WEST PALM BEACH, Fla. -- A reader who lives in West Palm Beach recently received a postcard advising him that he needed to contact a company called Perfect Home because his membership was about to expire.
If he did not call, the $149.99 annual membership fee would automatically renew and be billed to the credit or debit card he used for his initial membership, according to the postcard.
The problem is, the reader says, he has never heard of the company and has not done business with them. He did not call them and plans to carefully check his credit card statements for any charges that should not be there.
Perfect Home is one of a number of membership services offered through direct marketing company United Marketing Group LLC of Schaumburg, Ill., the company's website states.
The Florida Attorney General's Office has received eight complaints from Floridians about UMG and is investigating the company, said spokeswoman Jennifer Davis.
The complaints allege that UMG is making unauthorized monthly charges to credit cards, debit cards or checking accounts. When consumers contacted the company, they were told they would receive a partial credit, according to the complaints.
The National Consumers League in Washington says that buyers clubs promise great deals on products or services, but some consumers discover that they've been charged for memberships even if they never agreed to join or the deals aren't so great after all.
The U.S. Senate Committee on Commerce has estimated that more than 35 million Americans have been enrolled in such buying clubs since 1999.
In 2010, Iowa Attorney General Tom Miller reached an agreement with UMG to curb what his office found were deceptive tactics used by the company.
UMG was violating Iowa consumer laws and voluntarily agreed to pay $225,000 to the state, Miller said.
The programs UMG sells through third parties via the Internet, direct mail and telemarketing purport to offer benefits such as discounts on merchandise and services to members, who are charged a monthly fee.
Miller alleged the firm was charging people for memberships they did not know about and did not use and that it failed to provide the required notice and disclosure to consumers who were enrolled.
The Better Business Bureau grades UMG a B minus and says it has received 356 complaints about the company in the past three years, primarily involving claims of unauthorized charges by the company's affiliates.
In addition to Perfect Home, other names UMG uses include Money Ahead Discount Club, Simply Mine, Buyers Edge, My Advisor, Merchant Technical Solutions, Travel & Entertainment, Business Advisor and Simply Mine Now.
How can people be enrolled in something they don't know about?
It can happen while making a purchase through the Internet. Make sure you are not signing up for a buying club or a "free trial" that isn't really free. It can happen when shoppers click on a pop-up that offers a discount for an online purchase, or when people cash a check mailed to their home. Cashing the check can mean they've signed up for a $10 to $20 monthly fee.
Always check your monthly credit card, phone bill and checking account statements for any irregularities.
Don't fall into common traps
Here are some tips from the National Consumers League:
-- Beware of ads for products at incredibly cheap prices or for free if you pay for shipping. They may be designed to lure you into a buyers club membership.
-- Understand how a "trial offer" works. In many cases, you will automatically be charged for a membership when the free time ends unless you contact the club to cancel.
-- Watch out for "welcome packages." What looks like an offer to join a buyers club might actually be a notice that you've already enrolled.
Read the information carefully and contact the club immediately to cancel if you didn't agree to join or the deal was misrepresented.
-- Comparison shop for the best deals. Despite its claims, the selection and prices that a buyers club offers might not be as good as you can find yourself.
-- Don't assume that you won't be charged because you didn't give your account number.
The club might already have obtained your bank account or credit card number from another company with whom you've done business.
Sometimes consumers are transferred from one salesman to another during the same call, and their payment information may be passed along as well.
-- Ask for the details in writing before you agree to join. The deal may not be as great as it sounds once you see exactly how the club works.
-- Challenge unauthorized charges or debits immediately. Contact your credit card issuer or bank to explain the problem and ask for your account to be credited. Follow up in writing and keep a copy of your letter.
To file a complaint in Florida, contact the Florida Attorney General's Office at (866) 966-7226 or go to www.myfloridalegal.com.
