More on the Chadwicks/Reservation Rewards Scam – BBB Reports

Close Encounters of the Cheap Kind has a new home at www.CheapEncounters.com!

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)

I thought it would be interesting to pull the BBB reports on each of these companies and see what was there. It seems I am not the only victim. In the BBB report for Webloyalty (parent of Reservation Rewards and other sites with unethical business practices), the BBB reports the following:

Based on Better Business Bureau files, this company has an unsatisfactory record with the Bureau due to a pattern of complaints concerning deceptive marketing/selling practices and unauthorized charges to consumers’ credit cards. Although the company has resolved all complaints brought to its attention by the BBB by canceling consumers’ program memberships and by providing refunds, the firm has failed to correct the underlying reasons for the complaints.

As of the time of this posting, a total of 850 complaints have been filed against Webloyalty with the BBB.

The BBB report on Chadwick’s isn’t that great either. Here is part of what the BBB reported for Chadwick’s:

Based on BBB files, this company has an unsatisfactory record with the Bureau due to a pattern of complaints.

Based on BBB files this company has a pattern of complaints concerning the companies billing practices. Consumers are experiencing difficulty receiving a refund for products that were returned because they were unhappy with the product, the product didn’t fit or the wrong product was shipped. Consumers also state that they elected to use a deferred billing program, allowing the company to access their account on a specific date, a promotion put on by the company. Consumers state that the company bills them before the deferred date, in some instances causing an overdraft in checking accounts. Consumers also state that after ordering products from the company additional charges are added for magazine subscriptions.

I’m not sure if the “magazine subscriptions” issue is the same as the Webloyalty issue or if that is yet another scam Chadwick’s is participating in, but the M.O. is the same regardless – signing customers up for services they didn’t authorize. The BBB’s math seems a bit buggy on this report, but at the lowest figure Chadwick’s has logged 76 complaints in the last 36 months, although not all of these complaints are related to this issue.

I will certainly be posting more on this, but I wanted to add that detail for my readers (I love you all – all five of you!)


March 26, 2007 - Posted by | Scams


  1. Thanks for the heads up on Webloyalty and Chadwicks, I’ll make sure I avoid them.

    Comment by Ben | April 2, 2007

  2. Dear Bloggers:

    Webloyalty.com protects its reputation and monitors the blogosphere to insure information posted on our company is truthful and accurate. Through this monitoring, we found this blog entitled Chadwicks/Reservation Rewards Scam.

    We would like to speak with you directly but do not have your contact information. If you are unhappy with your subscription or have any questions regarding your membership to Reservation Rewards or Shopper Discounts & Rewards, please contact Webloyalty.com Customer Service at either 1-800-732-7031 or send an email message to customerservice@webloyalty.com. One of our customer service representatives will be happy to help you.

    If you prefer, please contact me at customerserviceinfo@webloyalty.com

    Walter Dabek
    Vice President
    Webloyalty.com Customer Service

    Comment by Walter Dabek | May 10, 2007

  3. […] I wouldn’t have anything interesting to blog about today, I found this comment left on my last posting about the Reservation Rewards scam purportedly from the VP of Customer (dis)Service at Webloyalty.com, the parent of Reservation […]

    Pingback by The Reservation Rewards Scammers Speak « Close Encounters of the Cheap Kind | May 10, 2007

  4. hi, i’ve never read this blog but i just found it while searching for chadwick complaints on google.

    i recently ordered from them and used their deferred billing option.

    they did “bill me early” and made my account go overdrawn but it was just a temporary hold (i guess to make sure i gave a real method of payment). a few days later the hold went away since it wasn’t real money, it was just one of those holds like when you rent a car or a party room.

    the 90 days haven’t passed yet, so i don’t know if they will charge me a few days early or not, but i do know that the merchandise i got was terrible. their website pictures make all the clothing seem very nice but it’s made from terrible fabrics and they just ship them in a giant bag, not a cardboard box, so everything was extremely wrinkled and squished together.

    but i bought from there because of their summer ending 80% off sale, so most flipflops were $1.99 and the suimsuits and clothes were very cheap. i think i even found a free shipping coupon online and used it. so overall i guess i got what i paid for – not much.

    the worst thing i can think of about all this is that in 90 days (or 80 or whenever they charge me) i probably won’t remember i placed a $200 order and i’ll be cashless for christmas again 🙂


    Comment by Carie Lewyn | September 8, 2007

  5. Hello –
    Found this blog while searching online for complaints on Chadwicks’of Boston. I too have had a few issues with returns – instead of issueing full credit, issued me a store credit!
    ANYWAY I made the mistake of ordering again. Two of three items got backordered – which I only noticed with shipping notification of item #1. AND it was backordered at least 2x. When finally shipped, the remaining 2 items shipped individually and as they were under 2#s, shipped USPS – translation as cheap and slow as possible! Now, if they had been honest, I would have cancelled the entire order! STILL waiting on my items – they refused to cancel and recall.

    Comment by Julie Schmitt | August 14, 2008

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