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DirectBuy review: scam ( 39 comments)

D
Author of the review
9:00 pm UTC
Resolved
The complaint has been investigated and resolved to the customer’s satisfaction.

They are a new low on the human species chain. Ask yourself why there are so many complaints about them. There is no customer service. We joined and never bought a thing because they are triple the price of Lowes Charged us $3500.00 membership dues. How ridiculous in this age of the internet does a bottom feeding company like this remain open. Why did they change their name? Why are there class action lawsuits against them? Biggest regret is not looking them up before we signed.

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The complaint has been investigated and resolved to the customer’s satisfaction.

39 comments
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Valerie
Valerie
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Jun 17, 2008 2:01 am UTC

We paid $5000 for our membership. After joining we ordered $24, 000 in kitchen cabinets. When we presented Direct Buy with a cabinet quote we received from Menards for the exact cabinets, they would not honour the quote. Bottom line, we paid Direct Buy approx $2000 more for our cabinets then we would have paid retail.

Not only do you pay a membership fee upfront they also charge a fee each time you order anything.

It is frustrating to shop with them, you need to search endlessly in catalogues for items. It is much easier to buy products on-line and much better pricing.

Don's let their hard sell tactics fool you into joining. DIRECT BUY IS A RIP OFF.

Valerie
Valerie
Send a message
Jul 07, 2008 9:44 am UTC

They claim to be best price and I have not yet received a lower price and bought my things elsewhere for many reasons: you need weeks to get to order something, the service is really poor and you end up buying elsewhere instead of waiting for 6 to 10 weeks. By the time you get prices that are competitive (if they can) and to receive the item you need at least 8 to 10 weeks.

The entry cost is 5000$ and you will never get it back because it is specifically specified. Once you are a member you really feel you have been had good.

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RichGCPW
Paramount, US
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Jul 16, 2008 10:09 am UTC

I was online sometime ago and search of some new furniture for a new home that my wife and I just purchased. I happened onto the Directbuy website and filled out the information. I was contacted a day or so later by a sales representative, who made arrangements to attend their open house. We did attend, and I can tell you that you can feel something is not right. The spokesperson gave several examples of what appeared to be best case scenarios with highly discounted consumer electronics, furniture, and other items. There were comparisons directed related to major club wholesale chains. Although many of thier examples are highly attractive, thats all they are. They are presented in a way to draw you in. Admittedly we joined the membership, we fell for the initial scam, wrote a check for 2500.00, with the rest of the total of 6000.00 to be financed. After we were given our contract and other brochures and the like to take home. After we signed up we were allowed to walk around and view thier catalogs, Directbuy is tiered by a star system. 1 star being value, 4-5 stars being high quality products. I went directly to thier electronics in particular big screens, since I had shopped these extensively I knew where the pricing was at. I went directly to a 1 star catalog in which I found many models that I had shopped and oddly enough these models were NOT any cheaper at Directbuy. In fact you would find a better deal and better models at Major retail electronics chains via thier outlet stores, or sale priced items. Another thing that I found odd was that this 1 star manufacture was actually one of the better manufactures of big screen in terms of quality and picture, again I have researched big screens for the last 6 months. When I questioned the pricing, I was told that electronics is not where I would see my biggest savings, that furniture and other items would net the biggest savings. I also went through thier value catalogs for furniture and found that several retailers/wholesale outlets offered the same if not better pricing on things that I was looking for.
When we got home that evening, we quickly changed our minds. I read the contract and we were given three days to back out. My wife called and put a stop payment on the check the very next morning at 8 AM. I sent an email to thier customer service, and also took back the contract. When the wife dropped off the contract she was told it would take 10 days to get our refund. I immediately called Directbuy and questioned why they would state refund when we wrote a check, and we barely left that check 12 hours before? They claimed that they thought we had used a credit card, then quickly said well we ran your check through our machine last night, we got our money. I then told them nothing cleared my bank and I put a stop payment on the check this AM. She then said hold on a sec, let me check to see if they took the deposits to the bank. She came back and said we will refund you if the check clears, then hung up. 3 days later Directbuy attempted to cash our check, because of the stop payment there were not able to get our money. We consider ourselves fortunate to get out of what have been the worst financial mistake we have made in the last 10 years. Directbuy is a scam, its not geared for the everyday consumer.

