I feel that I am being wronged by Stamps.com. The amount at stake is trivial – $150 and change, but I don’t like feeling cheated nor do I think companies should be rewarded for putting legal minutiae ahead of basic fairness.
The issue in a nutshell:
Stamps.com: “To avoid being charged, simply cancel your account before the trial ends.”Jay: You don’t mention that you can expect a thirty-minute wait on hold when you try to cancel. Or that there is no way to cancel by email or snail-mail. This is scurilous. (I never used their service, was one business day late in cancelling, and they refuse to close my account…and want to charge me $150+ for the year.)
To my delight, I discovered that Stamps.com is a public company. Hmmm. Where should I start?
I have the names of all of their officers and directors, but it might be more entertaining to begin with the Better Business Bureau, NASDAQ, and the S.E.C. Or I could write the top brass at their partners (Microsoft, NCR, Office Depot, CompUSA, Earthlink, Vendio, Xerox, Dymo, Peachtree, and Elibrium) to complain of unfair business practices. I could call Ernst & Young, their accountants, questioning the legitimacy of recognizing revenue for services never rendered. Or, and this might be best of all, it’s not difficult to contact the Postmaster General. I’d probably do it through my Senators and Representative since their requests have a somewhat higher priority than mine. Food for thought.
This evening I sent my third request to cancel this “service” and the bill for twelve months of nothing. I’ll give Stamps.com a day to respond. I predict fireworks ahead.
If you’ve experienced similar treatment from these guys, leave a comment or drop me a note.
The email thus far:
Subject: Your account no. 223 8907
To: resolution@stamps.com
On March 14, 2005, a representative of Stamps.com called me and offered a 30-day free trial of your service. He said all I would need to do to cancel the service was call you at 888-434-0055. He failed to mention that no one answers that line without a 30-minute wait.
Today I called, waited my 30 minutes, and spoke with someone named Brandy. I explained that I had never used your service and wanted to cancel. She said that since I was three days beyond the free trial period, I would have to pay for the first year’s service, that is, 12 months at $15.99. I said this was absurd. She said she had no authority to change anything. I asked if she had a supervisor.
After a few minutes, Lawrence picked up on the “supervisor line.” He told me rules are rules. I said I was appealing to his sense of fairness. I never used the service. It’s difficult to cancel the service. He said he had to follow policy. Was there someone else I could speak with? No, there is no one else to speak with.
I told Lawrence I write magazine articles and that thousands of people read my blogs. I would write this up. I think Lawrence took this as a threat. I said that all I would do is tell the truth. Did he think it fair and reasonable to charge someone more than a hundred dollars for a service they never used? He thought so. Maybe I’ll take a poll.
I request that you close my Stamps.com account, no. 223 8907. I have not used your service and am closing the account because I do not intend to.
jay
Jay Cross
Designer | Writer | Speaker | Ambassador | Marketer | Coach
510.528.3105 cell & office http://jaycross.com
each of us is alone in the universe
so is everyone else
e. e. cummings
Dear Mr. Cross,
Please note that our fees are not usage-based, but based on whether a customer has access to an active and available account.
After reviewing your Stamps.com account, we have determined that we will not be able to accommodate your request for a cancellation of your contract with us.
As explicitly stated in the Service Agreement, you are subject to a $15.99 fee per month during a one year term.
As reiterated in the Welcome E-mail that was sent on the day you opened the account, we allow you a 29-day trial period to cancel in order to avoid the charging of any fees.
In your case, customers signing up for the Monthly Lease Plan are given these Termination Terms prior to registration:
“Term Service Plan. If you terminate your term service plan before the end of your term, you will be required to pay an early termination fee equal to your monthly billing fee multiplied by the number of months remaining on your term. No early termination fee is charged if you terminate a term service plan in accordance with any applicable No Risk Trial time period. After the expiration of your term service plan, the terms relating to the monthly service plans apply.”
We feel that 29 days is ample time to evaluate the service and cancel an account should Stamps.com not meet your current needs during that specified trial period.
While the service fees billed to your account are valid per the Stamps.com Terms & Conditions, we hope you will use your Stamps.com account for the full year.
Respectfully,
Office of the President Stamps.com Postage Group
To OTP, Stamps.com
I wrote you about fairness, not the specifics of your contract. Your website states,
“Can I cancel anytime? Absolutely. You can cancel your membership simply by contacting Stamps.com Customer Support. There are no cancellation fees and no commitments. To avoid being charged after your trial, simply cancel your account before the trial ends.”
