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Rackspace US

Additional Locations

Phone: (210) 312-4000 Fax: (210) 312-4848 View Additional Phone Numbers 5000 Walzem Rd  M.s. Us 109-2301, San Antonio, TX 78218

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This company offers managed cloud services.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Rackspace US meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that affect the rating for Rackspace US include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 18 complaint(s) filed against business
  • Resolution of complaint(s) filed against business

Customer Complaints Summary Read complaint details

18 complaints closed with BBB in last 3 years | 7 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 2
Billing/Collection Issues 14
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 2
Total Closed Complaints 18

Customer Reviews Summary Read customer reviews

3 Customer Reviews on Rackspace US
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 3
Total Customer Reviews 3

Additional Information

BBB file opened: December 27, 2002 Business started: 12/31/1998 in DE Business started locally: 12/31/1998 Business incorporated 04/17/2000 in DE
Type of Entity


Business Management
Mr. Steve Priolo Ms. Sydney Schneider, Manager, Legal Operations
Contact Information
Customer Contact: Ms. Sydney Schneider, Manager, Legal Operations
Related Businesses
Objectrocket LLC
Business Category

Internet Services Internet - Web Hosting

Alternate Business Names
Rackspace Hosting, Inc. Rackspace US, Inc.

Customer Review Rating plus BBB Rating Summary

Rackspace US has received 0 out of 5 stars based on 0 Customer Reviews and a BBB Rating of A+.

BBB Customer Review Rating plus BBB Rating Overview

Additional Locations

  • 1 Fanatical Place

    Windcrest, TX 78218

  • 5000 Walzem Rd
    M.s. Us 109-2301

    San Antonio, TX 78218 (210) 312-4000 (210) 312-4647 (210) 312-4299


BBB Customer Review Rating plus BBB Rating Overview

BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

4/25/2016 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: We have been using Rackspace for past 4 years for hosting one of our services. Rackspace shutdown the servers without giving notice from 03/2015. Due to this one of our services stopped working and we researched this problem in 01/2016 to find one of the automated services services was shutdown by Rackspace and their ticketing system was not sending emails. Rackspace kept on charging $53-$55/month for service even during the downtime. We requested RAckspace to look into this matter and refund the amount for service downtime. We took out autopayment on credit card payments. Rackspace kept on sending notices for payments but never addresses service downtime issue or email glitch on their side which they fixed only very recently. Rackspace owes $500+ back to our credit card.

Desired Settlement: We want Rackspace to pay for downtime and damages to our small business.

Business Response:

Our customer submitted a ticket and had a chat with our support team regarding this matter.  The following was sent to the customer in response to this query. 


I see that you are disputing charges incurred for server "eblive" since March 2015-Jan 2016.  After reviewing the account, we are unable to fulfill a credit due to the following:

(1) A ticket notification was sent to you in October that explains the reason for shutdown and what you need to do in order to re-establish connection or shutdown in order to cease billing.  You can view this ticket within your control panel:

(2)Per our terms of service:

"6.4 Limitations on Credits.
6.4.5 You must request a credit via support ticket in the Rackspace portal within thirty (30)days following the occurrence of the event giving rise to the credit. If the claim is approved,the credit will be applied during the next billing cycle following approval."

Please let us know if you have any other questions.

Rackspace Cloud Account Manager




The ticket was closed without additional comments by the customer.

Consumer Response:

Complaint: ********

I am rejecting this response because: Rackspace never sent me any communication that they are shutting down our server. I do not get emails on their ticket updates. I did not receive any communication from rackspace about the shutdown or anything else. I contacted rackspace in January 2016, I never heard back from them on the problem. So I called them asked them about update on the actual problem of server shutdown + about not receiving updates on tickets. They fixed some problem on their end in February after this enquiry and I started getting emails on ticket updates. However, I do not receive any updates again.

So what it means is the I have to keep logging into their portal every day to make sure there are no tickets from rackspace. This is a faulty service on their and an additional overhead on my end which I did not sign up for. So please refund the charges that you automatically deducted on my credit card.

There is one more complaint, their support is not too helpful - when I call them, they take my complaint and tell me they cannot answer my question as they need to pass it to appropriate department. Same with chat customer service! It is highly time consuming to get any support from rackspace!


****** *******

Business Response:


The request for credit was provided 9 months after the downtime.   To reiterate our Terms of Service:

"6.4 Limitations on Credits.
6.4.5 You must request a credit via support ticket in the Rackspace portal within thirty (30)days following the occurrence of the event giving rise to the credit. If the claim is approved,the credit will be applied during the next billing cycle following approval."


As stated in the desired settlement, in addition to the downtime, this customer is requesting that Rackspace pay for damages to their business.  As stated in our Terms of Service:

"15. Limitations on Damages

15.2 neither of us (nor any of our Representatives) shall be liable to the other for:

15.2.3: any loss of business or business opportunity"


For the contractual reasons stated above, Rackspace cannot comply with the desired settlement.

Consumer Response:

Complaint: ********

I am rejecting this response because:

Rackspace failed to inform me about downtime. I do not get their ticket updates all the time, I was getting them only after they fixed a problem in Jan or Feb 2016. Even in March and April timeframe, I do not get their ticket updates. I get only their messages on the invoices.

A business charging customers without properly providing customer support in case of issues is the problem that I am trying to resolve here! It cannot be one sided where a business charges and has terms/conditions but customer doesn't have a right to fight about the unfair practices! Their customer support does not address the problem properly. to give an example - when we call it gets noted and a ticket is updated on their end. As a customer we do not get any notification, we are expected to login to their portal and see what is going on.


****** *******

3/22/2016 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: I am the new owner of a company and on acquisition, I left most of the prior tech service providers in place. But, we are having issues securing a server that is managed with Rackspace. They have been reasonably responsive, but at the advice of our lead developer, a 20-year veteran of enterprise-level Magento, we decided to abandon a server that in Rackspace's own estimation is 'compromised'. (They of course, say it isn't the hardware, but our software that is the culprit but that discussion is off-topic.) In evaluating the move to a new server, I got several quotes including one from Rackspace and, to my astonishment, Rackspace is almost double the competition. As a courtesy, prior to moving to a new company, I called the account rep at Rackspace to see what was involved in switching. She then made me aware of a supposed contract that (she said) the former owner of the company had signed for a 24-mo agreement--and shared an intent to enforce it to the tune of $1,000/mo should I exit. As new owner, I may or may not have liability for the contract and, since there are pressing security issues here that we need to address, I asked for a copy of the contract for my attorney to review. The Rackspace employee sent me a half-filled out version without electronic or physical signatures. When I pressed for a copy of the valid contract (fully executed with signatures by all parties) for my attorney to review, this was the (delayed) response: (start Rackspace account rep's email response)... As far as a signed document for the contract, I did try reaching out to the sales rep that originally drafted the contract. He is no longer with the company and from my understanding when speaking with other reps the E-Signature was the method that is used now. I’m still looking to see if there possibly was any other method used at that time. (end Rackspace account rep's email response)... Again, there is a desperate need to make a decision and they are unwilling/unable to produce a valid contract for my review in a timely manner. Based on the Rackspace employee's response above, I am not even clear on whether they think they have a contract in place. (Whether the original employee left is not my concern.) I have exhausted all attempts at a remedy and have escalated to one level above this account manager. I cannot get copies of the executed contract for my attorney to evaluate what, if any, liability I have as the new owner of the company. At the time I bought the business, I called and introduced myself and reviewed the technology stack with the account rep and a few technicians. One would think that they would've discussed and reviewed the contract with me at that time, but that is fine. What is not acceptable is any delay in either producing it or admitting they haven't got one so that I may immediately begin securing our clients' sensitive data. In the end, 1) by their own description the server is compromised; 2) by their own admission, they cannot find the executed contract. In matters of security every minute counts--they need to remedy this now.

Desired Settlement: Termination of the relationship prior (planned, not immediate so that our sites are down) to the next billing cycle without penalty.

Business Response: Mr. ****** has been communicating with Rackspace Support on a resolution via email and ticket communications.  Rackspace is unable to provide the desired settlement since a new agreement was signed by Mr. ****** on March 7.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


****** ******

2/24/2016 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: We have been trying to cancel our account since October 2015. Rackspace was not being clear on how to cancel the account. We kept being billed and every time we called customer service, we were informed that our account was closed and that the bill is our final invoice. Since we cancelled the account, we no longer have access to Rackspace online; however, we kept getting billed. In February 2016, we finally got a hold of our account manager and were informed that we have another account that needs to be cancelled. We thought we only have one account., which is the one stated on the billing invoice A/C#******, but they didn’t let us know that they do consolidated billing and there is another account number for the same invoice. She informed us that we have to do the cancellation on our end. However, we were not able to go online anymore since we cancelled the account. She then informed us that there is a different portal that we need to go to cancel the account. It is ridiculously confusing for customer to know all of these different portals and the customer service kept confirming that we have cancelled our account where in fact there is another step we needed to take to cancel the account. We have not been using the services for months and the customer service staffs were not properly trained about the products and we kept getting wrong information that resulted in the cancellation going on for months. We have made multiple calls previously to confirm that we have cancelled our account and Rackspace customer service staffs confirmed this. Our business shouldn’t be liable to pay for the services that we don’t use because Rackspace staffs failed to properly inform us on how to cancel their own products.

