Scammed by Chadwick’s and Reservation Rewards

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I was reviewing our credit card statement today when I noticed an odd charge from “WLI*RESERVATIONREWARDS.COM” for $10. I didn’t remember ever doing business with a company by this name, so I checked my prior statements to see if there were any other similar charges. Sure enough, there was a $10 on the 18th of each month since December 2006. I called and checked with the wife and she hadn’t bought anything from such a site either.

That’s when the hunt begins. The obvious first step is looking up ReservationRewards.com to see exactly what it is we supposedly signed up for. The site is one of these so-called discount clubs offering savings on a variety of crap – not the type of thing that either of us would knowingly sign up for. I then decided to do a Google search for Reservation Rewards and found pages upon pages of sites talking about being scammed by this company, including a very informative blog posting by Adam Rosi-Kessel.

After reading several of the postings, I called Reservation Rewards with all guns blazing. As soon as the rep came on I said I had several fraudulent charges on my card from their company and I wanted the charges stopped and reversed. The customer service rep quickly looked up my “account” and noted that the account was actually in my wife’s name and that she had (supposedly) signed up through Chadwicks.com. The rep very quickly canceled the account and tried to get me off the phone before I could bring up the prior charges again. I quickly reiterated my request for a refund of prior charges, to which he put up no argument and promised that the refund would appear in 3-5 days.

Looking at the other people’s accounts of this scam, we aren’t the only ones who have been scammed by Chadwick’s and Reservation Rewards, and Chadwick’s isn’t alone in selling out their customers to these online scammers. A list of some of the other sites that have reportedly allowed Reservation Rewards to prey on their customers can be found here.

What’s my next step? First, we will check to see if the refund actually comes through as promised. While we are waiting for the refund we will also be calling Chadwick’s customer service to make our displeasure known. We will then be filing formal BBB complaints against Chadwick’s and Reservation Rewards, which will be quickly followed by complaints to the Office of Attorney General for the states of Texas (my home state), Connecticut (Reservation Rewards HQ), and Massachusetts (Chadwick’s HQ). I will also file a complaint with the FTC.

I’ll keep everyone updated on my follow-up communications and complaints and any responses I receive.


March 23, 2007 - Posted by | Scams


  1. […] More on the Chadwicks/Reservation Rewards Scam – BBB Reports On Friday I posted about the scam being run by Reservation Rewards through Chadwick’s and other online retailers where customers are unknowingly enrolled in a savings club and are billed monthly fees. We are victims of this fraud, apparently when my wife bought several items from Chadwick’s in November. (Original post here) […]

    Pingback by More on the Chadwicks/Reservation Rewards Scam - BBB Reports « Close Encounters of the Cheap Kind | March 26, 2007

  2. I also discovered $10.00 charge on my credit card statement. This was for WLI*reservationrewards. There was no phone number next to the transaction. Called Visa and got the number. Came to know that it came through Hancock Fabrics. I am very particular before I click anything yes. Hancock fabricks just passed on the information to WLI Reservation Rewards. I did not get any email or any package in mail. They just started charging me. It is a big scam. Millions of people will miss the small charge and these companies make millions.

    Comment by Paul | April 27, 2007

  3. I have also been hit by WLI reservationrewards. I talked to my bank and they gave me the toll free number: 1-800-732-7031. I’m going to call them today and get these charges reversed hopefully.

    Comment by Joshua | June 28, 2007

  4. […] is orchestrated by an outfit called Reservation Rewards aka WebLoyalty.com aka TravelValuePlus aka BuyersAssurance.com aka AnyoneWithSixDBAsIsTryingToScamYou.com.  Theoretically, they send you coupons in return for […]

    Pingback by Conflict of Interest: Payment Processors vs uISVs « MicroISV on a Shoestring | July 5, 2007

  5. ~~~Well, I too was charged for this “service” unbeknownst to me. Here is a copy of the email I sent and a copy of the response I received less than 6 hours later. To refund this easily only proves they know they are doing wrong. We;ll see if it posts to the account like they said it would.

