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3.5 130 Reviews

DirectBuy Complaints Summary

82 Resolved
48 Unresolved
Our verdict: With a good resolution rate, DirectBuy generally handles customer issues well. However, it’s important to be proactive. Familiarize yourself with their processes and services. Reading through various customer experiences will provide valuable insights into how they handle complex issues.
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DirectBuy reviews & complaints 130

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3:43 pm EDT
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DirectBuy aid direct buy in cheating members

Versa Finaces a 3 yr. contract for DIRECT BUY club. What they dont tell you is that:
The contract is "amoritized"
What happens is they include a very high 17%+ finace charge mutiplied for the term of the contract and then,
Include that amount into every payment.
So even if the member wants to pay the contract of in full the first month, they still incurr the finace charges. After paying 187.00 per month for 3 months a total of: 561.00 only 213.00 went torwards the principal amount.
MAJOR SCAM these to companys have running. They offer no way out of the contract. IT'S A ONE-TIME SIGN your life away deal.
!BEWARE!

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Roshay
, US
Jun 28, 2016 7:16 am EDT
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Any new lawsuits? I hate direct buy and versa with a passion--email me at rustyolamericandream@yahoo.com if anyone is going to sue them...I would love to team up

Thanks

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Charlene49
, US
Sep 02, 2015 10:34 am EDT
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I asked the person giving the orientation, if I could cancel at anytime if I was unsatisfied and he said yes. I repeated myself and said are you sure, and he said yes again. They kept talking to me, and kept me so busy while signing the papetwork I missed the information that said you have three days. I would love to start a class action suite.

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Gina Schreivogel
, US
Aug 17, 2015 4:42 pm EDT

I got tricked in to a Direct Buy contract soon after my husband passed away. They told me I could save money on getting my house fixed up and they had contractors ready to give me deal. They said it would take some of the burden of home repair off of me. What a load of crap! I was never able to use them. The one time I tried to purchase from them the item I wanted was " out of stock " with no plans to replenish the stock. As for everything else they offered--- I could do better elsewhere. I never used the membership I have been paying on the stupid thing since a month after I buried my husband. They took advantage of a widow in a vulnerable state and would not let me discontinue my membership. It is now the end of the 2 year obligation and I just discovered they are still taking money form me! They are the worst kind of scam artists!

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AD2015
Columbia, US
Mar 23, 2015 10:08 pm EDT

DAVIS28AD@YAHOO.COM
I agree with everything that everyone has said regarding this company. Like an idiot I signed a contract with Direct Buy on 1-25-12. Three years have gone by and you would think, it would be paid off by now but it is not. I am a single parent with two special needs children; so every penny I make I need. Versa Finance is horrible and I really can't afford to pay them anymore. Ive never made one purchase from Direct Buy; not one. Now I've been receiving notices in the mail from Direct Buy to renew my membership for a whopping $199.00. They have lost their minds. I'm so glad I looking this company up on the web tonight and found this blog. Looks like Im going back to court. Please contact me at davis28ad@yahoo.com regarding the class action suit. I definitely want to be a part of that.

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windysam
, US
Oct 09, 2014 9:16 pm EDT

Direct buy and versa are definitely scams. When i complain i get no where. I didn't get a payment book, there is no address to mail payments, i can't pay the payments online. This is such crap. Direct buy always tries to smooth it over. . . Versa keeps dinging me. Scam. Scam. Scam. I did this as i had just purchased a home. Needed appliances. Well, it was over 3 weeks til i got membership info / online sign in and then a collection call from versa before i ever got the stuff from direct buy to log into the website. This is a total scam. Bought my appliances at sears and another store and saved a ton of money on sales items that were more online. Then i got a pitch that if i go to them they will contact manufacturer and the manufacturer will give me a better deal. Bs! I'd like to join a class action.

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Mizat1369
, US
Sep 26, 2014 12:02 pm EDT

There is an alert for Versa on the Better Business Bureau's website. The BBB tried to contact Versa and they wouldn't respond. This company is a joke and will keep continuing to take advantage of people unless there is a legal intervention. It is crucial for there to be a lawsuit against this organization otherwise it will only enable their corrupt behavior. The bottom line is, Versa could care a less about anyone and their complaints. All they care about is your money, which is evident in how they operate their business.

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versavictim #254463
, US
Jun 19, 2014 6:30 pm EDT

Yup also getting tons of calls from them. A former "friend" (an ex) managed to get me to co sign on to this scam. I dumped that pos but still get calls from Versa. For now I just ignore 'em that's all I can do, pffft my account's empty anyways... Any new info on an active lawsuit against Versa?

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bfkf
Chester, US
May 31, 2014 9:04 am EDT

My husband and I also signed for a Direct buy account in March 2013 and have not purchased one single thing. At the beginning of this month we called for a better rate for a hotel room out of state and was told that they could no longer assist with that. But they did have a package deal for an additional fee. The sales rep did what they do best, he told me this was an exceptional value for the money. NO WAY! The monthly payment with no extra charges was all a lie. Please Help!

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Disgusted2014
, US
Apr 28, 2014 10:33 am EDT

Versa is ridiculous! I have been asking for a monthly billing statement from them for almost a year with none to come yet. They told me they don't send out monthly statements. I was also never offered or sent a payment booklet. For months I received emails and telephone calls telling me I was behind on my payments. Then I was finally sent a "payment history" which surprisingly included all of my payments. Now the problem became getting people at Versa to understand that I wasn't actually behind. I asked how I could be behind in my payments when half of them included extra money to pay it off sooner. No one had an answer. Then based on the info they sent me I asked, "If my minimum payment is $162.10, how much should I have paid over the last 22 months?" I waited for the $3566.20 calculation to come back just to see if the basic math skills worked. Then I asked, "How is it that I'm behind on my payments if I have paid $3765.28 to date?" Of course, I received no answer and was told that they would pass me on to someone else. The new person wasn't any better. I received an email on Dec. 18 saying that I was 33 days past due. Then I received another one from the same person on March 10th claiming that I was 238 days past due. My math may be off, but I'm pretty sure there are not 205 days in less than 3 months of time. Logic and reason are definitely not their strengths.

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BrendaLee50
Quinton, US
Feb 25, 2014 2:25 pm EST
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Can anyone tell me if they can garnish your wages for the payments. I with anyone on here for a class action lawsuit. They talk so good about their company but don't carry most of what your looking for.

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12:33 am EDT
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DirectBuy fraud/scam

I went to one of their "by invitation only" meetings tonight. What a joke. The presentation was hysterical. The presenter was a fool, jumping up and down when showing prices and amounts of money that members saved over retail. When he spoke about the cost of membership, he said for the first 3 years it would be a cost of 1595, I heard $15.59, not bad, he wrote on the the board 1, 559.00. I knew this was out of my reach.

