Sep 22, 2006 5:45 pm US/Eastern
Consumer Alert: Discount Membership Clubs
McKEESPORT (KDKA) ―
Just one telephone call can lead to missing money in your bank account.
A McKeesport woman says she was promised big rewards if she joined a discount membership club but she ended up paying for nothing.
KDKA Consumer Editor Yvonne Zanos reports these membership clubs were big problems a couple of years ago.
Shopping clubs, travel clubs and home repair clubs all promised discounts if you pay to join.
Many didn't deliver and consumers complained, states took action and things seemed to quiet down.
But watch out… those telemarketers could be calling again.
"I really believed she was giving me $500 worth of free gas," said Shirley Smorey. "I thought I was going to get two weeks of shopping. I thought what a wonderful thing."
What started with an early morning phone call full of promises turned into a financial nightmare for Smorey.
"She said it wasn't going to cost me," said Smorey.
She says a telemarketer offered free gas and shopping just to try out a membership club that offered all kinds of discounts.
Supposedly it was free for a month and if you canceled, you never pay a dime.
Just two weeks after sharing her bank information and before Smorey ever received her promised free trial package in the mail something went wrong.
"I was trying to figure out where did my money go," said Smorey. "My check bounced."
Distinct Advantage had deducted a $59.99 membership fee plus the first monthly charge of $19.99.
Add on a bounced check fee and Smorey is out more than $113.
"This is killing me," she said. "I don't have the money."
When it comes to feeling cheated by Distinct Advantage, Smorey has got lots of company.
The Better Business Bureau says this Florida based company has an unsatisfactory record because of more than 160 complaints.
Most of them are the same as Smorey's: "funds debited before the free trial period ends" and no sign of that promised free trial package.
"You don't get anything free. You don't win nothing. You don't win anything," said Smorey.
Smorey's bank, National City, promised immediate action to get Smorey's money back and they removed the overdraft charge.
Zanos talked to Direct Advantage who apologized for any misunderstanding and promised Smorey a refund.
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)
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