“Incentive Checks” Can Be Costly

5/22/2009

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The BBB Serving Western VA cautions consumers about signing “incentive” checks received with the purchase of a PedEgg™. Checks for $8.25 are arriving in area mailboxes from CompleteHome in Connecticut.

 

By cashing the incentive check, consumers agree to a one-year membership with the company, which provides travel, shopping, health, auto, entertainment, and consumer protection services.

Though CompleteHome considers these checks to be "incentives," the recipients often deposit them, either unnoticed or noticed only enough to conclude that they must be rebate checks. As part of this membership, the company will charge a $129.99 annual membership fee to the credit card account used to purchase the PedEgg products.  Memberships are automatically renewed unless cancelled by the customer.

CompleteHome, a DBA of Affinion Group, Inc., has a C-rating with the Connecticut BBB due, in part, to government actions filed against another DBA, Trilegiant. A settlement was reached which addressed claims that the company used deceptive solicitation practices to get consumers to sign up for memberships. The settlement required Affinion Group, Inc., to pay a total of $6 million to cover civil penalties.

 

The BBB suggests that if you are considering a membership in a buying club, first compare the prices and services of the club to retail stores and other such services. Consider the amount of merchandise you would have to buy at the club's discounted prices to make up for the cost of the membership. Understand the policies of the organization with regard to the following: how you order merchandise, methods of payment, finance charges, delivery and service charges, refunds and exchanges and warranty rights.

 

For further information, contact your BBB at (540) 342-3455 or on the web at www.vawest.bbb.org.

 

 

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