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Total Scam
Fairview, US
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Jul 27, 2008 7:59 pm UTC

-In US, a court found the membership contract "grossly unconscionable" and that "Club membership is nothing more than a cleverly disguised method of selling nothing but hopes and dreams."
http://www.mlmlaw.com/library/cases/mlm/state/nyniemiec.htm

-In Canada, a provincial court found the membership agreement untenable and unenforcable because it violated the Consumer Protection Act, the Sales of Goods Act, and The Trade Practice Act. Read this at at paragraphs 13-20 of the ruling.
http://www.provincialcourt.bc.ca/judgments/pc/2002/01/p02%5F0197.htm

-In Ohio, Directbuy was sanctioned, fined, and the AG effected a change in Direcbuy's apparent preditory sales tactics.
http://www.ag.state.oh.us/press/08/02/pr080213_a.pdf

-From DirectBuy's Membership Agreement:
"
IMPORTANT MERCHANDISE TERMS:
- The Club disclaims all warranties regarding the merchandise
- Any need for subsequent repairs or service, after receipt of merchandise, is members’ own responsibility.
- MERCHANDISE MAY NOT BE RETURNED.
- The entire merchandise price plus handling fee, estimated freight and sales tax is required as a down payment at the time of placing an order with the Club.
- Suppliers reserve the right to change their prices without notice.
- From time to time some suppliers and services are dropped
- Only the supplier has the right to cancel an order.
"
http://edumacation.com/DirectBuyMembershipAgreement

- No warranties
- No returns
- No guarantee of savings

Hmmmm. Did someone say scam?

Valerie
Valerie
Send a message
Aug 31, 2008 5:48 am UTC

They only people happy with Directbuy are those who are to arrogant to admit they were screwed. I am a member (3 years now) and I KNOW from experience that on at least 3 out of 4 products if you shop around you can get the same deals, often online stores offer free shipping and let you use your credit card, thus sweetening the pot.

The fact is they lie, the savings are not what they make them to be because the MSRP is never what retail stores charge anyway. And the service is very poor. I didn't do my due diligence so shame on me. I read about some class action suits in the US and you can bet that Ill be on that bandwagon if ever I find out about one in Canada.

These are some items I DID NOT buy at directbuy recently as I found them CHEAPER online. A queen size mattress set, a 52" LG LCD TV, a samsonite luggage set for my daughter. I did some comparative shopping this morning and found may other things that I could get for a very comparable price if I needed them.

Directbuy is just another type of retail for those of us foolish enough to join. But something should be done about their sales pitch as it is a lie.

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Ed
Brooklyn, US
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Dec 02, 2008 9:27 am UTC

Remember that great scene in Miracle On 34th Street where William Frawley tells the judge what will happen if he proclaims that there is no Santa? Think of that as you read this.

Let us put their sales tactics and fine print to the side and think about some bottom line. As memory serves the DirectBuy pitch eludes to the fact that their operational expenses are pain by the membership fee. In this area it is $5, 000 to join. Even with that figure perhaps it might fun to do a little basic arithmetic.

First, you get to pay the prices that the stores pay. Maybe so, but many manufacturers use different price structures that they use based on a stores volume.

The DirectBuy showrooms are in well appointed and decorated facilities, They can house several room displays, product samples, shelving for the many catalogs, meeting room, children's area, customer service area, kitchen design area, offices for the owners and membership directors, a telephone sales room and a break room. Ever wonder what the rent might be?

There is the cost of the basic utilities and technology such as the computers and telephone systems. Oh, and let us not forget the cleaning service.

Salaried, commission or hourly all of the people who work there get paid.

And, the executives and employees on the corporate side... They get paid too.

Advertising: It is likely that your local "club" pays into that pool.

Infomercials: Writing, Production and post production costs, royalties and residuals
(if any), and the simple fact that they don't get on television for free.
That goes for airtime on radio too.

Print: Newspapers, magazines... Costs for writing copy and layout. The price for
individual publications and ad size and distribution will vary but it is a needed expense and DirectBuy does allot of it. Even the printed
material and your free visitors pass isn't really free. Oops I almost
forgot the postage.

Computer Ads: While less expensive than more traditional forms it still costs. So do the web designers. Then there is a matter of the proliferation of all those new websites that are declaring the great benefits of joining DirectBuy. All so positive... Real or not someone maintains them.

Had enough logistics? OK so here is the mythical math question to consider and think about. How many new "memberships" does it take to maintain all of the above on a local level? To my mind this subtraction doesn't add up. What do you think?