After the presentation I met with the sales person I met on first coming in. I stood and told her I was not interested and it was too expensive. I showed her how what I wanted to purchase, even if Direct Buy was 50% less than retail, the savings would not add up to the $7000 total cost of membership. She was very angry, I could see it in her eyes, and said "well go ahead and pay more". I said that to pay $7000 to save $4000 was stupid.

If the membership was $100-$200 a year I would have joined as my goals are short term and limited i.e. carpeting and tile. However $7000 is insane.

I read a post that said that it seemed that their were actors in the showroom looking through catalogs, etc. That's exactly what I saw at this showroom, specifically there was one older man at a table by himself drinking coffee looking like he was picked up off the street and dropped into the warehouse.

I say stay away from this company.

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kiltwinds
Ann Arbor, US
Sep 25, 2009 10:13 am EDT

Direct Buy has created a site that looks like a counsumer reports site. If you search google for direct buy scam, it comes up as the first listing. Is says The Truth About DirectBuy. I appears as a site similar to this one and has testimonials of the great things that DB has done. It has links to get a pass there! Dont be fooled spread the word.

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al shaffer
Lincoln, US
Jul 02, 2009 1:00 pm EDT

I was told that if I made a $1, 500 deposit, I could cancel at any time. I've never used any services. I tried to cancel. They said I signed a contract. I'm now on the hook for $4, 900 balance to an independant finance co. You don't know your getting ripped off until you study the books and find that the prices are rediculously inflated.

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need
Sun City, US
Mar 14, 2009 7:02 pm EDT

I have purchased stove and hood from the DB center. They doubled the order. And after returning the seconds, they want to be compensated for the mistake that they made. Is it fare?

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Lorenzo Carreon
Deming, US
Jan 09, 2013 4:35 pm EST

Direct Buy of El Paso closed without notice I paid $5000. for membership and do not live anywhere near any Direct Buy Store who can I contact to cancel membership as I am unable to shop.

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KiranRK
, US
Jan 20, 2012 7:01 pm EST

Don't go with Direct Buy free notebook promotion. They gave us a very cheap china made product which doesn't work. Besides membership fees is very high. So don't waste your time with promotions or with Direct Buy

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swampgoddess
Naples, US
Dec 08, 2014 1:44 pm EST
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We were told verbally that we had thirty days to cancel our membership. We felt that was ample time to determine the merits of their program based on our needs. It took many days to receive return calls from their vendors who have yet to submit estimates to us. The verbal estimates were in excess of prices from our local contacts. We chose to cancel twenty days later. Only then did we see the three day cancelation policy. Had we been made clearly aware of this timeframe, we NEVER would have signed. Of course, since then we have researched Direct Buy and seen countless complaints and lawsuits against them. Yet they remain in business.
And the poor souls who work for them cannot possibly feel good about their jobs.

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Jose Manuel Orozco Jr
San Diego, US
Mar 19, 2012 3:59 pm EDT
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Wow a least you got the note book! they told me they were all out and would mail it to me. LOl! I agree with you its a scam!

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Micheal Johnson
Cottonwood, US
Feb 11, 2011 11:24 pm EST

They said they had contractors in my local area and then after I joined they had none in my area at all. Their prices were higher then the prices at their local competitors.

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El-Jeffe
, US
Jun 18, 2010 9:57 am EDT

Looking at the underlying network information, ConsumerReviews.Org appears to be hosted at the same datacenter as Directbuy.com. The IP addresses are in the same /30 subnet (very close together). Their domain name registration information is hidden to try to prevent you from discovering the relationship. There appears to be nothing but positive DirectBuy comments on that site (I mean no other content at all).

Add to this I get 2 or 3 spam e-mails per day from throwaway domains containing links to the same throwaway domains advertising DirectBuy... what legitimate company uses this sort of SPAM to advertise?

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Dolan
Bayside, US
Oct 06, 2009 7:48 pm EDT

Roger that! I googled in Direct Buy complaints and I saw the same site. I knew it was a scam and it was really owned by them simply by reading all the "rave" reviews! That was my first clue that it was bogus and orchestrated by DB. Then I saw the "free pass" on the top and confirmed my suspicions. So glad there is a site to spread the word. I wish I had found this before I joined a year ago. I have had nothing but aggravation from Direct Buy of Queens NY. The owners NEVER call you back. They NEVER rectify any problems. I waited 3 months for my diningroom furniture to arrive and then it was damaged. I called and called and called and finally threatened them that I would come in person every time they had an open house and let everyone know not to sign up. Boy did I get a call back fast after that threat! It didn't matter though because I still can't get any satifaction from them to replace the damaged goods. They are the worst. NEVER spend your money at DB of QUEENS. You may pay more in a retail store but you will certainly have recourse if your stuff is damaged. They are much more incentivized to make the customer happy at the retail store than at DB. Once DB has your membership money they could care less about any problems you have. They make their money on membership only.

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1:46 am EDT
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DirectBuy scam:no deals

$5000 down the drain. Me and my husband feel like SUCKERS...we have yet to buy one thing from them because whatever money you "might" save you will have to dish out is shipping or just the joining fee...anytime you have to pay more that 30 bucks ala Sam's Club to join any club get ready to get screwed. Texas gives you 2-3 day to bail out of a scam like this...we discovered too late..there are NO DEAlS at Direct Buy that you just can't find at ANY retail store at any given time...PLEASE do not be another SUCKER...stay away...stay FAR away! Take your 5000 and go on a nice trip

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12:27 am EDT
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DirectBuy unable to cancel membership/reputable?

I am a disabled veteran, and a single mom. It is very discouraging that after going through two tours in a war zone, I have to be fighting in my own country for my rights as a consumer.

I visited DirectBuy of Tidewater, Chesapeake Virginia last Saturday, September 18th, 2010. I had taken my 13 year old daughter who was very excited about the savings we were going to have, with me struggling to provide financially.

Well there was a video presentation and a tour. When both me and my daughter was sat down with a lady named Kat. I told her that I don't think I will be able to afford the fee for joining, because I am in college, having a mortgage and my daughter, I am at my limit. I did comment that I am renovating my house, doing a lot of do-it-yourself projects in hopes of selling next year. Kat said it would be ok, they would work with me and that I should not worry. I did sign the paperwork, thinking that this is a company that has been in business for a long time, so they must be reputable.

I left and I thought about the financial struggles I already have, so I decided that this would not be the best thing for me. I tried calling on Monday, 20th, but there was a message that they were closed.

I tried again on Tuesday, 21st and spoke to Daria, I told her that I would like to cancel my membership, and she said the general manager, Mike Daly would call me back.

