Never heard of Reservation Rewards? Check your credit card
Filed under: Ripoffs and Scams, Technology, Consumer Complaints, Buyer Beware
Connecticut Attorney General Richard Blumenthal told WalletPop his office has launched an investigation into controversial Webloyalty.com -- a company you might not have heard of, but might find charges for on your credit card statements..
The company operates Reservation Rewards and other programs that thousands of people have complained lands unwanted charges on their credit cards after they've used sites including Fandango.com and Priceline.com. Somewhere in a series of windows following your order to buy tickets, users end up clicking a box that gets them subscribed to Reservation Rewards and signed up with a negative option -- meaning that you will keep being charged until you cancel. Your credit card information was retained from the previous transaction.The problem is, many of those complaining don't realize for some time, or at all, that they've signed up because the charges -- usually just a bit more than $10 -- don't jump out on their credit card bills.
Webloyalty disputes the charges and says that its policies are clear and legal.
"Webloyalty.com provides its two million members with valuable, easy to use reward, discount and protection services. We make every effort to be straightforward with our offers, allowing consumers to make educated choices regarding the products and services they purchase. We would like all of our members to derive value from our services and remain members for a long time. However, if someone wants to cancel, we make it easy for them to do so by contacting our Customer Service Centers," said Rick Fernandes, CEO, Webloyalty.But this is how a typical consumer complaint goes: Lori Peters-Merkel, who lives outside Spokane, Wash., said she purchased something online last year only to discover later that from July through February she received three separate charges of $11.99 a month on her credit card. She said she remembers clicking through some windows after her transaction, but knows she never agreed to subscribe to any of those programs.
Blumenthal said his office has been looking into the Norwalk, Conn., based company for a while and can't project when the probe will be complete. He said he wasn't sure how many consumers had complained to his office, but the Connecticut office of the Better Business Bureau reports fielding 1,627 in the past three years.
That's enough to indicate there's a problem. And when you consider that those who complain represent only a small fraction of those who could, there are an awful lot of people out there dealing with this company -- many who don't even realize it.
The company was the target of a 2006 class action suit filed in federal court in Boston, which recently settled -- affecting those who unwiitingly became members between September 2000 and September 2008. While the settlement calls for the company to pay no more than $10 million (a hefty chunk of which goes to the lawyers), the settlement can end up being a real loss to victims.
As part of the settlement, the site webmarketingsettlement.com was created. Some who have received email notifications about the site have questioned whether the site is a scam since they don't recall ever using the company's services.
First, it is not a scam. Second, that doesn't mean you don't have something to lose.
If you're a victim and you don't fill out the paperwork on the site, under the terms of the settlement you relinquish your right to recover your losses. If you do sign up, you can't recover any more than two months of payments.
However, if you find you were unknowingly a long-term subscriber, you can officially opt out of the settlement and pursue other remedies, such as filing complaints with the BBB, the Connecticut Department of Consumer Protection or the Connecticut Attorney General. The BBB, a private business ethics organization, has reported some success recovering losses after consumer complaints. You can also call Webloyalty Customer Service Center can be reached by calling 1-800-732-7031 or emailing customerservice@webloyalty.com.
Reader Comments (Page 1 of 2)
3-31-2009 @ 7:25PM
Billie Morales said...
I was charged for 12 dollars on my credit card.I called the company and they said they would send me an e-mail saying I would get my money back.When I didn't hear from them in a week,I sent an e-mail and then they sent me an e-mail saying they cancelled my account and I wouldn't be charged.
People, check your credit account every month.
I was buying perfume at Christmas when this company signed me up.
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4-27-2009 @ 2:55PM
mick said...
which website was this? because im being charged 12 dollars a month too, and i thought it was the bank, come to find out its some website..
4-01-2009 @ 10:04AM
suse said...
BEWARE!!! 1-800-petmeds, AND Classmates.com ARE ALSO PULLING THIS!!!
you think you are dealing with a reputable company . . . seems your credit card number is safe anywhere!!! we watch out account on line EVERY day!!!
anything that seems to be fishy, put that company and 'rip off' in your search and you'll find ripoff.com to let you know what's up.
