Complaint Review: MemberWorks Incorporated

While viewing my account information I noticed a pair of charges, first for $249, and the second on the same date for $199, from a company called MWI. I found this a little disturbing since I had no recollection of ever dealing with this company, of even hearing of it. With a little investigation (Google) I found several other people with the same complaint and more than one lawsuit, including one (Mike Hatch, Attorney General for the state of Minnesota v. Memberworks Inc.) that MWI already lost.

With a little more digging, I basically found out that MWI gets credit card information from banks, credit card companys, and who knows where else. Sometimes they call to coerse their victims into a free 30 day trial of one of their membership programs that offer discounts on various goods/services. Then 30 days later they bill their credit card for an annual fee (or two) with the number/exp date that they never gave out, and MWI had all along. Many victims either never got or don't remember this phone call, others say they were told they would be provided with a cancelation number.

My assumption at this point was that MWI basically gets credit card info, runs your card for whatever they think they can get away with, ($79 - $249 that I read) and banks on the fact that enough people won't notice the charge for them to make money. Seems to be working as they're buying Lavalife, an internet dating company, for $115 million.

One more thing, the Better Business Bureau has suspended the BBB membership of MemberWorks and its affiliates pending the outcome of the government action initiated in October 2003 by the Florida Attorney General. Just another knock at the BBB.

Aaron
Gresham, Oregon
U.S.A.