Mervyns -- no customers and no customer service charge
Filed under: Credit, Debt, Ripoffs and Scams, Shopping
The Consumerist complained yesterday that the now-defunct department store Mervyns was charging $15 for customer service. It could be true. Certainly Mervyn's venture-capital ownership, Cerberus Capital Management and Sun Capital Partners, aren't above making money from the frustrated. But in this case, they are mostly innocent.
Mervyns bit the dust in October, after first filing for Chapter 11 in July. In most of its 175 former locations, liquidation sales have already been held and there's nothing but a vacant storefront. If you call the Mervyns headquarters in Hayward, Calif., you'll get a voicemail system that goes in circles. No employees, no customers and no customer service.
GE Money Bank is handling Mervyns' credit card collections. That's where the $15 comes in. Credit card holders are still being dunned and they can pay in the usual way by mailing a check or by signing onto their accounts online and making a payment -- free.
Or they can pick up the phone and call toll-free (1-800-480-5014). That's where it gets tricky. If they choose option 1, it will send them to an automated voice that will take their payment without charge. But if they choose to hold for a customer service rep and ask that live person to handle the matter through a "check by phone," then there is a $15 charge. This sort of system isn't unique to Mervyns, but it is an annoying gimme that anybody but the brain dead ought to be able to avoid paying.
Reader Comments (Page 1 of 3)
12-03-2008 @ 12:34PM
Credit Card Rep said...
This is so distorted. I work for GE. I used to work for different credit cards--they all charge a check by phone fee. I have a wallet full of cards like everyone else--none of my cards do a check by phone for free on current accounts. Get used to it. It is the status quo for this industry. Mail the check or do the payment on line if you don't want a fee. Don't pick on Mervyn's when they are down. Don't pick on GE for following industry standards. Citibank, Chase, Penneys, Sears, US Bank. I have all of those accounts, they all charge a fee. Car loan and home mortage companies charge fees too. None of them charge to speak to a service rep to get information on your account. Credit cards employ regular folks, we have families to raise too.
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12-03-2008 @ 11:16PM
Susie said...
Someone, correct me if I'm wrong, but It is my understanding that charging someone to pay their bill is illegal. You can "assess a 'convenience' fee", charge for the "live rep", ie., call it what you like, but too many companies are getting away with "feeing me to death" to pay my bills. The ONLY way to pay, without having to "pay" is by check. And, that's not convenient, but I refuse to be charged a fee to pay my bills!
12-04-2008 @ 1:38AM
Andy said...
just because it's industry standard doesn't make it right. are you one of the constantly rude people that i get whenever I call my credit card company? probably, because I really haven't come across a single one who is helpful. it's all a run around with you people, and honestly i wish more articles would come out like this.
please explain to me how you justify these companies, who by the way are already charging many cardholders outrageous interest, charging to MAKE A PAYMENT.
i understand having a family to raise, but don't try to justify this. it's disgusting and unethical. sleep well :)
12-04-2008 @ 2:09AM
Katy said...
I worked for a bank in the 70's and 80's. What you don't seem to acknowledge is that pay by phone is cheaper for the bank than receiving payment by check. They should do it for free and get their payments on the books quickly and not try to charge for services like that.
I only have credit cards that do the payment process for free and close the ones that don't. It is lousy customer service to charge for that process.
12-04-2008 @ 9:31AM
Customer said...
Not everyone charges a fee. I pay my cell phone bill using check by phone, and although the cell phone company always warns me during the transaction that my bank may charge a fee, neither my bank, nor cell phone company charge for this method of payment.
(If they start charging, I will no longer pay using check by phone.)
12-03-2008 @ 3:18PM
Beth said...
Mervyn's deserves to have no customers! Sneaking in a $15 service charge in my mind is stealing! I personally try to stay out of the stores this time of year... It is pure madness. I still can't get over that an employee at Wal-Mart got kileed from crowds stampeding the store.
I mostly shop online to save money on gas, use less gas and not pay tax most of the time and use coupons. I shop at all my favorite stores through an online website that gives me the unpublished codes at about 300 stores (including Bloomingdale's, Wal Mart, Target, The Gap, Best Buy, Old Navy, Drugstore.com, etc) as well as giving me between 5 and 50% back in cash on my purchases. The site is http://www.fatcrumbs.com I am being
good to the environment and great to my wallet. I also love the web only specials!