You don’t mention that you can expect a thirty-minute wait on hold when you try to cancel. Or that there is no way to cancel by email or snail-mail. This is scurilous.
Once again, I request that you close my Stamps.com account, no. 223 8907. I have not used your service and am closing the account because I do not intend to use it.
jay
Dear Mr. Cross,
We have thoroughly researched your account and have comprehensively
communicated our policies as well as all possible courses of action
available with regard to this issue. The absolute resolution to this
matter has been reached and explained in detail in our previous
correspondence. There are no further avenues of action available on our
part with regard to this issue.
If you have any additional information regarding this matter that was
not previously presented or if you have a different issue you would like
us to address, please let us know so we may be of assistance.
Respectfully,
The Resolutions Group
Stamps.com PC Postage
May 3, 2005. Notices the CFO is an HBS grad and sent him a pointer to this page.
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{ 36 comments… read them below or add one }
Scurilous, indeed! Markets are conversations, and you have just started one
Did you pay by credit card? You can dispute the charge through your credit card company, which with its long-term relationship with you will be more sympathetic to your case.
If they reverse the charge, you not only get your money back, you increase the ‘charge-back’ rate for stamps.com, which can increase their costs in the future.
I am currently having a similar problem with them, although on a smaller scale. I am only on the hook for 2 months worth of service. I was unable to cancel before my 28 days were up due to excessie hold times. Not only did they charge me for the second month, but also for the first “free” month. If you read the fine print this is stated, but it is cetainly not clear form their promotional material. Why on earth would they penalize customers who want to continue the service by making them pay for their free trial period? I have never come across a “free trial” with these conditions before. This reeks of a scam to me.
See my post a few days later. I received a full refund and an explanation that Stamps.com couldn’t hire fast enough to maintain their service. Whatever. As a pubic company, the names and address for officers is available from SEC filings. Do what you must.
jay, thanks for the update. I did get a response that offered to meet me halfway and refund one month of service so I would only be on the hook for $15.99. I’m not entirely satisfied with this, but I feel like I’ve wasted enough time on them and I’m going to cut my losses and run.
smae thing happened to me. I signed up for service on November 6, ordered stamps on november 11, and found out on november 12 that i had to purchase more stuff to use the stamps appropriately. I called immediately on the 12th to cancel and get a refund, and they denied me, and then said that I had to wait four to six weeks for them to mail me a check because the post office already had my money.
I told them they were insane. so then ended up giving me free stamps to print the value of my purchase and use them. In a fury I hung up, received the stamps, printed them, and mailed them, erased their software from my computer, and six months later find out they have been charging me $15.99 a month for absolutly nothing.
I too had to wait at least 1/2 hour to talk to someone, first guy could not find my account, next girl refused to refund me, third girl refused to fund me ask for supervisor, was told they would just tell me the same thing, sent an email, was told the same thing, sent an email to the complaint line where they told they were willing to refund me because the original call ended so hastily and they were not able to fully explain the procedure for closing my account.
I say they are all full of it. they see an inactive account for six months they should make it right. I spent the better part of 1 1/2 hours talking, yelling and insulting their phone reps. Like I told them, as front line phone reps, they cannot be proud of the work they are forced to do each day.
I was about to launch an all out assault on stamps.com, much like the one you described, until they finally agreed to refund. I am still waiting for the refund, but it has only been three days.
good luck to me.
I am writing to you so that you can refund me my $95.94 your company charged me for unauthorize
payment on my account. I have never used stamps. com and didn’t
know that the registration went though because my computer froze up and i never finished the processing of stamps.com on my computer therefore i want my refund. account no: 2284985
my blood is boiling! I am having all the same issues as the others that have commented on. I hate Stamps.com
I think it’s telling that the company has a resolutions department – I think that’s because so many people are disgusted with the service and product. Same with the “supervisors line” – obviously they are getting many many calls from disgruntled customers.
Account 1253099
I attempted to cancel stamp.com back in 2003.
Same Story.
On hold on the phone for over 10 minutes.
They recently discovered my AOL address and boom! new bills totalling 159.00..
They can email me with a bill but i cant email them to cancel? Total BS!
I told them that their TOS doesnt hold up when they dont pick up the phone… they disagree… of course.
The debit card I gave them is long gone, no longer with that bank… so they cant just “bill me”… I called them again and let them know I will see them in court, or wherever they stick it… If they dont know where to stick it i have a few ideas….
so whatever class action suit that happens to come up with this one .. keep me in the loop!