Well he did not, so I called the next day, Wednesday, 22nd and asked if there was any other manager I could speak to to cancel. Daria said that Mike Daly is the general manager and the only one that could cancel my membership, but he was with another customer.

I called back on Thursday, 23rd and finally got to speak to Mike Daly who said he would absolutely not cancel my membership. I was appalled to say the least.

I even went to DirectBuy address Saturday, 25th and spoke to Mike Daly face to face and he repeated what he said over the phone that he would not cancel my membership.

Now not only do I have to work 12 hour days Monday through Friday, I have to prepare to fight this company, so that my rights are not violated.

How could a company like this stay in business for so long?

I have been through Iraq, Kuwait, but I can surly say that I will fight this not just for me but my daughter. I work very hard for my money, these people can't even provide written prove of savings. How are they allowed to do this?

I thought here in America they have laws to protect the consumer?

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MT1972
, US
Aug 22, 2016 5:13 pm EDT

Why is there not a class action against them in Virginia or does anyone know?

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not_important
, US
Mar 03, 2014 9:59 pm EST

I have worked for this company as a sales director as well as a marketing associate (call center rep.) This company is full of it. They will not allow you to cancel your contract, poor management, and just don't care about people especially the general manager Mike Daly, he is a complete ###. A waste of your time and gas. The membership is 5k just to join and get all of the so called great benefits. No room for advancement and treat employees like ###. Imagine how you will be treated as a potential member.

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Deceptive Tactics
Chesapeake, US
Oct 28, 2013 6:44 pm EDT

Did you ever get this resolved? If so, how? If not, did you go to the attorney general's office and file a complaint? The are now known as DirectBuy of Hampton Roads. Anyone with issues with either one of these companies should file a complaint with attorney general. They lie about the savings you'll get and how you can't ever join if you turn them down. All lies. There contract even states that whatever they say should not be used in decision to join. Deceptive advertising and promotions are illegal. The government needs to shut these guys down.

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Melissa Jackson Robinson
Wilmington, US
Mar 10, 2011 8:55 pm EST

Stealth, you are a real ack jass. And, EVERY contract has either a three or five day rescind option. Ingrid's big mistake was not going to the warehouse IN person to deliver a written notice that she was rescinding the contact. That would have eliminated the whole "he's not available, he'll call back" game. That manager was well aware of the rescind clause, and he expertly played the waiting game.

Ingrid, it's your word against theirs that you called everyday. Good luck with this. You're going to need it.

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Matty12
Albany, US
Jan 04, 2011 10:34 pm EST

Direct Buy personnel are very assertive salesmen/women. Also a veteran and student, my husband and I did not want the $4999 or 5999 contract fee, the salesperson then insulted us by saying they could let us have "the renter's" fee. We are do it yourselfers. Their deals are not deals unless you need a contractor to do everything for you. When we turned them down, the salesman stated that we couldn't come back for 7 years - as if we'd commited a felony. I thought he was kidding. Nope. This guy was a former Navy officer. Navy person to Navy person and I was disgusted by his barely contained rudeness.

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i jeans
labelle, US
Dec 07, 2010 2:04 am EST

most honest companies give you time to think it over after signing to cancel a contract and if you wish to do so they honor the request. ive been taken by some hudge companies that tacked on interest rates after the fact but i didnt notice till my cancel date was over my mistake. but if you decied the next day or do to cancel they should honor it.

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11:38 am EDT
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DirectBuy misrepresentation

Beware: Before signing any contract with this Direct Buy Store, make sure they really carry the products that they claim to. Even though they mentioned 3 times during the presentation that they carried a certain brand of cameras plus had that brand catelog on the shelf: they informed me that they did not work with this camera company. This happened after I signed a contract with them and placed an order. They misrepresented what companies they work with. They would not make good on this situation afterwards and would not relieve me of the membership. They do not honor the promise of reducing the cost 15% of an item that one finds cheaper than they offer it.

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DirectBuy sending me to collections after canceling membership

My husband and I bought our empty house in 2008, when we saw adds for DirectBuy, we thought what a great way to save money! So we went to the showroom in Rockland, MA. They showed us a video and listened to their sales pitch.. It worked, by the end of the day, we ended up signing a contract. They had us sign a contract-$5000 plus membership fee... $279 plus per month for a couple of years... Well, by the time we got around to wanting to buy furniture, the market crashed and it didn't make sense to charge on our credit card meanwhile, we were paying the monthly fee for not using it. After about 2 months, my husband called to cancel the membership... We didn't hear from them for awhile until today July 7th, 2010. The agent calls me at my workplace. She says, We have been trying to contact you. You haven't made a payment since April 2009. We are Beta Finance. A collection agency. We are required by law to make this phone call." In the meantime, I 'm thinking, I am not late on anything. Then she said the magic word... DirectBuy. I told her that we had cancelled the membership months ago. She proceeds to say that there wasn't a way that you could cancel and that they work together and that I had taken out a loan by signing the contract with DirectBuy. I responded with "I cancelled that membership months ago." Without any response out of her, she hangs up the phone! "I was baffled. My husband and I spoke with the owners ourselves of the Rockland DirectBuy and he failed to mention that it was a loan we were agreeing to. I think Direct Buy is a scam and don't fall for it like we did!

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DIRECT LIE VICTIM
Aurora, US
Feb 09, 2011 12:16 am EST

I am a victim of the biggest scam since Enron/Madoff scam! My thing is with all of the complaint's about this company why haven't our Judicial system taken a look into this issue it makes you wonder hum...? and why haven't there been an outcry from other furniture businesses? you would think they would get together and try to put a stop to this because ...for every person DIRECT LIE messes over it's a potential customer the competition losses out on because NOW they don't have the money to shop at their business !

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DirectBuy everything sucks

My husband and I got dooped into joining Direct Buy about 1 year ago. They kiss your butt during those orientations, offering you drinks and making you a bunch of promises. Once you shell out the joiners fee (which is absolutely ridiculous, in retrospect), all of the help and hospitality goes right out the window.

We can barely get help when we make the drive out to the center...heaven forbid we ask for someone to return a phone call!

We live about 2 hours away from our local Direct Buy, but were promised it would be worth our drive. HAHAHAHAHA! We were also promised there was no shipping on goods, unless we decided to have them shipped to our home. HAHAHAHA! They failed to mention that the manufacturer, not Direct Buy, will charge you "frieght" on all weighted items if they choose...i. e- we ordered a $300 bed from Ashley Furniture...we paid almost $600 by the time they added freight...AAAANNND we had to drive 2 hours into the dregs of PIttsburgh to pick it at some crummy warehouse on a deserted, creepy street. I ordered a table at the end of April which is still not in and it is now mid June. Best part is, once the item comes in you only have 2 days to pick it up or they start charging you a storage fee.