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12-03-2008 @ 4:06PM
Rich said...
This is not a Mervyn's issue. Many major credit card companies charge a large fee if you choose to pay by check instead of going the automated route. Besides that, it's not even a new practice. Companies have been doing it for over 3 years. People need to select their credit card companies more carefully if they want to avoid these fees, but most charge it so get over it.
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12-03-2008 @ 8:21PM
Lara said...
Rich, this is part of the problem. People lay down like you are and take it. Everyone's doing it so "Get over it"? Are you kidding me? Grow some, Rich, and learn to voice your opinion when you're being ripped off. Otherwise the sky's the limit for the companies looking to soak you for a few extra bucks at every turn.
12-03-2008 @ 4:15PM
Bonefish26 said...
More "reganonomics" at work. You know that gibberish that really meant "anything, to anyone, anytime is fine as long as you get their money."
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12-03-2008 @ 4:21PM
mike said...
My cards are paid off
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12-03-2008 @ 4:24PM
kiki said...
ITA w/credit card rep:
Bank of America charges $15 for a phone payment. What stinks is they don't TELL the consumer they will be charged $15 for their payment by phone. They should be required to disclose the info while speaking with the customer.
It's really disgusting.
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12-03-2008 @ 4:34PM
Owen said...
I agree with everyone who mentioned that Mervyn's isn't the only retailer (or bank) that has pulled this crap. It's not like you don't have options. I mean, either mail a check or use the automated system. Checks by phone are totally unnecessary. If you fart around until the last minute for the payment that's your own tough rockos.
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12-03-2008 @ 4:47PM
Bob said...
GE Money Bank, based on my experience, is an out and out deceitful, sleazy, organization. On a large dollar purchase, GE, without notifying me or asking my approval, changed the due date of my payments from Feb. 27 to Feb. 1. Then they charged me a "Late fee" when they did not receive payment by Feb. 1. When challenged GE said "We changed the date for your convenience -- most people want to pay on the 1st of the month." Needless to say, I escalated the issue to GE management and, with the threat of legal action, they cancelled the "late fee" and reset the payment due date to Feb. 27. I will never, again, purchase anything in which GE Money Bank is involved.
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12-03-2008 @ 4:47PM
SamGoodLaw said...
Well, as the old saying goes, "it's easier to steal ten dollars each from a million people, than it is to steal a million dollars from ten people.".. When a store like this gets sued, everyone focuses on the attorney getting 1/3rd instead of the store having to return the money. So, why even bother bringing the story forward? We've allowed em to do it.. our problem now.. own it.
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12-03-2008 @ 5:04PM
Atom said...
I sent Bank of America my payment 10 days in advance and it was received 2 days late. They told me when I called that the mail service in June was slow and to mail 12- 15 days in advance. They put a late charge on my account and I closed it. I rarely use the card. That must be why.
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12-04-2008 @ 9:07PM
sandy b said...
I have sent bills "certified, return receipt requested". It is NOT the postal service that is late. It is the in-company snail-mail and their workers who sit on their hands who don't get their work done. When I've told the co. what I did and I know they did not receive it late they dropped the charges. They want us to pay late fees yet they don't hire enough help to get the bill payments posted on time.
sandy
12-03-2008 @ 5:11PM
Gary said...
The exact same thing happened to me with Bank of America except the individual I spoke with when I called was totally rude. He told me a supervisor would get back with me in 24 hours or less.. They never did.
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12-03-2008 @ 5:26PM
Karen said...
Almost ALL companies who provide "check by phone" service charges a fee and they DO tell you about the fee beforehand,If you aren't listening, then you can't complain when you don't know about it. It isn't like they hide it.
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12-03-2008 @ 5:30PM
ken said...
every single company i have ever dealt with charged for a check by phone payment. this is a typical expamle of how AOL singles out companies and uses scare tactics and inflamatory, distorted statements to attack them. AOL SHAME ON YOU!!! you are misinforming your members!!! this article should have mentioned most companies practice this policy. the writer of this article should be fired or severly reprimanded!!!
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12-03-2008 @ 5:53PM
Lydia said...
Well, if you make an airline reservation by phone, you will be charged $25 extra. Oh, and they don't even tell you, you just see the charge on your credit card. (If you make a reservation online, it's still free.)
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