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grandkids4hire
Oshawa, CA
Send a message
Mar 14, 2009 9:55 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

My wife and I also went to the first interview. We were told that if we did not sign the contract that night that we would not be allowed back at the centre in the future. So we signed up gave them a $100.00 deposit cash and a void cheque for monthly withdrawls. On the way home i felt we were violated. So when we got home I went online and stopped payment on the cheque. The next day I called to cancel our membership and was told that we were unable to cancel our contract. I called their US office and was told the same thing. They tried to withdraw their money but because they could not they changed the amount by .01 cent and the payment went through. We ended up closing our account that we had for years and filed a law suit against them. Now once a month we receive a bill from a company out of the USA that they turned our contract over to. So if you want to be scammed and harrassed join Direct Buy.

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DirectBuy Victim
US
Send a message
May 19, 2009 6:28 pm UTC

The only happy people are the franchise owners who go onto these complaint websites or set up fake blogs & tell the public how great DirectBuy is. They lie, they cheat & they steal. I hope they get what's coming to them.
DirectBuy is a nightmare & scam!
Help spread the word& get involved...
A Federal Class Action lawsuit against DirectBuy has been filed by Izard Nobel LLP. Contact information is as follows
Lead Attorney - Jeff Nobel
email - jnobel@izardnobel.com
toll free phone# - [protected]
Please contact them so justice may prevail & we can get our hard earned money aka "membership fees" back.

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nsrlf
North Hollywood, US
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May 24, 2009 9:14 pm UTC

began pricing units and found that we could get both washer and dryer and a refrigerator for less on the open market. Directbuy lied about the pricing and shipping charges. Am sincerely sorry we lost 5, 000 dollars to scam artists

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DirectBuy Victim
US
Send a message
May 26, 2009 10:40 am UTC

I am sorry to hear about your $5000 loss. We lost $6K and others have lost up to $10K for DirectBuy memberships. I agree, we always found either the same or better merchandise either through local retailers or on the internet. DirectBuy engages in false advertising and should be shut down. If you're interested in joining the class action lawsuit
contact the law firm of Izard Nobel LLP
Lead Attorney - Jeff Nobel
email - jnobel@izardnobel.com
toll free phone# - [protected]
We can band together with this type of lawsuit and not have to give any more of our hard earned money for attorney's fees. The attorneys are paid through the settlement they negotiate and we will get our membership fees (plus sometimes interest) refunded. The more the merrier! Please join in the fight.

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Betty
Fresno, US
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Jun 17, 2009 3:15 pm UTC

We were warned by friends that they were cheated out of about $5, 000 for a DirectBuy membership fee. They forked over all that money because DirectBuy told them that they would be able to buy things for their new home at the manufacturers' price -- at a 50% to 60% discount. Little
did they know, after DirectBuy tacked on hefty shipping and handling fees, they were able to find most of the items for sale through DirectBuy at the same prices, if not lower prices, at retail stores like Lowes and Best Buy!

If you were scammed by DirectBuy, like my friends, you should contact the law firm Craig T. Matthews & Associates at cmatthews@ctmlaw.com or 937.434.9393. That law firm has sued DirectBuy before in both Ohio and
Indiana (where DirectBuy's are located), and it's conducting an investigation about DirectBuy's misleading promises. If you want your membership fee refunded, you should contact Craig Matthews to pursue a class action case against DirectBuy. No matter what state you're from,
his firm should be able to help you. Be warned!

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Bobby Hinckle
St. Cloud, US
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Jun 18, 2009 10:15 am UTC

I went to work for DirectBuy in Orlando for one week! They use high pressure sales techniques to sell memberships for $5490.00, then when you start looking for bargains... they are not there! Sam's Club, Costco, BJ's Wholesale are ligitimate discount houses, DirectBuy IS NOT!

DIRECTBUY IS A COMPLETE SCAM!

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mltdwg
Vancouver, CA
Send a message
Sep 04, 2009 6:54 pm UTC

I attended the Dirct Buy open house yesterday, someone show me a video in a dark room, and afterward ask me 5, 000 for membership fee, and when I want to think about it. The guy's face changed and walked away. I was not allow to take away any paper from the office, not to look at the price book they said 50%, they just want you to pay 5, 000! It's a rubbery in board day light!

