Complaint Review: National Magazine Exchange

First of all Stephanie, you have got the math wrong. The price per week cover all the magazines in the pkg, not each one individually. As it stands today, you can get up to 9 magazines for the quoted weekly rate. So your example doesn't compute.

Reps do not sell multiple subscription packages. In fact the system flags up multiple orders and a customer service rep contacts the customer to verify that it is correct

You said you were young and ignorant. You were intelligent enough for college but too "ignorant" to pay attention when on the telephone.

Did you send back the confirmation for the watch, if not you don't get it.

Did you call customer service when the mags stopped?

Was your husband was also "young and ignorant" when he ordered the magazines or did he see the great value that it is?

Why shouldn't the company tried to get paid for the subscription YOU agreed to? Is it your normal practise no to pay your legitimate bills?I'm glad I don't own a business in your neighbourhood

As for the California thing that appears to be the collections agency not NME.

How is the magazine pitch illegal and while we're at it name one other sales pitch that is NOT designed to hook a buyer. THAT IS THE WHOLE POINT!

No where on the mailer does it say you won anything.

I'm very glad you published the FTC rules and guidelines. NME goes to great lengths to abide by them. As I have stated elsewhere on this site ALL sales confirmations are recorded and there is a team of sales auditors who check sales recordings to ensure that everything is correct and above board.

During the confirmation the magazines and length of subscription is listed. The number of payments and amount of each payment is also listed and the customers agreement is asked for. (This agreement must be a valid form of agreement, like YES or Okay). If the customer asks any questions they must be answered fully if they are not and the rep misrepresents the company, the sale can be cancelled.

The taping of the calls is beneficial to both parties and yes it can prove that the customer has agreed to the sale etc. USEFUL WHEN PEOPLE JUST DECIDE NOT TO PAY!!! Also as I said above to prevent misrepresentation.

NME reps do not offer free magazines, the magazines are not free, they are part of a package. Extra magazines are added to the package at no extra cost as an incentive.

The billing is explained to the customer CLEARLY. The price has gone up since you order it's now $1.29 per week rate. The customer is told that they will not be billed every week. It is explained that the the billing is worked out $1.29 times the number of weeks in the service, which is then broken down into convenient consecutive monthly payments of how much the customer has agreed to for each payment. Reps get repremanded if they do not say "Consecutive, Monthly and Each when referring to the payments"

If you didn't want to get magazines for 4 yrs why did you agree to it? Why didn't you ask for a shorter option. The rep is going to try and sell you a long term because they make more money. JUST LIKE ANY OTHER SALESPERSON.
Washing machine salespeople don't offer you the lowest priced machine in the store first do they?

You weren't scammed Stephanie, neither was anyone else, If they were, why do so many people come back?

Glad to clarify anything else you might want to raise.

PS I just work there, I am not a shareholder or manager.

I did do my research. After talking to the company more than I would like, I think I can remember what the offers were. In fact, I got one of the flyers in the mail - the one for the sweepstakes. The magazines are offered for 4 and 6 years. IF you are buying ONE subscription at $0.99/week. That is $51.48/year. HOWEVER, they try and get you to buy more than one subscription. Even if it is three magazines at $0.99/week and you sign up for three years that comes out to $154.44. MOST magazine companies have discounted offers (such as Better Homes and Gardens) for $25 for two years.

National Magazine Exchange has to make money and they can't make money by selling one or two subscriptions for one or two years. It is always cheaper to buy magazines direct. NME is a third party - they have to take their cut, too.

Magazine Subscription Scams

Beware of telephone sales pitches for "free," "pre-paid" or "special" magazine subscription deals. An impulse purchase could leave you with years of monthly payments for magazines you may not want or could buy for less elsewhere. What's more, in some states, you're legally obligated to pay for a subscription once you verbally agree to it.

Of course, thousands of consumers buy magazine subscriptions from legitimate telemarketers every year. Yet, according to the Federal Trade Commission, some unscrupulous salespeople trick consumers into paying hundreds of dollars for multi-year subscriptions.

Sales techniques vary. The FTC says consumers should question approaches that feature:

Salespeople who encourage you to buy without giving you your total costs. For example, a salesperson may offer magazines for just a few dollars a week. That could sound like a bargain - until you do the math. You could end up paying hundreds of dollars over several years for subscriptions that sell elsewhere for less.
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The following comes directly from the FTC website: www.ftc.gov/bcp/conline/pubs/tmarkg/magzn.htm

Magazine Subscription Scams

Beware of telephone sales pitches for "free," "pre-paid" or "special" magazine subscription deals. An impulse purchase could leave you with years of monthly payments for magazines you may not want or could buy for less elsewhere. What's more, in some states, you're legally obligated to pay for a subscription once you verbally agree to it.

Of course, thousands of consumers buy magazine subscriptions from legitimate telemarketers every year. Yet, according to the Federal Trade Commission, some unscrupulous salespeople trick consumers into paying hundreds of dollars for multi-year subscriptions.