Our worst experience, however, is our countertops. We were told at the orientation that countertops take 2 weeks to come in. They even made a big stink about making sure our cabinets were ready for those counters because they will be installed in 2 weeks and they won't wait for us. We placed our order for Silestone counters on 04/10/10. It is not 06/17/10 and I still have not heard ANYTHING about the counters. I keep calling the center and never get a returned phone call. You have to pay for all of your goods up front, so we shelled out almost 4, 000 and can't even get a returned phone call?! We also ordered a butcher block top for our island on the same day we ordered the silestone. That was finally installed on 06/15/10, However, when the guy from the manufacturer came to measure for installation (he did a great job, you can tell he wasn't a Direct Buy employee), he brought to our attention that Direct Buy charged us for a much larger top than we needed. I called to ask about it and they said once the purchase was complete they would see about trying to get us a refund on a credit card. We paid with a freaking check, but we can get a credit refund? REally? I called and left a message this morning threatening legal action and my husband called and talked to a manager. They are supposed to get back to us by the end of this week...won't hold my breath. In the meantime, they have $4, 000 cash of ours tied up that we cannot use to go purchase counters from a reputable, trustworthy seller. Not to mention, they still owe us the money from the overpayment of the butcher block. We are building a house and Direct Buy has us way behind schedule.

To sum it up, Direct Buy employees are liars, frauds and cheats. You pay waaaay to much to join this this group (almost 6 grand) and you get stress and headaches in return. This is, by far, the worst experience that I as a consumer have had. They suck! Don't buy into their schemes!

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12:01 pm EDT
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DirectBuy loss of money/ no help

Please whatever you don't get roped into this store...
The savings they claim do not work out from the all the shipping and freight charges, just go to your local store. Also, we bought our very high end expinsive fridge(almost $3, 000)here and when it stopped working in under a year the company, Samsung does not consider Direct Buy a store. IN turn this ment we could not exchange out the item and had to wait months for a refund check. Over and over I heard from Samsung that if we just went to a local retailer, we would not have this issue. I went in person back to direct by to see if I could get any help with all the money I was lossing, on the freight and shipping and tax...Direct Buy stated they could not help at all but order a new fridge with all those charges again.
Please just don't be another victum...

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Ed E
Bassett, US
Mar 25, 2011 2:15 pm EDT

I have been a 'member' for a year and our local 'showroom' closed without notice from the local store or Direct Buy corporate. After attempting to contact Direct Buy corporate for over a month, I finally reach a human and was told they had no responsibility for local showrooms and there would be no cancellations, refunds or other 'adjustments' made. Direct Buy corporate does not stand behind their local reps. If they close the doors, it's up to you to go after the franchisees. I would not recommend Direct Buy to my worst enemy. Oh, I was advised I could go on line and shop just as I would with any other web site except they don't charge any fees. Think about it!

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11:15 pm EDT
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DirectBuy phone calls

Today, on Memorial Day, we received a phone call from a telamarketer from Direct Buy. She spoke with my husband and made an offer for a chance to win a fifty thousand dollar make over. My husband gave the phone to my son for me to talk to her. My son accidently hung up the phone. I tried to call it back but it isn't a number that receives calls. At 8:45 pm she calls me back. She asked for me and I said this is she, then she said that earlier she had spoken to my husband and he hung up on her. I tried to apologize and she wouldn't give me a chance to say a word. She went on saying "if you are not interested the proper way is to say you are not interested" then she said " this is how it feels" and she hung up on me.
I understand how hard a telamarketers job is and have always been kind to them. The mistake she made is that we were planning on joining Direct Buy this week! As you have figured it out we will not be joining a company that has childish people working for them! I have made a formal complaint with the BBB and recommend that all are cautious with Direct Buy and their customer service!

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TheGarageKing
Flint, US
Jun 19, 2013 7:17 pm EDT
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When my wife and I signed up for membership back in 1999, they guaranteed savings. Whenever anyone has come remotely close to a DirectBuy price for a given item (rare), they contacted the manufacturer, and got us at least 15% off the best price I could find online. Non-members cannot buy furniture anywhere near the price that I can, unless they don't mind buying the damaged crap they sell at the closeout area of the store, or if they don't mind buying used furniture from Craigslist. It's been a great deal. The membership is expensive initially, no doubt, but we saved enough on 3 furniture purchases to cover it, and we've been saving money ever since. It's actually made buying stuff a lot more fun, because we do plenty of research to find the absolute cheapest price for an item, and once we have that $ figure, we go to the DirectBuy website, or go to the club and flip open the catalog, and viola, it is always cheaper. A sofa with a $12, 000 MSRP will go on a "big sale" online for $5999. What do I pay for the same sofa? About $3800. You'll only save about 25% on low-end furniture (think $200 chair, $600 sofa), but if you like nice furniture that is built to last more than 5 years, you'll want a membership at DirectBuy.

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The Ceej
Manchster, GB
Jan 25, 2013 7:07 pm EST

Does anyone have a number you can use to actually contact Direct Buy? I would love to harass them back. They're more relentless in their continued harassing phone calls than they are in their promises to stop calling.

Someone needs to give them a taste of their own medicine.

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vegaschef
Las Vegas, US
Jul 21, 2011 8:38 pm EDT

Divot Maker can you give me any specific examples? We have been members of DirectBuy for 3 months and have seen a great savings on furniture, granite and paint. The staff has been very nice to us. I am wondering because maybe the savings on the items I am looking at is good and the ones you are looking at are not.

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divotmaker
Las Vegas, US
Jul 09, 2011 5:58 pm EDT

Wish we would have seen these reviews BEFORE we joined directbuy las vegas. So far there are no great deals, if you shop at all you will see that there prices aren't any lower then you can buy elsewhere. All the additional fees are rediculous. There adds are deceptive, there staff lies ( I have it documented) all they want is your upfront money and after that it is screw you. As others have said save your money and your time. Another thing is they don't except returns so if you buy something you are stuck with it and you don't get to see the merchandise in person before buying...can't think of another place that does that. STAY FAR AWAY FROM DIRECTBUY LAS VEGAS

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skyqueen1948
Victor, US
Jun 01, 2010 3:53 pm EDT
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Sorry I didn't read the whole complaint but you saved yourself a bundle of money by not signing up for the membershp to Dirct Buy. Keep your money and go to a nice restaurant. Take care.

