Q: I read your column about unauthorized charges. I have had three erroneous charges on my First USA Visa card. All three are from MWI, MemberWorks Inc. All three charged me $79.95 for enrollment in clubs that I know nothing about and did not authorize. When I called my credit card company, I was told they are business partners of theirs. How can they get away with this?
STAN CHAMBERS, Castle Shannon
A: This company is not getting away with it everywhere, but judging from my calls, is getting away with it in Pennsylvania. MWI of Omaha, Neb., offers what are called credit card enhancements. I think it's safe to say those enhancements are for your credit card company, not you. Many credit card companies have joined forces or, as they put it, become business partners with these membership clubs. That often means your credit card company is making these offers to you.
These membership clubs or those selling the memberships often get a hand in your pocket with a free membership offer. The pitches go something like this: "Would you like to get discounts on products for free for a month or three months?" "If you don't like it, you can cancel at anytime!" For some reason, most of us are incapable of turning down anything that is free, even if we don't need it, don't want it and won't ever use it. What they don't tell you is that you will probably forget all about this offer, will probably throw away the club membership information because it looks like junk mail and will be confused when you see the charge on your bill. Worse yet, you may not notice the charge and pay $40 or $60 or $80 for membership in something you know nothing about and will never use.
These clubs claim that you agreed to the membership. In some cases, that's true. In other cases, consumers are slammed, enrolled without their knowledge or permission.
The Better Business Bureau in Omaha reports that MWI has generated a "pattern of complaints concerning unauthorized charges on credit cards, bank accounts or phone billing." In July 1999, the Minnesota attorney general's office filed a lawsuit against MWI alleging the company used false, deceptive and misleading marketing practices. The lawsuit also alleges the company sells various programs using untrue and misleading statements concerning the benefits and value of services offered.
The BBB says that MWI signed a settlement agreement in April for Minnesota residents that includes the promise to issue double refunds to future customers who receive unauthorized charges. MWI's telephone solicitation script will also include the statement: "Will it be all right to charge the annual fee of $79.95 to your account unless you call to cancel?" Now, there's a statement that might get your attention, but if you don't live in Minnesota, I doubt you'll hear it.
In your case, Stan, chances are you didn't want to join three separate MWI membership clubs and get charged annual dues of $79.95 apiece -- MWI First Fun, MWI Leisure Advantage and MWI Homeworks.
I would call this sales technique a problem of epidemic proportions.
Your only recourse is to treat your credit card bill as you would your pocket if walking down a street full of pickpockets. Keep your hand on it and check it carefully. Call your credit card company and tell them to put a block on your account number. Make it clear you want no more calls, no more offers and no more membership charges. Sean Connolly of the Pennsylvania attorney general's office urges all consumers who have received unauthorized charges to file complaints. The number in Pittsburgh is 412-565-5135.
Yvonne Zanos, KDKA-TV consumer editor, can be reached at 412-575-2234, zanos@kdka.com, or go to www.kdka.com and click on Consumer Action and follow prompts, or write c/o KDKA-TV, One Gateway Center, Pittsburgh 15222. She replies to all inquiries, but because of the volume of questions she receives, cannot always respond immediately.
Post Your Problems appears Tuesday through Friday, addressing questions and problems from readers.
Yvonne Zanos from KDKA-TV looks into consumer-related issues, including difficulties with products and
services. Post-Gazette Staff Writer Lawrence Walsh helps sort through bureaucratic problems.
Yvonne Zanos is KDKA-TV consumer editor. She can be reached at 412-575-2234, zanos@kdka.com,
or go to www.kdka.com and click on Consumer Action and follow prompts, or
write c/o KDKA-TV, One Gateway Center, Pittsburgh 15222.
