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server4you "free trial" turned into debt
Hi guys,
I need some help on this...
Server4you had tons of this free trial server thing where you get a trial of a first month.
I'm probably not the first person to be struck by this but they continued to bill me for 5 more months (the first month wasn't even free) and I've insisted that I didn't use their service at all past the first month. In fact the server was taken down 3 months later. Now they have gotten some debt collector (Mediafinanz) to bill me. I'm in a different country and even if I were to pay, wiring to their account would take way too long. What should I do?
Thanks!
Comments
If you didnt cancel in time, they might be right to charge you, even if you didnt use it. As for the actual collecting, it depends, the law usually sides with you, but if the collector is good, they will get through and charge the collection fees too which will be way higher than the actual debt. Chances are slim in them succeeding, but not nil.
I wouldn't use any "free trial".
I got into a similar trouble with a German company. That's just super annoying that they'd go to a debt collector. I live in a foreign country nothing would even happen if I wouldn't pay; but f*** my luck, I have some connections to Germany and might end up there at some point so I had to pay anyways. My debt collectors were the thugs at Mediafinanz as well. They turned a 9 Euro "debt" into like 55 Euros.
The worst part is, from outside the EU, wiring to Germany was just impossible, even if I could manage to do a SWIFT, the generated fees would be higher than the original amount. I ended up getting a relative of mine in the EU to send the payment for me.
Since then I'm not buying anything from Germans. Many companies are out to screw you in some hidden contract gimmick, and send in their repo thugs the next week....
So I guess, if you'll never go to Germany, and live outside EU, you can not pay as well I guess. But once its in debt collection, it's not something you can resolve by sending a few emails. They aren't the most responsive people either. It'll have to end up in court if you don't pay, where you'll end up paying Germany-level legal fees if you lose. You'd also have to pay debt collectors' legal fees.
If you want to take legal action against Server4you, which I doubt you have the means to, you should pay the debt collectors first, and than commence with your legal action. If you feel that you're right, email or phone Server4you; I highly doubt you'll get a proper response from a zero-support kind of company though. You're basically cornered and stonewalled at this point. Don't miss the debt collection timeline. Pay upfront, and try to get back your money later. The debt collectors do not need to hear if you're right. It's not their business. They buy your debt, it doesn't concern them if you really had debt. That's something you need to resolve with Server4you. If you want to take legal action, go after them, and pay the debt collectors first, and in time, to not get into more trouble. If you're right, and take legal action against Server4you, they'd have to compensate for whatever you paid to Mediafinanz.
I didn't know that the law is on 'our' side on this issues. The repomen were plenty intimidating and thuggish; so I paid. @sijie123 should consider @Maounique 's point as well, since they're hosting providers in EU and might know more about this; however they're not in Germany, so their experiences might be different. The Germany factor may mean much more shitstorm.
From a friend in Germany who co-locate dedi servers in local DC ( has registered dedi company in short ) and he told me the German firms cant force non-EU client to pay even with collection agencies.
Firstly thanks everyone for your reply! You've all been great help!
I'm just baffled by something - I'm only given 4 days to pay off whatever nonsense I owe server4you, and I can't make the deadline even if I go down to a bank now.
Really? But it's a collection agency! I may run into a lawsuit so I don't want to take risks.... ><
I don't mind paying that few hundred dollars - take it as a lesson learnt, but the reason why I'm here is exactly to find out what is going on and what I should do.
I'm intrigued by your reply, are there any legal documents that I can refer to?
Just ignore them. Eventually an army tank will arrive in front of your lawn. Only then you pay.
This a very bad tax saving business practice . They show this money as a loss and they pay less tax to the government.
It all depends the laws in your country, but you can ignore them.
contracts are taken very seriously in germany. and even if you just 'clicked' for an agreement, it will become a contract which you have to cancel properly.
that's not like running out on it's own if you just don't use or pay anymore...
debt collection is sadly one of biggest business around here.
if you were from germany you would get a legal order to pay as next step, after that an enforcement order which would allow them to sent you a court bailiff, if you don't do nothing against.
you can always try and work something out like a settlement, they're mostly not really fast with their actions, because they have to pay in the court fees themselves first.
for sure they are trying to set you under pressure the other way round...
how they work in case of foreign countries I don't know, so can't really give any good advice here, I suppose...
