Explore your opportunities! Create an account or Sign In
The most trusted and popular consumer complaints website

LegalZoom/Registered Agent

Posted:    

Unauthorized Charges to My Account

Complaint Rating:  75 % with 16 votes
75% 16
3.75
Contact information:
Legal Zoom Inc
Charlotte, North Carolina
United States
Registered Agent "service" scam. Legal Zoom has made an unauthorized charge to my bank account for $159. This is how the scam works: they sell you a service for which you agree to pay a stated price. You authorize Legal Zoom to debit your bank account for installments to cover the service you are purchasing. They do not offer you the option to just pay it out up front or if they do it is not readily noticeable. To complete your order you accept the terms & conditions by checking a box. You assume that the terms and conditions relate only to the service for which you have agreed to purchase but that is not the case. Mentioned somewhere in lengthy terms is an entirely separate service to act as the Registered Agent for the company you have formed. This service is $159 and is not included in the amount you agreed to. They wait until you have received your articles of incorporation at that time you will have made to installments on your agreement. They send an email notification reminding you when your upcoming installment payments are about to post to your account. They conveniently NEVER mention the $159 extra service fee for the registered agent service because then you may question and cancel it. You never receive an email about the impending charge. They simply debit your account for the full amount and wait for you to call to hear that it was not included and that when you accepted the terms and conditions you authorized payment for the service. The first person to take my call even said "we get a lot of these calls." It gets better: when you learn that all this service is for is "filtering" your junk mail they charge $49 to remove themselves as your registered agent. I was able to change my registered agent to myself with my state for $5 bucks. I am told that when they receive confirmation of my change they will prorate my "subscription" which in the end allows them to get at least 2 months ($26.50) payment for a so called service out of you that you would never have purchased otherwise add the $5.00 to make the change yourself (and that's only if I can get the proof before they bill again) and you have paid another $30.00 on top of what you agreed. I could have just paid a local attorney to draw up my papers for that less than that amount ($414.00). To stop unauthorized debits your bank will need to cancel your card altogether.
Complaint comments Comments (26) Complaint country United States Complaint category Lawyers and Attorneys

Comments

Sort by: Date | Rating
N  20th of Jul, 2012 by    +1 Votes
Hi Kim,

We are sorry to hear that you were being charged for a service that you were unaware of. It looks like you may have opted in for LegalZoom to serve as your Registered Agent. We can assist you with changing your Registered Agent, if you haven't already done so. Please feel free to contact me directly for assistance at: Patty@lzserve.com.

Again we are sorry to hear about experience and would like to help.
LegalZoom Customer Care
A  25th of Aug, 2012 by    +2 Votes
The same thing happened to me :

Registered Agent "service" scam. Legal Zoom has made an unauthorized charge to my bank account for $159. This is how the scam works: they sell you a service for which you agree to pay a stated price. You authorize Legal Zoom to debit your bank account for installments to cover the service you are purchasing. They do not offer you the option to just pay it out up front or if they do it is not readily noticeable. To complete your order you accept the terms & conditions by checking a box. You assume that the terms and conditions relate only to the service for which you have agreed to purchase but that is not the case. Mentioned somewhere in lengthy terms is an entirely separate service to act as the Registered Agent for the company you have formed. This service is $159 and is not included in the amount you agreed to. They wait until you have received your articles of incorporation at that time you will have made to installments on your agreement. They send an email notification reminding you when your upcoming installment payments are about to post to your account. They conveniently NEVER mention the $159 extra service fee for the registered agent service because then you may question and cancel it. You never receive an email about the impending charge. They simply debit your account for the full amount and wait for you to call to hear that it was not included and that when you accepted the terms and conditions you authorized payment for the service. The first person to take my call even said "we get a lot of these calls." It gets better: when you learn that all this service is for is "filtering" your junk mail they charge $49 to remove themselves as your registered agent. I was able to change my registered agent to myself with my state for $5 bucks. I am told that when they receive confirmation of my change they will prorate my "subscription" which in the end allows them to get at least 2 months ($26.50) payment for a so called service out of you that you would never have purchased otherwise add the $5.00 to make the change yourself (and that's only if I can get the proof before they bill again) and you have paid another $30.00 on top of what you agreed. I could have just paid a local attorney to draw up my papers for that less than that amount ($414.00). To stop unauthorized debits your bank will need to cancel your card altogether.

