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BBB: Store Charging For Unauthorized Purchases

POSTED: 1:53 pm EDT July 7, 2009
UPDATED: 8:56 am EDT July 8, 2009

The Better Business Bureau is warning consumers about a New York company that it said is submitting unauthorized credit card charges months after purchases are made.

Classic Closeouts offers apparel, jewelry and other products online at classiccloseouts.com. Consumers nationwide have filed hundreds of complaints with BBB about the company's practices.

A University Heights man complained after he received five unauthorized charges ranging from $59.99 to $69.99 within a span of four months. When his credit card company contacted Classic Closeouts to investigate the charges, Classic Closeouts provided statements for the purchases. The man continued to insist he never made the additional purchases, but his credit card company did not remove the charges.

A couple from Avon Lake said they used separate credit cards to purchase merchandise from the company. A year later they both noticed charges of $69.99 on their accounts. The couple tried unsuccessfully for months to reach someone at the company.

Classic Closeouts has an "F" grade rating with BBB. It has failed to answer all but 24 cases.

The Federal Trade Commission announced last week it had filed a lawsuit charging Classic Closeouts with illegally unauthorized charges and debits to consumers' accounts months or years after they bought items. The company contested after financial institutions reversed unauthorized charges, claiming that consumers had chosen to join ThirdFree, Classic Closeouts' sister company. Consumers denied agreeing to join the club.

The BBB reminds consumers to carefully review credit card statements and notify your credit card company immediately of any unauthorized or incorrect charges.




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