    ***I sent:

    To whom it may concern,

    When I signed up for the rebate through CSN ceiling
    fans, I did not give an authorization to charge my
    credit card $10.00 per month. I subsequently did not
    recieve this celing fan because it was discontinued.
    You will see I have never accessed your website nor do
    I plan to. I wish to be taken off of this program and
    I am petitioning my credit card company for return of
    the funds as well as filing a complaint with the
    Federal Trade Commision. Please resolve this situation
    immediately by refunding the money charged to us. $30.
    3 withdrawls of 10.00 each on 8/18, 7/19, and 6/18/07.
    I expect a response within 12 hours.

    **I recieved:

    Dear Aaron,

    Thank you for contacting Reservation Rewards.

    Our records show that you or someone in your household joined Reservation Rewards through a special rewards program after completing an online transaction with CSN Ceiling Fans. After your transaction you were offered and accepted a membership in Reservation Rewards. Immediately next to the offer, the Offer Details were displayed, which included the agreement that after your trial period ended we could bill the low monthly membership fee of $10.00 to the credit card, debit card or PayPal account you used for your transaction with CSN Ceiling Fans.

    This membership was cancelled effective 08-21-2007 and we have issued three refunds of $10.00 each for the membership fees. Your refunds will show on your credit card, debit card or PayPal account within the next 3-5 business days.

    If you require further assistance, please contact our Customer Service Department at 800-732-7031. Our Customer Service Representatives are available Monday through Friday 8:00 am to 11:00 pm, Saturday from 9:00 am to 6:00 pm and Sunday from 9:00 am to 5:00 pm ET.


    The Reservation Rewards Team

    Comment by Aaron | August 21, 2007

  6. My mom and I just realized they’ve been taking a $10 charge out of her account… and I do mean JUST (it was about 15 minutes ago). I just visited the Woman Within and Roaman’s sites and noticed (surprise!) a link for Chadwick’s at the bottom of the page. I didn’t even realize they were affiliates until now. Something tells me they are somehow in this twisted loop, too.

    As soon as the offices are open (for the RR place itself, the bank, and possibly the retail site) there will definitely be calls made. Thanks for posting this info!

    Comment by Carly | August 30, 2007

  7. […] yet, but I do take pride in the great influence by humble blog has. I posted months ago about the Reservation Rewards scam, and sometime later had a representative of the site come here to defend […]

    Pingback by Another Scammer Speaks - FreeNEzy.com « Close Encounters of the Cheap Kind | September 16, 2007

  8. […] Unfortunately, it will probably happen to you at some point. As I have highlighted in my blog here and here, there are scams out there online that even the most careful of internet users can be […]

    Pingback by Been scammed online? Consider this advice from the California Department of Consumer Affairs « Close Encounters of the Cheap Kind | September 18, 2007

  9. […] look at their credit card statement and see the monthly recurring charges. I posted about this scam here and here, and then posted a response received from them and my rebuttal […]

    Pingback by Milestone - 10,000 hits! A look back « Close Encounters of the Cheap Kind | September 20, 2007

  10. Same thing happened to me! I wish I was that dishonest I would be a millionaire! My story.

    Comment by businessif | September 26, 2007

  11. Scammed by Chadwicks. Unknowingly got signed up for Reservation Rewards and Shopper Discount memberships at $10 each. Went through my statements and found that they’ve been charging me for 2 months. No email confirmation was ever received to indicate that I was signed up for these memberships. Of course not. That’s how they scam you and hope you never notice. I called one time to cancel the membership and told them it was not an authorized charge. The cancelled it but did not refund the membership fees. Called them back a second time and they agreed to refund the $40 worth of charges in the next 3 to 5 business days. We’ll see if it actually happens. Can’t believe a reputable company like Chadwicks would allow themselves to be part of such a blatent scam. But then again, I’m assuming Chadwicks is reputable…

    Comment by Robert | December 3, 2007

  12. Chadwicks sent me a booklet offering free gifts for being such a good customer. I called the phone # and was assured that they were indeed free. Then in December I got a bill for $140 for them. I have written my local Postmaster asking how to chanrge them with using the U.S. mails to commit fraud. I have written to the Georgia Office of Consumer Affairs. I want to know if other people have been scammed this way. Maybe we can start a class action suit.

