also bought a set of Pots and Pans from KOHL’s and paid LESS then they cost from DirectBuy and took them home right then. Was no need to order and wait for delivery. I think that some news people should do the real story on DirectBuy and how they are ripping off the little guy.

  • Usetobe3

    We went to Hagerstown, Md for DirectBuy and it was a pressure sale. Were NOT allowed to go home and think about it. We were trying to redo our kitchen and thought it would be a deal. Buy the time you pay the fees to be a member what you might save in the cabinets you lost to be a member. For what we are paying we would have to spend about $50k to re-coop the membership fees. So its NOT a good deal, its a rip off. We also bought a set of Pots and Pans from KOHL’s and paid LESS then they cost from DirectBuy and took them home right then. Was no need to order and wait for delivery. I think that some news people should do the real story on DirectBuy and how they are ripping off the little guy.

  • Horsecrazyfool

    I too lice in Columbus and was told that our store was opening back up under new ownership and that our membership would be extended by the length of time the store was closed. Now my “home” store is in Indiana. Yeah I’m gonna drive three hours away to pick up a couch in which I saved only $130 on. I’m fed up with Direct Buy.

  • kara

    i contacted all the companies listed above and also the better business bureau, and direct buy sent me a response through the bbb stating they were cancelling our membership and our financing through beta finance. so it worked for us!

  • kara

    i contacted all the companies listed above and also the better business bureau, and direct buy sent me a response through the bbb stating they were cancelling our membership and our financing through beta finance. so it worked for us!

  • kara

    in addition to my response above and to steves suggestion about contacting the various companies…well I contacted all the listed above, and also the better business bureau. I recieved a response from direct buy through the bbb and they stated they are cancelling are membership, as well as our financing through direct buy.
    Its worth a shot contacting the bbb…it worked for us.

  • Greeneyed

    When we signed up here in Birmingham, Alabama, we were told about Beta Finance, but we do have the same problems about paying because the bill comes so late. We can’t buy anything from Direct Buy because all of our extra money goes to paying this bill. I think this is just like having a credit card payment and they are not going to let you get out of this deal. They sent it to the “creditors” to make it legit, and so they didn’t have to hassel with callers trying to get out when we realize how much they are making from this deal and how little we get out of it. I am sure it is nice to get $400 off of a washing machine, but who can afford that when you have to pay Direct Buy so much to get just $400 off. We got it for when we build our house, but we can’t save money for the down payment because of this bill. We didn’t think it through either, and my salary got cut in half as well. This wasn’t the best time to do this “deal”.

  • Kara

    Dear Steve,
    My husband and I are in a similar situation. We went to the Direct Buy in Columbus, OH and went through the sales pitch and presentation and the “either sign up or can’t come back” ordeal. Except, our salesman told us that if we signed up for the monthly payments and if we decided to not use the membership, that we could just let the payments lapse and if we had decided to use it again, to just come in to the store and catch up on the payments. So I assumed that this would be similiar to a gym membership or such. You don’t use it, you don’t pay, decide to use it again, just catch up on what you missed. Never was anything mentioned about them selling the membership to a finance company (Beta Finance) and us now owing the membership dues to them, without the option to cancel (well at least past the three days mark). If we had known that the membership was going to be more of a loan than an actual membership fee, we would have never signed up. We were lied to, just to sign up. And on top of it all, we never got a bill the first month, so we had no clue were to send payments, let alone about the Beta Finance Co., so that when we finally did get a bill, it was late, and we didn’t even know what it was! And it seems that whenever they send out a late notice, the payment will be due, say hypothetically the 28th, but you won’t get the late notice until the 27th. Isn’t there a law stating that a company has to legally give you so much time to pay a bill? And what company doesn’t have a website these days? Beta Finance doesn’t. They only except checks through the mail or electronic check by phone. Which anyone can be skeptical to do these days. I pay all my bills online. The Beta Finance loan didn’t even show up on my credit report. All of these things just make the company very questionable. No website, only except checks, just strange. And to top it all off, our club in Columbus was open for maybe 6 months and then closed. So now we have no club within a 2 hour drive to go to. It’s like they opened, collected all this money and ran. Nor, after reading the carbon copy of the contract we signed, do I see any statement about contracting out the membership fees to a Finance Company, nor is the cancellation policy (which we didn’t see until weeks after we signed up, considering its on the back of the back page, last thing), was never filled out with a date and the “buyers signature” is blank, whether that be my husband and I or Beta Finance, I’m not sure. When we tried contacting the company about the issues in the beginning, we were never given a call back. We also had numerous issues with products. At one point I had ordered a queen size mattress protector from them, had it shipped to my house (which was $15 and I live within a mile from them). I would have picked it up at the club if I had known this, but the final confirmation page never said anything about a shipping charge. I emailed them and asked, and the response I got was “there is a little link in the right hand corner that says total summary”, and this was after I had already clicked on confirm. It took 2 months to finally get to me, and I was sent a King size, but labeled queen. So I emailed back and forth for about three months trying to get it returned, and I kept on being told it was back ordered, or they were sending out the return label now. I wasn’t going to return it before receiving a new one after reading reports from other consumers about never getting their replacement. Well after the 3 months, and still no shipping label or new product, I told them nevermind, I’d give it as gift. And the employee at the club actually told me that if I were to keep the product, then I would owe them money considering the King Protector costs more that the Queen one. I have never heard of this in my life, and it was their mistake!