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skyqueen1948
Victor, US
Jun 01, 2010 3:49 pm EDT
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We have seen the ads for Direct Buy on TV, called and got a free pass to the nearest store which was in Spokane, WA. Found it okay with getting lost once. The staff was friendly and courteous. We waited with several other couples for a four(4) hour presentation on how the company operated. After three hours into the presentation one couple asked how much the program was to cost them the rep took them out of the room-never saw them again. Soon after this happened I asked how much was the program, I was told it would cost $4900.00 the first year and arounf $3000.00 for each year after . We would have paid up to $500.00 for a membership but that was a little more than what I had spent remodeling my bathroom. As you guessed we walked out of the showroom and went to Red Lobster. As to the $50, 000.00 home remodel I might put some stock into it but wouldn't hold my breath. The put members before nonmembers, so submit your name and cross your fingers. Good luck!.

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DirectBuy rip off

Direct buy arkansas, little rock and nwa, never... never... buy anything this way! little rock & bentonville arkansas

This company changes its name frequently because of a poor consumer record. it was formerly known as ucctotalhome.

There are many online reports on both companies regarding their poor consumer record. look up "direct buy scam" on any search engine.

Since you are reading this you probably don't know much about how a company like this does business.

A company with a dubious product or service for sale (like this one) will attempt to use coercive persuasion to make you buy. this may be a 'fear of loss' technique (you will not be able to tour the showroom and check prices again for 7 years if you don't buy a membership today) or 'power close' techniques to 'intimidate' you into buying. remember, they have nothing to lose... they will not see you again if you don't buy 'today' so they are liable to try anything that might 'close the sale' with your personality type.

Time share is sold this way and some health club memberships because so many people drop out and don't use their memberships. they are really just selling 'time' to use their facility... they have virtually no additional expenses when you join.

The contract, which no attorney would ever let you sign, is so one sided that it is patently fraudulent. but since you cannot take it home to review it... most people who do join based on hype and inaccurate claims, find themselves holding a document that gives them virtually nothing for their money.

They are selling the equivalent of a sams club membership for thousands!

You can normally find better pricing on the internet (that deliver to your home, not a warehouse) so directbuy selling for thousands is a total ripoff!

You are paying for a 'buying club' that gives almost no service, has prices that can be beaten by almost any discount retailer. they hide behind a clever contract that gives you no rights to contest anything.

Avoid! if it were a good, decent company they would be happy to let you pay monthly.

But if they did that no one would ever stay with the membership.

Consumer review
Little rock, arkansas
U.s. a.

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Owl
, US
Aug 15, 2009 3:25 pm EDT

My wife surfed the web for furniture stores locally, stumbled across Directbuy. she called them, made an appointment to see their showroom.

they asked if she had children, she said yes, they told her she would need to find a babysitter because the children would not be allowed to come. she thought this was strange...

then they asked her if she was married, she said yes. they said i had to accompany her on the visit. she explained that i despise shopping, and she would be coming alone. they insisted she bring me. she blew up at this point, telling the phone rep "I'M AN ADULT WOMAN, I DON'T NEED TO BRING ANYONE WITH ME TO BUY SOMETHING. I'LL BUY WHATEVER I WANT WHENEVER I WANT, AND YOU WON'T TELL ME WHO HAS TO COME HOLD MY HAND!"

it went downhill from there. i researched directbuy on the web thereafter, discovering it was a monster scam.

i kind of wish we'd have gone to the open house, nothing enrages me like a surprise $6000 initiation fee.

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DirectBuy service

Request price quote by phone, the reception took all info and name and told me will call back. no response so called back 1 week later. the office told me different things, cann't give over phone only by e-mail. Sent e-mail on 4/24/10, no response, I called 4/29/10. Direct Buy office told me they send and something wrong with my computer.
I did not delete unless I check, due to e-mail I given to them is my business e-mail. I get all e-meil without any problem.
they send 2nd e-mail at 6:00 PM today. I got it without any problem. Specially DirectBuy Rio Grand Valley store owner Nancy attitute was very scare to me. She did not hesitate blame my computer was something wrong. I told her, I using this e-mail address everyday for my business, "are you blame my computer is wrong?" She told me, "You put words in your mouth." I told her, " I am not really happy with your service what is Member Cancellation Policy?" She told me, " You don't have any cancellation, you been a member 2 years." I asked her, "Can I have a corperate office tel #?" She told me, " This own by independence, I am the owner"
She is not ready to listen to a customer complaint and the DirectBuy office salesperson are not trained for support customer need. When I confront their poor service, she started screaming at me. She is very rude and not professional. I thought I am a member for the DirectBuy company which well managed and service oriented nationally not some arrogant individual represent DirectBuy. I like to address my concern to the Corperate office but I could not even locate address or any contact number. I have e-mail I sent to them and from them. They not willing to improve any service. I hate to drag into it. Any suggestion? I want people to know DirectBuy is not what you saw in big TV/Internet advertise. Plese think twice or third time before join it.

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DirectBuy no saving, waste of time and money

Direct Buy is a waste of time and money, I can't believe I was suckered into this scam. I am normally good at fingering a scam, but because I was redecorating I thought it would be a good ideal. NO such luck, they don't have the vendors I am interested in, they tell you to go to Directbuycares.com to request new vendors and the Directbuycares.com does not exist. Looking through catalogs is boring and time consuming. YOu can't find stores to go to, to look at the product. I am so mad at myself for falling for this so called membership. Please run as fast as you can, DON'T DO IT.

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skyqueen1948
Victor, US
Jun 01, 2010 4:13 pm EDT
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So did you pay the exorbitant membership price? We went to one of their presentations thinking we could afford the cost, boy we were wrong! We were remodeling our bathroom, saw the ad on tv and thinking we would save money thru Direct Buy, again we were wrong! I managed to do the whole remodel for under $2000.00 by shopping the sales and haggling for seconds. Sorry you were taken by this company. Doesn't the company have a money back policy? Take care and use your intuition.

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9:57 am EDT
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DirectBuy spamming

Direct Buy Home Improvement & Furnishings Club seems to have shifted from flooding the TV, promoting their over-priced/under-valued club membership, now to spamming... tacky.

To unsubscribe, they request either to mail them to get off their list (what the heck) or visit their website where a great deal of information is required to do so concluded by a message that their Internet Compliance Agent will be in contact in order to complete the un-subscription... is this company for real? I still get their spam every day!

Stay away from this company folks!