    Comment by Mary Ann van Hartesveldt | January 24, 2008

  13. My wife found charges for ReservationRewards on her Amex card this week, and when she went through all her statements, she found that this had been going on for five months. THey’ve been taking $10/month from her CC.
    We’ve already gotten Amex to supend the charges, but I plan to contact the AG of CT, the CT State Police and the Norwalk Police and file reports on these criminals.
    It’s just amazing how these people operate in broad daylight and dare call themselves a “rewards” company.

    Comment by Mark Weiss, P.E. | January 24, 2008

  14. It happened to me too, but not at Chadwick’s. They got me on eBay. Don’t ever click on any offers for a coupon discount on your next purchase when you finalize your purchase. They instantly steal your credit card number off the purchase page, sign you up for their ridiculous, worthless services, and automatically charge your credit card monthly. They are the most sly, vicious, and malicious company I’ve ever seen, and frankly, I hope they all burn in hell, and I’m not the kind of person that ever says something like that.

    The worst part is that this has been going on for years, and nothing is ever done about it, because they know all the loopholes. I found reports going back to 2004, and for all I know, it goes back even further. All attempts by consumers to stop them seems to have fallen on deaf ears. I’m to the point where I’d like to just put them in front of a firing squad, along with every business that is associated with them. I’m done with eBay, and it was my very first purchase from them, if you can believe that. Talk about bad luck the first time.

    Comment by Mel | February 9, 2008

  15. I was also scammed by Reservation Rewards. I had not used my credit card since making an online Chadwicks purchase. I have been just paying off a balance so did not look closely at my statements until three monthly charges of $10 each from a company I didn’t recognize got my attention.

    The credit card company referred me to Reservations Rewards 800 number and said the charges were authorized. I have since received an email from Reservations Awards saying that someone in my household hd typed my email address in a little box at the end of my Chadwick’s purchase which was my ‘approval’ of their services, whatever they are.

    To date, I have never requested nor received any goods or services from Reservations Awards.

    I am disappointed that Chadwicks is associated with such internet fraud. I will never order from them again.

    Comment by S. Miller | February 14, 2008

  16. I also received a strange charge on my VISA. I purchased a storage box through Brylane. I clicked on a instant $10.00 rebate box thinking it was related to my purchase, i never ended up filling anything out nor did I get a rebate. but the next month the charge showed up. I called and they were polite and seemed to get these calls frequently and immediately canceled and are crediting my account within 3-5 days.

    Comment by Susan | February 20, 2008

  17. The exact same thing happened to me. They have been taking out $10 every month for the last 4 months on the 22nd of each month. I wanted to know if our money gets re-imbursed or not?

    Comment by maria | March 11, 2008

  18. Just got ripped off by Reservation Rewards through FTD.

    Comment by Martin | March 30, 2008

  19. […] yet, but I do take pride in the great influence my humble blog has. I posted months ago about the Reservation Rewards scam, and sometime later had a representative of the site come here to defend […]

    Pingback by Close Encounters of the Cheap Kind » Blog Archive » Another Scammer Speaks - FreeNEzy.com | April 22, 2008

  20. Got me too folks, Just an FYI, JC Penny also shares you credit info! Do not use coupons on these sights. It automatically enrolls you in these programs!

    Both companies will never see another penny from me.

    Comment by Bobbie | May 4, 2008

  21. I was also scammed by Reservation Rewards. I had not used my credit card since making an online Chadwicks purchase.
    It is very surprising that they have been taking out $10 every month for the last 4 months. I would like to know if my money gets reimbursed?