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JF21
Nashville, US
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Dec 22, 2009 5:20 pm UTC

I agree completely; You can match Direct Buy prices by simply doing you due diligence and shopping around. If you watch the sales and use your discounts you will fair well and better than anything Direct Buy has to offer.

Think! they are using MSRP for comparisons which is a price that no one ever pays regardless of wheather or not they join DB. MSRP is a tool that retailers use to make you think you're getting a good deal.

DB is for those who dont have time and cant be bothered. Also contractors and builders have gotten deeper discounts that Home Depot or Lowes but for the rest of us there is little to gain especially after you weigh your discount against what you paid to join.

Lastly there has been corruption and deceptions reported from local outlets because your orders are co-mingled with others. The money trail can be a long and winding road with Direcet Buy.

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Azy
US
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Aug 30, 2010 12:43 pm UTC

I also want to share my recent experience with Directbuy in Thousand Oaks.

We had received an invitation to go to Direct buy of Ventura and check out their warehouse and enjoy walking around their showroom. We received over 5 calls to confirm our restricted appointment. I been reminded with every phone calls that we are not allowed to take any children or anyone else expect my spouse. We got there and they took us to a long lasting meeting about how great is Directbuy and what a great saving and they have supper friendly staff. 3 hours of the same info. Then when the meeting was over they told us that we can “enjoy” 30 days pass. Then a reparative took us to dinning area and had a form ready with our name on it. She asked us what we do for life, if we have any children or not and if we are going to have any in future and why and after 30 minutes she told us that what a great idea to join they club right now. Then we told her we need to think about it before we sign up and write a check for $4000 and we like to compare prices while we are there to make sure. She start arguing that it really depends on the model you can’t really tell the difference right now and we need to have the barcode … Then she became very aggressive, her face changed and told us that she’ll only let us compare if we promise to sign up with her right now and if not we better leave. She just left the table and looked away. What a non- friendly, rude staff and what a fake company.

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DRIVING ME CRAZY
Richmond, US
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Jan 15, 2011 8:06 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

I have asked DirectBuy to remove me from their e-mail address lists. However, the more I ask the more messages I get. Just today, I've gotten 17 messages from DirectBuy. Does anyone know how I can get them to drop me from their address lists? Or where they are located so I can ask the BBB to assist me.

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dontgetbsd
Chesapeake, US
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Feb 23, 2011 1:06 pm UTC

Don't buy a membership! The manager has a dirty car salesman look and personality. He was very friendly and joking when getting you to sign up and the girls are just there to look cute-when i thought they were there to help. If there is trouble with an item ordered and not recieving it in a timely manner they talk to you as if concerned but then blow you off. The Better Business Bureau seems to be making it difficult for us as well. They requested "documents, " when i wrote back to get them to be more specific they didn't so that the time ran out before they "close" the file...Maybe we can just go to the News!

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dontgetbsd
Chesapeake, US
Send a message
Feb 23, 2011 1:18 pm UTC

Correction & addition: Don't buy a membership! The manager has a dirty car salesman look and personality, he was very friendly and joking when getting you to sign up but when you walk back in there to view the catalogs he avoids you like the plague especially if you have questions (how dare you talk to the messiah!) The girls are just there to look cute-when i thought they were there to help --they push you off to each other if there is trouble with an item ordered and not recieving it in a timely manner. They talk to you as if concerned but then blow you off. The Better Business Bureau seems to be making it difficult for us as well. They requested "documents, " when i wrote back to get them to be more specific about which documents they didn't get back to me so that the time ran out before they "close" the file...Maybe we can just go to the News!

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James1962
Memphis, US
Send a message
May 06, 2011 9:35 pm UTC

Did you try contacting the Club? You know they have a price integrity policy and guarantee the lowest price and a minimum savings amount? Also, if you had the specific item comparison did you bring them in? On you comment about shipping and handling. Of course you pay shipping for the manufacturer to ship it from their facility to DirectBuy or to your home...just like the Lowe's or Home Depot right? Do manufacturers give free shipping from the manufacturer to the furniture stores warehouse? No of course not. Some not all items have a handling fee. Electronics/Appliance/Plumbing usually no as well as many others. Furniture does to cover costs of having to repair or replace furniture if it is damaged which happens more than a retail store will tell you much more so than you could imagine. This is hardly a DirectBuy specific issue. Work with the attorney, he'll make all the money. The attorneys are the scam artists in these scenarios like class action suits. I work with DirectBuy and would love to know where you had these issue. I have to womder if this blog isn't the atorney listed above posing as a consumer...hhhmmmm

