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1&1 Internet / / repeated bogus invoicing and charges collected

1 United States

On 10/29/17 I received an invoice for $239 for a contract and domain with 1&1.

I have 2 active contracts and domains with them, and 2 inactive contracts and websites with them. I did not recognize the contract or domain or website services for the invoice received.

I contacted customer service and they agreed I had been charged in error for a contract not associated with my customer ID. They issued a refund on 10/31/17.

On 12/29/2017 I received ANOTHER invoice for $239 for the bogus contract. So, while they refunded the charge, they didn't delete the bogus contract.

I have to contact them AGAIN to ask for a refund.

In banking, we call this "floating" cash. Basically, they create cash for themselves by incorrectly charging customers. Then, they have the use of those funds for "X" number of days while the poor customer wrangles with them for a refund. They probably generate hundreds of thousands of dollars (if not millions) with the bogus billing and invest those funds in short-term bank notes, which gain interest for them. Then, they refund the charges after customers complain. In the meantime, they earn money off of the bogus charges and claim it was all done in innocent error.

What a scam!

Jan 1, 2018

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