Provider doesn't want to give me a refund even if I am in the EU and within 14 days of purchase
I ordered a server from a German provider since the price looked good and I wanted to use it with some application. Well the performance was really bad and I didn't really want to waste time so I asked a refund.
I am in Finland and this provider is in Germany, so we are both in the EU which means that by law I can withdraw within 14 days from purchase and I don't even need to give a reason.
They are going around and around saying that this is a service, not a product blah blah blah. A lot of nonsense. The EU laws cover any product or service purchased with distance selling. And they know it because they have it written even in their terms!
Anyway, in case they don't give me the refund what is the easiest way to get my money back? It's not much, it's 9 euros, but it's the principle and because of their attitude that I want a refund even more now.
Should I file a dispute with PayPal?
Thanks
Comments
@contabo_m
Refunds in EU do not apply for digital goods. Though, we for instance do offer a 14-day money back guarantee but not all providers do. What did you agree upon with your provider?
You're mistaken, what is not covered is digital downloads like music, movies etc. This is entirely different
Who is the provider? What does their tos say?
You cant do anything about it anyway.
I'll wait before naming them, so to give them the time to do the right thing.
Why is that?
Definitely not Contabo, they comply fully with the legislation & disclosure requirements:
1. https://contabo.com/en/legal/terms-and-conditions/ (Clause 5.5)
2. https://contabo.com/en/legal/right-of-withdrawal/
No, it's not Contabo. I tested a VPS and their object storage a few days ago and while it took a while for them to reply, it seems that they are going to comply. But I haven't received their refund yet.
Did they say explicitly that they won't be issuing you a refund or are you just assuming they won't?
But I thought that you said that you were done with low-end providers!
This isn't a high-end provider, is it?
Basically yes, they say that "this is not a product but a service", as it if makes any difference. So I asked again for a refund and am waiting for a response.
What can I say... 9 euros for 6 cores and 6GB of RAM is not bad, is it?
Sounds like you also hardly used the service. I hate when companies think it is a good idea to not refund if you are unsatisfied and for example only had the service for a few days.
Name and shame?
Can't give much advice beyond the usual "Have you tried linking and quoting the law passage to them" without knowing the provider.
I had a (not server) provider pull this with me as well, though in my case over a lapsed trial subscription I hadn't used. I sent them a link to the EU law website that covered this topic, quoted the relevant passage and they processed a refund even though their terms said they don't do refund ever.
I say name and shame.
I literally created the service, complained about the poor performance and was told that that the average I/O of 189 MB/sec of THEIR OWN BENCHMARK was acceptable, and of course I disagree. That doesn't look like SSD performance and the GB5 was 800-something, which is very low for the CPU they sell. That's why I asked for a refund.
Yes I linked to the legislation with a quote on the cooling off period.
Ok the provider is this https://server.unesty.net/?language=english
Also
You are within your rights to dispute this, but keep in mind that they can and likely will fight back at you with full force, since for them it's not about the 7 euros its about being flagged by PayPal as a fraudulent seller.
By opening a dispute, you will permanently burn all bridges between you and this provider, and they will likely never offer you services ever again. You need to make sure you're fully prepared and confident that this is the only option left to you and that you want to fight this battle.
I predict the ending to this would be:
"Provider finally refunded."
"Thanks everyone for your feedback!"
I think ur just bored so we chat a bit here now. Theres no point to this thread because you dont wanna even say who it is. Just whining, last thread you named something like "never lowend server again" and here you complain about IO on 6core & 6gb vm for 9$. Are you really surprised??? What the fuck did you expect?
Yeah I am not interested in their services. It's mostly because of their attitude that I have asked for a refund.
I hope that's the case
Actually I eventually said above who the provider is. I know, I shouldn't have expected much for their price but like I said their "support" told me that 189 MB/sec on an SSD is acceptable. And for a Ryzen CPU with clock 4.0-4.7 800 GB5 is also unexpected.
Thank you for the link. Unfortunately their terms are in German so I'm not able to understand them without translating (And Google Translate's interpretation doesn't hold up legally when it comes to law sadly)
The (translated) terms however have this passage:
It also says (translated)
If they still aren't doing it despite you being as clear and polite as possible, honestly just dispute. They are ignoring their own terms (and the law) and PayPal will make short work of them.
