Consumer Law, Warranties Direct Source

[runvs1959]

My wife and I recently attended a presentation for Direct Source of the Woodlands a sub of Florida Leisure products a company that gives its members wholesale pricing on goods and travel. The presentation stated that we would receive considerably large discounts through our membership by via the website or phone. When we got home and began doing our own price comparison-shopping, we realized that the actual discounts were not as great as presented. During the presentation, we were told that shipping charges were included but have since found out that they are in addition to the price. Various hotels that we spoke to were no longer associated with Direct Source and had not been for three years or more. We feel that the facts were misrepresented to us during the presentation.
When I called to discuss our dissatisfaction with the company, the phones had been disconnected or changed. After finally reaching some one to discuss the termination of the contract and receiving a refund on the down payment, I was told that they were unable to credit my account $1000, the amount of the down payment. I offered to let them keep $ 500.00 of the $1000 deposit and then credit the remaining $500.00 back to my debit card. I was told that in order for them to do so I would need to return the membership materials, a signed copy of the mutual termination agreement along with a cashier's check for $500 for administrative and processing fees. Only then would they be able to administer the credit to my account. After thoroughly reviewing the contract I noticed a play on words, instead of saying you have three days to cancel it said you do NOT have three days to cancel. They are now saying that if we do not send the $500 cashier's check and the signed termination agreement they will send it to a collections agency. Since we did call to cancel within two days and have not purchased anything or used the program in any way, except to check on pricing do we have an out? I am sure I should not send the $500. However, am I out the $1000 and have to put up with a collections company too? Please Help!
PS. I have 3 pages of contract and termination agreement I can e-mail to you pdf file they are to large to add here.

 

[seniorjudge]

Did you have a question?

If so, ask it.

And while you are waiting for an answer, report this scam to the attorney general of Florida.

 

[runvs1959]

Am I bound by this contract, Do I have legal recourse.



Document#1
Direct Source of The
Woodlands
ACKNOWLEDGEMENT OF BENEFITS AND SERVICES
1) I/we have purchased a DIRECT SOURCE KIT and have received copies of my finance
contract, guarantee and acknowledgement.
2) I/we have purchased a DIRECT SOURCE KIT for the substantial benefits offered for
travel, shopping and national discounts offered through various program providers.
3) The purchase price of the DIRECT SOURCE KIT is $ .; The optional annual
fee is $__ .
4) ;_ I/we understand that DIRECT SOURCE has contracted with several outside providers
for the fulfillment of the DIRECT SOURCE KIT and that DIRECT SOURCE reserves the right
to change, improve, add or delete providers at its sole discretion.
5) j I/we understand that within the first $ . dollars of products purchased, I must
recover in savings, cash or vouchers the entire cost of my DIRECT SOURCE KIT (an amount
equal to 30%) or I am entitled to receive a refund of the difference in cash. Prices may be
compared with any other dealer and must be on exact products purchased through our service
center on new, non-damaged, delivered goods or travel services. Items purchased thru local
services are not included in this guarantee.
6) I/we understand that it is not possible to save money on every item offered through
DIRECT SOURCE, particularly on low-end electronics, computers and seasonal items.
7) I/we understand that the DIRECT SOURCE Kit and all documents are binding on both
parties and that I/we do not have a three (3) day right to cancel the agreement because all
negotiations for the agreement took place at the seller's business location.
8) I/we understand that DIRECT SOURCE uses many behind the scenes fulfillment
providers. However, DIRECT SOURCE is solely responsible for the fulfillment of member
services. Access Development is only a provider of added-value discounts and has no other
relationship with DIRECT SOURCE. Please direct all billing calls, comments or inquiries to the
phone number in your fulfillment kit.
9) : My/our representative was courteous and informative and did not use high pressure or
coerce me/us into purchasing the DIRECT SOURCE KIT.
/ -/ > :/" ' /'ftf/
Buyer . , : - / , Date Representative Date
Buyer ' Date