    Comment by Elisha - Gas Credit Cards Rewards | May 21, 2008

  22. Wife was charged through Woman Within. The only thing she recalls is the free shipping offer, which may have triggered it. And why was my charge $12? Are their prices going up? I check our account every couple days online and caught it the same day. Called them and said I would take a look at it, but just cancelled. Will call for refund in the morning…

    Here are the businesses that look like they do this from this blog and http://adam.rosi-kessel.org/weblog/2004/12/24/webloyalty_aka_wli_reservations_is_a_scam:

    Woman Within
    Hancock Fabrics
    JC Penny
    JC Whitney
    Spirit Airlines
    American Airlines
    Deep Discount DVD
    Celebrate Express
    NW Airlines
    Premier Appliances out of Tennessee

    Looks like there are lots more but this is all I have time to look up.

    Comment by Kevin | June 17, 2008

  23. I was too just scammed. I purchased Flowers off 1-800-flowers.com back at the beginning of May, and that’s on the list in one of the links above. I will be calling customer service of both the flower website and reservation rewards and asking for my $12 back. It seems as if they are giving money back to most of the complainers, hopefully that will be so with me.

    Comment by Mark | June 29, 2008

  24. Add Aligiant Air to the list of companies that shared my CC info with this scam.

    Comment by Steve | July 30, 2008

  25. Thank you so much Aaron!!!

    I called them and said bits and parts from what you wrote to them. They first offered a 10 dollar refund, but then I said I would file a complaint to the Federal Trade Commission. They couldn’t beg me to take back the 100 dollars HAHA!!!

    Don’t be afraid guys, I’m 19 and it’s my first time making a complaint.


    Comment by Dan | August 2, 2008

  26. The same thing just happened to me. I called them and found out I was signed up from movietickets.com over a year ago. For some reason the charges just started last month. The guy offered my $20 dollars back before I could even ask for it.

    Dan, I’m 19 too and believe me I’m not afraid to make a complaint!


    Comment by aeronaut88 | August 14, 2008

  27. Scratch that, I’ve been signed up for over a year!! They were again more than happy to offer me back the entire amount I had been billed for.

    It’s amazing how you can be scammed out of your money $10 dollars at a time without even noticing.

    Comment by aeronaut88 | August 14, 2008

  28. Just happened to me. $10 a month and the rep very easily said my $90 would be refunded and account closed. I am filing a complaint with the state attorney general.

    Comment by Sue Miller | August 18, 2008

  29. I am embarrassed to say, that I have been scammed by WebLoyalty (Reservation Rewards) for two years. I just flat overlooked it. They have been charging (STEALING) $10.00 a month from me, and now have stolen $240.00 from my account. My initial purchase was from an online catalog service, Collections Etc., and I must have clicked on the discount coupon offer. I feel very taken advantage of, and just plain stupid!

    Comment by markb | October 7, 2008

  30. I completed my recent Chadwick’s order and just x’d out of two annoying pop-ups. Then received two charges on my credit card posted on the same day for $12.00 each from both Reservation Rewards and Shopper Discounts & Rewards. Had to waste my time contacting my credit card company to contest these fraudulent charges, contacting these “businesses” to reverse the charges and contacting Chadwick’s. Was immediately credited back the amount of the fraudulent charges, but was NOT pleased with Chadwick’s response defending this “program”. One of their customer service reps actually e-mailed that I had entered my e-mail address twice to sign up for “Reservation Rewards” when all I did was x out of the pop-up!

    This is the copy and pasted response that I received from Chadwick’s, “Thank you for your email. Reservation Rewards is a membership program that offers you money saving benefits for shopping, dining, movie tickets, and more.

    You may recall that at the completion of your Chadwick’s order, you were presented with an offer of a free 30-day trial membership in Reservation Rewards, plus a $10 cash back award good towards your next Chadwick’s purchase. By entering your email address twice, like a signature, and clicking “YES”, you agreed to enrollment in the program.”

    This is a complete lie. All I did was to x out of the annoying pop-ups, PERIOD! As a result, I will never purchase another item from Chadwick’s again. It would be interesting to find out how much money Chadwick is making by participating in this type of consumer fraud versus the legitimate side of their business. Regardless, I had been a very loyal Chadwick’s customer and will now tell everyone that I know to avoid doing business with them at all costs. I have also printed off the list provided of other companies that participate in this fraud and will stop doing business with them as well. Thanks for the helpful information!!!

