Lawsuits allege unauthorized credit charges

Two women sue, claiming they were billed by companies for items they never ordered.

By DAVID KARP

© St. Petersburg Times,
published June 19, 2001

Living alone on little income, Judith Jeselskis knew where her money went. The 59-year-old retiree had $14 in her bank account, and she wanted to spend it on flea spray for her cats.

But when Jeselskis went to the bank, her teller told her some frightening news. Her money was all gone.

A company called Memberworks Inc. had taken $84 out of Jeselskis' bank account for a service that she said she never ordered. When she called to complain, the operator hardly seemed surprised, Jeselskis said.

"I don't know why you are so upset," the operator told Jeselskis, she said. "You'll get your money back."

On Monday, she let the company know how much the charges hurt. Jeselskis and Marcia Walter of St. Petersburg filed three separate lawsuits seeking class-action status in Highlands and Pinellas counties against five companies who allegedly charged consumers for things they didn't buy. A class action lawsuit allows a person to be the representative of a large group.

To the companies, "no doesn't mean no," said attorney Christa Collins, who represents the women. "It means just charge me later."

The lawsuits allege that three companies -- Brylane Inc., GoodTimes Entertainment Inc. and Sylmark Inc. -- gave credit and debit card numbers to two companies -- Synapse Group Inc. and Memberworks Inc. -- who charged the consumers for things they didn't want.

The companies hope most people don't notice the bills, Collins said. "I think it's a little bit of playing the percentages," she said.

George Thomas, general counsel of Memberworks, denied Monday that the company tricked the women. Memberworks maintains a national reputation for good marketing practices, he said.

Even so, the Better Business Bureau suspended the company's membership in 1999 because of a pattern of complaints. Memberworks has also drawn the attention of the attorneys general in Minnesota, Nebraska and New York.

The BBB reinstated Memberworks Inc. in January after it improved its customer service. The company also promised to notify customers by mail before placing an additional annual charge on accounts.

"We believe (the lawsuit) is without merit as a matter of law and baseless as a matter of fact," Thomas said.

Memberworks had tapes of phone calls showing that both women requested services and then canceled them -- getting all their money back in a day, he said.

That's not how the two women remember it. Last November, Jeselskis ordered clothes from Brylane Inc. with her debit card. The operator asked if she wanted magazines too. But Jeselskis said no.

But soon, she noticed two charges for $55 and $12 for magazine subscriptions she never received. "It's like someone reaching into your wallet and ripping you off," she said.

In January, she ordered a Richard Simmons tape after seeing an ad on TV. When she went to the bank the next month, a different company had taken $84 from her account.

"The second time I was getting scared," she said. "I thought they were really passing my credit card around."

She contacted the law firm of James, Hoyer, Newcomer & Smiljanich, which specializes in class-action consumer fraud cases, after watching a TV news report in February showing U.S. Sen. Bill Nelson pushing for new legislation with consumers working with the firm.

The second plaintiff, Marcia Walter, a bookkeeper at the firm, attended Nelson's press conference, and realized she was a victim too.

In August 2000, she used her credit card to buy the "Abslider" for her 16-year-old son Nick. A month later, a company had charged her credit card another $47.80 for vitamins she didn't order. She complained and got her money back.

"They put it on the bill and play the odds," Walter said.

Officials from Sylmark Inc., GoodTimes Entertainment Inc. and Brylane Inc. could not be reached for comment. A spokesman for Synapse declined comment.

-- The Associated Press contributed to this report. Times Staff David Karp can be reached at (813) 226-3376 or karp@sptimes.com.

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