Better Business Bureau Serving Greater Cleveland
Consumer Alert
BBB Issues Warning about Unauthorized Charges from New York Company
Contact:
Sue McConnell
VP, PR & Marketing
216.623.8964 x109
sue@cleveland.bbb.org
For Immediate Release – July 7, 2009 - The BBB Serving Greater Cleveland is warning consumers about a New York company that is submitting unauthorized credit card charges months after purchases are made.
Classic Closeouts offers apparel, jewelry and other merchandise online at classiccloseouts.com. Consumers nationwide have filed hundreds of complaints with BBB about the company’s practices.
A University Heights man complained to BBB after he received five unauthorized charges ranging from $59.99 to $69.99 within a span of four months. “I only made one purchase last March for roughly $25.00,” he said. “I never made any more purchases due to low quality products.” When his credit card company contacted Classic Closeouts to investigate his request to remove the charges, Classic Closeouts responded by providing statements for the purchases. The man continued to insist he had never made the additional purchases, but his credit card company refused to remove the charges.
A couple from Avon Lake used separate credit card accounts to purchase merchandise. They had no complaints about the merchandise or the shipment time, but a year later they both noticed charges in the amount of $69.99 on their accounts. After months of unsuccessful attempts to reach someone at the company, they filed a complaint with BBB.
Classic Closeouts has an “F” grade rating with BBB and nearly 900 complaints from consumers nationwide. It has failed to answer all but 24 cases.
Last week, the Federal Trade Commission announced it had filed a lawsuit charging Classic Closeouts illegally unauthorized charges and debits to consumers’ accounts months or years after they bought various items. The action further alleges many consumers disputed the charges with their financial institutions. After the financial institutions reversed the unauthorized charges, the company contested these disputes, claiming that consumers had chosen to join ThirdFree, Classic Closeouts’ sister company that offers a frequent shopper club. Consumers denied agreeing to join the club.
The BBB reminds consumers to:
- Carefully review credit card statements. Notify your credit card company immediately of any unauthorized or incorrect charges.
- Check the company’s BBB grade rating before purchasing. Go to www.cleveland.bbb.org or call us at 216-241-7678.
BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 126 BBBs serve communities across the U.S. and Canada, evaluating and monitoring nearly 4 million local and national businesses and charities. Please visit www.cleveland.bbb.org for more information about BBB.