    • Greeneyed

      When we signed up here in Birmingham, Alabama, we were told about Beta Finance, but we do have the same problems about paying because the bill comes so late. We can’t buy anything from Direct Buy because all of our extra money goes to paying this bill. I think this is just like having a credit card payment and they are not going to let you get out of this deal. They sent it to the “creditors” to make it legit, and so they didn’t have to hassel with callers trying to get out when we realize how much they are making from this deal and how little we get out of it. I am sure it is nice to get $400 off of a washing machine, but who can afford that when you have to pay Direct Buy so much to get just $400 off. We got it for when we build our house, but we can’t save money for the down payment because of this bill. We didn’t think it through either, and my salary got cut in half as well. This wasn’t the best time to do this “deal”.

      • kara

        in addition to my response above and to steves suggestion about contacting the various companies…well I contacted all the listed above, and also the better business bureau. I recieved a response from direct buy through the bbb and they stated they are cancelling are membership, as well as our financing through direct buy.
        Its worth a shot contacting the bbb…it worked for us.

      • ben

        kara, what exactly did you say in the letter or complaint??

    • Horsecrazyfool

      I too lice in Columbus and was told that our store was opening back up under new ownership and that our membership would be extended by the length of time the store was closed. Now my “home” store is in Indiana. Yeah I’m gonna drive three hours away to pick up a couch in which I saved only $130 on. I’m fed up with Direct Buy.

  • Su

    My boyfriend and i live in Sacramento, Ca. We recently found ourselves in a similar situation as Rosie. We are a young couple in our early 20s and became a member of Diretbuy in May of this year. Since our membership we have not purchase anything from the company.

    As of now, we have missed one payment and plan on canceling our contract.

    I would like some inputs on what steps or actions i need to take and how to write a letter of complaint to the people you have mentioned above. Thank you in advance.

  • AD

    I live in Florida and became a DB member last year. I’m wanting to cancel my membership. Any pointers for a Floridian?

  • Cynthia

    Hi,
    I’m in almost the same situation as Rosie. My question is, I no longer live in the state in which I signed up for the direct buy contract. I assume, do I contact the state AG in THAT state and not the one I moved to? Or not? Please let me know. I naivly thought this account went away because they stopped billing me … now it’s the only major blemish (90 pts!) on my credit that’s keeping my family away from trying for our first home. I only hope I can get this remedied soon or we’ll run into a lack of housing (the house we are sharing is being sold). Thanks in advance for your time.

    • http://GetOutOfDebt.org Steve Rhode

      Cynthia,

      Be safe, contact both.

      Steve

  • http://houseparty.com Amy

    Anyone ever get anyone at DirectBuy’s email address? Just looking for their format so I can extrapolate from there.

    Thanks!