Desired Settlement: We request billing adjustment be made on Inv#********* and #********* and any invoices afterwards that Rackspace tries to charge us.

Business Response:

Rackspace first received notice of cancellation on October 16, 2015 for the termed Agreement account.  We acknowledged this cancellation in adherence to our 30-day notice.  Within the same ticket opened by the customer on October 16, 2015, Rackspace responded with the following:


Good morning ***,

We truly would hate to see you leave after building such a great partnership so please let me know what else we can provide to assist in your efforts.

I understand that you are looking to close your account. To cancel your dedicated server (***********************), it contractually requires a 30 day written notice. We have scheduled this device to decommission on 11-14-15.

Concerning your cloud accounts ****** and ******, were you looking to cancel these accounts as well? We are prohibited from canceling on your behalf and it is important to note that you will continue to accrue charges until the account is completely cancelled. These services do not require a 30 day notice and can be cancelled at your convenience.

Cloud Account Cancellation Steps:
Log in to your account at  
Once you have logged in, follow these steps:
- click username (top right corner)
- select Account Settings
   - scroll down to the bottom of the page
- click "Cancel My Account"
- complete the questionnaire
- click Submit

Additionally, I noticed that you have email boxes active. Were you looking to cancel the email services as well?

If you could provide any information as to why you are discontinuing some or all of your services, we would greatly appreciate it. We are always looking for ways to improve as a company and better serve our customers.
We are all about fanatical support to you, our customer, so any feedback that you can provide us is much appreciated.

Feel free to give me a call with any questions, I can be reached directly at XXX-XXX-XXXX.



On October 29th Rackspace followed up with a voice message requesting clarity and confirmation on whether the Cloud & Email accounts were subject to this same cancellation request.  

On November 4th, The same message was emailed to '******************' <******************>; '********************' <********************>; '******************' <******************> again, asking for confirmation on this cancellation without response.

On November 9th, **** had a conversation over the phone with the Account Manager confirming all services should be cancelled.  At this time, the Account Manager walked **** through how to cancel the Cloud services through the Control Panel.  The Account Manager sent the following email as confirmation of the discussion:


From: ****** *******
Sent: Monday, November 09, 2015 12:56 PM
To: '******************' <******************>
Subject: Cloud Account Cancellation Steps

Hi ****,

Thank you for your time on the phone today.

Here are the cloud account cancellation steps:
Cloud Account Cancellation Steps:
Log in to your account at  
Once you have logged in, follow these steps:
- click username (top right corner)
- select Account Settings
   - scroll down to the bottom of the page
- click "Cancel My Account"
- complete the questionnaire
- click Submit


As Rackspace is contractually prohibited from destroying customer data, it is the responsibility of our customers to login to their own Control Panel, remove their data, and cancel their services.  As noted in the communication provided, Rackspace made it very clear on how to cancel these services. 

Consumer Response:

Complaint: ********

I am rejecting this response because:

**** (the person mentioned in your response to be in contact with the account manager) is no longer with the company since early December, our other team member has been trying to reach out to Rackspace to confirm that the we have closed our account. We called Rackspace customer service numerous times and were always advised that the account was closed.

Please see below email regarding Final invoice. We are still being billed under this account. It is unacceptable that Rackspace customer service were not able to inform us of what's going on for a few months and giving us false information that resulted in the process of closing the accounts being dragged on for so long

From: ****** ******
Sent: Friday, November 20, 2015 3:33 PM
To: '******************'
Subject: Rackspace Acct #****** - Final Balance Due


Hello ***,


I have attached copies of your last three invoices on this Closed Account.  Please submit payment at your earliest convenience to clear the books.


Thank you and Regards,

****** ******

Accounts Receivable Specialist | Rackspace cid:image001.png@01CCF7AC.72A4F2B0

* ********* *** | Windcrest, TX  78218 | USA |

Email: ******.****** I on the web:

Office: ***** ******** or 800-961-4454 x 4637


Sign up for automatic payments (ACH or Credit card) at


***iel Joelson

Business Response: Rackspace responded in confirmation that the account ****** was in fact closed.  Per the emails sent to *** in October and November (prior to his December departure from your company) the two other accounts ****** and ****** were still active, and thus accruing charges, and Rackspace provided clear steps on how to login and cancel the account in order to stop billing. 

Consumer Response:

Complaint: ********

I am rejecting this response because:

Regardless of the email Rackspace sent to **** on how to cancel the account, we've been calling in regard to the attached statement. It stated the Acct.# as ****** and no one in your customer service was able to explain to us that this is actually for a different account number. In addition to that, we have stopped receiving invoices, we never received the actual invoices, only the attached statement by email. Because of incompetency of your customer service, it took us awhile to figure out ourselves that the cancellation was never completed. If Rackspace customer service would've been able to explain to us that there is a different account number involved, we would’ve been able to cancel the account immediately.


***iel Joelson

2/10/2016 Advertising/Sales Issues | Read Complaint Details

Additional Notes

Complaint: This complaint is being filed subsequent to my complaint regarding "" about false information regarding my professional practice which has been shown on the website "" Complaint ID # ******** Domains by Proxy has informed me that I should contact the hosting provider for which is I have contacted and have not received a response.

Desired Settlement: Remove my listing from as an addiction therapist which is not true and never authorized by me.

Business Response: Rackspace received the initial complaint to ******************* on January 20.  Our Anti-abuse team notified our customer of the complaint and the content was removed completely.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


********* ********

2/2/2016 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: On January 5th, my credit card was charged $920.19. I have been using this same service since 2008 and my bill has always been a consistent $100/month. They say the extra fees were for "compute cycle" overage, but they refuse to tell me what a "compute cycle" is or how it is calculated. My usage of compute cycles has been well under my quota since 2008 and I was given no warning I was reaching my limit, or that I had reached my limit, or that I had gone over my limit, or that I was incurring hundreds of dollars of extra charges. As soon as I noticed this I reached out to them to try and figure out why there was a sudden spike in "compute cycle" usage (a spike that happened to coincide with a billing cycle turnover). But this supposed increase in resource usage does not track at all with any of the data I have (or provided by Rackspace) for the traffic or bandwidth usage. In fact, the Rackspace dashboard reports a gigabyte of bandwidth less usage comparing 12/2 and 12/6 however the compute cycles are 11.4x as large! This makes no sense and there seems to be no data to support why the daily reports now shows a 10x increase in compute cycle numbers despite very similar data for hits and bandwidth with the previous month. My suspicions is that they have changed how they calculate and define a "compute cycle" in order to extort these exorbitant fees from their customers. What's more, it seems like a very shady business practice to not inform clients that usage caps have been met and exceeded.

Desired Settlement: I would like Rackspace to return the "compute cycle" calculations to how they were before December 4th and refund me the $800 in made up fees and notify customers when caps are nearing the limit, when a usage cap has been exceeded, and additional notifications every time another $100 in fees have been assessed.

Business Response: Upon initial receipt of this BBB complaint, Rackspace reviewed the ticket history of this account to gain additional information.  It was found that Mr. ** had two open tickets and was actively working with our technical support teams as well as an Account Manager for resolution of this complaint.  Mr ** is continuing to receive support to identify the source of the traffic and compute overages.  In another ticket, Mr. ** agreed to a good faith credit which the details are located in his ********************* portal in ticket ******************. 

11/24/2015 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: I opened a cloud server account back in May of 2015. I've been paying less than $75/month for this server during the past 5 months. Last week, I received an alert from my c.c. company that my card was charged $897.51. I wasn't told why I received this charge. When I called Rackspace, ***** (customer service rep) just told me that the bandwidth is unusually high and that they cannot explain to my why it is unusually high. The customer service rep, ***** told me that I needed to go in and do something about it. She said once I do that, "We can talk about getting my money back." My administrator didn't notice anything wrong with the server. He had deleted the instance a week previously and started a new one so there was nothing to see. The bandwidth was normal. I called back the next business day and told her the bandwidth was clearly low and we didn't see an issue. I told her that the administrator had deleted the previous instance and started a new one from scratch a week ago. She looked into it and said "Okay it looks like the bandwidth is back down." ***** said Rackspace wasn't responsible and recited some memorized contract text that wasn't clear to me. (Whether they are responsible has not been proven but at this point in our conversation, it was beside the point as I wasn't trying to blame anyone.) She then brought up compensation and said she is absolutely unable to give me a refund to my credit card since it's already been charged but she can give me a credit for the amount paid toward future Rackspace purchases. I figured I'd be continuing my service with Rackspace anyway and I might as well not put up a fight. I immediately agreed and said "That sounds fair." ***** said, "Okay I'll give you half of the money as credit." I said "wait a minute. You just said you couldn't give me a refund but you could give me a credit for the amount I paid over the standard $74." She said she couldn't do that for me. She said maybe she could get a refund back to my credit card for half of the amount. (She previously told me it was impossible to get a refund to my credit card because it was already paid.) At this point, I'm feeling lied to... twice. The bottom line is, she reneged on the agreement when I didn't put up a fight because she thought she could get more out of me. I've been a customer of Rackspace since 2009. They've provided excellent service but their customer service has declined in quality recently and I feel taken advantage of. They have been doing maintenance to the servers the past week and I've been experiencing downtime. I can't even prove that the overages were my fault especially since we don't see any evidence of the overage. Furthermore, I can't see anywhere in my bill that explains these overages. I didn't even get a notice that there was such a substantial increase in bandwidth. Rackspace hasn't given me any explanation of why this happened or the details of my charges. I can't even see if my next bill will have overages. On top of all that, the customer service representative was very inauthentic in her discussions with me.