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scammed by directbuy
Breaux Bridge, US
Send a message
May 09, 2011 3:58 am UTC

THEY ARE A RIP-OFF. THEY PRESSURE YOU INTO SIGNING UP FOR MEMBERSHIP FOR AN OUTRAGEOUS $5000 WITH THE PROMISE OF BEING ABLE TO PURCHASE PRODUCT AT MANUFACTURE DIRECT PRICES. THE FACT THAT THEY WON'T ALLOW ANYONE TO COMPARE PRICES FIRST, BEFORE SIGNING THE NO-CANCEL MEMBERSHIP AGREEMENT, IS A MAJOR SIGN OF THEIR CHOICE TO DO BAD BUSINESS. THEIR CLAIMED PRICE SAVINGS OF 30-50% BELOW RETAIL IS NOT REAL. DIRECTBUY USES UNETHICAL BUSINESS PRACTICES-1-draw people in with exaggerated, misrepresented, and unfair claims; 2-pressure people in a restriced time-frame to make a decision to join or never have the opportunity again; 3-deny a refund when the people realize the actual price saving membership benefits were misrepresented. WHY DOESN'T OUR LAW PROTECT US?

Everyone here with a complaint against DirectBuy should file formal complaints with their State Attorney General AND with the Better Business Bureau. Even if it doesn't lead to you being refunded, if we all bombard the Attorney General with complaints, it's bound to open somebody's eyes to the unethical, deceptive practices of DirectBuy and hopefully put a stop to their crime consumers. I was able to complete both of my complaints on-line.

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Direct Buy
US
Send a message
May 11, 2011 10:01 pm UTC

Good afternoon,

We’d like to apologize that you are not satisfied with your DirectBuy membership and ask that you contact our customer service by logging into your account and selecting “Contact Us.” They may be able to help address any of your specific concerns.

To address a few of the comments here, we want all of our members and potential members to feel like they are getting a great deal with every purchase, and part of that is making sure they each understanding how we operate. Every store is independently owned and operated, so membership fees may differ from location to location. Some stores also offer multiple tiers of membership, designed to fit various purchasing habits and lifestyles.

Also, because of our unique relationships with manufacturers, it is in everyone’s best interest for us to not disclose all pricing information for every item at an Open House. This could, and has in the past, caused troubles between manufacturers, retail stores, and us, ending in the loss of products for our members. So, part of our policy is to have potential members sign that night in order to keep the relationships going and provide the best products at great, low prices to all of our members.

Once you are a member, you have access to over one million products from over 700 brands available to you without any hidden retail markup. From in the store, to our online catalogue, the list of what you can find is extensive. Some items may have shipping and/or handling fees, but these are set in place to ensure you receive your products fast and in excellent condition. We itemize these fees as well so you always know what you’re paying, unlike retail stores who hide them within the marked-up price point. However, even with these fees, our items typically cost less than those from a retail store.

We understand that DirectBuy might not be for everyone, but with 40 years of excellent merchandiser relationships and a high ranking by the BBB, we are proud of the great benefits we have to offer our members.

Again, please feel free to contact us and we will do our best to address your concerns.

Have a great day,
DirectBuy

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JohnThat'sMe
Cicero, US
Send a message
Jun 03, 2011 3:50 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

Their hard sell tactics are tantamount to psychological rape. I'm in sales and have read many books on sales techniques that are underhanded and far from fair to the prospective consumer, and should be illegal. After being raped by them and agonizing over the loss I thought back to how I was duped into signing something totally against my better judgement. I wondered, how could I have been so stupid. But I'm not stupid and after suffering many long days and nights I realized that they have a sales system that may involve a form of hynosis. I wouldn't be surprised if an investigation revealed subliminal messages implanted in their videos that they have you watch during their presentation. In the end my decision to sign up was not for the product but to make the salesman happy. And I know how he did it too. It's a set-up, from the start, that's designed to take the descision away from the customer. It's a brutal attack on the customer.

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JohnThat'sMe
Cicero, US
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Jun 03, 2011 3:54 pm UTC
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This company should be investigated by the government and shut down, they are blatently stealing money from hard working honest American Citizens. And the leaders of this criminal outfit should spend life in prison right next to Birnie Madoff.