I was very disappointed to discover this, this is a very sneaky charge and to put it in the terms and conditions like that is not acceptable. Every customer should be made aware of this ridiculous charge and have the option to opt out of it. I'm disappointed in myself for not paying more attention to the fine print and ashamed to have done business with them where they cheat other people who are trying to start their own.
D  25th of Aug, 2012 by    +1 Votes
Actually disregard the last comment I made I just did a ton of research and It makes sense to have a registered agent and its an ANNUAL FEE, however the customer should be made aware of this fee upfront instead of the fine print.
N  11th of Sep, 2012 by    0 Votes
The process of setting up a corporation is usually done by a CPA and an Attorney. Legal Zoom like any other business, charges for it's services. I'm using Legal Zoom right now and I've gone through all there questions and they explain everything in detail. But I'm also a CPA, so I know what a registered agent is, and what's necessary to apply for a Federal ID number. Most people don't ( and will never need to). The first thing anyone who is thinking about setting up their business is to talk to their accountant or tax preparer. Another question Legal Zoom asked was to set up a S-Corp. This is another question you should discuss with your tax preparer. In addition to the fees Legal Zoom charges, there are annual reporting requirement to both the Federal and (most) State Governments and minimum taxes can be quite high. For your information, most corporations establish themselves in another state and therefore a registered agent is required. This is why Legal Zoom offers this service.
As for Legal Zoom itself, I found the customer support to be excellent and their services reasonable. If there is any questions in using their service, please call them and ask.
N  20th of Feb, 2013 by    0 Votes
If you want to have unauthorized charges and feel like you been swindled go with Legal Zoom!
N  25th of Aug, 2013 by    +1 Votes
You can rest easy with LegalZoom, if you find there's a blip in your order they have great customer service to help resolve any issues. As for their registered agent service, I think it's a great time saver for a typical clerical time wasting task especially when you are based away from you companies home state.
A  28th of Aug, 2013 by    -1 Votes
I have the same problem, except I wasn't given any option to remove the charge. I was refunded the majority of the charges ($146), but the catch is I have to get with the state first then, go back through the hassle of getting the "Service" stopped. Which, I'm sure leads to further charges. What I found frustrating was the attitude when I reached someone to speak about this matter. I was talked down to, as if this was some official mandatory state requirement. When I repeatedly asked what service, all I was able to understand was that someone will collect ALL of my mail from the state. That someone needs to be present at all times during business hours to collect mail. Extremely annoyed that I even have to deal with this. I will never use Legal zoom again for any service such as this. If you want do pass off some outrage fee for a non-existing service, at least have the decency to describe it fully and alert them of the recurring charge!
N  5th of Nov, 2013 by    0 Votes
Hi KevinHen,

We're sorry your Registered Agent situation wasn't properly addressed. We’re really interested in knowing what kind of resolution you’d like to see and are willing to do anything we can to improve your experience with LegalZoom. Please contact Chyna@lzserve.com for assistance.

We look forward to hearing how we can make this situation better.

LegalZoom
A  5th of Feb, 2014 by    0 Votes
Don't be fooled by Legalzoom scam. They charged me the registered agent fee even after I told them to cancel all of their service. When I called them, they refused to refund. Stay away from this scam artist. There are tons of better solutions out there these days as more and more CPAs are offering cheaper packages. .
N  6th of Feb, 2014 by    +1 Votes
Hi, we are very sorry that your registered agent concern wasn't properly handled. I would like the opportunity to make things right. Please reach out to me directly at Chyna@lzserve.com.
A  18th of Mar, 2014 by    0 Votes
Yep they got me too. The best part is they get you coming and going: After they tell you missed the fine print, they want to charge you to refile with the state. What a crooked way to start off doing business with a new company.
N  18th of Mar, 2014 by    +1 Votes
Hi schmidyuc,

We'd like to resolve your filing issues, please contact us at Chyna@lzserve.com for help. We look forward to hearing from you.

