American Savings Discount Club (ASDC)

800 Loudoun Ave
Portsmounth, VA 23707

The operators of this "guaranteed-loan" and "discount club" scam have been ordered to pay $3 million in consumer rederess. (Story). In theory, consumers like those below may receive at least a few dollars for their trouble.

Doug of Choteau MT writes (11/23/01):
The company called on the phone and offered me a chance to build up my credit. All I had to do was send them $100, $40 of it nonrefundable, and I would be able to get up to $500 in a loan that would have easy payments to repay. They sent out a packet for me to look at and sign. If I did not like the offer I could send back the packet and in 4 to 6 weeks they would send back my $60.

On August 27, 2001 I sent the packet back via registered mail. They received it on August 29, 2001. I still have not received my money nor does their telephone number work anymore. I did contact them by phone on October 23, 2001 and was told the money was on its way. When I tried to call today, November 24, 2001, I was told that the phone was no longer in service.

Lorelei of Hayward CA (11/19/01):
My first payment was $100, after that they will take $15 every month for 6 months out of my checking account to have a good standing credit. One month I didn't have the $15 so they told me that they would have to start the 6 month process over again, even though I have already paid for 3 months - and if I don't pay it my credit will not be in good standing

I am a single mother with a child to support.

Dennis of Phoenix (11/17/01):

Since I am unable to contact the company I have to contact the bank and stop any future payments from being debited. I am out a hundred dollars I thought was going to help me establish a credit line. Now I must worry about who they have sold my name to for future con games.

Margie of Carson CA (11/14/01):
I had signed up for their program to reestablish my credit. The loan program states they will automatically withdraw $30.00 a month for three months out of your checking account before they give you a personal loan. This money is to establish a credit history. Well they have been deducting money out of my account since July and now their phone is out of order and they have taken over $150.00 from me. I am a single parent raising two kids on my own and already in a hardship.

I was planning to use the money from the loan from ASDC to catch up on bills. But now i am stessed out even worse thinking i just lost $150.00.

Patsy of Memphis (11/13/01):
During the first week of October, I called the ASDC to ask why I had been billed for something I never received. Their number was listed next to the withdrawal amount on my monthly bank statement. When I finally reached a representative, she never gave her name and refused to do so. When I asked her why I had been charged $100 for something I never ordered, she replied that material had been sent to me, and that I had received it but never responded. She then paused and said that it appeared that I had cancelled my membership on 10/1/01 and that I should receive a refund in four to six weeks. It is now six weeks later and I have not received any refund.

The list of untruths and contridictions is numerous. While I did speak to someone in August 2001 about joining the savings club, he assured me that I wouldn't be charged for anything until I had read their membership information and sent back the consent forms signed. That was the only condition under which I would release my banking information. Also, I never received any information from this company neither via postal service or E-mail. And I certainly never called to cancel my membership because I had never joined the savings club.

Because of this unauthorized withdrawal from my checking account, three checks were returned as insufficient. Not only was I charged $24.00 by my bank for each insufficient item, but I was charged $25.00 returned item fees from the companies to which I wrote the checks as well as one $25.00 late fee. That is a total of $272.00 I lost due to this unauthorized withdrawal. This might not sound like a lot of money to most people, but I was laid off in June and didn't find employment for three months. This was hard-earned money that I couldn't afford to lose. This contributed to the need for me to move out of my apartment and in with friends. It is a shame that a so called "savings program" could end up costing more than it would ever save.

Patrice of Warsaw NC (11/12/01):
ASDC was saying that they could give you a loan between the amounts of $300 and $1500 without any credit check and this loan was actually supposed to clear your credit report. They wanted you checking account number so the initial fee of $100 could be deducted and then you would receive information to determine which loan you wanted to apply for. I never heard anything from them, but they did take my $100. I asked Tawanna was this a scam and she said no that is was really true so I continued on with information. This is my first and last time, but these people need to be stopped.

Well it set me back because I was looking forward to using that money to do some Christmas shopping with and get caught up on some bills, but it all went through. This company needs to be put out of service and have to refund everyone back their money. I know $100 doesn't sound like much money, but it was mine and if I can get it back I sure would love to.

Ellen of Colorado Springs (11/12/01):
I was contacted about becoming a member of American Savings Discount Club. During this conversation I was asked for my Visa information to pay for shipping of the membership materials so I gave it to them. Two days later my Visa was debited for $100. I tried to contact them via the customer service phone number and the number was disconnected. So I went to their website to look for contact information and found another contact number which I also found to be out of service as well. I have tried to find their address or any information that would assist me in contacting this company but I have been unsuccessful.

Stephanie of Maywood IL writes (9/18/01):
In August, I was contacted by this company regarding a program that they were offering. During the process of describing the program the sales representative asked me for my checking account information (which I did give). I advised her and she verified that I was interested in information only in writing and will contact their office if I am interested in the program. I never received any information regarding the program nor did I ever contact their office again regarding the acceptance of this program.

When I learned that my checking account had a $100 debit from this company, I contacted them regarding a refund of the monies that are due to me. I was advised that the refund would take 4-6 weeks to process and that I was only eligible to receive $60 of my $100 that they took out of my account without my authorization. I do not feel that this is appropriate behavior for a company to be practicing.

I have $100 that was taken without my authorization and considering the financial hardship that I am going through this will make it even harder for me to take care of my responsibilities.

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Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

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