Oh MY GOD! I just had the same exact problem all of you have just complained about with Stamps.com! Never received any free trial anything, just charged for $24.99 and I never even got the software of info to try their so-called service!! I was on phone for long hold periods, as were the rest of you…then they want to charge me a cancellation fee!! this is so RIDICULOUS!!! I finally got hime to waive the cancellation fee, but i have to dispute the $24.99 through my bank. This company is the WORST!!! Post everywhere you can and warn others to NEVER GIVE YOUR CREDIT CARD NUMBER TO STAMPS.COM!!! They are TERRIBLE!
I have called to cancel my service. I had never received the email with the information in it. I told them that I wanted a refund for my service because I never used it and I never received any information. They only took it out of my bank account.
On March 2, 2006 I contacted Stamps.com customer support by phone and canceled my account. For whatever reason, the account was not closed. I made a second call on March 13, and I recorded this conversation. Again, the account was never closed even though I was told it was.
On April 1, 2006, I began emailing customer service, stating clearly that I revoked my authorization for stamps.com to charge my debit card, and that I wanted my account closed. I was told that because of postal regulations they could not cancel my account by email, but after insisting they finally allowed me to cancel via email on July 8, 2006. I now have emails indicating the account is closed.
However, stamps.com is still (as of 7/8/06) attempting to bill me for a balance that was owed between April 1 (when I revoked my permission for the automatic billing) and July 8 (when I was finally allowed to cancel).
This continual billing after authorization was revoked both verbally and in writing is a clear violation of UCC, as well as other regulations concerning acceptable business practices.
Why is Stamps.com still in business!! So many complaints, reports to the Better Business Bureau, furious customers, apathetic customer service and management personnel… Is anyone up for filing a class action suit? Enough is enough!!! This has to stop, look at the dates on these e-mails and how long this has been going on. Their managers are almost cocky about not refunding revenue that was obtained unethically and in a misleading manor. I am so ready to see this company crash and burn!!! Anyone with me???
Christine in NC
Addendum to last comment, take a look at the quarterly financial report for 05/09/06…profits have more than doubled…gee, wonder how that happened? If only the public investors knew the methods this company utilizes to feed the profit margin! Just an FYI.
WOW! I have been having similar issues. 1) Got the same promotion offer call. 2) Didn’t receive ANYTHING by mail. 3) Finally got an email trying to charge my credit card for $299.98 (12 months of service)
The rep. “opened” the account Mid-June. I called end of June and was told it might take “longer” for the kit to arrive. NO KIT NOTHING.
Called on mid-July to cancel and I am told, I am about a day late and so they will charge me $300 for the FULL years service EVEN THOUGH I cancelled the account and DIDN”T receive ANY KIT.
NEVER even used the service, or NEVER printed ANY postage. NEVER received any welcome kit.
THEIR CUSTOMER SERVICE representative SUCK. They must really hate themselves to work at stamps.com !
Got the typical answer we can’t do anything email the president at resolutions@stamps.com
If anyone is interested in a Class Action Suit, let me know. A company LIKE this needs to be put out of business. The lawyers will make all the money, but atleast the world will know, what scum these guys are!
I tried to cancel two months ago. Still being billed. When I did get through the phone call to the rep ( in India) he had little authority to do anything but reiteriate the company line. ” Did you get a cancelation number?, or “E” mail comfirmation of the cancelation? I’am being charged another full month since I called past the currents billing date to cancel. My credit card company advised that since I gave them authority to bill they can’t just change card numbers. The billing won’t stop? Totally a do not use type company.
What a terrible company! At least it is somewhat comforting to hear that a lot of other people are having the same problem. My “bill” is up to $50+ for a service that I have never used and haven’t been able to cancel. Do I hear class-action? Count me in, they deserve to get sued for their highly unethical business practices!
Can’t believe these people don’t get shut down. My credit card expired and they want a new one. I called to say, Hey, I hadn’t noticed these charges and I do NOT want to be a subscriber to your service. Somebody in India told me their computer systems were down and that I’d have to call back later. I objected and insisted she take my information. Four people later I was assured my account was closed. When asked if there was anything else she could do, I said, yes, stop billing me. Today I get notice that I owe them an additional $31.98. They need a new credit card. FORGET IT, STAMPS.COM. Your are a RIP-OFF!
