Home Advisor / Service magic scam
As a small business owner, I try to treat my employees and customers well and trust my vendors to do the same. However, in August 2012, I disputed charges for my Service Magic Professional account. To my surprise, they flatly refused to provide documentation! (that’s not suspicious, right?). I closed my account but proposed settlement in modest monthly payments to avoid collection fees and credit damage AND (here was my mistake), provided my debit card number in good faith. They assured me that they would consider it and call back. That was the last I heard for months…
Fast forwarding to yesterday, October 22, 2012. To my complete surprise and without any authorization, Service Magic has debited my card for the full amount. Pay day is Thursday and now I can’t cover payroll! I call Service Magic to ask them to reverse the charges and they respond (NOT MAKING THIS UP) that as long as they have my debit card number they can charge as much as they want whenever they want! Desperate to cover payroll and honestly pretty angry too, I tell them that I am going to call my bank and stop payment. She responds (AGAIN, NOT MAKING THIS UP) that she will continue to charge my card for the full amount every day if I do that! I demand a manager and a few hours later (which I spend urgently trying to think of some way to cover payroll for these employees who are trusting that I will pay them for their hard work so they can support their families) a manager calls back, reads me my email suggesting settlement, and then tells me that if I agree (which is a lie-I only proposed, never approved) to settlement, it can be any amount due.
Well, I found their CEO on Linked In and emailed him and filed a complaint with the TX and CO Attorney General’s Offices, but I just wanted other business owners to know that it is better to generate your own leads or at least work with a company that will provide a foundation for their charges. As far as I’m concerned, if Service Magic can’t prove that they earned it, then it is fraudulent.
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