Document#2
Direct Source ot the Woodlands
ALL GOODS RETAIL INSTALLMENT CONTRACT
BUYER(S)
Date (Month, Day. Year) ACCOUNT NUMBER
N
CREDITOR
(SELLER)
Nam«&
Address
Direct Source of the Woodlands
719 Sawdust Road, Suite 309
The Woodlands, TX 77380

IF GOODS. Give: Make
IF SERVICES. Describe:
TWELVE MONTH MEMBERSHIP INCLUDING ALL SERVICES OFFERED
ITEMI2ATION OF AMOUNT FINANCED
DATE FINANCE CHARGE BEGINS TO ACCRUE (if different from the
Retail Installment Contract date): . 20
:
1. Cash Pnee
Cash Discount
Cash Down Payment
2 Total Down Payment

3 Unpaid Balance of Cash Price (1 minus Z)
DISCLOSURES REQUIRED BY FEDERAL LAW
ANNUAL
PERCENTAGE RATE
The' cost of your credit
as a yearly rate.
FINANCE CHARGE
The dollar amount the
credit wilt cost you.

$
AMOUNT FINANCED
The amount of credit
provided to you or on
your behalf.
s
TOTAL OF PAYMENTS
The amount you will
have paid after you
have made all payments
as scheduled.
$
TOTAL SALE PRICE
The total cost of your purchase
on credit including your down
payment of

Number of payments Amount of Payments When Payments Are Due
Security: You are giving a security interest in the goods or property being purchased.
Late Charge: If any payment is not paid in full within 10 days after it is due. you will be charged a $5.00 late fee.
Prepayment: If you pay off early, you may be entitled to a refund of part of the finance charges.
See your Contract documents for additional information about non-payment, default, any required payment in full before the scheduled date, and
prepayment refunds and penalties.
Seller sens and Suyer(s) purchaser(s) the services and property described herein and Buyer(s) agree(s) to pay to Seller or Seller's assignees the total of
$ in consecutive monthly payments of $ each commencing on the First Payment Due
Date Buyer(s) agree(s) to the terms of the contract
Buyer(s) agree(s) to pay a delinquency charge on each installment in default tor a period of ten (10) days or more in an amount not in excess of each
installment of $5.00.
Buyer(s) may prepay the contract in full at any time without penalty and shall receive rebate of the unearned Finance Charge computed using the pro rata
method. No refund less than .00 need be made
Default in the payment of any sum under this contract or m the performance of any condition ol this contract, me remaining amount owing under this
contract less any refunds or credits then due Buyer(s) shall immediately become due and payable, and Seller or Seller's assignees shall have the right to
initiate court proceedings to collect any such amounts due and payable. However, Seller or Seller's assignees shall also have the right, at its option, to cancel
the membership rights purchased pursuant to this retail installment contract without refund of any monies paid pursuant to this contract by Buyer(s) up to the
date of cancellation.
Buyer(s) agree(s) to pay a reasonable attorney's fee and court costs if this contract is referred for collection to any attorney who is not an employee ol
the Seller and provided that such attorneys fees shall not exceed 15% of the unpaid debt after default and that no attorney's fees shall be paid by the
Buyer(s) if the original principal amount or original amount financed under this contract does not exceed $300.00.
NOTE TO BUYER: (1 (Do not sign the agreement Before you read it or if it contains any Blank spaces (2) You are entitled to an exact copy ol the paper You sign (3) You have
me right to pav in advance the lull amount flue and under certain conditions to obtain a partial refuna ol the Finance Charge
In Witness Whereof. I hereunto set my hand and seal on_
Signed, Sealed and delivered in presence of
_. _
SELLER.
Buyer Acknowledges receipt of a true completed copy hereof.
CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT



Document#3
Direct Source of the Woodlands BUYER ,
SELLER .BUYER
DIRECT SOURCE
719 SAWDUST RD
#309
THE WOODLANDS, TX 77380
5/8/2008
Dear -----------,
#25358
This letter serves as a mutual release between and DIRECT
SOURCE. Your account will be canceled and your visa debit card will be credited
$1000.00 once a signed copy of this document is returned to us along with all
membership materials and a cashier's check/money order in the amount of $500.00 for
administrative and processing fees. This release is being done as a convenience to both
parties.
Any reference to this cancellation or disclosure to any third party without prior written
authorization is expressly forbidden and constitutes breach of the agreement. Putting the
prior agreement en force and all monies due and payable.
This mutual release terminates all previous obligations and agreements between both
parties.
Please sign where indicated below; we have included a copy for your records. Once we
receive your signed copy we will formally cancel your account. It was a pleasure
working with you and if we may be of any future assistance please call us.