I got their package in the mail. CD-USPS logo’s and all. I am not naive to scams, but this looked like legitiment USPS stuff. So I ran the CD–and foolishly gave them my MC#! Dumb! I never allow a web based company to save my MC#! After all the install, etc., it came up and said there is a $15.95/Mo. charge! I immediately called and cancelled the service on the same day (09-10-2007). Even got a cancellation confirmation number. (When I questioned where the service fee was disclosed, the gal told me it was in the “fine print” within the legal document. Who ever reads all that stuff?–I will from now on!!)
They have been charging me $15.95 every month since. Luckely I have a good MC bank, so I dispute it every month and the charge is reversed. I will continue to do this. So far (4 Mos.) no response from Stamps or the MC bank. We will see. I agree with #2 above–let your credit card company deal with them. It incurs extra charges to Stamps, and the CC Banks have more clout than we do. If the banks get enough of this, they will take action.
Stamps amounts to fraud. It is amazing to me that a company that has apparently invested capital (see their balance sheet) and the money to start a seemingly legit service, could stoop as low as they have to become a scam operation. BUT, please note that most of their officers/executives are from Wall St. brokerage houses. That might give you a clue.
Good luck! This a new twist on scam operations, and very clever I must admit. It has taken some innovative and diabolical minds to formulate this one!
Hi –
Stamps.Com Saves Lives!
I’ve used Stamps.com for years. I think they are terrific.
Why? Because the do, in fact, reduce exposure to the most dreaded customer service nightmare of all time — visiting or using the United States Postal Service.
Just writing “USPS” gives me hives. If I happen to see a postman, truck, box or station, I go into an apoplectic rage!
Between 1986 and 1997 over 40 USPS employees were murdered on the job. Stamps.com debuted in 1998. No USPS employee has been murdered since. Coincidence? You decide…
If 30-minutes-on-hold saves one life, or prevents one person from ‘going postal,’ isn’t it worth?
-j
I never even heard of stamps.com until three sequential $50 charges showed up on my visa, which I immediately cancelled due to suspected online fraud. Somehow they got the old billing addr for my visa because an invoice just showed up there complaining their charging of my visa won’t work. Duh.
No wonder there’s terrorism in the world.
What is stamps.com, a halfway house for parolees of convicted whitecollar felons?
Good luck all.
Whew! You all have saved me a huge headache! Stamps.com just phoned and e-mailed their info for a trial offer. Currently, we use a Pitney Bowes meter and are happy with it. I think I’ll tell the Stamps.com rep when she calls back to check this blog for why I’m turning down the service.
$15.99 per month service charge is ridiculous and it simply shows how greedy stamps.com is. They sent out countless free trial CDs in fishing victims and they did a fine job with that because $15.99 is nowhere to be seen in legal doc unless you carry a magnifying glass.
I wanted to get some picture stamps for a friends surprise Baby Shower invitations. You have all scared me half to death of stamps.com. Do you have any suggetions of other places that can do this?
I can not believe this. I just got a bill from a collection agency for $559.65 from stamps.com. I have never not once used them. I signed up for trial period and never tried it. I got my first bank charge and called them to cancell. they didnt. got my second charge called and tried to cancell and they didnt. So I closed my checking account and called got in a fight with a manager on line and they still have not canceled. What the hell am I supposed to do. $559 for something I never used! cant cancell. They are the biggest rip off company I have ever delt with!
I was thinking about trying stamps.com but thanks to your blog I am not. Sounds like they hired the AOL billing staff!
Here is another technique they use, and this one is definately a scam. I had a month-by-month account and decided to cancel. I was told since it was the middle of the month I would have my account pro-rated and would receive one more bill to cover the days since my last payment. But here is the problem: I pay IN ADVANCE! They don’t bill me at the end of the month for the previous 30 days service, they bill me at the first of the month for the *next* 30 days of service. I Pay forward, not backwards so they have no right to make me pay additional money for days I have already paid for.
I really dislike this company.
After reading the difficulties people have had in trying to cancel the “Stamps.COM” service, I was really apprehensive because I needed to cancel my “free trial”. I expected to be on hold for the requisite 30 minutes, given the run-around, etc.
However, my experience was quite different. I called about 8:30am CDT, and got right through to a customer service type person. He obviously was at an “off-shore” call center, but was pleasant and complied with my request. It took no longer than 5 minutes from the time I placed the call until I had a confirmation number for the cancellation.
Now, will I receive charges on my credit card? I don’t know since it just occurred, but my experience couldn’t have been any smoother.
I have no reason to “talk-up” this company, but at least my interaction with them was not negative.