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DirectBuy payments and membership cancellation

Joined Direct Buy of Lancaster, PA in 2/2008. Payments made to Beta Finance were "misplaced" on several occasions and then payments appeared when threat of lawsuit was proposed. Monthly statements would not have all the appropriate payments listed. Balance on account was different on each statement. When called Beta Finance, they were not able to provide payment record or any evidence of where they were getting their information on missed payments. We continued to make payments due to the fact that we were told that there is no cancellation policy included with Direct Buy memberships and that once we made the downpayment, we agreed to complete the purchase. We still had an open bankruptcy at the time and could have added it as a creditor, but Beta Finance "convinced" us that our membership was well worth the price and they would be sure to apply all future payments as agreed upon in contract. Our membership was inactivated by Direct Buy because they were informed that we had not made our payments to Beta Finance. I requested a cancellation of membership at that time, with no refund, just a cancellation of our membership with no further payments to be made and our account closed and a letter confirming the agreement from Beta Finance. I received no communication and at the time our account balance was $3400, which was down from the original balance of $4600. As of March 2010, we received a collection call and letter stating we were in default on our payments to Beta Finance and collection proceedings had been started. The balance on the account is now $4018. We are currently in the process of closing on a home purchase and cannot afford to have this placed against our credit because it will cancel our approval and we lose the home. I called Beta Finance, but they told me they could no longer discuss our account because it had been turned over to the collection company. They told me our balance was $3400, but it was possible the collection company added charges to the balance to cover their collection fees. Beta Finance refered me back to the collection agency. The collection company claims they can offer us a settlement of $3200, but it has to be paid in either one or two payments. We are in a bad situation due to the risk of our credit. We agreed to make a payment within 10 days for 1/2 of the balance, but we would rather just have the membership cancelled with no further relationship with Direct Buy or Beta Finance. Please give us any advice you have. Thank you.

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Dani O
, US
Sep 22, 2016 9:35 am EDT

I'm in Canada. I need someone who has information on how I can get this settled cause I contacted them about it after they promised if I didn't make the savings they said I would they would pay it off. They haven't paid it off but they sent me to collections. I need help

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Ahunt
, US
Sep 21, 2015 11:00 am EDT
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It seems as though I did not do my research well, just like many of you all, I to feel as though I signed off on a scam/ debt. The fact of the matter is, their products and selections are not as varied as they explain, and I have yet to come across the savings they guaranteed me. I am always price checking local stores to see if this membership really makes a difference. I wanted to cancel my membership and I was denied. Being that I am freshly furnishing my home, I bough into the whole savings gibberish. I have yet to see anything that suits my taste. I would really just like to not be apart of this club. I have a mortgage and student debt to pay on.

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ELAINE JOINER
ELGIN, US
Aug 07, 2015 3:35 pm EDT
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I feel the same as all of you, I can't afford the extra fees, they told us that he went on a disney vacation for $200 for a family of four and stayed on disneys site. We bought into that because we have 3kids that want to go to Disney world and we thought this might be a way we could afford it, not...They lied and bamboozled us just like they did you. If there is a lawsuit we want on it, because they prey on people like us and they need to be stopped. What can we do now, any suggestions we are open to anything that will get us out of this mess. EJoiner

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Angela Truman
, US
Jul 30, 2015 4:40 pm EDT

Unfortunately my fiance and I got scammed as well. We paid $1000 down to help lower our monthly payments. We didn't get any of our information for almost a month. That's when we noticed that we were pretty much screwed. After almost a year of making payments we still had not purchased a single thing. I searched for a couch and was happy to see the price compared to the furniture stores price... that was until I placed the item in the "cart" and all the handling fees piled up! It would of cost me $200 more than the same exact one at the furniture store plus I would have to pay for shipping since the closest DB was an hour drive. What a rip off. I haven't bought anything from them and can't afford the payments. They sent my account to collections and I get calls almost everyday about payments. I can barely afford my living bills, how do they expect me to pay their useless bill?! I need help getting out of this! Any one know what I can do to get rid of this in Arizona?
Atrumant@gmail.com

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C W Morgan
Snellville, US
Jun 30, 2015 1:13 pm EDT

I'm interested in filing a Class Action Lawsuit against DB and Beta Finance. I've paid nearly $3300 and have not been able to purchase anything "reasonable" according to the contract. Are there any others out there like me. I'm pissed that I've thrown away money that I didn't have and there are no apologies from either of these outlets. Join me/ contact me, if you're interested. Singingsoldier@hotmail.com

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ELAINE JOINER
ELGIN, US
Jun 03, 2015 1:50 am EDT
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we were stupid and bought it. we should have known something when he told us it was going to be one price down and ended up being 500 down. I then get a bill from beta saying its due the 23th of May and my contract says first payment due june 3rd. We were not told about the additional fees. The guy that we had said he went to Disney World and bought the trip through DB and for one week it only cost him $200. Thats what got us, we have 3 disabled kids that wants to go there and we thought this was a way we could afford to go. Will you please send me the name of that person who got you out of this mess? I am at zentumbler@aol.com, please help, I am a grandmother on social security trying to raise three grandkids, I need help.

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1958
Cantonment, US
May 25, 2015 2:12 pm EDT

may I have the name of the person or persons you hired to get your money back?email me @ lmbs1958@cox.net.PLEASE! I dont want to throw away more money on this scam!

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Andy Kerr01
Marionville, US
Apr 27, 2015 7:18 am EDT
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I hired a guy, very reasonable and he got me out and money back from these crooks. I can't believe they are allowed to lie and con their way into our wallets.

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S. Bonugli
Pflugerville, US
Apr 22, 2015 9:52 am EDT
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BOY WHAT A LESSON TO LEARN, I TO BOUGHT INTO THIS SCAM. BUT NEVER THE LESS HAVE BEEN TRYING TO PAY THIS OFF. GOT BEHIND 1 MONTH AND BETA IS CALLING MY WORK, LEFT MESSAGE ON MY WORK PHONE LIKE WERE NOT GOING TO PAY. I GUESS IF I WERE THAT KIND OF PERSON WHO RIPS PEOPLE OFF I WOULD HOUND THEM FOR MORE MONEY. I WISH THE GOVERNMENT WOULD DO SOMETHING ABOUT THIS, WHO KNOW IT SMELLS OF GOVERNMENT! !

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DontJoinDirectBuyYouveBeenWarned
, US
Sep 30, 2014 1:07 pm EDT

This Beta Finance is a joke. I made all my payments EARLY every month, paid extra to get it paid off. I called for a pay off amount and they can't give it to me. Then the rep on the phone tells me I pay 17.5% interest PER DAY.. I told her she was nuts, and showed her with simple math that its IMPOSSIBLE. I asked her for a rate factor so I could calculate my own pay off number, she tells me she can't give me that.

If you are reading this site, STAY AWAY FROM DIRECT BUY and BETA FINANCE. Most EVERYTING I have price compared has cost the same or more than I can buy online for. Very, very few items would save me money if I purchased from them. You can go to H.H.Gregg, Best Buy and Abt and spend FAR less and get the same quality items.

i made a huge mistake joining, i have regretted it since day one. The promise of savings is a lie, you pay 5000.00 (in my case 3500.00) up front. Divide that by the number of purchase you make and add it to the price of the item you are buying. Its a scam. Because after you pay to join the club. You pay a FEE to the club for EVERY purchase you make after.

