BBB Investigation: MJM Autohaus charges consumers for auto parts consumers say they don’t deliver

  
     
June 11, 2014

San Antonio-based auto parts company racks up complaints about non-delivery

SAN ANTONIO

Consumers who order auto parts from San Antonio-based MJM Autohaus could find themselves waiting weeks for the items they ordered, if they receive the items at all.

Better Business Bureau (BBB) serving Central, Coastal, Southwest Texas and the Permian Basin found the company, located at 10740 Hillpoint #4 in San Antonio, has received many similar complaints alleging the company takes payment immediately, then does not deliver the parts in a timely manner, or at all.

As of June 10, BBB has received 111 complaints about MJM Autohaus in the last year. The company did not resolve more than half of those complaints.

Based on BBB files, disputes with MJM Autohaus allege customers place direct orders for parts in stock, receive confirmation of orders placed and do not receive parts in a timely manner or at all. Complainants allege their payment is accepted before shipping occurs and they are then unable to reach the business about the delivery delay or refund request. Complainants generally seek a refund or part to be delivered.

Business responses to disputes generally state that the consumer has now received a refund. However, dozens of complaints received by BBB remain unanswered or unresolved.

Although it is not accredited with BBB, MJM Autohaus is displaying the BBB seal on its website, www.mjmautohaus.com. BBB has contacted MJM Autohaus about its use of the BBB trademark, but the company has not modified its website.

Luke Healy of New Jersey said he ordered $1,872.09 worth of auto parts from MJM Autohaus on Veterans Day, Nov. 11, 2013 and still hadn’t delivered the parts as of April 30, 2014. He said the company told him the parts were on backorder after they hadn’t arrived in three weeks. Healy canceled the order in January 2014 and still hasn’t received a promised refund. He said after he made several calls, the company finally told him to dispute the charges with his bank.

“I ordered close to $2,000 in suspension parts and engine mounts. I was originally supposed to get the order in three to five business days with shipping of about a week. After three weeks, I called. They told me the parts were on backorder. On Jan. 22, I called and canceled. I spoke to someone who promised to issue a refund. Several days later I called again to check and they told me there had been a security breach involving credit cards and they couldn’t do any remittance. They told me to dispute the charges with my bank.”

Michael Lipayon of Los Angeles, California said he ordered $199 worth of auto parts from MJM Autohaus in January 2014, but has not received them. Lipayon said the company made excuses about why the order hadn’t shipped. He said the company promised to issue a refund after he canceled, but still has not done so after more than two months.

“I ordered wheel bearings and hubs,” he said. “They didn’t say it was on backorder until I checked back in two weeks. A month later, I canceled and asked for a refund. I keep calling and they just give me the runaround. They tell me they’re working with their bank merchant to find out what why my refund hasn’t been issued. Now people are calling me back, but they give me the same answer. They first said they only give refunds on the first and the 15th. I gave them a chance, but nothing happened.”

When buying merchandise online, BBB offers the following advice:

  • Pay with a credit card. Under federal law, charges made on a credit card can be disputed up to 60 days after the purchase.
  • Keep documentation of your order. After completing the online order process, there should be a final confirmation page or an email confirmation. Print and save any receipts for future reference.
  • Know your rights. Federal law requires that orders made by mail, phone or online be shipped by the date promised or, if no delivery time was stated, within 30 days. If the goods aren’t shipped on time, the shopper can cancel and demand a refund. There is no general three-day cancellation right, but consumers do have the right to reject merchandise if it’s defective or was misrepresented. Otherwise, it’s the company’s policies that determine if the shopper can cancel the purchase and receive a refund or credit.
  • Do your research. Check the company’s BBB Business Review at bbb.org before making a purchase to see its BBB rating, complaint history and any advertising-related issues.