Ok…So I get this call today from someone in India calling me about Stamps.com? I remember looking at their web site last year, but never completed the transaction. I never gave them any credit card information or anything. This guy was telling me they sent me letters…I was like….I have absolutely no idea what you are talking about, so send me a registered letter from a lawyer telling me why and how I owe money and then I’ll send you a letter from my lawyer telling them that we’ll see them in court. He tried to “let me off the hook by only charging me $200…I was like…”again” you are not listening to me…Let me be explicity clear. I didn’t order your service. I have no idea what you are talking about and I am not today…not ever….. paying you two hundred dollars for anything….End of story….Period….End of sentence…and I hung up on him.
WTH? I was reading all of the posts….Why are they still in business?
I used this service from the early days. They had a lower price than another company (which I think they drove out of business). At some point they nearly doubled the price, and made it impractical for the casual user. I put up with it longer than I should have. Eventually I tried to cancel – and my experience was that I could not get a live person. Finally I created a ShopSafe CC# for $5 and a 2 month expiration. The monthly charge was for something like $20 so initially they got a failure due to insufficient credit; later because of expired card. But every month they would bill and complain that they could not charge. At one point I even got an agreement by email to close the account – but another rep picked up the case and rudely pointed out that it had to be done by phone. Eventually I did get a representative on the phone. He canceled the account and indicated that he would send a check for the remaining $1 postage but that I owed them $120. I assured him that they would not be paid. I wasn’t using the account, and that was evident by the fact that there was no funding. Eventually they turned it over to a collection agency, but I have no intention of paying. They know better. I am sure that they have dead people that are still running up a bill that they think they are entitled to collect because they have an email address. I recommend you buy a Dymo printer – you can print the stamps for nothing more than the cost of the postage.
The same crap happened to me. I signed up for a free trial and canceled my account. Then they repeatedly tried to bill me anyway and my bank does not authorize the charges because I gave them proof that I was not using their service. So they turned me over to a collection agency, and the one they use SUCKS. They won’t let you call them more than 3 times, and I wasted one of my calls because they sent me a letter stating I missed the deadline to dispute the charges after I already wrote in one explaining the situation! Then they sent me another letter saying I was ignoring or disputing a legitimate debt, and I tried to call them back and got a recording saying that I had used up the maximum amount of phone contact attempts. WTF?
This is happening to me now. I had my old debit card lapse and I didn’t want this service anymore. But, since on the website (which appears to allow you to cancel online, fill out an entire form, and then says, “Sorry, we can’t do that” after) it is clearly stated that there will be an in-depth conversation about why you’re leaving, I simply did not provide my new debit card information. I figured they would cancel my account due to non-payment. Boy was I wrong! I tried writing to them. All I got in return was a paper bill! And guess what I got this month in my email box? Another month’s bill! I’m at almost $65 now. And you know what the real kicker is? The ONE time I tried to use the service, it didn’t work; AFTER I already paid for the stamps. I haven’t even logged in for at least six months. If there’s any more I can do to stop this from happening, point me in the right direction!
I work at a class action law firm and we are investigating this issue. I am interested in talking to people and hearing about their experiences. Please contact me at abby1100ny@yahoo.com if you have had trouble canceling your account with stamps.com, have been billed fraudulently by stamps.com, or have any questions on this investigation.
Thanks, Abigail.
abby1100ny@yahoo.com
This site is still scamming after this long. The emails I am getting are almost the same as what is posted up there from 2005. It is my fault for joining the most messed up company around, and the BBB of LA California and the USPS love them!? WHY!???
They are the biggest scammers around! I can not believe that they think they can get away with what they pull. SING IT FROM THE ROOFS STAY AWAY FROM STAMPS.com I am writting to abby up there to see what can be done.
I cancelled way back in January and a charge showed up in August. I just got off the phone with Stamps.com and my credit card co. I don’t understand how a company like this can survive. This is only the second time I’ve had a problem on the net in 15 years! The first was resolved through my credit card co. and I’m sure this will be too. The charge was only $17.99, but it’s the principal. Multiply $17.99 times the suckers and it is probably huge!
Same thing happened to me too! I did not even COMPLETE the installation or agreement! Lo and behold today they took out $15.99. I’m calling them on Monday to cancel and they better not give me any problems or I’m signing on to the class action lawsuit. I never got an email NOR a package nor anything! I am telling EVERYONE I know and posting on every message board how awful this company is if they don’t give me a refund or let me cancel. At this point I’d be happy to be out the $15.99 as long as there isn’t any more charges!