Desired Settlement: I want a credit to my account for the overage. I also want a credit to the account for any overage that occurs in the next billing cycle as a result of this particular situation.

Business Response:


Would you please provide your account number in order for us to investigate this matter?

Thank you!
Rackspace Legal Team

Consumer Response:

Complaint: ********

My account number is ******

I can see that my cost hasn't exceeded my rate minimum yet for the next billing cycle. I just wanted to mention that as I wasn't sure when I wrote the complaint. I'm not concerned about next billing cycle.


********* *****

Business Response:


Contrary to what you stated in your initial complaint, your administrator did not delete the instance as our records indicate the server on your account has been in use since May of 2015.  Furthermore, section 6.4.1 of your Cloud Terms of Service states: "... the maximum total credit for any calendar month for failure to meet Service Level Guarantees under the Agreement, including all guarantees, shall not exceed one hundred per cent (100%) of your monthly recurring fee for the affected cloud Services."Rackspace has offered a good faith credit for half of your requested amount, which far exceeds the maximum total credit under our contractual obligations.  In the support ticket, you declined this offer and stopped communicating with your support team in order to open this BBB complaint. 

Rackspace is willing to stand behind our original good faith credit for half of the charges which, again, exceeds our contractual obligations. 

You updated the support ticket on this matter today stating "If this can be handled off of the BBB website, that would be great. Otherwise, I think I'm supposed to be corresponding through the BBB website so they can help me resolve this."  Our support team is standing by to resolve this matter, but this must be done through the open support ticket.

Thank you.

Consumer Response:

Complaint: ********

I am rejecting this response because:

There is no proof that I had anything to do with the bandwidth increase. ***** said that she could show me proof but the other team member said you don't track that. Here is the correspondence.

Oct 27, 2015 - 11:01 AM EDT
Hi *****. I'm taking the matter to the BBB. I'm sure someone will contact me from Rackspace after I submit the complaint. If we cannot come to a resolution from there, I will decide what action to take. Just to be clear, my administrator never found what was causing the outgoing bandwidth problem. We don't know for a fact that it's even anything we could have controlled but that's a different conversation. I'm sorry we could not come to an agreement. Have a nice day.


Oct 27, 2015 - 11:19 AM EDT

Hi *********, I'm passing this ticket to our support team to document the log of IPs that were the cause to the high bandwidth. This will show the potential compromise or possible Ddos towards your server. Since this activity is not monitored by your current Service Level, it is the users responsibility to ensure the security of their server environment. To monitor you environment and application closely, you may consider using one of our third party partners, New Relic. To secure your environment from Ddos or any other security breaches you may want to use CloudFlare. Here's a link that you may reference to sign up for free: Please note, I am still willing to provide the good faith offer for half the charge. Unfortunately, anything passed that amount will not be approved. Regards, ***** ******* ********* ***** ******* *******


Nov 3, 2015 - 9:37 AM EST
Hey *********! Unfortunately we do not log IP addresses that are hitting the virtual interface of your server. This is due to a couple of reasons. The main ones being privacy of your data and if we were to log this - the amount of space these logs would take would be astronomical. I can however see your traffic in real time but (fortunately) it looks like you are not shooting out an excessive amount of traffic. I am sorry I was not able to be of more assistance but please let me know if I can help in any other way! Regards, Kevin M Rackspace Infrastructure Support


Nov 5, 2015 - 10:40 AM EST
Hi, We wanted to ensure that you are receiving our updates. Please let us know if you have any questions or concerns. Regards, Rackspace Cloud Account Management

Nov 5, 2015 - 11:24 AM EST
I filed a complaint with the BBB. I was waiting for a response through that site but haven't heard from Rackspace since they requested my account number on the BBB website. I pay quite a bit more to host on Rackspace because I thought it had better customer service but given that there was no warning or anything sent to me when my bill was increasing drastically, I wish I would have gone with one of the cheaper companies. All I want is a credit for the full amount to spend with you guys in the future. I'm not asking for a refund and I'm not trying to hurt your reputation on BBB. I just want to be treated fairly. If this can be handled off of the BBB website, that would be great. Otherwise, I think I'm supposed to be corresponding through the BBB website so they can help me resolve this.

********* *****

10/9/2015 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: Rackspace has inadvertently contracted with a collection agency, ABC Amega Inc. to collect an account from me, but I have never done business with Rackspace. They have never sent me an invoice, and I have never entered into any agreement with them. Yet ABC Amega, a collections firm, is pursuing $19,108.29 from me. I believe that Rackspace has mixed up their customer records somehow. When I called their ********** department ******* ******** *******, and left a message - she never returned my call.

Desired Settlement: I wish the collection company to stop calling and sending letters. I wish Rackspace to correct their records and confirm to me and my company, Excelleration, that the charges have been erroneously associated with me.

Business Response: We pulled the collections from ABC Amega Inc and we have corrected our records.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


***** ******

4/13/2015 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: I began using Rackspace in July, 2014 during my last month of college. Rackspace was offering a free 30 day trial and, since my class was only a month long, I signed up for their web hosting services. Upon reaching August, 2014 I had finished and graduated college and was no longer using Rackspace's services and no longer using the email address provided for me when I was attending college. Around January, 2015 I received a notice from a collections agency stating that I owed $1187.24 for services that Rackspace provided to me. Since I had only used the services for the month I was in school I couldn't understand why these charges were occurring. I called Rackspace to find out and, since they closed my account and gave it to the collections agency (RR Beach Associates), they deleted all of my information and could not provide me with anything for me. I then called the college I attended (Fullsail University) and was able to log back in to my email to find Rackspace had emailed me about my balance needing paid. However, they did not call me by phone or send a letter to me at any time and, according to my emails received, attempted to charge the balance to my debit card over the course of several months at least once per day (sometimes as frequent as 5 or more times in a single day). I was able to receive a billing statement from RR Beach Associates showing how the services were being used, though I wasn't using them. I cannot make this payment to RR Beach Associates due to lack of funds. Nor do I understand why I wasn't contacted by phone or mail address, since I provided that information to Rackspace when I signed up to use their services. Additionally, I never authorized Rackspace to continuously attempt to charge my debit card ever day, let alone as frequent as charging up to 5 or more times per day, negatively impacting my credit score.

Desired Settlement: I only wish for the $1187.24 balance that I am being charged for to be nullified since I did not use the services past the free trial period in which was advertised to me.

Business Response: Rackspace has researched this issue.  Section 6 of our Terms and Conditions state:

6. TERM. The initial term for each Order begins on the
date we make the Services available for your use and continues for the
period stated in the Order. If no period is stated in the Order, then
the initial term shall be one month. Upon expiration of the initial
term, the Order will automatically renew for successive renewal terms of
one month each, unless and until one of us gives the other a written
notice of non-renewal prior to the expiration of the initial term, or
then-current renewal term, as applicable. You must follow Rackspace's
non-renewal process accessible from the Rackspace Cloud control panel to
give an effective notice of non-renewal.

Even though *** ********* failed to provide notice of non-renewal, nor did he remove the virtual server once he no longer needed it, Rackspace will nullify the remaining balance.  Please allow 2 business days for the process to complete as there might be additional communications from the 3rd Party collector during that time.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


******* *********

2/25/2015 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: In June, 2014 I have signed up for a Rackspace account. After signing up I was temporarily granted access to the control panel (because of pending verification) and tried to spin up a server. Then Rackspace informed me that they "cannot activate my account" and they cannot tell me the reason because of "company policy", so the server was left there. I thought it was deleted when Rackspace suspended my account due to verification failure. Starting from January 2015, I started to receive charges. When I called them I provided my username, account email on file, credit card information and charge value, but they refused to stop the payment because I fail to answer the security questions on a closed account. They then admitted that the server was not deleted when they suspended my account. I believe the information I provided is enough for Rackspace to identify me and count this as a valid stop payment request.

Desired Settlement: I would request Rackspace to reverse the charges after the account has been closed.

Business Response: This account remained in an unverified state as the customer never called or responded to our e-mails that would have verified the account.  Although the customer's account was in a "suspension" status, the customer continued to have full access to the server via a command line.  If the customer was unable to log in to the Control Panel, he should have contacted us at the numbers presented at the login screen.

Rackspace does not have the ability to "reverse" charges already made to a credit card; however, the customer may contact his credit card company and request a charge back for the 2 months of service that were actually provided, and in doing so, Rackspace will not challenge the charge back.  This will accomplish the same end result being requested by this complainant. 

Consumer Response: Complaint:********

I am rejecting this response because:

Although the business suggested me to request a charge bank to my bank, the business did not state that if the account has been closed and if other charges will be made in the future.

I request the business to officially close my account, and make sure no more charges will be made to this account.


****** ****

Business Response: Your account is officially closed.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.

Please note that further complaints will be opened if there are still charges regarding this account next month.


