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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


“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.


Dear Rosie,

See also  DirectBuy / Beta Finance - Consumer Complaint - February 21, 2014

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


As Direct Buy Says on their website at, 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.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

See also  Direct Buy - Consumer Complaint - 12-7-2011

About the author

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.


  • Our situation exactly except we quit paying when we no longer received the products we were promised and now we are in collections. Big bait and flip scam. Tell you one thing and after you sign it is totally not what you understood what you were getting.

  • 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.  

  • 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

      • 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!

        • 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!!!!  

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