Discount Buying Clubs: What You Order is Not Always What You Get

Consumers should pay close attention when ordering merchandise from television or over the phone. In some cases you may get something more than the product or service you ordered. The National Consumers League and the Better Business Bureau report that a growing number of consumers are finding charges on their credit card statements and debits from their bank account for discount buying club memberships that they never agreed to or did not agree to renew after an initial trial offer.

Buying clubs, which offer large discounts on a variety of services and merchandise, have been around for years. If used wisely, they can offer significant savings.

New members are usually solicited through mailings, phone calls, and increasingly through what is called "upselling" - encouraging a customer who is calling to buy one item to order another product. Oftentimes, consumers are sent packages detailing the buying club program. To some consumers this material looks like junk mail and is thrown away. As a result, people may not know they have enrolled in a club until they find charges on their credit-card bills.

To avoid surprise charges, the Better Business Bureau encourages consumers to:

• Pay attention to the fine print on TV screens when ordering merchandise. Does it indicate that you will be enrolled in a club that offers discounts on other products?
• When you receive club offers through the mail, be sure to read the materials thoroughly. Some clubs offer "free trial" memberships. If you do not call to cancel the offer within a certain number of days, you will automatically be charged for membership.
• If ordering anything by phone, be alert! If you are made an offer you are not interested in, make sure you are very clear in refusing it.
• Review your credit card and debit card statements carefully. Once someone has your account number, it is possible to charge you or debit your account even if you never agreed to purchase their services. If you find unauthorized charges on your statements, dispute them immediately, in a letter to the company that made the charge, and in writing to your credit card company or bank.

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