(Update: 4/27)
Alltrue CEO Matt Richardson has, for the first time, confirmed that Alltrue is shutting down. Last night (4/26), he confirmed to Forbes magazine that Alltrue is in the process of an Assignment for the Benefit of Creditor, which is an alternative to bankruptcy. “Unfortunately, I’m not allowed to comment further at the moment,” Richardson told Forbes in an email. “The assignee hopes to have an update soon, at which point there will be more information to share.”
Over the past few weeks, several posts and photos from former employees and others have been shared across social media saying that Alltrue was closing down, but this is the first time Richardson himself has made a public statement about the situation. There is still no word from Richardson about refunds for existing customers or delivery of Spring 2022 boxes.
If you're a subscriber and haven't already, read the Federal Trade Commission's (FTC) article "What To Do If You’re Billed for Things You Never Got, or You Get Unordered Products" (thank you SMC!) They include a sample letter for disputing credit and debit card charges. The FTC stresses the importance of a letter:
One thing to know: Some issuers let you dispute billing errors over the phone or online. However, to be sure that you get the full protection of the law, follow up with a letter.
The credit card issuer must acknowledge your dispute, in writing, within 30 days of getting it, unless the problem has been resolved. It must resolve the dispute within two billing cycles (but not more than 90 days) after getting your letter.
From the article:
By law, you have to dispute a credit card billing error in writing within 60 days of the date that the first statement that has the billing error was sent to you. Otherwise, you may get stuck with the bill.
Send a dispute letter to your credit card issuer at the address listed for billing disputes, errors, or inquiries — not the address for sending your payments. Look on your statement, online, or your credit card agreement to get the right address. Use this sample letter for disputing credit and debit card charges.
What if you agreed to delivery on a date in the future that turns out to be more than 60 days?
Can you still dispute the charge?
You’re likely outside the protection of the Fair Credit Billing Act. Still, some credit card issuers may extend the 60-day dispute period when a shipment is delayed. Send a dispute letter to your credit card company. Include copies of any documents showing the expected and actual delivery dates, including any notice the seller sent you about the shipment delay.
What if you used a debit card?
The consumer protections for debit cards are different than the protections for credit cards. You may not be able to get a refund for non-delivery or delivery of the wrong item. Contact your debit card issuer — often your bank — as soon as you know there’s a problem. Some debit card issuers may voluntarily offer protections. Start by calling the customer service number. Follow up with a letter.
What if you paid through Paypal?
MSA reader Vanessa (thank you!) says contacting PayPal was successful:
"I called and the rep escalated it straight to a claim so I wouldn’t have to wait for a response that would never come. This actually immediately closed the claim in my favor with a full refund (I only asked 50%). According to PayPal, Alltrue is closing accounts and agreed to fully refund all claims. They aren’t fighting it. So if you paid through PayPal, call to file the dispute rather than file online, that way you can explain the situation and why it is more than 180 days (if it is)."
Comments from MSA readers offer other ideas. MSA reader Reeb (thank you!) encourages subscribers not to take no for an answer:
"Call your credit card company. If they tell you the charge was too long ago, tell them you prepaid for promised goods and explain the subscription model. Some companies are authorizing chargebacks, some are claiming failure to provide goods, and the simplest claims are if you used a card that offers one-year purchase protection (like from theft or breakage.) But talk to them and see how they want you to proceed. Don’t accept an outright no."
Last week, we shared the following:
There are several rumors swirling about Alltrue (formerly Causebox) possibly closing down their business.
Here's what we know:
- When an attempt is made to "Reserve Now" and sign up for a new account at Alltrue.com, that is not possible as of April 20.
- Alltrue social media accounts have not updated (Last update was on Twitter: 3/5, Facebook: 4/10 Instagram: 4/11).
- A Reddit user has posted a document dated April 20 which appears to indicate Alltrue has filed for Assignment for the Benefits of Creditor (ABC), an alternative to bankruptcy.
In the past few days there have been multiple Reddit posts asking if bankruptcy is in the works and some unverified claims that all employees were laid off. One of the posts in our own MSA forum thread on this topic described still more unconfirmed claims that Alltrue was exploring alternatives to bankruptcy.
We stress that none of these claims, statements or documents have been verified or confirmed by Alltrue themselves. [As of 4/27, this is now confirmed by CEO Matt Richardson to Forbes.]
If you are an Alltrue subscriber, we encourage you to make your own inquiries with the company, do your own research and contact your credit card company about your options, should you decide to do so. Right now, there is no information about whether existing subscribers will get refunds or whether they will receive their Spring 2022 boxes.
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