Redsave Investigation: MoneySavingExpert.com

Former_MSE_Webmaster

In November 2007, online retailer RedSave was the subject of a vast array of primarily negative forum comment, about a 'hidden' £20 monthly charge levied even on small purchases. We then received legal complaints, from RedSave's owners, Nettexmedia, who said that many of the posts were untrue and defamatory.

Since that time, with the help of financial journalist Toby Walne, we have been investigating the validity of MoneySavers' experiences of RedSave.

Whilst some MoneySavers were able to provide evidence to support their opinions and posts; few were able or willing to do so. As such we've decided to permanently remove the previous RedSave threads, to replace it with this investigation report, and for legal reasons ask that comments about RedSave are not re-initiated.


The Investigation Results.

John Craig, 30, of Carrickfergus in County Antrim, successfully sued RedSave to return £59.95 and pay £30 costs at an Ulster county court in September 2008. He says: 'RedSave tries to muddy the waters but the case was a simple one - I was hoodwinked by small-print and the judge agreed it was unfair.'

He is among those who feel tricked by a £19.95 club monthly membership fee that was taken directly from bank accounts after making a single online purchase. Some dissatisfied consumers have felt so strongly they have formed what they call the RedSave Action Group. The sales catch - 'hidden' within the website small-print - was often not discovered until months later after several payments had already been taken.

Anneliese Cherrington, 31, of Birmingham, West Midlands, is an organiser of the RedSave Action Group. The mother-of-three explains: 'Last Christmas I was looking to buy a digital photo frame as a gift for my brother with loads of pictures of our family. I was seduced by a great price - it was only £40 - and didn't see any mention of a club subscription so immediately snapped it up and was totally happy. But then a couple of months later I noticed more money had mysteriously disappeared from my account. It seemed sneaky to me to me because I didn't notice the membership fee until the second month, as the first month membership is free - nothing showed on my initial bill.'

But since the start of 2008 RedSave seems to have bowed to consumer pressure and has altered the website to clearly state on its front page that customers buying through the website are signing up to the club. Despite that many of those affected before the changes are pursuing Redsave to recover the charges.

Antony Gibbons, a solicitor at Cardiff-based legal outfit NewLaw says: 'We have been contacted by over 200 people who have had money debited from their accounts by RedSave. Most claims are for relatively small amounts and therefore dealt with in the Small Claims Court, but the total amount, if RedSave were unable to defend the claims, could run into thousands of pounds.'

Amy Bonsall, 30, of East Ham, East London, is one of those chasing the Dorset-based outfit for cash. Theatre director and teacher Amy first used RedSave when she ordered a £13 gift of a spirits optics set for her brother in December 2006 that never arrived. She only discovered the problems after £260 had been taken from her account over the following 13 months, when sorting through her tax returns. The money had been taken out on different dates each month and using different names making the withdrawals harder to notice. 'I called RedSave and said I thought it was a scam.'

The website was slammed by the watchdog Advertising Standards Authority in two separate cases in June and October for breaching codes on 'truthfulness' and 'prices' regarding sales promotions.

Trading Standards has also received complaints about the way the firm runs its business although was 'unable to confirm details for legal reasons'.

The company, which also trades as Nettexmedia.com Ltd, is adamant it has done nothing wrong. Rebecca Walker, customer services manager at RedSave, says: 'We have been clear and concise all along and always aim to satisfy our customers. You have to put things into context. Since starting in June 2006 we have had more than 300,000 satisfied customers and probably only about 100 complaints. There is a 30-day free pass trial after which membership subscription will be billed at £19.95 a month until cancelled. This can be done anytime. 'We will not put up with defamatory comments.'

If you see RedSave mentioned on the forum.

If you see RedSave mentioned anywhere on the forum please let us know by reporting it, as usual, to forumteam@moneysavingexpert.com.