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Hidden policy or what? $1 dedicated server from Codero
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Hidden policy or what? $1 dedicated server from Codero

kyakykyaky Member
edited December 2013 in Providers

Did anyone try their $1 deal from Codero's black friday promo?

Firstly, I wasn't trying to take advantage from them or abuse their policy intentionally at all.
I applied for a cancellation immediately after 2 days the server was deployed because I found it didn't meet my needs. In stead of holding it to the end of the month, I thought it would be nice to just ask for a cancellation so they could sell it to other customers. (there was no IPKVM or IPMI and it kept crashing when installing some software. (both ssh and connectivity) )

I followed the instruction below for cancellation:

"6.1. IF YOU WISH TO CANCEL ANY OF YOUR CODERO SERVICES (A) YOUR ACCOUNT MUST BE
PAID IN FULL AND BE IN GOOD STANDING AND (B) YOU MUST PROVIDE AT LEAST 7
DAYS NOTICE TO CODERO BEFORE CANCELLING THE CODERO SERVICE. ALL
CANCELLATION INSTRUCTIONS MUST BE SUBMITTED THROUGH SERVERPORTAL.COM
FOLLOWING THE “CLICK TO CANCEL” LINK ON THE SERVICE PAGE OF THE CODERO
SERVICE YOU WISH TO CANCEL. BECAUSE CANCELLATIONS ARE AUTOMATED, ONLY
CANCELLATIONS SUBMITTED IN THIS MANNER WILL BE ACCEPTED AND BE EFFECTIVE TO
CANCEL YOUR CODERO SERVICE."

then I got a reply from them asking me to check 10th policy from their TOS as below:

"10. Promotions
1. For any new services started that receive a discount covered by any promotion, and then
within the first 30 days are canceled will be billed at our standard,
non-discounted fee.
2. Discounts are available for new services only, and cannot be applied to existing services.
Existing services that are cancelled and reordered are not eligible to receive the current
discounted rate"
http://www.codero.com/legal/TOS.pdf

“will be billed at our standard”? Does this mean even cancellation made 2 days after the purchase will still be charged at full price? correct understanding?

Because English is not my first language, I want someone to confirm my understanding that this policy means "no matter what, I will be charged in full price of the product"

Maybe this was why they didn't accept my paypal. VISA only

They didn't mention this bias policy or show this in their promo page on that day.

Another question: Can what they do here be called "hidden policy" when they already say no contract on their main page.?

Thanks community.

update: I opened another ticket kindly asking them to consider my case due to that I wasn't trying to abuse their policy intentionally. I just didn't pay attention to the TOS when purchase. still waiting for answer.

«134

Comments

  • jarjar Patron Provider, Top Host, Veteran

    Was first month only right? Sucks about the crashing.

  • @jarland said:
    Was first month only right? Sucks about the crashing.

    yep $1 for the first month.

  • notify them you want to cancel. after that if they charge your card you must perform a charge back. it costs the company so i doubt they will try but you have options..

    Thanked by 1kyaky
  • @TarZZ92 said:
    notify them you want to cancel. after that if they charge your card you must perform a charge back. it costs the company so i doubt they will try but you have options..

    No, that is bad advice.
    Unfortunately this is a perfect example of why you should always read the ToS and AUP for a host, especially if you've never used them before.

    Doing a charge back when they have every right to charge you because you failed to read their ToS is grounds for fraud.

    Thanked by 1mpkossen
  • OkieDoke said: No, that is bad advice

    Why is it? No customer can read every bit of TOS. its stupid. no one does. and it's hardly Fraud. If that was in the UK they would have had to cancel anyway. under DSR

    My advice stands.

    Thanked by 1kyaky
  • I think "No contract" advertise means you can cancel anytime, and only pay for what you have used (in this case is day or trial fee). Some providers do well in this "no contract" and even refund in full amount as long as you don't exceed 7 days usage.