****** ****

7/28/2014 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: At a previous company, I used my work email address and personal credit card to expense a recurring RackSpace service. After going through my personal credit card statement and noticing that I was being billed for a service that neither I nor my former company used, I decided to cancel the service. I called RackSpace with my credit card details and the transaction number, explaining that I no longer had access to my work email account. Instead of agreeing to cancel my account (or even asking for more information), they insisted on having me fill out a 'New Primary Contact' form, so they could they hit up another person at my old company for the service. They essentially wanted a referral so they could try to sell one of my former coworkers on RackSpace services, instead of just canceling the account. After I explained that I was unwilling to provide them a new point of contact, they refused to cancel my account. I since called my credit card, disputed the charge, and had it blocked from reoccurring. At this point, I'll never purchase a RackSpace service again.

Business Response: Due to our security practices, Rackspace would require communication from a person listed on the contact list of an account.  If Mr. ******* was not listed as a contact on the account, we are contractually barred from communicating about the account to anyone other than those persons listed on the account.  In an effort to assist Mr. ******* with his issue of requesting the account be canceled, we would require a Primary Contact Change form to be signed which would allow Rackspace to then speak with an authorized person on the account. 

While we apologize for the inconvenience, if Mr. ******* can provide an account number, or some other information (other than credit card information) to indicate he was indeed a customer of Rackspace and authorized to instruct Rackspace to take action, we will look into this matter further.  It should also be noted that anyone who has proper credentials to access their Rackspace account may close the account through their control panel.

Consumer Response: Complaint: 10148190

Better Business Bureau:

I think Rackspace would agree that this policy/process is not customer centric.  In my opinion, the rep should have been able to ask for alternative pieces of information to confirm my identity, thereby allowing me to cancel my account.  I had the following available:  billing address, phone, credit card number, dates of all transactions, transaction reference #s, and the various amounts.  Was the rep supposed to ask for any of these details?

When a customer tells a service provider to stop charging them, that should be it - end of story.  Telling them "We'll keep renewing your subscription until you've jumped through our hoops." is doing your brand a disservice.  Apologies for bad grammar.



7/9/2014 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: Rackspace refuses to remove mailboxes from a disabled account and they do not honor MX records when a cus***er switches to a new mail host. They are effectively sending their other cus***ers emails destined for our domain to a black hole account instead of routing them properly. Their sole reason for doing this is for leverage in a dispute over a past due balance. When calling Rackspace to discuss their demands, I was placed on indefinite hold while waiting for the appropriate account manager.

Desired Settlement: Cease and desist the extortionate practices. Offer a fair concession toward the past due balance.

Business Response: The e-mail account “” is past due, which is in breach of our Terms and Conditions.

Section 9.2 of the Mail Hosting Terms state:

"Fees are due within five (5) days of invoice date.  If you have arranged for payment by credit card or ACH, Rackspace may charge your card or account on or after the invoice date.  Rackspace may suspend all Services, including services provided pursuant to any unrelated agreement if payment of any invoiced amount is overdue, and you do not pay the overdue amount within four (4) Business Days of our written notice to your billing contact.  You agree that if your Services are reinstated after a suspension for non-payment, you will pay a reasonable reinstatement fee.  Rackspace may charge interest on overdue amounts at 1.5% per month (or the maximum legal rate if it is less than 1.5%).  If any amount is overdue by more than thirty (30) days and Rackspace brings a legal action to collect, you must also pay Rackspace’s costs of collection, including reasonable attorney fees and court costs.  If
your check is returned for insufficient funds, we may charge you a fee up to the maximum amount permitted by law.  Fees must be paid in U.S. Dollars.  Invoices that are not disputed within 180 days of invoice date
are conclusively deemed accurate.”

The past due amount are listed as:

04/06/14 - Invoice 2367885


03/06/14 - Invoice 2310841


02/06/14 Invoice 2255056


01/06/14 - Invoice 2198633 1/6/2014


Rackspace issued a credit in January towards the amount due for that month.

-$165.00 (credit) =  $115.00

Total still past due: $955

This account remains in a suspended status pending receipt of payment, which is why the DNS remains at Rackspace.  If, however, the cus***er wishes to terminate their account, they should adhere to Section 8 of the Mail Hosting Terms, which state:


“You may terminate the Agreement for convenience at any time on thirty (30) days advance written notice. Rackspace may terminate for convenience at any time on one hundred and twenty (120) days advance written notice.  If you terminate for convenience, we will refund any amount you prepaid for any period extending past your committed term.” 

If Rackspace receives the proper 30 days notice of non-renewal, we will immediately delete the subject mailboxes, which will in turn release the DNS associated with the MX records.  All other Terms and Conditions agreed to by both parties shall remain in effect.


Consumer Response: Complaint: ********

I am rejecting this response because:

Rackspace employees failed to inform me of my rights per the TOS during the numerous phone calls placed to Rackspace support.  This means that their extortionist tactics referred to in the original complaint will persist for another 30 days after I mail a formal written letter.  The only acceptable response would be the immediate deletion of all data and removal of any reference to the domain in their DNS.

*** *********

Business Response: Rackspace will take your response as a request to formally terminate your account, and will abide with any and all remedies available under the contract.  Consider your account terminated immediately.

5/7/2014 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: I set up an account with Rackspace on January 17. I had a one-time project in mind. I had build a massive model in a Microsoft Excel spreadsheet with several million cells. My PC had too little memory to run the workbook. So I thought that if I just uploaded my Excel workbook to a Rackspace cloud server with access to 60mb of memory, I'd be able to get the output I needed. I had a webchat with Rackspace technical support on Jan 17. Later that day, I phoned Rackspace technical support. In that phone conversation, I learned that I would need to license a server-edition of Microsoft Excel in order to run my workbook. I told the Rackspace representative that I had no intention of buying this Microsoft license. At this point, she advised me that Rackspace would not be able to help me with my project. I was advised to log out of I asked, "Will I stop incurring hourly charges once I log off?" She responded, "Yes." After using the billing calculator on, I thought I had spent $6.40 or $9.60 (i.e., 2 to 3 hours) on my Rackspace experience. I hung up, logged off and never logged back into Rackspace again. On April 15, I logged into ******** ******* to pay my (overdue) bill. I was horrified to see that I had charges of $2,334.80 and $2,521.32 = $4,856.12 on my last 2 statements. With the assistance of Rackspace's ********* *********, I deleted my server instance. Until April 15, I literally had no idea that I was still using Rackspace's resources - or that I needed to "delete my server" (rather than merely "log off") in order to stop incurring hourly fees. In fact, my conversation with technical support led me to believe differently.

Desired Settlement: I was billed $2,334.80 for the month ending mid-February and another $2,521.32 for the month ending mid-March. In response to by phone calls, Rackspace agreed not to invoice me for the period ending mid-April. Unfortunately, I don't have a recording of my phone conversation with Rackspace technical support on Jan 17 - nor does Rackspace. However, it was this conversation that led me to believe that I would no longer be using Rackspace resources if I "logged off." I would like my bill to be adjusted to a total of $9.60 + tax, (i.e, the 3 hours that I spent using Rackspace on January 17 before realizing that my project could not be completed with their services).

Business Response: Rackspace has provided notice to this customer via our ticketing system that we will be issuing a full refund for services rendered. 

4/22/2014 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: This is further to the original complaint *******. We were told by one branch of the company that a refund would be given for the lack of service. The refund of $350.00 was received on March 25, 2014. On April 21, 2014 , we received a payment demand for the same service from the Account receivable department that the other part of the company gave us a refund for. We are not sure what this means other then there seems to be a disconnect between branches of the company. We have attempted to contact AR and to let them know but our efforts have fallen on deaf ears.

Desired Settlement: We would like the Customer service department to let the Account Receivable department know that this case has been closed. Furthermore we would like this closure to be sent to us in writing so that we may close our file.

Business Response: Your account is closed and in good standing.  A notification generated yesterday in error regarding a balance on the account. This issue has been remedied, and no further correspondence should generate moving forward.  This notice will also be sent directly to you by our A/R Team.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


****** ******

3/11/2014 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: Hi there, I noticed that you guys keep charging me even I have been deleted the rental server/host in the cloud service already. I called in and explained the problem; however, rather investigating thoroughly about the problem, the support person jumped right into conclusion that I ordered the storgage before and did not delete the storage when I deleted the host, therefore, the charge was for the storage (storageblock). I explained that I did not order the storage. In addition, I explained also when I deleted the server/host, there was NO alert or messages telling me that there was a storage out there that was part of the host that would need to be deleted as well. The support person was kind of rude and again implied that if I didn't know how to remove the storage, I could have called in and had someone walk me through. She also added that she was willing to remove the charge of 3months ($33 USD) in the good faith (but still with the same tone, the fault was still on me!). I told her that I appreciated the offer; however, I couldn't take the attitute or thought that it was my fault and told her that she was not really understand my feeling (in fact, she hurted my feeling). In writing this letter, I would like the management of Rackspace to credit back my money for the last 3months that the company charged for the service that I did not order. That was just simply the right thing to do. No nonsenses business here. God blesses you. Thanks, ***** ****** ###-###-####

Desired Settlement: Refund the paid charges and correct the business practices/processes in fault claims for the charges.

Business Response: On March 6, 2014, Rackspace credited/refunded $33.09 and closed this account. 

Consumer Response: Complaint: *******

I am rejecting this response because:

I still have not received the refund credited to my bank account yet.  Today is March 10th, 2014.  I will allow couple more days to see whether the refund posted on my account in the next few days before closing the complaint.