Save your money, don't make the mistake I did. I went against my best judgement and I TOTALLY knew better.

Steer clear.

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2:21 pm EDT
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DirectBuy bad business practice and outright lying to consumers

I am a former employee who knows first hand that this company is a scam and a joke. I am currently detailing their entire marketing practice on my facebook page from the phone room to the show room floor. If you read it over I'm sure you will be more than a little sickened. Anyway the facebook page is called DirectBuy Liberty and after reading over it if you have any questions I would encourage you to call and ask to speak with either Mark or Ann Divellbiss at the number listed above. They are the owners of the location. And feel free to add me on facebook...we need the moral support...we're trying to take these guys down or at least make them fell our prescence.

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becky without a truck
Johnson City, US
Aug 25, 2010 12:53 pm EDT
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Folks that worked for or are still working for DB: Has anyone filed for unemployment? We were recently laid off for a week. Called back to work. Worked for less than 10 hours and were termed for missed work - retro back to Jan.(includes days we were told not to come in due to bugs passed around) and not mem. a script, even though we had it posted everywhere you looked as well as on PC. We are recving unemployment - but has been contested. Any helpfull info out there?

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chriesma
norfolk, US
May 04, 2010 5:53 pm EDT
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I 'm very angry with the directbuy in va they lie to u and tell u false information they have u feel out this coversheet and then tell u that its the same sheet on the conträct you are signing i ask for my money back the next day and they refuse to give my money bäck they wont return my calls and i wouldnt tell noone to go there they scam you out ur hard earn money.

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marklaw85
lees summit, US
Apr 06, 2010 3:45 pm EDT

What are your complaints ? you don't specify anything

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DirectBuy pyramid scheme

Direct Buy is nothing but a pyramid scheme. When someone joins, the person who made the original phone call gets a commission, the person who invites you to an "open house" (which is like a high-pressured time share deal) gets a commission, the person who sells the membership also gets a big commission. They don't tell you about the fees (shipping & handling), you still have to pay taxes and delivery unless you have the truck to pick up the merchandise.

In the meantime, you can shop the sales at retail stores and save your time and money!

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smarterguy
Vancouver, CA
Jun 18, 2011 1:52 am EDT

I agree wt you! Directbuy is absolutely PYRAMID! so disappointed! -_-

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achang07
New York, US
Jan 09, 2011 1:42 pm EST

Sure, you have to pay shipping but you'll save thousands of dollars. Raymond & Flanigan furniture sells a 4 or 5 piece children's bedroom set for $7, 000 made by a popular manufacturer. We purchased the same set, plus 5 additional pieces that you can get from no furniture store, but only by using the catalog for only $5, 000, including shipping, handling, taxes, etc. When asked about the additional pieces, Raymond and Flanigan quoted us a price over $20, 000 and said that's a great set. What doesn't work for you, works for everyone else. I can't tell you about the savings because you are busy paying the 60 to 70% margins.

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DirectBuy unauthorized charge

OK people stop calling me the first complaint I posted gave you my phone number, and my address for this fraudulent company, I am not the company, and I am not going to call any of you back.
Direct buy Discounts is a part of the on-line company hot movies, which I bought 2 DVD's from titled the Waltons, they use your account information to sign you up with this company and bill you monthly, for I do not know what.
I am still trying to end this myself, and stop being billed. I do not like it any more than you do, and I do not like the messages you are leaving on my phone, Florida does have a no harassment law, so stop calling me, or I am turning your calls over to the state attorney.

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Update by Mark Berry
Feb 24, 2010 3:49 pm EST

OK people I am Nathaniel Mark Berry, and I am not the fraudulent company Direct buy discounts. The first complaint I posted gave you my phone number, and address by mistake, so stop calling me.
Direct buy discounts is part of the company hot movies, so if you have bought anything from then then there is your problem. I bought 2 DVD's from them, and then started being charged for a membership to this company which I did not agree to. If I can find out how to end these charges, I will pass this info on to you, but for now.
STOP CALLING ME.

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Nathaniel M Berry
Southport, US
Feb 19, 2010 3:52 pm EST

I was looking at my debit card account, and there are charges for $11.98 that I did not authorize from this company, and I do not know how to get my money back, it is a members only website, you can not contact them, my debit card company said to call them, but they are located in the United Kingdom, how much is that going to cost?

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Robert Bullock
Mt Airy, US
Aug 31, 2010 10:38 am EDT
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I have just uncovered that my card has been charged $11.98 + .36 bank oversaas charge evey month since 1/2010 wiuthout my knowledge . I called them at [protected] and they agreed to cancel membership and refund 2 month charges . They told me I should have been more dilagent in checking my account. Which I guess is true but trher still a scam . There operating out of the country out of the reach of the US justice system and change there billing name every couple months . There operating under Family Save Discount. Com, DirectBuytDiscount.Com & EverydayDiscount .Com. There a scam and you will get screwed if they get access to your account, n Do yourslf a big favor and check yourt statements every month if you buy on line. Your bank will not help you past 60 days.
Bob Bullock
Maryland

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Pawprint6
, US
Jun 17, 2010 12:13 pm EDT
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I called the company, and was told that someone used a bogus yahoo.com e-mail address, and an old address of mine was used for me to join some buyer's club. I don't know if it is true or not, but the rep I spoke with said that I should see the credit for the $12.45 monthly charge, and the $4.00 initial membership charge credited within 10 days. I also got a confirmation number for the credit transaction.
I'll keep you posted.

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Cheryl Parmele
Athens, US
Mar 18, 2010 8:18 pm EDT

I am also getting a debit of $11.98 each month from my checking account and cannot seem to get it stopped. Every call and email address I try seems to be wrong. I have not purchased anything at all.
Is the correct number to call [protected]? I will try this and hopefully this nonsense will stop and these people will quit getting rich off of these schemes. Thanks to all of you - glad I finally found this website for complaints.

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motoGard56
Keizer, US
Mar 15, 2010 1:11 pm EDT

I have narrowed this down to a purchase made froma facebook link. The original purchase was for everyday life, but the method used was 2 fold, i did receive virtual goods for an avatar in a popular game. This may be new to most of you but is becoming more and more popular. However, the method is not as important as the outcome, which enrolled me in the "shopping club" that keeps charging me the monthly fee's. These are the fee's that keep showing up on all of our accounts. Did anyone else make their purchase through facebook or twitter. This may be the issue!

