RBS Credit Card - Section 75 claim

dragon42tt

I am in need of some advice if anyone can help me?

My wife had signed up to a website called Elite World Systems (search google) which provide training to individuals who want to create a e-commerce website.

She first saw an advertisement on the internet and called to speak to them, they offered her a cheap package which consisted of a domain, web space and website tools, it cost around £110, along side this they said they will support and guide her to create the website and to make money.

They went as far as giving her few links to websites of other customers who were making "thousands" every month (with their help, apparently), and the usual pull in talks such as "you can make money within few week" and "you will not fail".

After she signed up, created her website (ladies fashion), few weeks had passed and the only purchase that was made on her website was a test purchase she made.

They called her again after few days giving her advice on how to improve the website, during that phone call they offered her a new package, which consisted of further training on sales, website, advertisement, search optimisation and other website tools such as keywords, they then suggested that all successful customers purchase this package and if she doesn't she will most probably make no sales, and this package costs £600 plus. She accepted this and purchased with RBS Mastercard, few months past, still no sales.

They then call her for a training session as promised, then few days later call again to offer another product, which supposedly will boost her website sales (non at this point), the wife can't really remember what it was or how much because she was angry they offered her a new products and she hadn't made a penny.

She called them that week and asked for a refund, they tried to convince her to stay but she didn't listen, they then agreed to a partial refund of £300 she said yes but them refused to sign the agreement as she wanted a full refund, they had promised so much yet delivered no results, they disagreed and said we wont deal with you any more, so we decided to go to the bank.

I believe what they did is called bait-and-switch, it was initially £110, then £600 plus and then they requested more, but in the first place they said all it will cost for you to start making money is £110.

I will post the letter I sent to the bank below, and the email EWS sent to my wife.

dragon42tt

Refund Agreement



Elite World Systems
10851 N. 25th Ave #830
Phoenix, AZ 85029
Fax Number 602-801-2363
Phone Number 602-773-7749


Elite World Systems (moving forward as EWS) and xxxxxx xxxxxx have come to a mutual agreement regarding a $1,156.65 purchase made by Ms. xxxxx. Upon signing this document EWS agrees to provide Ms. xxxxx a refund of $600.00 split into 2 equal payments of $300.00 The 1st payment will be made immediately following Ms. xxxxx returning this document signed. The 2nd payment will be made within 30 days from the 1st. This will be credited to Ms. xxxxx credit card ending in 1234 or a check will be mailed to her address within 7 business days of receipt of this signed refund agreement. It is also agreed that EWS will continue the training program that was purchased and restart her advertising campaign with 5000 visitors, the advertising program will not exceed 6 months. Ms. xxxxx agrees that there will be no further refunds given for any reason. All sales are considered final and EWS has fulfilled all their contractual obligations to Ms. xxxxx as described.


Xxxxx Xxxxxx _________________________________
(Signature)

Date ________________

dragon42tt

Royal Bank of Scotland


Dear Sir or Madam,

Account number: 123456789

Ref: Section 75 of the Consumer Credit Act 1974

I am writing to request that you reimburse me the value of £656.83 ($995.00 USD) as full payment for "Website Training" I paid for with my Mastercard credit card ending in *1234* to Elite World Systems on 18th of November 2010.

My claim is made on the grounds that the services purchased were not delivered and none of the promises and agreements made at the time of sale were not kept by Elite World Systems. I have been unable to resolve my complaint with the supplier so therefor you are jointly and severally liable for any misrepresentation or breach of contract with the above supplier under Section 75 of the Consumer Credit Act 1974.

In addition to the cost of the services purchased, I would also like to claim the additional amount of £40.00 for the consequential losses I have incurred as a result of the suppliers breach. These costs are as follows: I have incurred interest on the money paid to Elite World Systems, therefor the supplier should also reimburse me for the interest too, with this, bringing my total claim to £696.83.

I was offered a partial refund but did not accept as I had not made a still penny as promised, apart from the test purchase I made from my own account.

The manner in which Elite World Systems operates leaves me to believe that they are simply in the market to take advantage of vunreable people as myself, being a single mother looking for a home business for extra income, and people gulable and naive enough to believe there is easy money to be made.

The picture portrait at the time of sale was that there was money to be made within one week of starting and making a good income, now it's obvious it was only an "Bait-and-switch" tactic, as at first they only requested a small payment, which was made, then a futher payment of £696.83 for advance training was requested, and once again for more services for which I cant recall right now, after making the initial small payment for the purchase of the website and domain, then paying for advance training, at this point not a penny made, I recieved a call to offer me further services and was told if I did not purchase the new service my business will not succeed. The picture is very clear, it's a scam to pull people in and they know how to impress and get people excited about making big money.

I look forward to a full and prompt response to this letter within 14 days.

Yours faithfully,



Xxxx Xxxxx

dragon42tt

The difference between the fee's mentioned above is because they have included the initial fee's she paid, which she later claimed back from her Visa card.

Is Section 75 valid in this case, due to misrepresentation ?

The bank has replied and say they need clear proof of misrepresentation, the Terms and Conditions on the website are not clear and do not made distance selling laws clear, or the cancellation rights.

Please help, what can I do ?

ILW

Is it possible that her product is just not much cop/overpriced etc?

dragon42tt

ILW wrote: »

Is it possible that her product is just not much cop/overpriced etc?

If you mean the products on the website then no, it was more of an affiliates / commission website, she would advertise and TRY to sell products from big retailers, with banners that were provided, so prices were set by the retailer, not her.

jimjames

Have they not delivered their side of the deal ie provided the website and training which would make it difficult to claim against them. As with all these things they may well have done things by the book to ensure that they comply with the law even if what they are doing is morally wrong.

You may find that accepting the partial refund is better as the s75 claim may not be accepted.

dragon42tt

jimjames wrote: »

Have they not delivered their side of the deal ie provided the website and training which would make it difficult to claim against them. As with all these things they may well have done things by the book to ensure that they comply with the law even if what they are doing is morally wrong.

You may find that accepting the partial refund is better as the s75 claim may not be accepted.

They did not provide all the training sessions as yet, but website was done.

I agree it's hard to prove, they made many promises over the phone, main one being she would make money within few weeks of starting and then leading her on to offer her more services, which she paid for, they were clearly using the bait-and-switch tactic, initially they said the website alone is enough to start making money.

I have emailed them under a different name pretending to be interested, so if they reply back to my email stating I could start making money within few weeks and the potential earnings then I am going to use that against them.

meer53

I think after reading your initial post that as they have provided the set up (website etc) and as they have offered her some support when she has called them, then they have provided what they said they would. If your wife agreed to all the additional services they were offering when she called them, the fact that she hasn't had any success with her business can't be blamed on the company. If i was assessing this for a dispute or chargeback i would advise your wife that i couldn't help her under Visa regulations, her only course of action now would be a section 75 claim but i wouldn't hold your breath. Unless you can prove breach of contract i think you'd be better off taking any offer they make as a refund.

misssmcc

i think you should take the refund, if they provided the services requested ie. website and training you will probably be refused. my sis had a virus on her laptop (systemtools) which said she had to purchase software to get rid of it, but it was a scam. she tried visa claim but no luck.

p00hsticks

misssmcc wrote: »

i think you should take the refund

I agree - from what the OP has said the company has provided the web domain, training etc that it said it would. Unless there was some sort of guarantee that this would result in a particular level of sales (e.g 'your money refunded in full if you don't earn £xxx in the first three months' ) then I think the partial refund offered is the best you are going to get.