Again, the complaint was not only for the refund of my money for the service that I've never used, but also for the sake of respectful to customer's integrity and honesty.  In my case, I was treated like a "criminal" and the company was kind of "blessing" me for my "mistake".  I am a small business owner as well as a customer and I don't not feel I was treated with a proper respect in our business engagement.

The incident have made me feel so bad and disgusting for a few more months and years to come.  I wish you and your company the best.


***** ******* ******

2/11/2014 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: I briefly an account with Rackspace. I chose not to continue with them, verified that I had a zero balance, and closed the account manually. Now several months later, they are sending me demands for payment of $449.06. I wrote back stating I left and had not used their service and owed nothing when I severed the relationship. Their reply is that I have to call and arrange payment or face collection

Desired Settlement: I request that this bill be discharged.

Business Response: Mr. ******** began utilizing Rackspace services on December 15, 2013.  In the 30 day period of the billing cycle, Mr. ******** provisioned 26 virtual servers as shown in the attached invoice.  All of these servers were utilized for some period of time during the billing cycle.  Even though Mr. ******** closed his account with Rackspace and believed he had a zero balance, the fact is that he closed his account prior to his first invoice being generated.

Mr. ******** provisioned services from Rackspace in our Public Cloud offering and utilized those services.  Rackspace provided those services and billed the appropriate amount.  Rackspace asks that we be paid for the services provided.

Consumer Response: Complaint: *******

I am rejecting this response because:
While true I did utilize the service briefly, I again retierate that my account was balanced upon my departure. 

My cessation of activity occurred several months ago.  During that time, I did not receive a single communication from Rackspace regarding this issue.  They now present a bill and demand payment of several hundred dollars.  I find it hard to believe that this is a genuine bill when the account was zero upon departure and no invoice or communication had been previously received, but they now produce a 'past due' bill and threaten collection


**** ********

2/4/2014 Advertising/Sales Issues | Read Complaint Details

Additional Notes

Complaint: Rackspace has billed my office 500% of the advertised, quoted and contracted rate for a cloud server . Solely due to an error of Rackspace sales staff , we were given an inappropriate server solution. The type of server that was implemented for us is called an SSD server. This is not the standard server implemented for small business of five employees, and is regarded as an inappropriate type of server. This was a costly error. When we initially questioned the overbillings Rackspace refused to provide correct information as to why overbillngs were occurring. We had to hire an IT consultant to fairly review the situation and find why were being overbilled. We had to pay the consultant $1,300 because Rackspace was not forthright and Rackspace had superior knowledge and expertise that we relied upon. Rackspace sales staff made a technical error that resulted in overbillings and refused to answer questions forthrightly as to the reason for the overbilling. We learned from the consultant SSD a type of server used for larger companies with remote offices and e commerce. We have neither remote offices or e commerce, and like most small businesses no dedicated technical support staff. We relied on Rackspace. Their advertising states they support small businesses. WE provided all necessary information and access to Rackspace to provide the correct type of server and it is clear we were diligent. We paid them in full. . We have lost many hours of time calling and writing Rackspace. We responsibly asked Rackspace to provide any possible record of communication with our staff requesting this SSD server. Rackspace could provide NO record of communications with my staff to support their representations. During a phone conversation, their salesperson admitted substituting the costly server on his own because he thought we needed it. At this point, the call was abruptly terminated and we were told Rackspace was afraid of litigation and we could no longer receive technical support by phone despite a paid contract. They put ta note in our files so we cannot receive full access to needed technical support by phone and must communicate in writing Everyone on the call, including Rackspace personnel, was uncomfortable.. . Rackspace has refused, for months to provide correct technical information and get us on the right server at their cost, and to document things properly through their trained tech support. We are a small business and need to ensure we have an appropriate server, correct billing rate and no data loss. We are turning to the BBB in desperation for corrective action and a refund of the grossly billed amount , and will submit any documentation necessary We are requesting a $3,100 credit against future billings ($1800 for overbilling and $1,300 for the consultant). We need the notation removed from our file that we are threatening a law suit, since this was never the case. , and the full phone tech support restored. We will submit to any mediation process the BBB recommends. Below are samples of the Rackspace advertising in which our business relied in moving our data. RACKSPACE ADVERTISING Rackspace has the technical expertise and business knowledge to help you find the right solution for your business. Rackspace: Service Leader in Managed Hosting and Cloud Computing We have a range of great solutions to ensure your business gets off to the right start, and has the flexibility to grow. We can combine website hosting, email and exchange hosting and provide a platform for building apps, or offer any of those as standalone solutions. That's not to mention our famed Startup Program, helping budding entrepreneurs with hosting, plus coaching and mentoring in conjunction with selected incubators, investors and more. Startup Programme Rackspace loves startups – we’re committed to helping entrepreneurs drive the next generation of businesses with our hosting and Fanatical Support®. With coaching and mentoring in conjunction with selected incubators, accelerators, investors and others who share our passion for startups, let our passion for upcoming business help you get to the next level.

Desired Settlement: Rackspace has refused, for months to provide correct technical information and get us on the right server at their cost, and to document things properly through their trained tech support. We are a small business and need to ensure we have an appropriate server, correct billing rate and no data loss. We are turning to the BBB in desperation for corrective action and a refund of the grossly billed amount , and will submit to voluntary mediation. 1. CORRECT THE PROBLEM Rackspace have qualified and trained technical pepoepl Corrective action by Rackspace to provide the appropriate and very standard server solution for a small business at the billing rate advertised, . 2. PROVIDE US WITH DOCUMNTATION We need the help of Rackspace trained people , and not the untrained sales staff to document the situation and ensure there is no data loss.We need Rackspace to document and clarify the solution proposed in writing . Or small business really trusted this company! 3. ISSUE A CREDIT - Document that this was an error on the part of Rackspace, and issue an appropriate credit to our account for all overbilled amounts attributable to the SSD server error and to reimburse us for the $1,300 in costs we incurred as a result of having to hire an outside IT person to identify why we were being billed 5 time as much. We have incurred about $3100 in overbillings and costs (not to mention lost time) ofbecause of the Rackspace error and failure to provide truthful information to detect the source of the overbilling. 4. Additionally, we asked that Rackspace Remove any notation in our file placed in the file by the Rackpace sales team that made the error t that unfairly limits our ability to obtain technical support by phone as we contacted. Rackspace needs appropriately evaluate and train the sales people who implemented the inappropriate SSD server, and confirm that we are to receive appropriate and correct answers and full technical support that is in our interests and does not result in overbillings.

Business Response: ** *******:
In researching your issue, it is our understanding your complaint has already been escalated to our **** ********* and ********* ******* ******* (***** ********) who has attempted to contact you several times, but has not heard back from you.  Please let us know if you wish Rackspace to continue attempting to resolve your issue with *** ********, or if you would rather continue to utilize the Better Business Bureau.

Consumer Response: Complaint: *******

I am rejecting this response because:


**** *******

I am sorry, but records show have not had a single contact from ***** ******** to my office phone or email.  This is a pretty straightforward line of communication, and had he called I would have listened.

  I have now had to have  =support staff search  every single call and email message , and my business is based on responding to customer communication and I have another lawyer claiming I am missing communication..   Does ***** have any dates and times  of contacting me ?  Any letter?  Can we schedule a time?   

As a small business owner, the communication shell game  it is exhausting and humiliating.  It is easy to schedule a call and my concerns should be cliear.

I simply  am requesting correct and appropriate server and pricing structure in place, with all of the support options for which I contracted.   I am requesting a  credit for the SSD server that should not have been utilized, since Rackspace has not over many month been able to provide me with support for their assertion that my staff ordered a costly SSD server  I am requesting full and appropriate phone support be restored and that Rackspace provide the services for which my business contracted, and reimburse us for the consultant we had to hire to maneuver the deceptive sales double speak and obfuscation of technological info. 

I am available any time Monday afternoon to speak with ***** at ************, or alternatively, to mediate this thru the BBB.

As a small business owner, I would stand by my advice and not have an unhappy client wondering if I had been in touch.  There is no one easier to get hold of than me, and I obviously am contacting the BBB because I want answers and communication.  . 

My office phone number is ************.

Business Response: Since *** ******* and *** ******** have not communicated
regarding this issue, Rackspace will reply to the complaint made through the
Better Business Bureau.


******** ********** *** ***** began utilizing a Rackspace
Cloud Server on June 10, 1013.  This server
is billed based on utility billing model (essentially a billing model which
charges for usage like an electrical utility service).  Rackspace is not responsible for the
implementation of a Rackspace Cloud Server. 
The customer chooses the type, size, Operating System and drives
associated with their server. In this case, ******** ********** *** *****
(through its employees or agents) selected the type and size of server in
addition to other features that it wished to purchase.


Sometime after deployment of the server, *** *******
contacted Rackspace regarding charges that she stated were higher than her
expectations. As noted in the ********* ****** ************ on August 29 2013,
*** ******* was provided the following written information regarding that


****,  I wanted to create a ticket so
that we can keep you updated as we proceed with your billing discussions.  Per our conversation, you are paying more
than you would like in the Cloud. As discussed you have 3 invoices that are itemized
breakdowns of product and cost.  Cloud is
billed based on utility. If there is something you are being billed
for that you do not need you can shut it down and delete it and this will stop
billing for that device or product. [emphasis added].  I can further explain specifics on your bill
if you wish.  Best Regards,  ***** ***** ********* ******* *******


Rackspace’s Cloud customers are in full control of the
utility billed services that they select and use. As noted in this ticket, if there
was a something not needed, the customer may shut it down and delete.  In this instance, change the type of drives
being utilized by the server.  Neither
*** *******, nor her firm availed themselves of this opportunity.  As of September 4, 2013 the ticket was moved
to “confirm solve status” as *** ******* had neither updated the subject ticket
nor contacted Rackspace by email or telephone.