    Comment by Cheryl | November 7, 2008

  31. Add KB TOYS to the list.

    Comment by Claudine | November 8, 2008

  32. Yeah, I got hit, too. Everybody is blaming companies, but could it be a trojan or phishing…some hacker in a dark room selling numbers…WHY CAN”T THIS COMPANY BE STOPPED????????? I mean, this 2008 and I’m seeing comments going back to 2004!!!!!!!!! WHAT THE HELL?????????????????? If you or I where to to rob this company we’d get 20 yrs within 30days!!!!!!!!!!!

    Comment by Jerry | November 19, 2008

  33. I too was taken by this scam but since they charged me on my Chadwick’s account which was at a zero balance I ignored my statements. I finally realized the charge was occurring when I received a Shopper’s Discount check in the mail. Sure enough the $10 monthly charge had been going on my Chadwick’s account so my balance due is now $86.31 late fees and interest Charges. I called Chadwick’s and offered to pay them 1 late fee and the interest charges since I was partly responsible for not checking my statements. They wouldn’t go for that. I sent them a payment for $26.31 today. The rep told me that even though they are cancelling my account at my request I will continue to be charged late fees each month until I pay in full. I am really disappointed with Chadwick’s.

    Comment by Kathryn | December 29, 2008

  34. Previously posted on this blog.
    I’m not a lawyer, so I can’t speak to the legality of the tactics used, but in my view and apparently in the view of thousands of users the tactics certainly are deceptive. I have seen the claim occasionally by Webloyalty that they sent email confirmation of the subscription to customers, however I know I never got one. If these notices are sent out, why do so many people report the first they found out about the subscription was when they spotted the charge on their credit card? The purpose of my postings is to serve as a warning to others about the tactics used to get signups and as a reminder of the importance of monitoring one’s financial records for unauthorized charges.

    You may like to speak to me, but I don’t want to speak to you. There is no need for me to contact your representatives, as I have already contacted your company to demand my money back. Nothing that can be said by any representative of Webloyalty.com will change the unethical manner in which we were charged for this service.
    Do you really want to know why there is a lot of BBB complaints about Webloyalty? It is because people read the negative postings on the internet and instead of contacting Reservations Rewards directly, they make a BBB complaint first. Then they contact Reservations Rewards to cancel & to receive a refund, which they will do without any hassle. Also, the reason why so many people state that they do not receive an email from Reservations Rewards is because the probably have a Spam blocker. All of the answers to these questions are pretty common sense, when you think about it.

    Comment by Common Sense | December 30, 2008

  35. I don’t usually follow-up on comments to this site anymore since I moved the blog over a year ago to CheapEncounters.com, yes folks that’s CheapEncounters.com. Go bookmark it now: CheapEncounters.com!

    Now that the shameless self-promotion is out of the way, I do want to respond to the previous comment. There are a lot of BBB complaints against Webloyalty because what they are doing is deceptive at best and illegal at worst. That so many people report that they never knowingly signed up for the service shows that either the customers did not really sign up for the service at all or their enrollment process is incredibly deceptive and fundamentally unfair, and I think it is appropriate that BBB complaints are filed for these types of shenanigans. I do think that the first call should be to Webloyalty seeking a refund, however due to the nature of their tactics complaints with the BBB and law enforcement agencies should be filed anyway as it indicates a pattern of predatory behavior.

    Your comment is the equivalent of saying that if you rob a bank and get caught, it is okay as long as you give the money back. Just because Webloyalty typically (but not always from other comments I’ve read) will refund your money upon request doesn’t make what they are doing right. And you cannot convince me that they aren’t aware that these confirmation emails (if they are really sent) are more likely than not to end up in people’s spam filters meaning the customer will not know they have been enrolled allowing them to debit your account for a few more months.

    Comment by billyoceanseleven | December 31, 2008

  36. I’ve been trying to make this nightmare of “reservationrewards” go away for three months now. I was told I am being charged because I took a survey and entered my e-mail address twice. Have you ever heard of such stupidity as to charge someone $12.00 monthly. No one returns my calls or responds to my letters. I just closed my account, in hopes that, that will stop the nightmare. WHAT A SCAM!!! BEWARE OF THE “RESERVATIONREWARDS” SCAM!

