Was helping a neighbor with an issue today. They bought a Purple Mattress and used the Splitit payment option to get 2 years to pay it. They didn't read the fine print on how Splitit works. Welp, they initially put a temp authorization for the entire amount on your credit card to make sure you could cover it. This doesn't really make sense to me, but it's how they operate. Anywho, the fine print is very fine very vague and not listed where he had the option to chose Splitit. I suppose it's his bad for choosing them lol. So anywho 10'ish days before your next payment's due, Splitit does another temp authorization for the entire remaining amount which in his case is close to $2000, even tho their payment's only around $200. This apparently is to make sure you'll be able to make a payment for $200, I guess they need to check 2 weeks before the payments even do to be safe? lol The hold is released, but for his card it takes around 4 days. And THEN when the actual date comes, they do another temp authorization for the entire amount, and charge the payment and the remainder gets released after a few days depending on who your cards with. Every month this happens, with the temp charge being whatever the entire remaining balance is, so it drops $200 a month in his case. But, there are 6-10 days where he can't access basically $2000 due to waiting for the authorization to be released. The entire reason he bought the bed on 2-year payments is that he couldn't afford it all in 1 chunk. Here's the kicker, This was his 4th month, and almost 2 weeks before his payment was due they did the temp charge, but he didn't have that amount available. He had forgot they do this well before the payment is due and he didn't check his email, they tried 2 more times over the next few days without success. So he paid his card off from the Xmas shopping and they wound up charging the entire remaining balance and he's now stuck because their CS is beyond bad. Not a temp charge, but a charge for the full remaining amount because they couldn't authorize it a week earlier, even though his payment is only $200. Blows my mind, this company is legal. And even if he had the money to pre authorize, there would be close to 10 days a month where close to half his cards balance is tied up waiting to be released from the holds.
This is an absolute insane model for how to run a business, Googling the company every review's 1 star. I see them as a payment option on a bunch of sites, I'm shocked any business would want to offer it. This is a very 1st world problem if I've ever seen one.
Facebook
Twitter