The issue later arose with *** ******* in October of 2013
when *** ******* contacted Rackspace by telephone and a new Rackspace Ticket
addressing this issue, ************, was created on October 23, 2013. That
ticket stated:


Good Morning ****,  Hope all has been well with you!  I saw that you spoke with ***** last night and I wanted to offer my assistance. It looks like you have questions regarding your Cloud invoice amounts and would like to re-evaluate your current environment to ensure you are on the most cost efficient solution for your needs. Please review as I address your points below.  Cloud  Per your September invoice, the charges break down as follows:  4 GB Windows Server Instance  $327.36 - Server usage of 744 hours - ($0.44/hr)  Cloud Block Storage           $499.45 - 700 GB of usage for 744 hours - ($0.000959/GB/hr)    NG Servers Image Storage      $0.51 - 5.083007813 GB - ($0.10/GB) Managed Service Level         $100.00  Per our discussion in Ticket #************ Billing Questions, Cloud is billed based on utility and you have the freedom to spin up and down at will [emphasis added]. As it is in use, it is billed and we would not be providing credit for the volume. If there is something you are being billed for that you do not need you can shut it down and delete it and this will stop billing for that device or product [emphasis added]. I encourage your technical contact to give us a call if they need help walking through the steps of how to do this. Feel free to reach out to us at ************** for assistance or they can create a ticket for assistance. You can view your current utility usage by going to your Cloud Control Panel then Billing & Payments > Usage Overview.  Additionally, if you would like us to delete this Cloud Block storage in its entirety for you, you can request that. [emphasis added]. This is not our normal practice [emphasis added], but I have talked with your Support Team and they will help delete this from your account if you wish. By spinning down/deleting the Cloud Block Storage Volume from your account you will no longer be billed for it [emphasis added]. I would ask if you wish to have it deleted by our team, that you ensure that there is no reason you or your team still require it. Please be clear in your written request what you would like done.  You can view the pricing around our cloud block storage here: *****************************************************   Environment Evaluation  ****** ******** is your Business Development Consultant who would be able to ensure that you have the best solution that will meet your needs. I can have him reach out to determine what specific needs you have and see if he can propose an option that may better fit you financial needs. We most certainly want to have you on the right size environment for your business, so if a reconfiguration discussion is needed, we can have it [emphasis added].   If you have any questions at all please update this ticket and I will ensure we get those addressed for you!  Best Regards,  ***** ***** ********* ******* ******* **************


Please note in this response, Rackspace again referenced the
August ticket (noted above) and once again reiterated that if there is
something the customer is being billed for that they do not need, they are free
to shut it down and delete it to stop the billing.  Rackspace even took the additional step
informing the customer that even though not within our normal practice, we
would have the Support Team assist in deleting the server from the account.


On October 24, 2013 Rackspace received the following
response from *** *******:




While *** *******’s response indicates that Rackspace is
‘forcing a costly solution on [******** ********** *** *****]’ Rackspace had in
each of the previous tickets explicitly stated how to reduce the cost of the
solution, and had even offered specialized assistance in carrying this task
out. This issue was escalated to the ****** ******* *******, ***** ******, who


Hello ****  Per *****'s note above the invoicing is broken down below.  1. 4 GB Windows Server Instance  $327.36 - Server usage of 744 hours - ($0.44/hr)  2. Cloud Block Storage           $499.45 - 700 GB of usage for 744 hours - ($0.000959/GB/hr)    3. NG Servers Image Storage      $0.51 - 5.083007813 GB - ($0.10/GB) 4.  Managed Service Level         $100.00  Item  1 is the physical firewall and I have attached the contract for this device. Items 2,3, and 4 are cloud based, utility priced offerings that are spun up at will by customers through their unique rackspace portal.  These are not created by Rackspace.   Can you please detail what disputes you have with the above billing and how you believe that it is incorrect.  Once we have the full detail of your dispute, we will be able to investigate and verify.   Please note that while we are determining the disputes, your account will not be suspended.  However, if choose not to detail your specific disputes, your account is scheduled to be suspended per our financial agreements. I only detail this as it is an option for you to cancel your cloud infrastructure completely if you wish as we have been made aware that you have stopped payment on your credit card. 


Please note in this response, we reiterated that items 2, 3,
and 4 are cloud based, utility priced offerings that are spun and at will by
customers.  These devices were not
initiated by Rackspace but by *** *******’s firm.  On October 31, 2013, *** ******* responded to
this ticket with the following:


*****:  I have asked that my account be moved from you because you lack the traing [sic] to understand the issue.  An SSD is inappropriate, and I have a sworn statement from each person here this was not authorized.  I was promised a different account representative, and aak [sic] that you kindly follow up on this request.


On October 31, 2013 ****** ******* ******* ***** ******
responded with the following:


Hello ****,  I will be reassigning your account but the information that ***** provided is correct based on all of our research.  I understand that you and your team did not authorize this with Rackspace but it was not created by anyone at Rackspace.    The most important part is to get the move from the unwanted block storage to the type of block storage that your team feels is needed [emphasis added]. ***** has outlined the steps above and I am including below:  "First, I understand that you wanted to know if you could move from one type of Cloud Block Storage to another. Yes, this is possible. I spoke with our Cloud Specialists and was told the process. You would spin up your choice of Cloud Block Storage, get it mounted to the server, move the data over (numerous ways to do this, copy & paste is one), and remove the old cloud block storage when you are finished. I am happy to engage that team if you would like to explore migrating from the current volume to a different volume. I could even setup a call to have a technician assist in walking you through the process."  The above steps are independent of the assigned account ******* and I can have another account ******* assist you if you wish while I am reassigning for long term. Until you make the changes and the original block storage is deleted, we can not stop billing on the SSD and/or determine amount of any crediting that might be due.   Please note, **** has not been assigned to your account for some time and will not be able to assist you with your current configuration.  Any assistance you require should be updated through this ticket and we will be happy to assist.   Thanks,  ***** *** ******* **************************


At this time ******* ****** was assigned as the ******* ******* for this account.  *** ******
updated this ticket on November 8, 2013, November 13, 2013, November 18, 2013
and November 20, 2013, introducing herself and attempting to resolve the issue.  The ticket was not updated again by *** *******. 


On November 8, 2013, Rackspace Ticket number ************
was initiated by *** *******. 


Please specifically address the following concerns   1.  *******  - I look forward to working with you.  As we get started it would help to know your  technical expertise and training.    It would help to know your familiarity with servers so you can assist us.  Are you trained technical support staff?  Are you a direct employee of Rackspace, or an outside sales company.  It will help us to know this.    2.  I am concerned we have an  inappropriate implementation resulting in 5 times the quoted cost of block storages.  I was present during all staff communications with Rackspace.   We trusted and relied on Rackspace sales staff quotes and recommendations for our environment.    3.   Staff has confirmed my understanding they did not authorized an SSD server.  3. Pease confirm  and Rackspace has  NOT been able to locate any authorization or communications from my office or staff to implement an SSD server at five times the necessary and expected cost.  If Rackspace provides evidence we authorized this, I will honor it.  However, I would like to know why your team did not educate that staff person with an[sic] appropriate recommendations.  Did the team have the expertise to understand when an SSD server is and is not appropriate.   4.  Please confirm that  Rackspace has not maintained any record of the amount originally quoted or any pricing information.  What is the policy for retaining these notes?  Can you locate them. [sic]   5.  Our five person law office environment has not changed since I first contacted and trusted Rackspace for recommendations.. [sic] Please explain why anyone in your office might recommend an a SSD drive was an appropriate solution for 5 lawyers based on the data on the server that has zero e-commerce and very infrequent VPN use by only two of the attorneys.  I have consulted several experts including a local university who informed me that it is not an appropriate recommendation.  Rackspace did the "build"  6. Please provide me an explanation of the type of storage recommended for our environment that has been unchanged since my first contact and a written summary of the costs for written approval of actions.  Rackspace prides itself on the most economical solutions and on its advice.   7.  Please note, I have not ever threatened a law suit, but someone has noted in file that we did and that staff need not answer our questions by phone.. [sic] I believe this notation appears on my account because we have pressed for these answers, and we are a law firm.  Please confirm your policy.  My contract does not provide for any limitations or exclusion of phone support.  We do need the feedback of technicians via phone and that is clearly the support for which we contracted. It is cumbersome to submit questions in writing.  Is it a Rackspace policy to avoid communication and provide simple technical answers by phone, such as for the appropriateness or need for an SSD server for a 5 person business?   This question seems to have triggered the restriction on phone communication.  I have agreed in writing to waive legal rights to obtain technical support and have asked repeatedly that Rackspace remove the comment from my file that I have threatened a law suit so my office can obtain full technical support.   8.  Please do not make any changes that may compromise my data or account.  I await your response the foregoing.   **** 


Rackspace Support responded on November 8, 2013 with:


Hi ****!  ******* has left the office for the day and should return Monday.  I will forward her this ticket and shoot her an email to follow up with you on your questions.    If you need anything in the meantime please let us know.   All the best,


On November 11, 2013, *** ****** replyed:


Good afternoon ****,  I hope you had a great weekend. I'm looking forward to working with you and your team as well.  I am an ******* ******* at Rackspace, that being said, I am not a technical contact, but manage a set amount of accounts and make sure they are getting the help they need. I am very familiar with your devices, set up, and the concerns you've been having on your account.  I am working on finding further information regarding how the SSD drives were authorized and will make sure that is cleared up as soon as I find the right information. However, in the meantime, I suggest getting this SSD drive block storage removed from your account as soon as possible if you do not need it and so that the billing will stop.  We would never make any changes to your account that would compromise your data without letting you know. I spoke to my *******, *****, and he would still prefer to do everything via the ticketing system. Please let us know if you'd like our assistance with removing the block storage. You can update this ticket or ticket ************ letting us know you'd like to remove the block storage and I'd be happy to organize any assistance you may need.  As always, let us know if you have any questions or concerns and we'd be happy to help.  I'm looking forward to hearing how you'd like to proceed while I look into more information on the authorization of this block storage.  Best,  ******* ****** ******* *******


The response in this ticket makes the third attempt since
August 29, 2013 of resolving the customer’s issue as we again informed the
customer to delete the server to stop the billing.  This ticket remained open until November 18,
2013 without a response from *** *******.


