US company refusing payment

Stevio_2

Hi everyone,

I'm currently having a problem with a US hosting company. I'm in the UK and I owe them around $47. They're insisting I pay by international money order.

I've found out that it'll cost double to send an international money order, and am insisting on paying by credit card.

Unfortunately the hosting company say this method is not guaranteed and therefore are once again insisting on the international money order.

I don't have a bad record with the company, I was with them for four years, yet the insinuation that I'd do a charge-back is insulting, as there's no reason I'd do that. They've also said: "If not paid within 30 days, the debt will incur an additional $50.00 collections fee and be sent to Experian Credit Reporting Agency."

Does anyone have any advice? I'm finding it ridiculous that they're refusing to accept my payment.

Thanks in advance.

Regards,

Steven

Alfie_E

What do the general terms and conditions say that made up the bulk of the contract between you and the hosting company? If you’ve had to make payment before, how did you pay? I assume these terms and conditions don’t require you to make payment using an international money order. If so, I would send something like the following. That’s just an outline from me. You may need to alter the figures. You may or may not want to consider sending using Auctionchex.com.

Your terms and conditions state that credit cards are an acceptable means of payment. They do not state that you may insist that payments be made only by international money order. If I were to consider making payment to you using this exceptional method, I would expect you to take liability for the extra costs incurred by me.

To pay you $47.00 by credit card would cost me approximately £24.00. The following costs would be associated with making payment using an international money order.

Bank charge for issuing of money order in US dollars: $23.50 (£12)
Cost of traceable international postal service: $9.75 (£4.98)

I would therefore send you an international money order in the sum of $13.75.

An alternative method would be to use the services of a business called Auctionchex.com. I would pay this UK company, and you would receive a check in US dollars from E*Trade bank in the US. The costs are significantly less, and are set out below.

The total transaction cost to me: $47.00 (£24.00)
Auctionchex charge to post cheque to you within the US: $2.45 (£1.25)
Auctionchex 3.5% credit card through PayPal charge: $1.50 (£0.77)
Loss due to less favourable Auctionchex exchange rate: $1.82
Value of the cheque you will receive: $41.21

If you are prepared to accept either of these two amounts through their respective method of payment, I will consider this as full and final settlement of the money owed to you.

This hosting company can huff and puff all they like, there’s not a lot they can do. Only if you were going to live in the US would you care what Experian Credit Reporting Agency said about you. They have no way of putting anything on your credit files in the UK.

And, finally, please name and shame them.

Stevio_2

Thanks for that, you certainly gave me a lot to think about. I have replied to Vortech Hosting and it'll be interesting to see what they have to say.

Experian Credit Reporting Agency seem to also have a UK version of their website, so could the credit report be somehow transferred to the UK?

Stevio_2

It was suggested to me to make a complaint to the 'Better Business Bureau' (bbb.org), which I've now done. I sent them the following on the current situation.

I owe $47.75 after I failed to correctly cancel an hosting account with Vortech Inc. The problem is that they refuse to take payment via credit card.

Vortech Inc. insist upon payment via international money order. The reason said by their billing manager, Kimberly, was: "We do not accept credit cards as payment on past-due accounts. Credit cards payments are not guaranteed funds as they card holder can dispute a valid charge and receive their money back, again leaving us unpaid for services rendered." She also added: "If you are located outside of the US, we can only accept international money orders, as they are guaranteed payment."

I was a customer with Vortech Inc. for four years and never once disputed a credit card payment. Now, just because I am now an ex-customer, does not mean I would do such a thing? No. I'm insulted over the insinuation.

Again from Kimberly, she said: "It is at our discretion as to what method of payments we accept and for past due accounts we do not accept credit card payments." This is of course is contradictory and proves they could take payment via credit card if they chose to do so.

I would also like to point out that at no time in their terms and conditions do Vortech state payment methods are at their discretion, neither do they state their policy where they insist on international money orders for overseas clients.

I should point out when I signed up with Vortech, I selected to pay via credit card, not international money order.

Also worth mentioning is that the cost of an international money order is double that of $47.75, therefore Vortech expect me to pay double for something that I should not need to.

As a compromise, I have offered to pay via international money order provided they cover the bank charges, which would have been deducted from the overall owed amount, unfortunately they declined.

I am, as always, willing to pay via credit card, and must say it's the first I've heard of any company refusing payment.

Alfie_E

Stevio wrote: »

It was suggested to me to make a complaint to the 'Better Business Bureau' (bbb.org), which I've now done.

That sounds like a good idea.

Stevio wrote: »

Experian Credit Reporting Agency seem to also have a UK version of their website, so could the credit report be somehow transferred to the UK?

No. A foreign company would have to have to be regulated in the UK to be allowed to submit information to a UK credit reference agency. Similarly, a foreign court judgement would have to be put before and accepted by a UK court.

Stevio_2

Thanks again, Alfie E.

The hosting company are now talking about "collection action". I'm guessing they could employ a UK company to attempt to get payment?

LuciferTDark

Just a thought, have you suggested paypal as a payment method?

Biggles

Stevio wrote: »

Credit cards payments are not guaranteed funds as they card holder can dispute a valid charge and receive their money back, again leaving us unpaid for services rendered.

Not true, cardholders can only receive their money back if they dispute an invalid charge.

Vortech have nothing to be afraid of unless they intend to default on the services you are buying.

I think you had better find a UK hosting service ASAP. There are plenty of good ones.

Stevio_2

Thanks for everyone's replies. Unfortunately I didn't receive any e-mail notifications.

Today I paid the past-due balance via credit card.

I must say towards the end I was getting quite angry, as it was clear I was in the right legally, and I was all for taking it to court.

I've never come across staff like those at Vortech, particularly the 'billing manager'. She was so unethical, and even today contradicted her colleague in just trying to prolong the irritation.

Obviously, anyone considering using Vortech Inc., I suggest not to. They provided great service initially, but the quality has declined severely over the years.

LuciferTDark wrote: »

Just a thought, have you suggested paypal as a payment method?

Yes, but they didn't accept Paypal neither.

Biggles wrote: »

Not true, cardholders can only receive their money back if they dispute an invalid charge.

Vortech have nothing to be afraid of unless they intend to default on the services you are buying.

I think you had better find a UK hosting service ASAP. There are plenty of good ones.

Another good point, Biggles.

I moved to a new host in September, they're in the US too. So far so good.

Again, thanks everyone!