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4-01-2009 @ 5:01PM
Peter said...
I would just like to clarify for some people, that it is NOT the website your doing business with that makes these actual charges, such as Orbitz, Classmates, and 1-800-pet meds. It's a 3rd party with whom those companies are an affiliate of.
I worked for a catalog company which has websites that offer similar programs from another company - the deals are usually called "Deal Pass", "Today's Escapes", or "Shopping Essentials +".
It very lucrative for the affiliate company, and they generally do not know of the deceptive practices these 3rd parties employ until they have already entered into an agreement.
Now, I'm not trying to get into the ethics of these practices, but you are never signed up automatically. You specifically have to agree to something, even if it's un checking a box. Buyer beware! Carefully read everything before you just click yes, ok, or continue.
It may not be a moral or ethical practice, but it's never forced.
4-01-2009 @ 6:25PM
BigBubba said...
@Peter Two comments, first shame on them given how much fraud and abuse is floating around if they don't check out the affiliate programs they're joining. If they're that sloppy why would I want to give them my business let alone my credit card number.
Second, it may not be forced but that doesn't mean it isn't fraudulent and/or abusive.
If a retailer associates themselves with this sort of practice then they deserve the black eye that comes with it... I guarantee you they're taking the affiliate payments that came with it.
4-01-2009 @ 10:25AM
btw1446 said...
I was hit with this scam as well. I flew on Allegiant Air and a couple of months later this popped up on my bank statement. As I recall it was for twelve dollars. Same thing the next month so I called them to cancel. I called too late to stop the third hit but called them again and they took that one off. Didn't recall ever hearing about this or having been offered the program but do know that I use so few reservations that I would not have signed up. Duane
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4-23-2009 @ 1:25PM
Gunner said...
Recently II purchased round trip tickets on Allegiant airlines on the internet. At the completetion of the purchase a bar came on the site saying to click here if I wanted $20 off of my next Allegianat airline trip. I did so thinking that it was an Allegiant Airlines promotion. Soon after I received a bill for $12 . I really ticks me off that I was taken in on this scam, they are not part of Allegiant Airlines, however I still fault Allegiant for letting such a cheap scam to be placed on their website. I was finally able to cancel. If they can capture this kind of information from allegiant's website, then what would prevent them from emptying my bank acccount.
4-01-2009 @ 12:00PM
Daniel said...
I made hotel reservations through Orbitz and the same thing happened to me. Called the credit card company and they got all my money back. Will NEVER use Orbitz again.
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4-02-2009 @ 1:13PM
GG said...
A HUGE BEWARE for anyone verbally signing up with Bankcard Empire, this so-called "money making scheme" is totally a SCAM. There are several steps to sign up for and none of them will make you one thin dime. The Hosting Fees and telephone "blasts" are charges you are promised to recover but this is again a SCAM. BEWARE!
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4-02-2009 @ 1:37PM
domokun9 said...
@BigBubba:
In that same vein, shame on people who don't mind their credit card statements or read any agreements during a check out process.
It is no one's fault but the consumer for accepting. Regardless of how branded and blended these offers may be into the site, all the terms and conditions of these offers are explained. Personally, if I don't feel like reading the offer, I'm not going to blindly accept it.
I don't want to sound like I'm defending these practices, but I'm so tired of people not taking responsibility for their own actions.
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4-02-2009 @ 2:56PM
Peter said...
@BigBubba:
In that same vein, shame on people who don't mind their credit card statements or read any agreements during a check out process.
It is no one's fault but the consumer for accepting. Regardless of how branded and blended these offers may be into the site, all the terms and conditions of these offers are explained. Personally, if I don't feel like reading the offer, I'm not going to blindly accept it.
I don't want to sound like I'm defending these practices, but I'm so tired of people not taking responsibility for their own actions.
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4-04-2009 @ 9:09PM
MOM said...