    Hereby enforcing a full-fee for cancellation meaning that there is a contract applied.

  • @OkieDoke said:

    what if I tell you they have "No contracts" on they main page which is a contradiction to what they write in TOS. Also this is a good example of pure misleading advertisement and scam when they don't say anything in promo and suddenly show you their hidden policy.

  • kyakykyaky Member
    edited December 2013

    @khuongcomputer said:
    I think "No contract" advertise means you can cancel anytime, and only pay for what you have used (in this case is day or trial fee). Some providers do well in this "no contract" and even refund in full amount as long as you don't exceed 7 days usage.

    Hereby enforcing a full-fee for cancellation meaning that there is a contract applied.

    but in this case, it seems, they are going to charge the full price because of their hidden promo policy in their TOS althrough I have applied for cancellation 2 days after purchase

  • edited December 2013

    I think you just need to submit a ticket noticing them to cancel after the 1st month trial :D nothing broken.

  • @khuongcomputer said:
    I think you just need to submit a ticket noticing them to cancel after the 1st month trial :D nothing broken.

    I did. They just sent me the msg above and ignored my request.

  • VPNVPN Member
    edited December 2013

    @TarZZ92 said:
    No customer can read every bit of TOS. its stupid. no one does.

    That would never stand up as an excuse. It is bad advice because if the provider really wanted to, they could take court proceedings against the customer for failure to pay for a provided service. Provided under their clearly accessible and clearly legible Terms of Service.

    If you're insistent on not reading them all then you should always at least read their conditions on refunds and cancellations.

    Distance Selling Regulations do not apply as the seller is US based.

  • emgemg Veteran

    I think there is confusion on both sides.

    Setting up a dedicated server costs real time and money, and Cordero wants to make sure that customers do not take their $1 offer, use (abuse) the server for a month, and then disappear. This is the reason for the policy where an early cancellation requires you to pay the full rate.

    In my opinion, the phrase "No Contracts" means that you are not required to sign up for a specific period of time (e.g., a six-month or one-year contract). It does not mean "no conditions or terms".

    I agree with the people who say that you should have read the policies carefully first, and asked questions first (e.g., Do you support IPKVM or IPMI?) before signing up.

    At the same time, Cordero prominently displays 100% Uptime Guarantee, and you say that the server keeps crashing as you install software. If Cordero really has not delivered a reliable server, then I would politely ask for an early cancellation.

    Make sure that Cordero understands that you are an honest customer who is not trying to abuse their special deal policies, and ask them to cancel your server without any additional fees in the interest of good customer relations. Perhaps you can offer to split the difference and pay half a month's fee as a token of good intentions - you were responsible for asking better questions, but they were responsible for delivering a useable server. Give them a day or two to think about their options and respond.

    If they refuse any concessions, then I think it is reasonable for you to take measures to prevent them from charging your account any further. Let them keep the $1. File a chargeback if necessary, but only as a last resort. If they protest, you can tell your credit card company about the 100% uptime guarantee as a valid reason. They didn't deliver what you paid for.

    Ultimately, you may be forced to pay one month's fee. If so, then accept it gracefully and treat it as an education expense. You learned to read all the policy details and ask the right questions before signing up for your next future server.

    Thanked by 2kyaky Wintereise
  • @kyaky

    You have not been getting much luck with these Black Friday deals have you..

    It's unfortunate but they did put this disclaimer in the WHT AD.

    -No Contracts (If you don't like us and we can't convince you to stay you can leave at anytime however if you leave before the first month of service you have to pay the full price for that month)

    http://www.webhostingtalk.com/showthread.php?t=1326245

    Maybe you missed it, but I think you are SOL on this..

    Thanked by 1kyaky
  • emgemg Veteran

    @TarZZ92 said:
    Why is it? No customer can read every bit of TOS. its stupid. no one does. and it's hardly Fraud. If that was in the UK they would have had to cancel anyway. under DSR
    My advice stands.