In the final Rackspace Ticket dated November 18, 2013,
************, *** ******* requested:


Thank you for your response.     Please do not remove any tickets, communication or documentation from this system.  That is in bad faith and the purpose of this system is to maintain a complete record.  I am shocked that rather than answering the questions, Rackspace removes the tickets.  This is not ethical or acceptable.  Please restore all deleted ticket information.  Please be advised this must be preserved and the answers documented in a business like manner for our records and technical understanding .  I am concerned tht Rackspace sales support personnel would unilaterally delete information.  Please simply restore all tickets, The are not redundant. They document our repeated requests for the same information, and our sincere attempts to clarify our questions as to the 500% billing increase that shocked us.  Your company has stated it will communicate only in writing  which seems inconvenient and unfair under service agreement we pay for in good faith and are told Rackspace has designated us "ticket only" without our consent..  I am stunned that we are forced to communicate in writing but , but is now altering the chain of ticket communication.  This is upsetting.    Please provide the following information:    1. Each person in my office has provided me with a written statement that they never authorized an SSD server at five times the cost quoted.   We all believe that Rackspace inappropriately recommended/initiated  an SSD at five times the cost advertised for cloud storage.  We relied in good faith on the advertised rate, and my staff has agreed to be fully accountable for any errors attributable to our instructions.  Please provide us with all communications relevant to the costly and inappropriate SSD error so we can reliably trace it.    We are anxious to resolve this in appropriate manner with a corrective credit if it is not our error.  If it helps, I do hav all original quotes and contract documentation.  I assume your company has this.  2.  Please provide a copy of my original contract clearly stating our monthly charges.  Does Rackspace   3.  Please provide a document of the date of any change to an SSD server resulting in the 500% increase. Could you please explain why Rackspace builit it this way and what information they have on file from when they interviewed me personally as to our business needs and quoted me the published cloud rate.   4. Please explain why Rackspace may have been under the impression and SSD server.  We are a small company and need to be able to TRUST  your recommendations and advice, and this means documenting the recommendations.  I am concerned our employees are being blamed and documentation deleted and withheld.  Please understand our server is important and relying on Rackspace is a serious matter    5.  Please disclose  I communicating with Rackspace or an outside sales organization?  Please disclose this.  I am very concerned.  6.  I have clearly stated I am not contemplating legal action and merely want correct and true technical history info. for our small business.  Our employees are upset Rackspace blamed them for ordering an SSD server at five times the cost.     I am frustrated that  despite being very specific as to our needs with sales  - ie a five employee law firm and obtaining competitive rate quotes I was billed five times the advertised rate and sales did an incorrect "build" . We were entitle to rely on published rates and not a 500% increase.    We believe this change to an expensive DSD server  was implemented by Rackspace sales staff and it is not fair to state our staff requested this.  They did not.. [sic]  WE have asked for all account documentation and I am sure the responsibility for the error between yours and mine will become clear.   I can ask my credit card company or the Better Business Bureau to help facilitate this request, if I am being unclear as to why it is so important or you feel I am unreasonable. . [sic] My intent is not to be adversarial or to seek legal recourse , but rather to get some objective assistance because we are such a small company.  I am very busy, and I feel like Rackspace is ganging up on our small company to justify a 500% technical and billing error.  We want to trust in your recommendations, integrity and billing.  If there is something I am not understanding, maybe the third parties can help explain how this 500% change in quoted billing occurred.    MY REQUESTS TO GO FORWARD TO RESOLVE THIS MATTER ARE:  1.  Objective record review.  Correct records as to communication and authorization, and an appropriate credit if you do not have communications indicating our authorization for an SSD server departing from the published rate.  Trust and accountability are important.  Did you build this server and are you accountable for a costly and improper recommendation?  Do you have any possible basis for stating my staff authorized this?    2.  Appropriate credit for error in build.  A credit if the error was in the Rackspace recommendation and not ours.  Racksapace should not profit and blame others in a small business for an inappropriate and costly error in the build, if in fact training and improvements in service and communication are needed within Racksapce.  My request for a credit has not been analyzed, and no documentation has been reviewed.  My tickets are deleted and I am told to accept the overcharges for Rackspace errors and move forward.  But how can we now trust Rackspace without understanding what happened and why my company is being blamed for the 500% error over four months.   3. An explanation of corrective action subject to our approval.  A technical explanation of how to correct this going forward that we will approve in writing, once documented.  4. Full disclosure of whether we are dealing with Rackspace employed tech staff trained in recommendations, or with sales and/or an outside company.


Later on the same day, November 18, 2013, *** ******


Hello ****,  The status confirm solved means it will stay open for a few days so you can respond, and if we still haven't heard back from you it will close. From there, you can always reference any ticket by the ticket number in a new ticket. We don't delete tickets and always use them for documentation. To have a clearer form of communication with you, I advise keeping this one issue in one ticket. However, please feel free to add a comment to that ticket or change the status and it will stay opened.  I am working on getting the logs or any further information for who created the block storage. However, you will continue to be billed until you cancel this. Rackspace will never delete your block storage without your written approval, so please delete that first and foremost so you will not be charged any further.  I will follow up with you if I find more information about who created the block storage, otherwise let us know when you have deleted that block storage, or if you'd like to schedule a call with our technicians to show you how to delete it yourself.  Best,  ******* ****** ******* *******


Once again, Rackspace informed the customer to simply delete
the server if they wished to no longer be billed.


As noted in the above communications between Rackspace
support and *** *******, Rackspace has attempted several times to assist this
customer in resolving the issue. 
Rackspace does not choose the devices utilized in the Rackspace Cloud
Servers product line, nor do we choose the specifications of servers utilized
by our customers.  While it is true
Rackspace has technical expertise to assist its customers in finding solutions
to fit their business needs, it solely up to the customer to select the final
appropriate solution when signing up for services or to modify the services if
they turn out to be improper. 


The services being provided to ******** ********** *** *****
utilize a utility based pricing model. 
Rackspace has provided those services and ******** ********** *** *****
utilized those services.  This issue
could have been resolved in August of 2013 had the customer simply changed
their server to utilize the standard drives. *** ******* has consistently
refused to do so, electing instead to open ticket after ticket and make phone
call after phone all regarding the issue rather than solving for it or
authorizing  Rackspace to do so.


Consumer Response:


**** *******

Consumer Response: Complaint: *******

I am rejecting this response because:

Rackspace has attempted to bury the BBB in technical jargon and has made clear misrepresentations..

I am again asking Rackspace to submit to BBB mediation process to clear this up.

Rackspace not being forthright with the BBB


A very, very important component of Rackspace’s advertising and representations to consumers is that Racksapace offers appropriate solutions for our business.

Instead of doing this, Rackspace dishonestly billed for an an SSD server which is used for companies with remote offices and e-commerce. Our company has neither  It is not appropriate for a small firm like ours, and it costs five times as much.. Rackspace has tried to cover up the dishonesty and/or error of its sales staff and blatantly lied that staff my office initiated a useless technical upgrade at 5 times the quoted cost.  When asked for any evidence of my staff communicating about the server type, Rackspace says it is still looking.

There are MANY issues to clear up.   At a  minimum.   A voluntary arbitration process through the BBB would allow our office to clear up the following misrepresentations and through documentation and before a neutral party:

1.       Rackspace Misrepresentation  #!:- Rackspace substituted  an unnecessary upgrade” and billed us five times as much for a special type of server.  Rackspace  lied and said our company initiated it.   All documentation supports that Rackspace  staff had lied to cover up the over bilings,    Rackspace has been asked repeatedly to provide any documentation  whatsoever indicating that  my staff initiated a request for this special type of server.  They refuse, and keep sending information irrelevant to this issue to confuse the BBB. Please look at it carefully.


2.       Rackspace  Misrepresentation #2:  - Racksapce falsely  states our firms  control our”usage”  and isrepresents we are complaining about being billed for usage. Rackspace is lying about the issue.  There is no issue or dispute pertaining to quantity of usage. We are complaining about a fraudulent RATE.  We being billed five times the amount for each unit of usage because we were given some sort of special useless  “SSD server” at five times the normal and quoted  rate.  The issue is that we were “slammed” on the rate and Rackspace lied about how the 500% increase was initiated.