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Joseph M Acosta
Port Isabel, US
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Jun 18, 2011 6:54 am UTC
Verified customer This complaint was posted by a verified customer. Learn more

Ok.I went to see what this service was.The people were very nice and it looked as if everybody there was about my age(old) ready to see what they had to offer.Every thing sounded great made sense but I got this feeling I was being sold a timeshare. We were told we could not compare prices untill we join and iif we did not join now we could not join later.A red light moment.They also said they do not make money from the supplier it is all dues.Found out later they do get some kick back.Now i am not a smart man but my dad always told me never buy a pig in a poke.My advice to Directbuy show people what you are selling them.Just run it up the flag pole and see if anyone salutes.For the price of 6000 dollars I want to see what I am buying

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SBlume
Brentwood, US
Send a message
Jun 19, 2011 2:02 pm UTC

There are all types of membership options available. At Cool Springs (Nashville area) it is only $990 for an internet shopping membership. People can upgrade later if they want cabinetry and windows. This video shows how it works and lists the pricing. http://youtu.be/BwcHwlP7nLA

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Direct Buy
US
Send a message
Jun 21, 2011 6:02 pm UTC

Joseph,
Thank you for posting, and for your feedback about the Open House you recently attended. The Open House is designed to be an enjoyable learning experience so that you can make the best decision about whether DirectBuy membership is right for you and your family. Regardless of your decision, we want your experience to be positive.

We’d be interested in knowing which location you visited, so we can follow up regarding your claims about not being allowed to see product and pricing during your visit. We encourage all consumers interested in membership to research products of interest before attending the Open House, so they can compare pricing when they visit. If there is a location not permitting this activity for a guest who is genuinely interested in joining, we’d like to know.

Additionally, your claim of DirectBuy accepting “kickbacks” is false. This type of defamatory language is very serious, as DirectBuy does not engage in such conduct. DirectBuy derives income from the sale of memberships and subsequent renewals. Any prompt payment or co-op advertising incentives offered by the manufacturer that DirectBuy may elect to accept are industry-standard programs and do not affect pricing to our members.

We’re very proud of our 40-year history of success and our unique business model that saves our members hundreds of millions of dollars year after year, and we’re committed to protecting these benefits for our members and their families, as well as our many employees and franchise owners throughout the United States and Canada.

Thank you again for the feedback about your recent visit to DirectBuy.

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Joseph M Acosta
Port Isabel, US
Send a message
Jun 22, 2011 8:51 am UTC
Verified customer This complaint was posted by a verified customer. Learn more

I did not say they did not compare prices.They pick a few things to show you(Key word THEY).Now i read some complants and the founder said the reason is to keep things fair because it would hurt the retail side if we were allowed to compare and ask them to meet your price.Like i said i am not dumb.If your prices are as low as you say anybody with half brain would know he cant because of overhead IF it is true what you say.We will get it at his cost.Now a thought from ME.I saw all the people that were there with me were elderly like me.I think you should be looked into for defrading the elderly.And I know why you responding to me on this board.Trying to make yourself look like you care.YOU DON'T. YOU CARE ABOUT MONEY.Not the people.The proof is it said where I went in San Antonio.YOU need to quit trying to play people.YOU CAN'T SNOW A SNOWMAN

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Joseph M Acosta
Port Isabel, US
Send a message
Jun 22, 2011 9:10 am UTC
Verified customer This complaint was posted by a verified customer. Learn more

A New Haven federal judge has sided with Connecticut and three dozen other states in opposing a retail purchasing cooperative's request to settle customer claims that its business model is worthless and fraudulent.

U.S. District Judge Janet B. Hall issued a court opinion that DirectBuy Inc.'s settlement petition, failed to meet the heightened test of fairness for early class-action settlements because it failed to account for state consumer protection claims.

According to state Attorney General George Jepsen, who opposed it, Hall also stated the settlement offer it overstated the risks of success, and provided a "relatively meager settlement" when viewed in light of the best possible recovery for consumers.

Jepsen and his counterparts in 35 other states, the District of Columbia and Puerto Rico argued that the settlement involving DirectBuy and its affililates is toothless.

The class-action lawsuit accused DirectBuy and the co-defendants of fraudulent misrepresentation because the company implied that paid memberships would entitle customers to purchase goods from manufacturers and suppliers at actual cost.

