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  1. #1
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699

    PoundHost sending me to collections?

    I signed up for a dedicated server from PoundHost a few months ago and this month I decided not to renew it. I received an email from Adam L at PoundHost asking if I was going to renew and I said "no", so he said to send in a cancellation request on their website. I did that and didn't hear back so I figure they cancelled it (despite receiving another invoice reminder after). Now yesterday, I received another email from Adam saying a $8.00 GBP has been added. After reading more of the email it says

    If payment has not been received further action will be taken to collect the outstanding debt.
    I'm 99.9% sure I sent in a cancellation request. I have tried emailing Adam back but have not received a response, and their support system won't let me submit a ticket because my accounts closed? I have also tried contacting them via their contact form. It seems to me from that wording that these @%#holes are sending me to a collection agency! I'm wondering how that could be possible considering I never signed any contract saying I was having the server for X amount of months, I don't live in the UK so I don't know how collection agencies work across borders, and are they really going to go after me for $28.00 GBP? If this is true then this is absolutely absurd!
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  2. #2
    Join Date
    Mar 2006
    Location
    New Jersey
    Posts
    851
    When you sent in cancellation request did you receive any ticket number or email confirmation. If you have cancelled as per their terms their should be no reason for them to forward this to collection agency.

    Quoting from their terms of services at http://www.poundhost.com/tos
    1.11 YOU must inform the Billing department at least 2 working days before YOUR billing date if YOU intend to cancel.
    24Shells in Business Since 2003 - AS55081
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  3. #3
    Join Date
    Jan 2003
    Location
    South Africa
    Posts
    2,158
    Quote Originally Posted by CBH-Nick View Post
    I'm wondering how that could be possible considering I never signed any contract saying I was having the server for X amount of months, I don't live in the UK so I don't know how collection agencies work across borders, and are they really going to go after me for $28.00 GBP? If this is true then this is absolutely absurd!
    It's possible. You agreed to submit a cancellation of the server. Just because it's web hosting doesn't mean you can just walk away without paying your bills (not saying you did just explaining how it works).

    Doesn't matter where you live. I've sent people through to collections that live outside Canada. Not all collection agencies report to credit so they may use one that does. That just means figure it out or it could damage your credit rating.

    It's not absurd at all if you didn't submit one.
    █ █ █

  4. #4
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699
    I did submit a cancelation request. I was just reading the cancellation confirmation email and it says this:

    Please note that as the billing period commenced on 05/11/13 for server X, payment is required in full for invoice X.* Please arrange to make payment of this invoice by return.

  5. #5
    Join Date
    Mar 2009
    Posts
    125
    I live in the UK and I was pretty concerned when a UK host tried this with me.

    I am not sure what ever happened but I never paid their ransom, I guess that says a lot.

    I recall them being very aggressive with me over a much smaller amount (It was a low end VPS) but like I said it went no where.

  6. #6
    Join Date
    Jan 2003
    Location
    South Africa
    Posts
    2,158
    Quote Originally Posted by CBH-Nick View Post
    I did submit a cancelation request. I was just reading the cancellation confirmation email and it says this:
    Sounds like it might have been too late by the wording of that email. Double check it was on time. If it wasn't, than you owe them the final month.
    █ █ █

  7. #7
    Join Date
    Jun 2009
    Posts
    446
    Quote Originally Posted by CBH-Nick View Post
    I agree. If they didn't stick to their TOS, then either people would be complaining that they don't follow it, or, the next person that wants a refund would be saying "well, this guy got a refund so why can't I?". It might sound a little harsh, but, it's a lesson I've learned about business. If you don't follow your system, then people are going to walk all over you.

    If you did't do it within the 2 days like it says in their TOS you have to pay them according to your own words.
    Remember when ordering a server from a new company use a Credit Card. Paypal will not refund your money if you get scammed.

  8. #8
    Join Date
    Sep 2007
    Posts
    1,220
    Collection services are like bounty hunters, but more annoying. It sounds as though you did not properly submit a cancellation request, otherwise you would have some type of confirmation or acknowledgement indicating a scheduled cancellation.

    I suggest not focusing so much on the possibility of being a marked target for a collection agency's next meal. I would imagine that once you get in touch with the host you will be able to work things out. Misunderstandings happen, it is important to make sure both parties are on the same page before assuming the situation has escalated.

    I hope you are able to get this resolved amicably.


    ~Ryan

  9. #9
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699
    Quote Originally Posted by Ryan - Limestone View Post
    Collection services are like bounty hunters, but more annoying. It sounds as though you did not properly submit a cancellation request, otherwise you would have some type of confirmation or acknowledgement indicating a scheduled cancellation.

    I suggest not focusing so much on the possibility of being a marked target for a collection agency's next meal. I would imagine that once you get in touch with the host you will be able to work things out. Misunderstandings happen, it is important to make sure both parties are on the same page before assuming the situation has escalated.