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1TwoWatch
, US
Mar 11, 2010 1:29 pm EST

We HAD the same problem. There are a number of companies out there passing around your info.
The charge recently came from DirectBuyDiscount who got the info from Key Discount 1 (phone [protected]) and then we tracked our problem down to : Everydays Discount [protected]

My husband bought some "space saving bags" back in July 09 and, according to Everdays Discount, he also signed up for their "Savings Club" at the same time! The lady on the phone said you should be very careful when ordering online and always read the fine print. (Ha... guess she should know) We have been getting charged between $19.98 and $11.98 monthly since! The company could not explain why transactions are going through the U.K. --- very suspicious, if you ask me.

Even stranger... the name of the charging company has changed every couple months since our initial charge in August 09.

Call today to cancel the service and demand your money back. We received 2 months subscription back from the company and I believe that is what your bank/credit card company would get if they disputed the claim for you.

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Allison Underhill
english , US
Mar 09, 2010 2:41 pm EST

My name is Allison Underhill. I am very angry because this company keeps taking money out of my checking account and I want it stopped immediantly! I want my money back as well! last month you got me for $12.08 twice on 2/05/10. this month you've got me for $11.98 twice showing it is coming out today 2/09/10. So in all you owe me $48.32. I want it returned by Friday 2/12/10.

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Nathaniel M Berry
Southport, US
Mar 08, 2010 3:58 pm EST

The correct number to call in North America is
[protected]

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Nathaniel M Berry
Southport, US
Mar 08, 2010 3:57 pm EST

same here, got the charges stopped.

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Nathaniel M Berry
Southport, US
Mar 08, 2010 3:51 pm EST

STOP CALLING ME at the 850 number that was posted on my first complaint. I am not the company direct buy discounts, they have been charging me also. The company is located in the United Kingdom, you can look it up if you want to pay the enternational long distance charges.
Here is what I did, I started getting these charges after buying some DVD's of the Walton's from hot movies on line. I contacted them and they canceled the membership, and the charges have stopped, so if you have bought any DVD's on line my advice is the check the company you bought them from.
if I get any more phone calls, I am going to start putting the numbers on here, so people can start calling you all hours of the day and night.

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DirectBuy direct buy texas do not join

Direct Buy Texas
Do not sign up! We did and have buyers remorse. Called 2 days later, have not used anything from them. Cannot get our money back. If you sign a contract in Texas at the place of business you cannot get your money back. I am sure there are plenty of people that could possibly use their services but this is not for us and I cannot believe that a company will not even refund money when someone has never used their services. Their comments were that there is no Trial and that is a lie because if you go to their website supposedly they have a free 30 day trial? If you sign up do it by ck so you can put a stop pay on it if you decide not to after you have signed their paperwork. I am sure they will probably sue but oh well at this point I just want my money and them stopped. Yes we were stupid and tired as we did this on a Friday evening and by the time we were done it was 10 or after and I just wanted out of there.

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DirectBuy scammed

This is a company which needs to be shut down. It is nothing more than a scam! To see we purchase the membership and cannot cancel and only to have patronizing officers and service reps to give us loads of we can do this or that until the refund time period is over is a load and a true outright crime. These are people of LOW integrity and the only HIGH Priced ITEMS with NO VALUE was the membership!

Customer Service? Fail
Professionalism? FAIL
Handling of complaints? DRASTIC FAIL
PRICING? OVER PRICED for NOTHING! TRULY A SCAM!

These people are lower the belly of a snake...Worse than cockroach infested telemarketers calling after hours. I would be ASHAMED to work their more than I am that I bought a membership and the only reason I tell people I bought one is so I can WARN them not to do the same. The outpour of complaints after seeing so many sites with the same responses only leads me to believe this cannot be legal and must be stopped with so many of us. I have started an account "scammedbyDirectBuy AT Yahoo" anyone wants to send me info such as detailed stories and locations of outlet and their name and numbers for future contact would be good. I am speaking to a personal friend to see the legal actions possible for this and get him to take it on for us pro-bono (no costs to us unless he wins)

Please post at all sites about this company as we need to spread the word of these scammers for hurting them where it hurts and their pockets not that of the honest working folks!

argh!

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C McGraw
Caraquet, CA
Mar 23, 2014 10:42 pm EDT

I've been had by them ! I paid the first year and even more, the business is now closed and eventhough I didn't even bought a screw from that store, they still want me to send them $200. a month for another year and a half or so. Crelogix are after me saying my name will be at the credit bureau if I don't pay. I froze everything and they won't have another penny from me.

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DirectBuy sketchy from the top down.

Son of DirectBuy founder says he was forced out of dad's company
CLAIMS AGE DISCRIMINATION IN FEDERAL LAWSUIT
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By Dan Hinkel - dan.[protected]@nwi.com, [protected] | Posted: Thursday, January 21, 2010 12:00 am | 1 Comment
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HAMMOND | The son of the founder of home furnishing buying club company DirectBuy is suing the Merrillville-based company's parent group over alleged age discrimination, accusing DirectBuy's corporate parent of depriving him of $900, 000 in yearly pay when he was purportedly forced to retire at age 53.
Sara Butler, spokeswoman for DirectBuy parent United Consumers Club, said her company's leaders "could not disagree more strongly with the allegations"of plaintiff Jack Gagan.
"All employees are given equal employment opportunity without regard to age, sex, race, religion, national origin, disability, genetic information or any other category protected by applicable law, " she said.
"The company looks forward to defeating Mr. Gagan's claims in court, " she said.
Gagan claims in a lawsuit filed last week in Hammond federal court that after Trivest Partners bought United Consumers Club in 2007, the company's president, who is slightly younger than Gagan, demanded in 2008 that Gagan retire at age 53. Gagan, who had been the parent company's vice president of merchandising, told United President Scott Powell and the company's lawyer that he did not want to retire until age 65, the suit claims.
But Powell and the lawyer persisted, according to the suit. On July 22, 2008, the men asked Gagan if he wanted to publically announce his retirement at a manager's meeting the next day, the suit claims. During the same meeting, the men said they wanted to fire one of the company's oldest employees, a 63-year-old man with a "demonstrated record of excellent job performance, " and Gagan spoke against the firing, Gagan alleges.
At the end of that meeting, Gagan was told not to come to work the next day, according to the suit. Company officials told Gagan, who made a $600, 000 salary and $75, 000 quarterly bonuses in 2007, he should "consult" for the company from home and, if they needed his help, they would contact him, the suit claims.
United Consumers Club executives announced Gagan's retirement a few days later, Gagan claims.
The company has continued to fire employees upwards of 40, the suit claims.
Gagan's attorney could not be reached Thursday for comment.
Jack Gagan's father, James L. Gagan Sr., founded DirectBuy in Merrillville in 1971. The company's franchises offer members home furnishings at what the company calls "direct insider prices." Jack Gagan was recently hired as an executive with Khoury Furniture, according to furniture industry trade publications

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