    I disagree. I read the ToS and AUP policies carefully before signing up. I have turned down some great VPS offers because the ToS had onerous fines, fees, and other charges, sometimes based solely on the judgement of the provider. I have one particular VPS provider in mind - I wish I could remember who they are.

    Thanked by 1kyaky
  • @emg said:
    I think there is confusion on both sides.

    Setting up a dedicated server costs real time and money, and Cordero wants to make sure that customers do not take their $1 offer, use (abuse) the server for a month, and then disappear. This is the reason for the policy where an early cancellation requires you to pay the full rate.

    In my opinion, the phrase "No Contracts" means that you are not required to sign up for a specific period of time (e.g., a six-month or one-year contract). It does not mean "no conditions or terms".

    I agree with the people who say that you should have read the policies carefully first, and asked questions first (e.g., Do you support IPKVM or IPMI?) before signing up.

    At the same time, Cordero prominently displays 100% Uptime Guarantee, and you say that the server keeps crashing as you install software. If Cordero really has not delivered a reliable server, then I would politely ask for an early cancellation.

    Make sure that Cordero understands that you are an honest customer who is not trying to abuse their special deal policies, and ask them to cancel your server without any additional fees in the interest of good customer relations. Perhaps you can offer to split the difference and pay half a month's fee as a token of good intentions - you were responsible for asking better questions, but they were responsible for delivering a useable server. Give them a day or two to think about their options and respond.

    If they refuse any concessions, then I think it is reasonable for you to take measures to prevent them from charging your account any further. Let them keep the $1. File a chargeback if necessary, but only as a last resort. If they protest, you can tell your credit card company about the 100% uptime guarantee as a valid reason. They didn't deliver what you paid for.

    Ultimately, you may be forced to pay one month's fee. If so, then accept it gracefully and treat it as an education expense. You learned to read all the policy details and ask the right questions before signing up for your next future server.

    Thanks for your answer. I'm just gonna have to chargeback if this charge happens. I did kindly ask for cancellation 2 days after purchase. All I got was the policy above. but anyway, I will have to do what I need to do if they do refuse to cancel the product and insist charging me at full cost

  • @emg said:
    I disagree. I read the ToS and AUP policies carefully before signing up. I have turned down some great VPS offers because the ToS had onerous fines, fees, and other charges, sometimes based solely on the judgement of the provider. I have one particular VPS provider in mind - I wish I could remember who they are.

    Turnkeyinternet?

    Thanked by 1kyaky
  • AlexanderMAlexanderM Member, Top Host, Host Rep

    I got this offer last month. The network ain't the best.

    Thanked by 1kyaky
  • VPNVPN Member
    edited December 2013

    @emg said:
    At the same time, Cordero prominently displays 100% Uptime Guarantee, and you say that the server keeps crashing as you install software. If Cordero really has not delivered a reliable server, then I would politely ask for an early cancellation.

    I hate to sound like I am just defending Codero however this is flawed.

    It's important to note that any 'guarantee' is for the service as is. They cannot promise that anything you do with the server is going to be 100% compatible. Read section 9.3 (Limitations) of their ToS;

    WE DO NOT WARRANT THAT THE CODERO SERVICES WILL BE FREE OF ERRORS, BE UNINTERRUPTED, OR WILL MEET YOUR REQUIREMENTS. THE CODERO SERVICES ARE PROVIDED ON AN “AS IS” BASIS AND WE EXPRESSLY DISCLAIM ALL WARRANTIES, CONDITIONS, AND INDEMNITIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR ANY OTHER WARRANTY ARISING FROM THE COURSE OF PERFORMANCE OR COURSE OF DEALING. YOU UNDERSTAND AND AGREE THAT WE WILL NOT BE LIABLE FOR ANY TEMPORARY DELAY, OUTAGE, OR INTERRUPTION OF THE CODERO SERVICES, AND YOU HAVE NOT ENTERED INTO THIS AGREEMENT IN RELIANCE UPON ANY WARRANTY OR REPRESENTATION EXCEPT THOSE SPECIFICIALLY SET FORTH HEREIN. ALL CODERO SERVICES PROVIDED UNDER THIS AGREEMENT WILL BE DEEMED ACCEPTED WHEN DELIVERED.