    I hope you are able to get this resolved amicably.


    ~Ryan
    Thing is, I sent an email back to Adam L asking to cancel my server and he told me submit a cancellation request as he can't do it himself (which I did). Then I sent a cancellation request and only read the first part:

    Server ID 3689 has today been cancelled in your billing record. The server will be cancelled in the Portal within the next 24 hours as requested.
    So now even though my servers been disconnected, I still have to pay for another full month?
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  10. #10
    Join Date
    Sep 2007
    Posts
    1,220
    Quote Originally Posted by CBH-Nick View Post
    Thing is, I sent an email back to Adam L asking to cancel my server and he told me submit a cancellation request as he can't do it himself (which I did). Then I sent a cancellation request and only read the first part:



    So now even though my servers been disconnected, I still have to pay for another full month?
    This sounds like a simple misunderstanding. I'm sure once you contact them you will be able to get everything sorted out. I honestly would not assume the worst, or that this was a malicious action made on behalf of the host.

  11. #11
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699
    Looks like this is no misunderstanding and they are going to send to me collections if I don't pay. Here's what he said:

    Hi Nick,

    As previously advised, we had not received a cancellation request from you prior to the renewal date of your service so you have been charged for an addition month as per our Terms of Service.

    Please refer to the following within our Terms of Service http://www.poundhost.com/tos

    1.11 YOU must inform the Billing department at least 2 working days before YOUR billing date if YOU intend to cancel.
    1.13 Failure to cancel in accordance with Clause 1.11 will result in YOUR account being charged for one extra month.

    The service renewed on 05 November 2013; the first you indicated you no longer required the service was on 13 November 2013. As the service was available for you to use payment is required.

    With regards to further action being taken to collect the outstanding balance due; we will take whatever action we deem necessary to collect the outstanding arrears.

    Please arrange to make payment for the outstanding balance on your account by return.
    Kind Regards,

    Adam L
    Accounts
    PoundHost Internet Limited
    How nice, considering what their website says:

    No Contracts
    Complete flexibility from PoundHost

    No Hidden Charges
    No Lengthy Tie-ins
    No Nasty Surprises
    Yeah right, no nasty surprises?
    Little Apps
    Open Source Software

  12. #12
    Join Date
    Aug 2004
    Location
    Kauai, Hawaii
    Posts
    3,799
    You didnt notify them until 8 days past due? If that is true then you need to pay up, have some backbone!

  13. #13
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699
    I just can't get over that they're willing to send me to collections for not paying. I guess I don't really have a choice, do I?

  14. #14
    They are threatening to send you to collections for not paying, which doesn't necessary mean that they will actually try and collect such a relatively small amount via a collections agency, especially internationally. So you could probably just walk away with no further repercussions.

    On the other hand, if I read your postings correctly, you didn't cancel in time so you do owe them for another month. In which case, why not do the ethical thing, pay them what you owe and chalk it up to experience.

  15. #15
    Join Date
    Oct 2002
    Location
    Vancouver, B.C.
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    2,699
    Quote Originally Posted by CBH-Nick View Post
    I just can't get over that they're willing to send me to collections for not paying. I guess I don't really have a choice, do I?
    I'm sorry, but do you not have any ethics? You are clearly in the wrong, having canceled 8 days after renewal, or 10 days too late. You should pay it even if you had a 'choice' i.e. could get out of it.

    On the other hand, they should not have disconnected the server before your final month was over. If they disconnected your server as soon as you canceled, on the 13th or whenever it is, then you should only owe them for the time the server was up and be credited for the rest. For them to demand payment for service not provided would also be unethical.
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  16. #16
    Join Date
    Feb 2003
    Location
    Dallas, TX
    Posts
    1,498
    It's astounding how many customers make the decision 'not to renew' by simply not paying...

    Not paying for your invoice does not mean you are cancelling, and it is definitely the wrong way to go about it. Read the Terms of Services, they usually have a cancellation policy clearly stated. If you don't follow the terms of services, then you are in the wrong and that shouldn't be a "surprise".
    TailorMadeServers.Com - Dallas Dedicated Servers since 2003
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  17. #17
    Join Date
    Jan 2003
    Location
    South Africa
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    2,158
    Quote Originally Posted by CBH-Nick View Post



    How nice, considering what their website says:



    Yeah right, no nasty surprises?
    That's not a contract. All you had to do was cancel with two days notice. It's not difficult at all. How does this mean contract?
    Quote Originally Posted by CBH-Nick View Post
    I just can't get over that they're willing to send me to collections for not paying. I guess I don't really have a choice, do I?
    You owe them money...
    Quote Originally Posted by clivel View Post
    They are threatening to send you to collections for not paying, which doesn't necessary mean that they will actually try and collect such a relatively small amount via a collections agency, especially internationally. So you could probably just walk away with no further repercussions.
    You're disgusting.
    █ █ █

  18. #18
    Join Date
    Aug 2004
    Location
    Kauai, Hawaii
    Posts
    3,799
    Quote Originally Posted by CBH-Nick View Post
    I just can't get over that they're willing to send me to collections for not paying. I guess I don't really have a choice, do I?
    I'm going to laugh when you come on here one day complaining that one of your customers hasn't paid you. Also, I'm laughing now for you starting this thread with your company name in clear view. If your business wasn't doomed to fail before it sure is now that you've whined on a peer forum (burning bridges with people who might want to host you), and have also let your customers know that you don't have much backbone.