Make sure you cancel service (with "immediate" cancellation if it's a WHMCS thing) to make your intentions clear, then ask again after doing so if you haven't already.
Yeah that's what I have done. I am waiting for another reply after stating again that I expect a refund.
Most providers aren't going to listen to any legal advice from a customer. Even if you are right, it's very understandable. If I paid a lawyer for their time every time a customer asked me to (thinking across my different roles at different companies), prices would have needed to be raised for every customer. Which, in turn, drives the customer to the company that won't hire a lawyer to give them responses to tickets, so it never actually does anything but shut down a company for no benefit to anyone. Support techs need to be able to trust that their policies are legal, they don't necessarily need to be able to defend it in their roles because that's an entirely different path in education and salary.
It sounds to me like you may actually have law on your side, but now you have to think about options and the value of them. If it costs you to pursue this, it's quite possible that it isn't worth your time or money, and they know that.
As a thought exercise: You can totally break the law if the law requires the offended party to hire a lawyer, if you sell a product for pennies and only to people with low income and your customer base is too small for a class action to have legs. Crazy. right?
For you I don't know. Maybe it's just a complaint to a relevant authority? Maybe they'll consider it worth their time to pursue, maybe they won't. But at least if you can do that it's free.
Another free option in this specific case is to dispute to PayPal, which I would recommend.
Since the law is on the side of the customer in this case, PayPal should (If the system is working as intended) side with them and not only would they get their money back the provider would be most likely trusted less by PayPal and suffer the consequences of their actions.
And losing a single PayPal dispute as a customer doesn't have any bad effect besides the provider exiling you forever, so when it's the right thing to do I think it's the smartest move forward.
And that's why I recommend OP should collect their case and present it to PayPal.
Does PayPal look also into issues with this EU regulation?
for sure it can be acceptable, 189MB/s is a measurement only for bandwidth and at a blocksize of 4k this comes out at roughly 48k IOps which is totally fine for a SSD. so without knowing what exactly you checked to get to this number, everything else is just blabla.
a single score of 800 is usually a good average already, you won't always just get 1000+ just because it says ryzen. it's more important how stable this is and how it scales over the 6 cores.
did you do more than just a quick bench and pre-judging without enough understanding of the numbers you are looking at? remember you bought a virtual server on a shared hostnode. and on top they for sure did not sell nor guarantue any numbers.
go get yourself a dedicated server with the numbers you wish for. more likely it is your attitude or wrong expectation management that is a problem here and you are prone to run around even more, wondering why you still can't find a provider delivering what you are looking for.
apart from that I agree though, the provider should simply refund you. I never understood why providers get into a fight over a few bucks instead of being happy of getting rid of a 'support intensive' client early in the process...
I am not 100% sure about that, but if the provider is openly ignoring their own refund terms they will most likely honour that. This case is unique bcause the terms of the provider state that they offer refund under EU law but then proceed to not actually do that. Which is very illegal.
From my understanding, PayPal buyer protection will hear any genuine dispute as long as it's well explained. You can also mention the quality issues you had with the product, but mainly only if they advertised better performance on their website before purchasing.
As should be obvious, I am not legal advice and PayPals terms are (Possibly intentionally) vague on the subject.
My main experience of winning a server provider PayPal dispute comes from a different situation where a host deadpooled and didn't fullfill an annual contract in full so I managed to claim a partial refund on the remaining period. The rest of my knowledge comes from external sources.
This is what they pasted:
I get 1200 or more with other Ryzen virtual servers, so I think it's a noticeable difference.
I have bought enough servers over time to get an idea when I like what I see, and this was not the case
My attitude? I simply ordered a server, I wasn't happy with the performance and was told by support that it's normal, and I just asked a refund because I didn't agree and it's within my rights. What is wrong with my attitude? Genuine question.
Exactly, going the "we don't provide refunds" with excuses while they even mention the law on their terms seems weird to me.
Thanks, I will look into PayPal disputes more in details since I have never done this before. @Falzo I forgot to mention that with possibly hundreds of servers I have bought and used in 20 years this is perhaps the 3rd time I ask for a refund.