Complaint Review: XCite Media Group

In January 2014, A1 Garage Doors, entered into a contract with XCite Media Group to develop a web based app that would be an all-inclusive business management solution. Some, but not all of the key features agreed to were: database storage, scheduling and dispatching, proposals and service agreements, inventory management, remote access both on and off-line, payroll, reporting, and a communication dashboard.

We were told that Xcite’s developer had worked on medical programming and had created programs that other developers were incapable of developing on very short timelines. We were told he would complete our app within 3 to 6 months and, more than likely, before we were done with our six months of installment payments. If that happened, they would need the remaining payment within 14 days of completion. Our six installment payments were $1666.67, beginning February 2014 and ending July 2014, totaling $10,000.

We were very eager to receive our completed app because, as we had confided in Xcite Media, areas of our business needed the structure it would bring. As the timeline passed the six month mark, A1 hired on extra support staff to patch up the business needs until the app was delivered. During the next six months many meetings, unfulfilled promises, and project manager changes took place. We were told the app was complete in September 2014, but in fact, not a single component worked. We put in many hours trying to work with Xcite Media to get a working app.

Around April 2015, Xcite Media asked us to come to their office where we were informed that their developer was not going to complete the app. They had hired on a new app developer who would start over completely. They told us we had purchased the app for a bargain price and we would never find anyone that could deliver on what we had been promised. Once again, we thought we could trust Xcite Media to fulfill their agreement. At this point we had spent hundreds of hours collecting and sending them updated business information, in meetings, hiring extra support staff and buying thousands of dollars in technology in preparation of our app being delivered. That money was now spent and our technology was quickly becoming obsolete.

The new developer seemed capable of delivering on the app, however the new problem became that we had to constantly "negotiate” and follow up for the developer to spend time on our app instead of Xcite Media’s other projects he simultaneously was working on. The developer decided to break down the project into three phases and once again verbal commitments on deadlines came and went with no fully functioning app being delivered.

In August 2017, over 3 1/2 years after the project’s inception, A1 Garage Doors came to the conclusion that we would not receive a fully functioning app, ever. Phase 1 still was not complete and the app still could not be used. It took over a month for the owner, Klint Rudolph, who had sold us the app, to finally call us back so we could let them know our relationship needed to end. We asked him for our money back on a product he could not deliver. After a long conversation he said he would speak to the other owners and get back to us, which he never did.

A1 Garage Doors sought legal counsel to recoup the money spent on the development fee, and served Xcite Media with a demand letter. The response we got back from Xcite’s attorney was to reject our request for a refund and to make sure we understood what we were up against. Their attorney states, "Moreover, let’s not forget that excite will not only defend against the claims but will bring its own counterclaims and seek to collect all the money they have put into the project which now exceeds $100,000. Perhaps most importantly let’s be practical about a lawsuit.

During the next two years is your client prepared to pay your attorney fees and discovery cost waiting to see the outcome two years later? If $10,000 means a lot to them now then $70,000-$100,000 will mean much, much more.” "And you and I both know that if you bring these claims against Xcite they will immediately turn the case over to their insurance company to handle the defense. There will be no out-of-pocket cost for them save a small deductible.” So, finally, after seeking to get our money back for a product that never was delivered, they made it clear they will not give us our money back and they will bully us into walking away. I feel taken advantage of, deceived, manipulate and outraged. Come to find out, though, I’m not the only one that Xcite Media has done this to.