However, according to the suit, DirectBuy allegedly received kickbacks and incentives from suppliers and manufacturers of goods purchased by DirectBuy members, which inflated the cost of the goods. The lawsuit alleges that DirectBuy did not disclose this arrangement to customers until early 2009.

The pending lawsuit also names United Consumers Club, Inc. and DirectBuy Holdings Inc. as defendants.

DirectBuy could not be immediately reached for comment.

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Joseph M Acosta
Port Isabel, US
Send a message
Jun 22, 2011 10:52 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

123321 you sound as if you know a lot about them.you must work for them.I am only stating what the law suit says

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Joseph M Acosta
Port Isabel, US
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Jun 23, 2011 1:07 am UTC
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123321.Sorry. I took it the wrong way but you could be right I could be a douchbag but not a dumb one.I did not join them and i have been called many things douchbag is the kindest of them thank you

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cattleguy
US
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Jul 17, 2011 2:35 am UTC
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They now are advertising job ads in newspapers and making applicants pretend to be customers and force them thru the high pressure sale pitches, there were told that if they themselves (the applicant) wouldn't buy it than they wouldn't be qualified to work there. The owner knew that i needed a job, and was hurting financially, but wanted me to get the credit card for 17 percent to pay for there membership, look at that scam you only hire people that will take out a staggering loan to cover the cost of that employee and maybe they woulnt even hire them on top that there is a three day cancel law here. so they get around that by saying that they will let you know in a few days if you got the job. I didnt fall for it but I wonder how many of the others did.

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directbuyscam
Metairie, US
Send a message
Jul 19, 2011 4:38 am UTC

DirectBuy Dodges Employee Paychecks, Points Finger At Franchise Owner
http://staffingtalk.com/direct-buy-dodges-employee-paychecks-points-finger-franchise-owner/

Written by Loren Adams

July 15, 2011

DirectBuy Dodges Employee Paychecks, Points Finger At Franchise OwnerThis is bad: The headquarters of DirectBuy, a home improvement and furnishings club in Merrillville, Ind., recently took over its DirectBuy franchise in Orlando, Fla. after revoking the franchise from its owner.

This is just plain wrong: The 30 employees of DirectBuy Orlando have currently gone without pay for at least the June 1 - 15 pay period, and will likely not receive paychecks for June 15 - 23 either.

"It hurts horribly, " said a marketing associate who asked not to be named because he is still employed by DirectBuy Orlando. "People are getting evicted from their homes."

This began June 24, when employees arrived to find a corporate representative on site. The rep informed all employees that the franchise of the owner, Brian Cohen, had been revoked and that Cohen would no longer be working for the company.

"The owner set us up to lose as much money as he could before he left without a word, " said another female employee at DirectBuy Orlando.

"Not an ‘I’m sorry guys’ or anything that would justify him being a human. Instead he was there one day - and then like a thief in the night he not only left without a word but left someone else to do his dirty work and tell us the bad news."

The marketing associate believes that Cohen had previously been required to attend drug counseling by DirectBuy, and that evidence now points to some type of theft by Cohen.

"They [Corporate] had definitely been looking at him for a while. There was money missing from his accounts."

But he also claims that the representative told employees that DirectBuy corporate headquarters would assume responsibility for the payroll "from that day [June 24] forward."

That’s not what happened.

There’s no direct confirmation, but it seems clear that DirectBuy corporate headquarters has chosen to "honor the contract" it signed with Cohen - which would make Cohen legally responsible for the employee payments.

According to our source, corporate representatives had at one point asked DirectBuy Orlando employees to hold off on legal action regarding the matter while they evaluated the payment situation.

"I think they were trying to make it right, but we came back [after the five-day period that Corporate had requested] and they said ‘We can’t do anything.’ Then they gave us the OK to pursue legal action."

That legal action is in the works at Morgan & Morgan, an Orlando law office that has handled some fairly high-profile cases. Currently, attorney John Morgan is representing Zenaida Gonzalez in a civil action vs. Casey Anthony.

The DirectBuy class-action suit will include nearly all of the DirectBuy Orlando employees. It’s not clear yet who the specific defendants will be in the case.

"I just want my money, " said another employee who asked to remain nameless a lead generator for DirectBuy Orlando.

He tried depositing June 15 paycheck the day he got it.

"It came back NSF, " he said. "So I carried the other [July 1] one over to the owner’s [Cohen’s] bank, and they wouldn’t touch it."

