|My company has been with federated payment systems for 6 years. I was offered a much better rate (0.5% lower!!) from another company therefore I switched. I traveled overseas therefore I told my office to call to cancel the service in Nov. 19th, 2010. Federated told the office that someone authorized had to call so the request for cancellation was unsuccessful. |
I came back on Dec 17, 2010 and immediately called Federated to cancel. However I was already charged with Annual Fees, Statement Fees and Compliance Fee etc, totaling $104,even though there was no transaction at all. I spoke to Linda from customer service over the phone and spent 10 minutes to go through the whole cancellation procedure. At the end of the call, she told me that there is a form that she will email me and sign back. That's it. She DID NOT mention that if you did not get the form or did not sign back, the account is not cancelled. And guess what? SHE FORGOT TO SEND THE EMAIL TOME!!! My Outlook mailbox has 20 emails that day and no record of any email from Linda.
So I thought the account and been cancelled.... Until I got a Dec statement on Jan 5th with all the fees and ... a IRS Reporting Fee of some sort for year 2011 totaling $134. So I called immediately to speak to Linda. I made sure that she sent me the email so that I can fax it back to her. She said she will submit the IRS charge for review. I asked her, does that mean it will be not refunded? She said, most likely it will.
Until now, no refunds has been issued. I called again to inquire about the refunds and a supervisor named Darrell respond to my call. He understands that Linda did not send me a email but insisted that there can not be refunds regardless. He also made two comments:
1. He said that I have been a good customer (providing them with revenue) for six years and because I did not call them tolower rates when switching to another company, I deserve to be charged and of course they won't give refunds because the account is now closed.
2. Even though he undestands his employee made a mistake by not sending out the form, it is my fault that I did not call back and ask for it.
Here is my advice for everyone:
1. Federated overcharges and will try everyway to make more money off you and their customer service department are the worst. Do not use their service! there are alot of cheaper alternatives out there!
2. Make sure if you cancel their service, call your bank and ask to stop ACH payments from Federated so that similar cases can be avoided!