Complaint Review: MWI Galleria USA

Memberworks Inc is a company that needs two things to stay in business. Since they do not have a real product to market or a product that is worth $140 a year and do not wish to have contact with the consumer. They need members who do not check the bank statement or do not know or care to take the time to cancel. They also need a source of newmembers.

Getting new members is were they spend all they money. From looking at there financial statements they spend much more in marketing than any thing else.

Below is a typical three month period.

Three months ended (Unaudited) in thousands of dollars

Revenues $114,045
Expenses:
Operating 19,178
Marketing 69,899 General and administrative 18,764
Restructuring charge
Amortization of intangible
assets 346 ---- -------- ---------- --------
Total expenses 108,187

They spend almost 65% of they income on marketing which buying your credit or debit card info from a bank, a credit card company, a telemarketer, or a company such as Sears, Aol, a large travel company or any else they can pay to get a shot at your financial info. They spend less than 17% of their income on operating expenses which included their call centers and on actual consumers who think it is a good deal. But i would bet that is less than $5 million per quarter.

According to Memberworks, less than 50% of their members renew for a second year. Or in other words, the person checked their statement in the next yeat. So they need a steady stream of new members. That why they pay millions of dollars to other companies to get a shot at you not noticing the charge.

In the financial statements memberworks it self said they were afraid of members cancaling at a higher rate and they were afraid of not having their agreements renewed with some of their sources of credit card numbers.

So if people will complain to those banks, credit card companies and companies like AOL, Memberworks will go out of business. Memberworks says it has deals with 8 of 10 credit card companies. Only do business with those two who do not. Call your bank ask if they sell your card info to Memberworks or a company they have an intereest in. Move your money. Cancel Aol or like I did. I called and should I was canceling my account and they give me four months for free. I cancel again in June.

Call MemberWorks and demand a refund in less than 5 business days.
Site with their phone numbers:
http://twiki.cageyconsumer.com/MemberWorks

Ask how they signed you up? If by So what can you do a company like this????
phone, ask for recording of your voice.
Ask how long you have been a member? You may be entitled to several years of refunds.

Call your bank or trusted company and ask if they sold your financial info? If they did, include them in any complaint and refuse to do business with them and tell your friends.

File a complaint with the federal trade commission and with your state agency.

Send e-mail to Bill OReilly, Dateline NBC, 60 minutes, your local stations, newspaper and anyone else you can think of.

E-mail your state and Federal representatives to change the law.

Here is a site that explains some of the laws.
http://www.cga.state.ct.us/2001/rpt/olr/htm/