    No offense, nothing personal, it's just the truth.

  19. #19
    Join Date
    Nov 2011
    Location
    Calgary, Alberta, Canada
    Posts
    699
    Quote Originally Posted by gordonrp View Post
    I'm going to laugh when you come on here one day complaining that one of your customers hasn't paid you. Also, I'm laughing now for you starting this thread with your company name in clear view. If your business wasn't doomed to fail before it sure is now that you've whined on a peer forum (burning bridges with people who might want to host you), and have also let your customers know that you don't have much backbone.

    No offense, nothing personal, it's just the truth.
    This dedicated server from PoundHost had nothing to do with my hosting company. It was solely for personal use. I have nothing to lose if one of my customers decides not to pay their invoice. It's shared hosting so unlike dedicated servers, I'm not having to deal with overhead from hardware costs and whatever else. I'm not one to try and ruin peoples credit rating over some small amount (like in this case $20 GBP).

    I paid the invoice so lets hope this is over with *knock on wood*
    Little Apps
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  20. #20
    Join Date
    Jul 2001
    Location
    Melbourne, AU
    Posts
    1,392
    Cancel as per the providers’ cancellation process and you won’t run the risk of being taken to collections.
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  21. #21
    Quote Originally Posted by CBH-Nick View Post

    Yeah right, no nasty surprises?
    If having to be responsible for your hosting account is a surprise, you have no business being in business.

  22. #22
    Join Date
    Nov 2013
    Posts
    182
    Another reason why you should use FAKE legitimate looking information when signing up to webhosting companies.

  23. #23
    Quote Originally Posted by CBH-Nick View Post
    This dedicated server from PoundHost had nothing to do with my hosting company. It was solely for personal use. I have nothing to lose if one of my customers decides not to pay their invoice. It's shared hosting so unlike dedicated servers, I'm not having to deal with overhead from hardware costs and whatever else. I'm not one to try and ruin peoples credit rating over some small amount (like in this case $20 GBP).
    It doesn't matter if it's for personal use or business use. You entered into an agreement with the hosting provider and in the agreement it explained the cancellation process. If you didn't read the agreement prior to renting the server then that's your problem and not the hosting providers problem.

  24. #24
    Join Date
    Dec 2010
    Location
    127.0.0.1
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    5,732
    Quote Originally Posted by freebudy View Post
    Another reason why you should use FAKE legitimate looking information when signing up to webhosting companies.
    You what? Please grow up, no one would get away with that.. fraud checking systems would of caught you and you've made a good rep here now with hosts...

    Op not much you can do. If your from the uk visit your local citizens advice

  25. #25
    Join Date
    Nov 2013
    Posts
    182
    Quote Originally Posted by CW Mike View Post
    You what? Please grow up, no one would get away with that.. fraud checking systems would of caught you and you've made a good rep here now with hosts...
    Excuse me? I need to grow up because my opinion differentiates from yours? How narrow mindedly ignorant can you be. I fundamentally disagree with webhosting providers who provide virtual goods being able to ruin someone's line of credit over not paying their hosting fees. It's uppermost pathetic.

    If PayPal doesn't give me a refund over virtual goods, debt collectors shouldn't be allowed to chase up "debts" over virtual goods.

    If you even dared do that to me, I would hit you so fast with a lawsuit your head would spin. I rent hosting on a month to month basis which is considered pay as you go, not on a contractual basis with termination charges or termination conditions. I'm under no obligations to renew my hosting with you. If the start of next month I decide I am no longer wanting your service, I leave and you don't get a single penny more and there is nothing you can do about it, period, because that is the terms of the agreement that we have entered.

    OP could definitely sue them and he would win, especially if it goes to collection and gets defaulted.

    Also your fraud detection doesn't work when you pick a random address in your location, provide a fake name and use a PayPal address that coincides with the fake address you have given. It's not like you ask customers to upload their passport or drivers license to verify them. Why would you? unless you are providing them a line of credit or a hosting contract. You get the money, they get the service, everyone's happy. We should actually ask ourselves, why does a webhost need my contact information to begin with? Especially ones who aren't a registered company / organization in their jurisdiction.

    My rep is irrelevant because webhosts will still sell and provide service to me because y'know money talks and I pay my bills on time and continue to pay if I like your service.

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