Circuit City wouldn’t let Larry redeem his $40 digital transition converter box coupon unless he signed a credit slip agreeing to pay $40. Larry refused, and asked to cancel the transaction. Circuit City’s manager responded by calling the police before following Larry into the parking lot to write down his license plate number.
Larry writes:
I just attempted to buy, at Circuit City, using my charge card, and one of the $40.00 government-provided coupons, a TV converter box. After swiping both cards, the sales clerk presented me with two printouts to sign. One was for $21.19 and the other was for $40.00. Of course the $21.19 was the one for the difference between the purchase price minus the government coupon (plus the sales tax). Both printouts ended with this statement:
“The cardholder agrees to the credit card amount shown hereon and agrees to perform the obligations set forth in the cardholder agreement with the issuer.”
I refused to sign the one for $40.00. I spoke with the manager, Kim, (whose last name is “the only Kim in the store”) to cancel the transaction. She said she couldn’t and insisted that I sign both printouts. I could see this was going to turn into an issue so I quickly pocketed both unsigned receipts, the government coupon card, and my credit card and left while Kim was threatening to call the police. NOTE: I removed no merchandise from the store.
As I was driving away, Kim was standing outside writing down my license number and talking on her cell.
The government is distributing $40 coupons to subsidize converter boxes that will allow people to watch television over-the-air after February 17, 2009, when all broadcast signals switch from analog to digital.
Retailers are required to accept the coupons, and customers are required to sign a slip so the coupon can be redeemed. For some mindless reason, Circuit City is using a credit card agreement as their signature slip, and making it appear as if the customer is about to pay an extra $40.
Circuit City already called Larry to tell him that his $21 charge would be reversed. As for his $40 coupon, apparently, it will be “refunded to the government.”
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@Lambasted:
The pivotal question here is what documentation the government sends along with the $40 ‘coupon’. If there’s a slip enclosed detailing the Visa Giftcard Cardholder’s Agreement (or they manage to reference it on the back of the card), then the OP could be expected to comprehend that he was a cardholder (of the giftcard) and would be agreeing to certain obligations in return for redeeming it. Absent such explicit notification, it’s perfectly reasonable that he would object to entering into an agreement that he doesn’t know the details of. The retailer should also explain to the purchaser before the transaction that it’s not a coupon, but a Visa giftcard and will be processed as such.
@sean77: You might have a point if the Visa logo appeared anywhere on the card.
I agree that the guy should not have to sign an agreement stating that he would pay the $40.
I work at the local radio shack and you do not have to sign for the dtv card. Only your credit card. The dtv card rings up just as it should…. A coupon.
I usually side with the consumer on this issue but this is a fine case of a stupid consumer. This story doesn’t even belong being posted. It still doesn’t make up for why the cops were called but Larry was a dumb ass here.
This is exactly why circuit city lost 164.8 million in first quarter of 2008 [consumerist.com]
@bufftbone: If the slip clearly says you “agree” to pay the $40, then guess what, circuity city can legally bill your credit card for that amount if they want. Who’s the stupid consumer here.
If larry had looked at the account numbers, one is his CC and the other is basically a gift card. I see his point, but he should have just signed the damn thing.
outsdr, The charges were already deducted. However, the OP will not be able to use his coupon anywhere else.
Tyler Menezes, I talked to a local store here. To carry the DTV converter they must accept the government coupon or they can not carry the converter. This store decided not to do that because they would have to agree to a government contract. So if Fry’s is selling a converter but not talking the coupons that is a violation. According to the Merchant I talked too.
Wow, double fail. Larry does know that this is what prints out for everything that involves a card? If you know that you aren’t agreeing to anything, just sign it anyway; is that concept so hard to understand. Don’t know why the manager got his plate number, maybe to call another store to warn them?