  • member

    president scott powell 219-755-6267
    vp bart fesperman 219-755-0428
    vp debbie bowen 219-736-4558
    director of sales barry bennington 219-641-6483
    director of member experience sara butler 219-648-7365

  • soomin kim

    hi..
    i posted my complain to other website and someone gave me link to this site.
    i have been DB member for 1-2years and i want to cancel it. im in ny. i did not purchase anything there. can anyone help me in ny?
    thank you!!!

  • Howard s

    Some lawyers have them in their sights. [Link Edited]

    • http://GetOutOfDebt.org Steve Rhode

      Howard,

      The link you supplied had expired but it eventually lead me to some great supporting information. Here is the info below. Thanks!

      Steve

      This is an ongoing investigation and pending class action lawsuit filed on behalf of consumers in Missouri that have purchased “memberships” from DirectBuy’s franchisee located in Chesterfield, Missouri, which is operated by a company called Evamor, Inc.

      DirectBuy allegedly bills itself as a nationwide buying club that promises members access to brand-name manufacturers of home goods and supplies and the opportunity to buy merchandise with no “hidden store markups and middlemen costs”. Generally, the merchandise includes furniture, flooring, carpeting, cabinetry, window treatments, appliances, lighting and home improvement products.

      DirectBuy runs an aggressive national marketing campaign, including informercials, internet advertising and direct mail. The class action complaint provides some of the statements used in DirectBuy’s marketing efforts:

      1. As a DirectBuy member, consumers can save 40-50% of retail prices.

      2. The people at DirectBuy are experts on how to stop losing your hard earned money on retail markups.

      3. As a DirectBuy member, consumers join an organization that purchases directly from the manufacturer or their authorized dealer.

      4. As a DirectBuy member, consumers are guaranteed no retail markup.

      5. As a DirectBuy member consumers are no longer in the dark about that items really cost.

      This marketing campaign, alleges the class action lawsuit, has one desired goal: get consumers into the store. The class action investigation alleges that once in the store, a consumer is subject to a high-pressured, 90 minute presentation. The consumer is not allowed to price compare the DirectBuy merchandise with similar retailers and further told that if the consumer does not agree to become a member on the spot then that consumer is barred from becoming a member for 4 years. Based on numerous consumer reports and complaints, the presentation uses high pressure and strong arm tactics.

      It is only at the end of the presentation that the consumer is told the cost of the membership. The cost is close to $5,000 for three years, then $190 a year for an additional seven years. If the consumer cannot afford the membership then an affiliate of DirectBuy will finance the cost of the membership for close to 20% interest a year, according to some reports. The franchisee and DirectBuy share in this fee.

      The class action lawsuit contends that the central premise behind DirectBuy–that there is never a retail market-up–is simply not true. The class action lawsuit cites the following in support of its allegations:

      1. That manufacturers and suppliers pay to DirectBuy and its franchisees a rebates, discounts and incentives for purchases made by DirectBuy members, which is equavalent to a “retail markup”. These rebates and discounts are not passed onto customers.

      2. The member must pay to DirectBuy and its franchisees a “handling fee” of 8% of the purchase price, which is in fact a disguised “retail markup”.

      3. The members must pay a 15% “freight charge” which is in fact another retail mark-up.

      The class action lawsuit against DirectBuy seeks among other things repayment of the fees paid as described above.

      Legal Information (Case #09SL-CC-03852)
      Graves Bartle Marcus & Garrett, LLC
      1100 Main Street
      Suite 2700
      Kansas City, MO 64105
      http://www.todd-graves.com

      • Shravs

        Hi Steve,
        Thanks for your info. My location is Edison, New Jersey.I called the MO office,so they have asked me to call someone in New Jersey.I have a direct buy membership in New Jersey since Aug 2009. Now i want to cancel the agreement. Please let me know if there is anyone who could help me in New Jersey.

        Thanks in advance,
        Shravs

  • http://edumacation.com/DirectBuy Jennifer Alexia
  • http://spendonlife.com Ashley

    Horrible situation. With the bad press they have already received, I would hope that Direct Buy would terminate her contract even though they technically don’t have to. I’m amazed anyone still signs up for their so-called service.
    .-= Ashley´s last blog ..Drowning in Student Loan Debt? IBR Law May Help =-.

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