Update: A representative from Zipcar has called me and told me they are reviewing their practices. I’ll update here when I get more info!
A note to Unit Structures readers: be careful if your Zipcar account lapses, as the company may give away your personal information and attempt to damage your credit. Last year, I spent some extended time traveling in Zipcar-friendly areas, so I created an account. My experience with Zipcar was fine. Fast forward to March 8, 2009 – I get an email from Zipcar telling me they had attempted to charge me for a membership renewal, and my credit card was no longer valid. I “lose” my credit cards yearly to avoid sneaky auto-renewals just like this.
Since I wasn’t planning on using ZipCar any time soon, I decided not to renew. I assumed they would just lock my account until I re-opened it at some time in the future. Instead, ZipCar started sending me increasingly menacing emails, which culminated in this one (bold mine):
This is the third and final reminder to let you know that we have been unable to charge your credit card for your balance of $50.00, outstanding since Mar 8th.
If you have updated your credit card information please disregard this notice.
Please contact us within three business days or your account will be closed and turned over to a collection agency for payment.
Huh? A collection agency? You’re going to turn my personal and financial information over to a collection agency, and tarnish my credit simply because I chose not to renew my account? And after only ten business days? Is this any way to treat customers? Its not like I was using my Zipcar and had run up some huge tab, my account has been dormant (and fully paid) for months.
It gets better. So I go to the website (within three days!) to delete my account. I am on the phone with a customer service rep who is talking me through account deletion. She guides me to the page for deletion, and it isn’t there. I am not allowed to delete my account until I enter my new credit card number, which would automatically charge me $50.00. I suppose then they would let me delete my account. Even the customer service rep seemed a little surprised that I wasn’t allowed to remove my account. Thankfully she was able to override the system.
I understand that when I was setting up my Zipcar account I was probably forced to agree to auto-renewal, and that if I had just deleted my account before the auto-renew, I wouldn’t have had to deal with this mess. Still, Zipcar’s overly aggressive tactics are inexcusable. Turning over my personal information to a collections agency after two weeks on an auto-renewal? Damage my credit simply because I don’t want to use your service any more? This is a company with dangerous business practices. I know that everyone is hurting in this economy, but Zipcar doesn’t have the right to damage the credit of good-faith customers. Well, ex-customers, in my case.
1: From the Collection Agency FAQ: Third-party collection agencies may report a debt to one or more of the credit bureaus, as a “Collection Account,” including the amount, and whether it was paid or not.
P.S. Zipcar wouldn’t actually let me delete my account. They would only allow me to make it inactive. Another failure on their part.
[...] My friend Fred had a horrible experience with Zipcar. He hadn’t use the service for a while and forgot about it. It was time for the account to be auto-renewed, and his credit card bounce. Two weeks later, they sent his account to a collection agency, for the $50 fee on an account that he wasn’t using. Read the rest here. [...]
The worst part is, even if you were a happy Zipcar customer and merely had, say, gone on vacation, or were too busy to read everything in your inbox for a few weeks. When you saw that your credit card bounced and went to pay it (because you wanted to keep using the service), instead of being met with thanks, you would find that you had been reported to a collection agency!
Bad record for zip car I’m thinking of bringing my business relationship with then to an end. One year membership I’ll say good bay
Because their rates are not so great neither their cars and service.
yikes! two weeks seems way to short! (I’m not sure this counts as ‘sneaky’ auto-renewal though. Most zipcar users don’t use the car frequently, and would PO’d if it hadn’t auto-renewed.)
concerned. signed up. gave my info. told my zipcard would get to me 3-7 days. did not receive zipcard. repeatedly contacted them via email. no response. got email asking why i did not activate zipcard, told to call if i did not receive it. called but could not get through unless i provided zipcard number, which was on zipcard, that i had not received. tried to call no answer, office manager, not on employee telephone directory. whats up? i’m concerned.
2 words: auto renewal. Unless you close your account with Zipcar your MEMBERSHIP will auto renew on the anniversary date that you joined. I realized this when I joined Zipcar. It’s not rocket science here folks.
Mem, the problem is not auto-renewal, but rather the highly aggressive way they are treating their customers.
I am having the exact same issues as Steve from 18 May. I can’t get ANYONE on the phone, nor do I have any hope of getting an e-mail response. And this is before they have my money!
I’ve been waiting for close to three weeks for reimbursement for out of pocket gasoline expense because the gas card promised to be in he car was not there. Two weeks after this event, the gas card was still missing from the same car. We are talking about $25 here. Cash flow problems?
I had the exact same thing happen to me. I keep getting messages from Transworld Systems – their collections agency, even though I paid my bill weeks ago. Their customer service is the pits. I just canceled my membership account.
[...] March 31, 2009, 9:32 am Filed under: contract terms,process,termination Fred Stutzman over at Unit Structures laments the issue of individual auto-renewing agreements (like those of any kind of subscription [...]
Wow, I’m really surprised by this, it’s upsetting to think you’ve found one of the rare “good” corporations only to find out that they suck too. I’ve had nothing but great responses from Zipcar, and with one exception have always had really nice cars – and the one that wasn’t nice ran well it was just banged up on the outside. I wonder if it has anything to do with the local office? They only have 15 in the world and I happen to live in San Francisco where they have one. I just went to the office to pick my zipcard up. And I got a deal when I signed up because I’m a part-time student with a college that has a deal with them so I get no yearly fee, or so I’ve been told. I guess I’ll see in a few months.