Server4you is one of those really really bad hosting compines. I had my run in with them a few years ago where you have what looks like nice offer but even after a cancle they are still after your money for a month or 2. i am sure if you read the free tril that you have to cancle 30 days before you dont want to get billed and that the free tril requires 6 months and so on. Some sort of werid stuff. I have pretty much only buy hosting from people on let and things people recommend. I always buy 3 months of hosting so thats the worst i will get charged for and try to become friendly with my provider when you find one that is willing to be ur friend and ur no longer an invoice number then work with them.
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when it comes to debt collectors just go to the bank and wire the money regardless if it it is late. you will have some sort of proof that u sent hte money a few days before and its not your fault how banking works between your 2 contires if they try to sue you for legal fees or what ever pretty much ignore that until you go to germany you will have proof of when the transfer was initiated they will have on there side the same information nd it will be clear that the payment was made before hand but it was not payable till a later date based on banking regualtions. also when a debt collector buys your debt they want to strong arm you. they know u were not afrid of a threat from the last company and u have not paid in x number of months so they will say lots of legal stuff to get you to pay because they spent there money to buy your debt and now have to make a profit on it.
i would do what @wojons says , pay with the bank and get a receipt and send them a copy and then think about what @kerouac says in his last paragraphs. Good luck in resolving such an experience, guess what you are +1 wiser now : )
Well 2 points to make here:
1) Not cancelling is your fault, but you seem to accept that so I wont bash you over the head with it used or not they let it run for you because you did not tell them and they incurred cost.
2) 1 line that will serve you well: "I had no material benefit from the service" You could simply agree to make a payment covering the material loss if they are happy to send you a brake down, this should be a factual brake down including power costs it cannot say "We 'could' have sold the server again, no way to prove that.
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break down?
This story sounds way too familiar.
Exactly because of this I'm trying to keep everyone away from server4you.
reminds me of 1&1
You should pay, even if they can't legally force you. You made debt and cost Server4You money, that's your fault and if you are a decent human being you should owe up to it.
I think this is a solid way to go.
So how to apartments get away with that then when they make you pay an additional 2 months because they 'could' have sold the apartment to someone else if you cancel the lease early.
Right I've just contacted server4you to make my offer but they have pushed all matters to the collection agency.
Well I'll just have to dispute from there then.
Oh really?
A company has the resources to offer a free trial to just about everybody. The service remains idle for 2 months and suddenly the company is in debt? This isnt a provider who's toiling night and day doing public service or who's wife is dying of cancer.
So he forgot to pay two invoices. It doesnt justify engaging goons to recover money plus late fees. The maximum he's due for is the cost of the idle services. Not a penny more.
If I got a notice in India, from a collection agency, asking me to pay anything more than my invoice, I'd laugh at them. Consumers are protected by multiple laws against such sham. It doesnt mean I'd forego paying for something I signed up for. But TOS fine print is not the word of God in my country. Terms have to be reasonable.
They're just trying to scare you, it's not worth taking you to court over and it's dubious as to wether or not they're even allowed to charge you like that for the free trial.
Try and scare them back. Say they have deceptive business practices and you are fully willing to take tho to a court of law as you believe they are acting illegally.
I dont think that he could scare them anymore, his first replies obviously indicated to them that he's the one that is afraid.
http://lowendtalk.com/discussion/comment/621385/#Comment_621385
Send 5 words to them: "See you in the court!", and ignore everything from them
NEVER EVER pay a debt collector. you are essentially paying for their bad business practices. make it clear to server4you they aint getting a penny unless you transfer it back (the debt to them).
it's also important to know debt collectors are powerless.
@sijie123 , maybe you can call your lawyer and ask advise to be 100% sure..
Consumer protection is relatively weak in Germany, where service providers (of all types) are allowed to hide important details in their terms and conditions (minimum contract terms, automatic renewal for a set length of time etc) and make it an enforceable contract.
You are not the first non-German to fall victim to this! Luckily you don't live in Germany, so it is more difficult for the debt collector to enforce the claim, however depending on the level of debt it could still be possible for them to get you! The debt collector will continue to send letters to you, and charge €30-ish a letter for their service. Unless you are sure they can't find you I would recommend informing the debt collector that you dispute the payment (including evidence such as cancellation email, existing payments made etc). It won't immediately stop the letters (which are designed to scare you), but will stop them earlier.
The debt won't impact your ability to visit Germany (e.g. stopped at passport control) but could come back at you if you decide to move to Germany and live their.
Not the case in Germany, unfortunately.
Free trial? Never sign up with a real address, use prepay debit cards etc...
Yep that's what I did. But well they could still track my addr, name etc if they wanted to. It's the internet.