LegalZoom
A  28th of May, 2014 by    +1 Votes
I had the same thing happen to me, I feel this is also a SNEAKY SCAM and I was told By LegalZoom that I was required by LAW to have a Registered Agent, not only
once but SEVERAL times. Once I called NYS I found out that NYS DOES NOT REQUIRE YOU TO EVEN HAVE A REGISTERED AGENT!!! I had to pay a $30 filing fee with NYS to remove LegalZoom as the Registered agent. To make matters worse my credit card on file was expired (9/13) and they were still able to make the $159.00 charge! What a SCAM!
N  30th of May, 2014 by    -1 Votes
Hi Kathie1,
It is very important to us that our customers are happy with the products and services we offer. We want you to be satisfied and I'd like to assist you in finding a resolution. Please contact me directly at Chyna@lzserve.com and I can try to help make things right.
A  24th of Jun, 2014 by    +2 Votes
Legal Zoom IS SUCH A SCAM.
Got the run around on the phone with "Service Agents".
They're condescending and specifically try to confuse you.
I called about a year and a half ago to get all services cancelled. They said they would, but they happened to leave out this "service". Worst part is that they do it knowingly.
BEWARE OF LEGALZOOM at all cost!
I recommend paying up and using real lawyers.
N  25th of Jun, 2014 by    -1 Votes
Hi Nicave, I am very sorry to hear that you didn't have great experience and would like to hear more about your situation. Feel free to contact me directly at Chyna@lzserve.com.
A  29th of Aug, 2014 by    +1 Votes
I had the same experience with Legal Zoom now in attempting to understand this "Registered Agent" charge.

Customer service agents are incredibly condescending and rude.
Demanding to speak with a manager in my next call and have this charge reversed.

If LegalZoom customer service is reading this please send me your contact information.
Tom
N  29th of Aug, 2014 by    -1 Votes
Hi Tom,

Please contact us at Chyna@lzserve.com so we can looking into the charges and resolve this issue for you.

LegalZoom
A  17th of Mar, 2015 by    +1 Votes
The EXACT same thing happened to me!

Hidden charges, completely opaque processes, lack of any real help from anyone at LegalZoom. I actually found out about LegalZoom's 'awesome' $159 fee this morning, when my bank account called to tell me my account has been overdrawn, and my subsequent auto-pay bills (that would've been paid just fine... if there were still $159 in that particular account) caused a series of overdraft fees.

Unfortunately for all of us, LegalZoom is a law service... so they've got lots of legal help. They seem pretty adamant about continuing to charge me, and the only way out of it, for me, was to report fraud charges to my bank and cancel my bank cards.

0 out of 10, would definitely not recommend LegalZoom, unless you have a bunch of money you don't really want.
A  1st of May, 2015 by    +1 Votes
They warned me about my second installment payment plan by email and then hit me with an additional $159 without any notice! No warnings what so ever! I am a reasonable person and this is a very shady move. Legal zoom is a rip off. I called them today and they told me that I didn't read the "fine print" in the agreement. I hope you read this fine print Legal Zoom, you will never get another dime out of me. . Crooks!!

Post your Comment

Please check text spelling before submitting a comment
Your attitude towards Complaint Agree Neutral Disagree
Comment text
Attach photos (optional)

LegalZoom Logo LegalZoom
Customer Care Service
9900 Spectrum Drive
Austin
Texas
United States - 78717
+1 (800) 773 XXXX
View Full Information
Contact Us
bdomains.com
     

Reply to

Send