The Dark Side of Netflix

Netflix Underground is not affiliated with Netflix, Inc.
Showing posts with label chargeback. Show all posts
Showing posts with label chargeback. Show all posts

6/24/2010

Netflix Fails to Honor Free Month Offer for Returning Customer

Netflix Undergrounder, Renée claims to have been cheated by Netflix on a free month membership incentive. Renée was a former Netflix customer for a couple of years and eventually received an invitation to rejoin Netflix for a free month of service. It was one of those "It's been awhile. Try Netflix free for a month," emails.

Renée decided to give Netflix another try. According to Renée, after just two weeks of service, Netflix charged Renée's debit card. Renée called Netflix to raise attention to the billing error. The customer service representative claimed the free month was only for new customers. When Renée called attention to the personalized email from Netflix and offered to forward the email as proof, the customer service representative hung up the phone.

Perhaps Renée's story is unusual, but the tale seems consistent with the sort of behavior that has made Netflix infamous. If you were wise enough to have already canceled your Netflix account, be thankful, move on with your life, and don't look back. If Netflix contacts you and tries to entice you back into the Netflix fold with special offers, consider Netflix may not fully honor those deals. If you do take the risk and rejoin Netflix under a special offer, make sure to check your account diligently. Make sure Netflix fully honors whatever promises they make to you. If Netflix pulls any tricks, cancel your account and report any fraudulent or unscrupulous activity to your bank/credit card company. If Netflix cheats you, you might be able to get some or all of your money back through your financial institution.

8/04/2008

Missing-DVD Pitfall in the Netflix Class Action Lawsuit Settlement

If you intend to exercise your settlement benefits from the Chavez vs. Netflix class action lawsuit, be very cautious about the missing-DVD pitfall in the settlement. If you accept DVDs from Netflix, you will have to make certain you return the DVDs within the allotted timeframe and that Netflix acknowledges the returns. Otherwise, you risk being charged for the missing DVDs.

Many former Netflix subscribers have complained their credit cards were charged for missing DVDs after canceling their Netflix accounts. The reports of this practice are so common that Netflix looks suspiciously as if they might be pretending to not receive DVDs from canceling subscribers just to squeeze extra money out of each departing subscriber. This practice has never been proven, but the occurrences raise suspicion.

If this dishonest business practice does exist, the Chavez vs. Netflix settlement beneficiaries are at a considerable risk of being charged for DVDs which Netflix does not acknowledge receiving. A beneficiary ending a three-out plan could easily be on the hook for $60 or more after his/her free subscription month. That is a lot to pay for one free month of DVDs.

If you are concerned that Netflix may fraudulently charge you for DVDs you actually returned, you may reduce your risk by taking some extra precautions. The steps below could help you dispute any illegitimate charges on your credit card from Netflix.
  1. A few days before your free subscription ends, delete every title from your queue. This should prevent Netflix from shipping more DVDs to you.
  2. At least one day before your subscription ends, use the Netflix Web site to report as missing any DVDs you have not yet received.
  3. Return all of your DVDs to Netflix within the allotted timeframe, mailing the DVDs using USPS tracking numbers and/or signature verification. This will provide proof of return.
  4. Save full documentation of your actions.
In the following months, carefully check your credit card statements. If Netflix still charges your credit card for missing DVDs (or makes any other unjustified charges), immediately contact Netflix to dispute the problem. If Netflix does not fully credit the unjustified charges to your credit card, contact your credit card company and dispute the charges. In many circumstances, your credit card company will reverse the charges, and you will not have to pay.

If you feel Netflix is a completely honest and ethical company who would never attempt to cheat you, then none of these precautions are necessary. However, if you think Netflix may be a shady and greedy company, which is always looking for ways to milk its customers, be cautious. If Netflix fooled you once, shame on them. If Netflix fools you twice, shame on you.

6/16/2008

The Credit Card Chargeback: Your Magical Ability to Turn Back Time

Did you know, that if any shifty merchant ever places an illegitimate charge on your credit card, it is your consumer right to dispute the charge with your credit card company? All you have to do is dial the toll-free customer service number on the back of your credit card and tell a service representative that you wish to place a particular charge in dispute.

Your credit card company will investigate your claim. If your credit card company determines the shifty merchant has unjustly charged your card, your credit card company has the power to recover your money from the shifty merchant in the form of a chargeback. In a chargeback, money is taken from the merchant (often along with penalties) and refunded back to your credit card account. In summary, the shifty merchant loses your money and you get it back like nothing ever happened.

If a shifty DVD-by-mail company places illegitimate charges your credit card, consider opening a dispute through your credit card company. You might just find you have the magical ability to turn back time.