Sales techniques vary. The FTC says consumers should question approaches that feature:

Salespeople who encourage you to buy without giving you your total costs. For example, a salesperson may offer magazines for just a few dollars a week. That could sound like a bargain - until you do the math. You could end up paying hundreds of dollars over several years for subscriptions that sell elsewhere for less.
Salespeople who tell you magazines are "free" or "pre-paid" for you and that you'll be charged only a "processing fee." The fee may be more than the retail price of the magazine subscription.
Salespeople who don't identify themselves as such or who may not give you the name of their company. They may lead you to believe they represent magazine publishers, or that they're calling for reasons other than selling subscriptions.

If You're Called
Be skeptical when someone tries to sell you a "bargain" or offers you a "free" subscription on the phone. Ask questions. If you don't get answers that they're willing to back up in writing, consider doing business elsewhere. Ask:

How long does the subscription last - one year, two, more?
How will I be billed? Will you debit my checking account or credit card? When - monthly, annually?
How many magazines will I get and when - monthly, bi-monthly, quarterly?
What's the total yearly cost of each magazine? What's the total package price?
What are my cancellation rights? Get them in writing before you agree to buy. The salesperson may not be required to tell you about the company's cancellation policy unless you ask.
Compare the costs they're quoting to regular magazine subscription rates.
Be careful what you say on the phone to the seller. In some states, your verbal agreement to buy obligates you to pay. Frequently, the salesperson tape records the conversation, perhaps claiming it's for your protection. Later, the company may use the tape to "prove" you agreed to buy the magazines, selected a payment method, and understood the terms of the agreement.

If you don't want a subscription, and you don't want to be called again, tell the caller to put you on the company's "do not call list." If the company calls again, hang up. It's breaking the law. Report it to your state Attorney General and the FTC.

The Telemarketing Sales Rule
The FTC's Telemarketing Sales Rule requires telemarketers to make certain disclosures and prohibits them from lying. It gives you the power to stop telemarketing calls you don't want and gives state law enforcement officers the authority to prosecute fraudulent telemarketers who operate across state lines.

Some tips to keep in mind when you get a telephone sales pitch for magazine subscriptions:

The caller must promptly identify the seller and the purpose of the call. If the offer includes the promise of prizes or gifts, the sales pitch for the magazines must come first. If it doesn't, hang up. The caller is breaking the law.
If you ordered magazines over the phone once, you may be called again. Although you may think the call is about customer satisfaction, chances are it's about renewals and additional subscriptions. Listen carefully to the offers to make sure you understand the terms.

You may be called to renew your subscription, but the caller may not represent the publisher. Before you agree to renew, check the expiration date to determine how close it is. It's usually on the mailing label. Or, you may want to call the publisher to verify the expiration date and to confirm that the caller is authorized to renew your subscription.

Ask for a written copy of the contract before you agree to buy any subscription. Read it. Make sure you understand what you'll get, the cost of each magazine and each subscription, and the cost of the entire package.

Keep information about your bank accounts and credit cards to yourself - unless you know who you're dealing with. You may get a letter or postcard soliciting your business, or telling you that you've won a prize or a contest. Often, this is a front for a scam. Instructions tell you to respond to a promoter with certain information. If you give your bank account or credit card number over the phone to a stranger for "qualification," "verification" or "computer purposes," it may be used to debit your account without your permission.
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To the employee who posted the rebuttal, I am not trying to smear a legit company. The customer recieves the magazines. It is just that your business practices are dishonest. Your sales pitch is designed to hook the customer. You have a script that you read. Your script is designed based on how the human psyche responds to what is believed to be a great deal. If humans did not behave that way, then world's cash based economy would cease to exist.

I am here to inform.

This person has no CLUE what they are talking about. The offer is for all three magazines TOGETHER for that rate, not per magazine... it IS in fact, a great offer should the caller choose to particpate. People who post really should do their research before smearing a legit company.

I remember now why I was threatened with extridation to California. Reading some of the other complaints jogged my memory. It was the collection agency - North Shore Agency, Inc. - that I had called. North Shore Agency has an office in California. They were the ones that made the threat. I am sure that I just happened to talk to the only obnoxious person. If I had known better, then I would have gotten the woman's name. If I ever find the letter, I think I will post it online.

Oh, and F.Y.I: those .99/week subscriptions add up quickly. One subscription @ .99/week comes out to $51.48/year. Not so bad, but most people want more than one magazine. Say you get 3 magazines @ .99/week. That comes out to $154.44/year. And just say that those subsciptions are for 4 years each (like mine were). That comes to a total of $617.76! No telemarketer trying to get your business is going to tell you, before you place your order, that your magazines will cost that much.

Nobody wants to pay $600 for magazines. It is cheaper to deal with the magazines direct. Cut out the middle man.

From the sounds of things Stephanie, the over zealous, under trained Collections Rep violated the Fair Debt Collection Practices Act six ways from Sunday. You should have laughed in his or her face and hung up. No one can be extradited to California or anywhere else over a disputed bill. Debitors Prisons were outlawed in 1840. I don't understand the California reference however as they are headquartered here in Florida. If they harass you in the future: toss the letters in the trash, file a complaint with the State Attorney General in both Texas and Florida, send a copy of those letters to the FCC, FTC and Postmaster General and send NME a "Cease and Desist" letter.