 

[quatrobird]

I also had the same problems with Direct Source in the Woodlands,Tx. This happened back in April. I have the same contract and talked to Heather the next day and she explained I could not get out of the contract. My contract cost $3799.00. I have tried to work within their system, but have "not" received the promised benefits from this costly contract. I have found the 2 items they bought for me, could have been purchased at the store for the same price. Plus the customer service acts like they are doing you a favor to find you item, and usually try to persuade you to buy something they are selling, rather than the purchase you are trying to make. They say to be specific with the brand you want, but usually do not have it. We were planning on doing some home improvements, but this is not worth it.

Through my own travel research I have gotten better prices than Direct Source offers, and theirs are usually in shabby hotels with more airline stops etc. Please contact me at quatrobird@hotmail.com, if you have any success in getting out of this contract. Direct Source in the Woodlands, Tx is a scam and we need to protect others in our area from falling for this smooth salesmanship.

 

[Worried30]

Same problem

We are in the same boat..And are trying to get out of this direct source scam..They say we have to abide by the contract even though we did not save any money..We dont know what else to do..This company has swindled us into this huge scam and will ruin our credit if we dont pay them there full $4100.00 ..If anyone can help..please reply..your thoughts and legal advice would be much appreciated.

 

[quatrobird]

I also had the same experience with Direct Source. We have been in this for almost a year and have not received any benefits for the membership price we paid. The people usually tell me they don't have the product I want, and then offer a much more expensive one, that is if they feel like looking for the product at all. I tried to get a car through them, and when I ran down information on the car's VIN, I found out it was a wrecked vehicle. The prices for their air travel are the same that you can get online, except with second rate hotels and airline tickets with layovers or many stops. The only benefit in the air travel are the travel vouchers you get for more of their airline services, which really stink. I wish there was something to be done, and to warn others about this scam. Check out complaints.com, they have many more complaints about Direct Source.

email me at quatrobird@hotmail.com, if you can think of anything that can be done.

thanks

 

[quatrobird]

In April, 2008, I received a card in the mail, inviting my wife and I to a seminar held close to our home. The stated object of the seminar was to offer to us a 'service' which would save money. No details were given in the card, we had to go to the seminar to find out the information.

At the seminar, we were told about the company, Florida Leisure Products (FLP), and how their company would, for an annual fee, arrange for us to have products, goods and services at a fraction of suggested retail price. Here is how it was described:

1. We would shop as usual, at our regular shopping outlets, making note of the items we wished to buy, along with the make/model/price information. We were then to forward this information to FLP.
2. FLP would then communicate back to us the price they could supply the item(s) in question, allegedly at a massive savings, and when the item would be delivered to our door.
3. We would then direct FLP to make the purchase(s), and provide them with a credit card number for the amount.

There was a one-time setup/initiation fee charge of $4,100.00, and the notification of an annual maintainence fee. It appeared that FLP got all its money from these sources, as there was no additional 'service fees' attached to the purchase of products or services, nor was there any limitation or surcharge on the amount of products/goods that we could purchase.

After signing up with FLP, we made a list of items we needed in the next two months, and sent the list off as per the instructions. Ten weeks have now elapsed, and to date there has been no action by Florida Leisure Products. All attempts to expidite the process have met with unanswered phones
, unreturned calls, unreturned e-mails and when I did manage to get someone to answer the phone, I was told about delays from the manufacturer, changes in products, and other excuses designed to delay delay delay.

So far, the only thing FLP did quickly was cash our sign-up check! We have filed with the BBB in Florida and Mississippi, but as yet, there is no resolution to this problem. Recent GOOGLE searches have shown that there are many more out there in the same boat, so if I can get any resolution, I'll update this report.