    Comment by Cal | January 6, 2009

  37. They refund because it is their policy, which is stated on their website. If they are a scam then why do they post their phone number next to every charge. Just because they make it easy to cancel & get your money back does not make what they are doing a scam or illegal. If you had your credit stolen from a real criminal. Sometimes the companies will not refund those charges. You would have to dispute the charge with the bank or credit card company. Companies like Classmates.com. Which I have personal experience with. I use the benefits of Reservation Rewards. It does have a lot of savings. Instead of posting negative comments on the blog why don’t you do more research on the company. I am sorry that people had their money taken from their accounts. but don’t you think that people should check their statements, Also they should read through all of the terms & agreements, when they are presented. If they where doing something illegal, don’t you think they would be shut down. Apparently nobody uses their brains anymore to see the obvious. All I am saying think hard & long before you speak. Admit that you make a mistake. Learn from those mistakes. The world doesn’t change only the people need to change. When people learn from their mistakes, they don’t keep making them & they don’t blame others for them. You can post what ever you want. But if you rob a bank you go to jail, because it is wrong. If you do not read the terms & agreements when it is presented to you, is it the company’s fault? If you see a charge on you account for a couple of months, that you do not recognize, do you let it go on for a couple of months more? Don’t you think people should take responsibility for their own self. This blog makes it hard for others to make their own educated guesses, they think negative, then in return act negative.

    Comment by Hear No Evil, See No Evil, Speak No Evil | January 9, 2009

  38. It all started with the purchase of a movie ticket – we just wanted to see a movie and trying to be smart and avoid the queue at the theater, bought a ticket online and we were told by Fandango or whichever website that there are rewards and if we accept, we could use it for next tickets. There was no indication about a membership fee or a monthly deduction. Since then they were deducting 12$ each month. Actually it didn’t strike me that this is something that I didn’t authorize each time I look at my credit card statement – only when I just saw the 1800 number on the statement and simply searched in Google and I found that I was being scammed….I hope they refund my money.

    Comment by KJ | January 14, 2009

  39. Evil –

    1. Just because they make it their “policy” to issue refunds and post their phone number does not mean it isn’t a scam. They know just how much they need to do to avoid the ire of most AGs and the FTC. By having this policy and publishing their number, they do just enough to be able to argue they are a legitimate business.

    2. Yes, people should check their statements, however not checking doesn’t give Webloyalty license to keep making unauthorized debits to the account until the charges are noticed. Especially if you use your credit card for nearly all of your expenditures, the statement can be several pages long and it becomes very easy to miss a single $10-12 line item.

    3. How can you read the terms and conditions if they are never presented, as I and other commenters contend? If the T&Cs are not presented, than it is the company’s fault.

    4. I’m glad you use the service, however if it was such a valuable service why don’t they promote their services in more upfront ways instead of through deceptive means?

    5. This blog provides information about Reservation Rewards for people who were in a similar situation as I was: seeing an odd charge on your statement you know nothing about and are seeking information on what the charge is for. That, along with people who might use the merchants which are affliated with Reservation Rewards, is the target audience for these postings. The goal is to inform the reader of (a) exactly what this charge is for, (b) what their rights are as far as recovering the money taken, and (c) ways to prevent or at least lessen the likelihood of future unauthorized charges. I provide the information I believe is relevant to my audience. If you would like to create a blog to discuss Reservation Rewards from another point of view, that is your right. It is the beauty of the internet.

    6. You contend that we don’t use our brains to see the obvious, but it is apparent you don’t use your brain to avoid punctuation errors and sentence fragments.

    Comment by BillyOceansEleven | January 14, 2009

  40. I guess, that you are saying that Microsoft Works Word Processor doesn’t use its brain. Because that is the program I used, when I composed that posting. I checked my grammar before I posted.

    Comment by Grammar | January 14, 2009

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