They got me ordering BUSINESS CARDS at VISTA.COM...they signed me up for Reservation Reweards....I called Vista company...told them I don't appreciate selling my name and CC#....they said on the bottom of the business card ordering form... there was a box to check....I didn't see it....they did refund my money...I was still mad.
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4-05-2009 @ 10:27PM
L said...
Same thing happened to me with Vista Print, however they would NOT refund my money!
4-05-2009 @ 8:38PM
mitch said...
I also had a $10.00 charge after ordering movie tickets on fandango.com. I sent an e-mail saying I didn't appreciate them signing me up for a program that I new nothing about. They claimed that they did nothing wrong, and that I signed up for the rewards program. If I did, I new nothing about it. Anyway, they did credit my c.c. and I got my money back. I have never ordered movie tickets through them since.
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4-06-2009 @ 10:28AM
Denis Murray said...
They got me for a number of months. I thought it was the company I get my airline rewards from. As far as I'm concerned, any company that allows these scam artists to operate should itself be blacklisted. They are making it possible for their customers to be cheated.
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4-06-2009 @ 2:17AM
Sheila said...
Watch out for Smartsavingscenter.com as well. I canceled, had the email to prove it was cancelled, and two months later I was charged again. When I called to complain, they said I was actually signed up for 2 services, and had only cancelled the one. I went ahead and closed my debit card...
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4-06-2009 @ 2:21AM
Sheila said...
Watch out for smartsavingscenter.com as well. Charged me, I cancelled, had the email to prove it, and 2 months later was charged again. When I called to complain, I was given some line that I had actually been signed up for 2 services, and had only cancelled one of them. The rep really couldn't explain why they skipped a month of charging me for the bogus 2nd service. I went ahead and changed my cc number...
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4-06-2009 @ 4:07AM
Shellfish789 said...
Beware of a scam involving...you to work as a mystery shopper for this guy...he e-mail you that you have been chosen ...
He will send you a check for $3,500 and you are to deposit itinto your account and then send $3000 via Money Gram to see if the Money Gram people are treating customers nicely..in return you are to keep $400 dollars for your pay and the other $100 is for the fee to send the money...
YOu will deposit this check into your account and lose your money, because the check is counterfeited..
They steal a company information and logo and print checks out in their name....
If you check with the bank, yes..the company does have a account, but that company did not write the check and have no ideal their identity has been stolen
You will be responsible for this check and the money you received from the bank in regarding this counterfeit check....
~~~~~~~~~~~~~~~~BEWARE~~~~~~~~~~~~~~~~~~
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4-06-2009 @ 4:18AM
shellfish789 said...
BEWARE of a company named, AntiVirus 360
They get into your computer and you can not get rid of them...
The constantly pop-up and CLAM you have all these viruses...and you don't!.....they clam if you buy their product you can get rid of them...
The catch is>>>>> they will not stop the pop-ups and they somehow take control of your computer...and they are the virus!
they put a virus on your computer...so you are force to buy their product....
You can 't get rid of them...and it's been numerous complaints to the FBI...but nothing is being done about them...do a search on Google.
They try to force you into buy their product...or else
If you don't buy their product, it will continue to mess you computer up...
This happened to my son's computer and now we have to take it to the shop to get this AntiVirus 360" off his computer...
I e-mail Antivirus360...and actually told them "off" because I can not us use word, my computer shuts off, I can not use Google etc....
So, Beware what you down load.......this company just appear out of now where....
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4-06-2009 @ 9:12AM
Fred said...
Peter must work for one of the SCAM companies. When your company "shares in the rewards of the CRIMINALS, your company should also share in the punishment! Guilt by association? Damm streight! Orbits, priceline, you can go streight to bankruptsey far as I am concerned. I have used both your services in the past. Then I start getting thses little $10.00 charges from Reservation Rewards, who claim I signed up through KBToys.com. Bull! I Neverhave even visited that site! I was able to get two months refunded over the phone, and then successfuly sent them a fax to get the remainder refunded.
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