Theororitcally if someone pays for a month of service, and part way through the month, changes their mind about wanting the service how would you go about refunding them if there was no refund policy stated when the deal was made and the service offered was given to the fullest extent of the agreement? Would you refund such a client?

This is not the exact situation i am in, but advice on this would help me with my entanglement.

Well, if you do not offer a money back guarantee or any refund policy, where is the issue?

Vito

I have them agree to our ToS: "no refunds"

Like Rax points out you should have this situation spelled out in your terms of service. If not, now is the time to do this for next time (and yes, there will be a next time).

There are two choices: strictly enforce your terms or not. It depends on what you want to do. If you are going to give leeway make sure it is for the right reason. And if you are going to be hard core make sure it is as well. The client you give leeway to today may be back tomorrow. But, if the client wants leeway because they spammed, just used services and had no intention of hosting more than a few days, probably won't be back. Then again they could just try a chargeback, but that's another story.

:blush: Well i feel stupid now. I had forgotten about checking our TOS. I had written it almost 6 months ago and didnt think i had included anything on refunds.

2. Refunds
Refunds will only be given if requested during the first 3 days of service. Once requested you will be given your pro-rated monthly fee back. If for any reason FGServers is unable to fulfill its service contract for a pre-paid term you will also be given a pro-rated refund based on the amount of time left in your billing cycle.


So i guess i am in the clear and do not have to refund the client. I don't want to make it a trend to have angry clients, but then again i do not want to have to refund for a service that i have already provided.

Thanks,

yep the ole TOS wins again

I wonder how many customers actualy read the TOS when they sign up?

If you put out your TOS clearly on the web site, if the customers do not read and sign up , it is the problem of the customers. U have the right to enforce your TOS, which I recommend, try not to make any exceptions. Dun let customers think that they can bend the TOS anytime anywhere.

Originally posted by netpet
I wonder how many customers actualy read the TOS when they sign up?

probably less than 10%

i know when i d/l anything or sign up for anything i usually just click thru it all

You really should be very careful.

We had a client pay for a full year of service, and upgraded with that payment.

He was well after his 30 days (which we offer a money back guarantee for). With the package he upgraded to, it is clearly stated in our TOS, that there would be no refunds on that package, as it was a dedicated server.

He literally destroyed his server. We replaced his HD free of charge, and his process, for issues that he caused. After this repair, he cancelled the account, and asked for a refund. We pointed him to the TOS, offered him a credit, and allowed him to choose any shared or reseller package he wanted. So, he chose, and accepted the credit.

Later, when this client felt the need to upgrade to a VPS acct with another company, he decided he would try to get a refund again....most likely to help pay for the VPS he just bought. We again pointed him to our TOS.

Keep in mind that he quoted our TOS numerous times, when he thought he was entitled to something (friendly of course). Now however, when it didn't benefit him, he claimed he never read it, and changed his story over and over again, to fit whatever people told him "might" help him (yes....right here on WHT).

Since we were not about to budge on our TOS, he decided to file a PayPal dispute as this is how he chose to pay. PayPal closed the dispute, without honoring it. Since that avenue did not work out for him, he decided to file a claim at the BBB...guess what though....we still never budged.

In short....stick to your TOS, but get prepared to fight for the right to protect yourself. Sometimes it can be difficult, time consuming, and frustrating, but never bend. Bend the first time, and you might as well get used to the "bent" position.

I had a case whereby a client signed up with us, 1 year package and payment, everything was up and running, he went to sign up with another company. Then request for refund, it was about US$50, he told me it is not the money he was after but it is his principle to do this. I told him it is also our biz policy and principle to abide by our TOS. He threaten to go to the consumer watchdog. I even give him the url and address, After that I didnt hear from him again.

Make a stand, learn to say no. Barking dogs seldom bite. Dun be worried about their rhetoric. Just stand your grounds. We are not here to cheat others, but neither are we here in biz to be cheated.

if the customer is angry - give them the money back. they won't spread negative info about you. otherwise, you can stick to TOS.

if the customer is angry - give them the money back. they won't spread negative info about you. otherwise, you can stick to TOS.


Business consists of the the literal "Good, Bad, and the Ugly"

You CANNOT bend your TOS for an angry customer, just to avoid them spreading negative information about you. It's like a piece of wire. Bend it once, and then it becomes weak at that section. Keep bending it, and it becomes broken, and useless.

I don't know of even one business that has never had something negative said about them. This is just a part of dealing with the public....they all have different opinions....some good some bad. You cannot break legally binding agreements based on those bad opinions.