    If the server crashes or loses power upon certain software installations then arguably there is an incompatibility with the server/OS and the software being installed. Whether its a software issue or a hardware limitation.

    Like I said, not being picky but people need to remember that you are agreeing to some very important clauses when you paid.

    Moral of the story - read all ToS and AUP agreements, and stay away from Codero.

    Thanked by 1kyaky
  • @emg said:
    I disagree. I read the ToS and AUP policies carefully before signing up. I have turned down some great VPS offers because the ToS had onerous fines, fees, and other charges, sometimes based solely on the judgement of the provider. I have one particular VPS provider in mind - I wish I could remember who they are.

    If I were the provider, I would say the same thing like you said. But I want to solve this problem as a customer not a provider. So I will do what I have to do if they push me at last. From a service provider aspect or educating aspect, I agree with you.

  • @OkieDoke said:
    Like I said, not being picky but people need to remember that you are agreeing to some very important clauses when you paid.

    reinstallation costs $50, every reboot costs $5 also mentioned in TOS. theTOS is actually very infomative .

  • emgemg Veteran

    @kyaky said:
    Thanks for your answer. I'm just gonna have to chargeback if this charge happens. I did kindly ask for cancellation 2 days after purchase. All I got was the policy above. but anyway, I will have to do what I need to do if they do refuse to cancel the product and insist charging me at full cost

    If it were me, I would try the request one more time. Tell them that you are not interested in abusing their policy, but that the server has not met your needs. Ask them to reconsider in the interest of good customer relations. Why not offer to pay them half the monthly fee as a show of good faith and see how they respond?

    Thanked by 1kyaky
  • @kyaky said:
    reinstallation costs $50, every reboot costs $5 also mentioned in TOS. theTOS is actually very infomative .

    So if you took the time to read that, why did you not read the important stuff about cancellations and refunds?

    Accept that you made a bad choice and move on. I tell you now, you will regret it if you try doing a charge back.

    It may seem like its just a company and PayPal but you've agreed to binding ToS of which Codero and/or PayPal could pursue you for.

    Thanked by 1kyaky
  • @kyaky

    I don't think a charge back is a good idea considering they were upfront about the promotion.. if you are having problems, why not ask them to replace the server?

    Considering you have to pay full price if you cancel now, why not just keep it for two months and cancel then?

    hope you did not sign up for the most expensive server the dual octa core @ $340/mo!

    Thanked by 1kyaky
  • emgemg Veteran

    @earl said:
    Turnkeyinternet?

    Yes! That's it!

    http://turnkeyinternet.com/policies/

    Who would sign up for that?

  • OkieDoke said: Distance Selling Regulations do not apply as the seller is US based.

    I know they don't, read what i said properly. I said "if" meaning if it was a UK company.

    Thanked by 1kyaky
  • emg said: This is the reason for the policy where an early cancellation requires you to pay the full rate.

    I disagree. it's all about profit in this case. nothing to do with abuse etc.

  • emg said: Setting up a dedicated server costs real time and money,

    Maybe years ago, these day's it's fully automatic.

  • @emg said:
    Who would sign up for that?

    That's probably how they make their money, it's not from providing cheap hosting services but from charging clients silly fees..

    Another one is PerfectIP.net, pretty similar to turnkeyinternet.

  • kyaky said: reinstallation costs $50, every reboot costs $5 also mentioned in TOS. theTOS is actually very infomative .

    Why did you signup for them? those fees are a complete rip-off. infact it's theft.

This discussion has been closed.