Our sources say that DirectBuy has since paid Orlando consumers back about $250, 000 that the franchise had apparently collected but had never delivered on.

But while the employee payments hang in limbo, the impact for DirectBuy Orlando employees is all too immediate.

"Brian owes [me] close to $4, 000. I’m lucky because our landlady is a very close friend, " said our source.

"I have to cover my losses, " said one employee, a single mother of two who works two jobs and estimates her losses at $1, 600.

"And the hours I could have spent playing and spending time with my kids were gone for nothing. I went under big time. And for someone to stand in my face and tell me ‘I’m sorry, there is nothing we can do’ was not only unfair but it was painful."

"Especially when that money was for my babies."

DirectBuy Dodges Employee Paychecks, Points Finger At Franchise Owner
http://staffingtalk.com/direct-buy-dodges-employee-paychecks-points-finger-franchise-owner/

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Marandjeff
PR
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Aug 25, 2011 7:22 pm UTC

Well I was one of those people who got hooked in...DirectBuy sent the golden key and said I was one of five people to win a car...we as the saying goes...dollar and a dream! Went to the open house, spent over 2 hours listening to the speech. Was not interested, went to leave premises and the local owner came over to our table, very nice lady and before you knew it we were signed up. To this day, over 10 months ago, I have not ordered anything, looked at website, read magazine etc. I have tried to cancel this membership many times, I told them to keep the money I have already paid, around $2, 000. That I cant afford now that I am permanetely disabled. No one wants to hear anything. I keep getting harassing phone calls wondering where there payment of 172 month is, that I signed a contract and cant get out of it. So if I could tell anyone...DONT GET SUCKED IN LIKE I DID. NOT WORTH IT. PRICES HIGH. DONT WANT TO WORK WITH CONSUMER. LOWES AND HOME DEPOT ARE MUCH CHEAPER !

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uiop7890
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Sep 14, 2011 10:07 am UTC

I have had my own problems with Direct Buy. I even reported them to the Better Business Bureau. I requested a full refund of my membership dues because everything that was said at orientation was false. They would not refund my membership dues and never even address the complaint accurately. I'm not using their services anymore and the will not get the extra $150 every 4 years for the lousy service they provide. My experience: I wanted to buy furniture and the kind I wanted was discontinued. I looked elsewhere and it wasn't discontinued. Then I selected other furniture. They didn't even have the swatches on site. I had to wait 8 weeks before they got the swatches. By then, I already I 3 rooms of furniture. Direct Buy really doesn't save you money. I compared the prices and my dining room furniture was a lot cheaper than Direct Buy's. The other 2 rooms were comparable prices. The best thing about somewhere other than Direct Buy is that you don't have to wait 2 months before you get the furniture. Also, the furniture stores deliver to your house. Direct Buy delivers to a warehouse and then you're responsible for getting the furniture from the warehouse to your home.

I would never recommend anyone to become a member of Direct Buy. It really is a scam.

No longer a member and proud of it.

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lazyboyz4853
Grand Blanc, US
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Sep 22, 2011 3:32 pm UTC

I encounterd the same problem! They are truely a scam

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davialhm
San Bernardino, US
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Oct 21, 2011 7:11 pm UTC

We asked for information from DirectBuy and we can't get them to quit calling. The phone agent was very rude and hung up on my wife when she said she could not come in for a tour.

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bassima el zahabi
Toronto, CA
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Apr 01, 2012 3:43 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

Good for you. You paid 3000 and some, I paid 6000 up front. when they see a customer come in, they run away. I have paid for items from direct buy higher than what its worth outside. between shipping, handling, currency exchange which by the way never accurate and charges for weight and taxes on top on all in our case 13%, the consumer have been taking for a ride without even knowing. worst, i feel like u have to order from direct buy simply because i was foolish enough to have spent this money.

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scotty506
Innisfil, CA
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Feb 23, 2015 5:57 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

www.cbc.ca/.../the-price-cut-promise - 76k - 2013-04-10

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Andy Kerr01
US
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Mar 22, 2015 4:19 pm UTC
Verified customer This complaint was posted by a verified customer. Learn more

Was promised up to 50% discounts, can find everything on the internet for less cost and no finders fee. Totally lied to me. Not going to stand for it, am in process of going after them. I ordered a book from www.directbye.blogspot.com. Stay tuned

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