The issue remains tht instead off receiving cloud storage for quoted and customary rate of  approximate $400 a month we were quoted, we were lied to by Rackspace staff are now  paying almost $1,100.00 to store our data.  We will have to hire technical experts to go against Rackspace and make sure our data and our business are not destroyed if the BBB cannot mediate. . This rate is grossly excesssive, and Rackspace does not deserve a good BBB rating if its policy is to take advanate of businesses and inflate billings..

We are simply asking that we received the correct and standard service  rate in the marketplace, adjusted retroactively, because the error is clearly not ours.

Please note, we especially need the help of the BBB through a mediation request because Rackspace is threateneing to destroy our business, and discontinue our critical access to the data on our server.

We are also paying $100 a month for critical technical support, primarily needed by phone, and were told Rackspace was instructed not to talk to us because we might file a lawsuit.  This is devastating  and frightening to our business.

We desperately need the help and advocacy of th   BBB arbitration. 

We are worried about changing anything without BBB oversight,   because last Racksapce in its  responses threatening to discontinue access to our server dat as an”alternative.”

We are being pressured to   give up in challenging the mounting unauthorized charge through the BBB ((which we ar diligently  paying under coercion).

The issue is that Rackspace is  charging us five times the agreed upon unit rate and lying that our staff ordered a useless and irrelevant upgrade, and is refusing to take responsibility for the dishonesty and/or error of  its sales staff.

A mediation will resolve whether our request for a retroactive credit and a that Rackapce implement correct  small business server options. as it advertises,  is justified.


Rackspace has lied that its ******** ***** ******** has approached or is working with us.  *** ******** has refused to return any calls or provide he requested documentation.



**** ******* *******


******** ********** *** ****** *** **** ** ********* **** ********** **  *****






**** *******

Business Response:

On May 14, 2013, ******** ********** *** ***** signed up for our Open Cloud Services under account number ****** which utilizes a single 4GB virtual server.  These services are signed up by the customer utilizing our online process (*******************************).  The Agreement attached in your e-mail is for a Dedicated Fire Wall (Cisco ASA 5505) on a month-to-month term and for a monthly cost of $229.88. These are technically two separate "accounts;" however, customers have the option to consolidate their billing when utilizing multiple projects such as Virtualized Cloud Servers with Dedicated Hardware.  


In the attachment named "Absolute-Screen Shot" you will see ******** ********** *** *****'s full listing of services.  One with account number ****** which is their Open Cloud Account, and their Related Hybrid Account number ******* which contains the dedicated firewall.  Also noted is that the customer has chosen NOT to consolidate their invoicing for the services.  For this reason, you will see two other attachments.  The first named "Absolute-Dedicated Inv" which is their most recent involve for the dedicated firewall under account number *******.  It is clear in the invoice they are charged the proper amount in accordance with the signed agreement you attached in your e-mail plus appropriate taxes.  However, there is a second invoice for their 4GB virtual server in the attachment named "Absolute-Cloud Inv".  It is in this invoice that is associated with their account number ******. This server was the subject of the original Better Business Bureau complaint and I will restate our previous point.  This is a virtual server.  It is designed to be activated and/or deleted at any time of the customers choosing.  If ******** ********** *** ***** wishes to discontinue or change this server, they may.  However the customer continues to utilize the server in the amount of 700GB of usage for 744 hours as noted in the attached invoice.


It is for these reasons I respectfully disagree with the consumer's documentation "verifying" the amount of their obligations to pay for services, as the Agreement they provided you is only one portion of the services being supplied by Rackspace and utilized by the customer.  Furthermore, I respectfully request the Better Business Bureau consider this matter resolved.  I trust this will end any further communications regarding ******** ********** *** *****.

Consumer Response: Complaint: *******

I am rejecting this response because:

Regards, **** *******

Consumer Response: Complaint: *******
I am rejecting this response because:


1.   Rackspace did not respond to the fact that we are being billed in excess of the quoted price and contract I provided, even after taking into account the firewall.  Of course we can see the services for our bill online and what we are being billed.  That is not the issue.

2.  We have repeatedly asked about the rate at which we are being charged for data storage and why it is five times more that  the rate quoted.  We have no contract for this unauthorized increase.

3.  I feel that this is an important case for BBB review because Rackspace sold us services at a price, watched our firm incur thousands of dollars of data migration costs and IT services to get our data on Rackspace, and then told us to go take our data somewhere else if we don't like being overbilled.  They know this is a massive expense of time and labor.

If the BBB does not require Rackspace to simply explain their practices, this company can have salespeople quote any price, and once a small company such as ours has made the investment to move the data, Rackspace can hold the business hostage to higher billings by threatening to force the company to do the whole costly and disruptive data migration process again.

The mediation proc




We really need the BBB mediation process so that Rackspace is required to explain their bill and whether they can and should implement a more economical rate, closer to the  contract price,

2.  Rackspace references the fact we are also getting a firewall, and there is no issue with this charge, although I was told we needed one and it was a separate charge in addition to the contract I had agreed to.  I have confirmed we do need a firewall 

2.  My office has repeatedly asked Rackspace why the services greatly exceed the quote.  The issue is not that we are getting three bills, it is that Rackspace is billing us nearly

2. It should be of great concern to the BBB that Rackspace shocks consumers with a bill in excess of the

upsetting that Rackspace would state that if we don't like being billed well in excess of their


Regards, **** *******

12/10/2013 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: RackSpace forced us to order their DDOS mitigation service for $6,000 one-time-fee. They basically took our servers hostage, they took our firewall offline and said our servers are under DDOS attack and the only way for us to resolve the issue is by purchasing their $6,000 DDOS mitigation services. We agreed to the mitigation because we had no choice. I made it clear to my account rep that I was unhappy with the decision. What drives me crazy is that as soon as we agreed to the $6,000 charge in less than 15 minutes everything was setup and surprise surprise the attack subsided (**** said: Currently the IP in protect is not receiving a lot of traffic and the firewall is currently stable and idle. It appears the attack has subsided but i will leave your IP in protect mode for now). This happened 15 minutes after we agreed to the charge!!!! I feel like we were held hostage to pay the fee and that is not the right way to do business.

Desired Settlement: Billing adjustment for amount of $6,000

Business Response: Rackspace has researched this issue and below is a short summary of the events:

On October 19, 2013, customer sustained a malicious attack (DDos), which is a violation of the Rackspace Acceptable Use Policy.  After being sent a whitelist of IP addresses by the customer, Rackspace attempted to have the firewall mitigate the attack, including nullrouting the malicious traffic at the firewall.  The firewall option failed, and the only other option to protect the Rackspace network was the utilization of the DDos Mitigation device.  In ticket number ************, customer ****** *******, agreed to the terms of the installation of the DDos mitigation device at the cost of $6,000.  The malicious traffic stopped once the DDoS Mitigation device was activated.  This is the sole purpose of the DDos mitigation device; to stop malicious traffic.  Therefore, the supplemental service provided by Rackspace and that the customer accepted on October 19, 2013 worked in accordance with the terms and conditions of such service.

However, in an effort to resolve this issue, Rackspace is willing to offer a one (1) month credit which equates to $3,326.  Please let us know if this is acceptable and we will issue the credit immediately.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me.


****** *******

10/23/2013 Billing/Collection Issues | Read Complaint Details

Additional Notes

Complaint: I was a customer of Rackspace for a couple of years. About 6 months ago, I believe I manually cancelled my account. However, I am still being charged monthly. As I have not used this account in 6 months, I do not have the username and password. Because I do not have access to the original email address, Rackspace will not allow me to reset my password and refuses to assist me in doing so via phone. They also refuse to cancel the account via phone. I was able to provide all other relevant information, including the credit card information that they are charging, the "secret question and answer" for password resetting, etc... I have emailed them and notified in writing that they no longer have access to charge my credit card. However, they have indicated that they will continue to do so until the account is cancelled (which they will not let me do). At this point, my only other option is to cancel my credit card, at which point they will cancel my account anyways due to lack of payment. I only want my account cancelled, however, no one at the company will assist me in doing so.

Desired Settlement: Cancel my account

Business Response: Rackspace has attempted to research this complaint; however, we cannot locate Mr. *******'s account based on the information provided in the complaint.  Please have Mr. ******* provide his Rackspace account number so we may confirm his account and look into resolving this issue.

Consumer Response: Complaint: *******


The account # of my account is ******
Support Ticket #*******
UN: *******
Email Address: ************@******.com (this is the account that I no longer have access to, therefore not able to reset my password)
Secondary Email Address: ********@******.com
Security Question: What is the best town to live in?
Security Answer: Watertown
I also can provide the credit card number for which I want cancelled, as well as security code, expiration date, billing address, etc...


******* *******

Business Response: Our Terms and Conditions state “You must follow Rackspace's non-renewal process accessible from the Rackspace Cloud control panel to give an effective notice of non-renewal.“

However, since Mr. ******* provided additional information in his complaint relating to the subject account, we will make a one time exception to our contractual non-renewal process. Please note we consider Mr. ******* responsible for this request, and actions that we are taking per this request. The account has been closed.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me.

Thank you for your help.

******* *******

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