Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:11/04/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Back in 2021 I had recently graduated University and my father recommended to try Modo as an alternative to car ownership.In that first year the account was set up as month-to-month and was auto-billing on credit card, after a year or more of monthly billing I had still never used the Modo service, never once booked a Modo vehicle. At some point more than a year later the credit card on the plan was changed or expired (was my father's card) and the monthly billing stopped going through and was not noticed, again since the service was never once used. After many months of being billed and interest growing, it was finally noticed and a message brought to my attention. I promptly called in to Modo and explained the situation, asked what I could do to modify the plan to be per-use rather than monthly billing. In the call the Modo rep agreed to change the plan (which required a $500 deposit which they still have) so we would not get monthly billing and instead would be billed per-use, I settled the outstanding, paid the $500 deposit and understood there would be no more bills unless the service was used.After several months a letter came in the mail from a collections agency for approximately $60 that was from the Modo account. Shocked, I called in again and was very frustrated, the Modo rep explained there was nothing that could be done. After years of paying for a service, never once used, the billing was compounded with fees, then sent to collections. This was not communicated in that call to update the plan.From 2021 up till this day I have never once booked a Modo vehicle, have paid several hundreds of dollars over that time and every attempt was made to resolve the case amicably with Modo, to this day Modo still retains the $500 deposit. On this basis with all these facts apparent and not disputed, what justification is there for Modo to *********** send me to collections and make a mark on my credit for the account - which was never used and they hold deposit.

  Business Response

  Date: 16/04/2024

  This member joined under a Monthly account that cones with a monthly fee. This fee is charged whether the service is used or not. It is charged to give access to the service, to be able to book the vehicles. Our other Membership type is a plus Membership where someone purchases $500 in shares to avoid paying a monthly fee and to get lower rates. The card on file was paying these charges up to December of 2023, at which point we sent them an email notifying them that the card did not go through and that they need to update the card information. They did not update the card and the amount owing was not paid so we began sending them a series of notification emails telling them they have an outstanding balance that needs to be paid off.For he next four weeks they were sent these email.
  
    We heard from the members father upon receiving the final notice of arrears who then expressed they would like to switch to a Plus account (meaning they purchase $500 in Shares this is NOT a deposit) to not have to pay the monthly fees. In that conversation that asked about the amount that was in arrears and they were told they needed to pay them. They did not, which, after some time,sent the amount to collections as was informed in the final email of arrears.
  
    We have given this member two options which they have yet to inform us of their choice.These options remain open to them.
  
  1 - Pay the outstanding balance and we will contact the Collection agency to have this removed from their credit score. This would leave the Plus account open
  2 - Close the Plus account and authorize us to use the $500 Share purchase funds to pay off the balance. We would also contact the Collection agency in this case.
  
   We explained we needed a decision in order to move forward but Member has not been willing to do so. The amount remains outstanding, they have never paid the balance though in their complaint they claim to have done so.

• Initial Complaint

  Date:15/11/2023

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I recently discovered that my Modo account, which I've never actively used, has been billing me. Over the past three years, I've unknowingly paid a total of $385.20. The credit card linked to this account expired, leading to unpaid bills. I wasn't aware of this situation because the account's two automated reminder emails were sent to my junk folder and went unnoticed. Since August 2023, the account has continued to generate invoices without a valid credit card, resulting in a delinquent balance of $71.03. As of today, November 14, 2023, this overdue amount has been forwarded to a debt collection agency. I'm frustrated because there was no direct phone call from the company to address these issues. Instead, my account was directly sent to collections without prior personal contact, despite me continuously incurring administrative fees. When I contacted customer service, they were unhelpful and merely stated that with 30,000 members, they can't personally reach out to everyone. I am confused and upset as I don't understand the services I was billed for. At the very least my "admin fees" should have bought me a call directly to discuss my account. In summary, I feel I was not provided any services at all for $385.20 paid.
  

  Business Response

  Date: 24/11/2023

  This member joined as a Monthly Member which comes with a Monthly Fee as is described when signing up. Monthly fees are incurred whether you use the service or not, like ******* or other subscription services.

  We sent two emails to the same email address the member is currently sending us emails from, notifying them of their card expiring and 4 emails to that address notifying them that they had an amount due that would be sent to collections if not paid but we heard nothing from the member.  We spoke with them on the 16th of November and the member told us they found all our emails in their junk folder. We state in our Carsharing Handbook (the main document where members learn the terms of service for Modo and something they must acknowledge reading when signing up for our service)  "At Modo, we use email to communicate with our Members for things like Booking confirmations, booking changes, invoicing and other notifications. Therefore, you are required to maintain an active and valid email address to receive these communications which Modo assumes to be received and read."

  When we explained all of this was explained during the account set up they said they had an assistant had set the account up so they personally had no knowledge of how our service works or what they signed up for and for that reason they should not be charged the fees or be sent to collections. The personal information provided upon sign up belonged to the member as did the card that was used upon sign up. 

  They are asking us to reverse the collections and to removed the charges that sent them there as well as a refund for the monthly fees they did pay for since they didn't use the service. We will not be obliging the member with their requests as the fees are valid as is their being sent to collections for non payment. 

  Customer Answer

  Date: 25/11/2023

  
  Complaint: ********
  
  I am rejecting this response because:

  I write to address a matter of considerable concern regarding the business practices of Modo, specifically in relation to its billing protocols and the subsequent engagement of a debt collection agency.

  It has come to my attention that Modo's operational model markedly differs from that of standard industry practices, such as those employed by ******** In standard practice, when a credit card on file for a monthly billed account expires, the service ceases to be billed, and no arrears accumulate. Given that the service in question does not constitute an annual contract billed monthly, I am compelled to question the legal basis upon which Modo claims a right to accrue or demand further funds subsequent to a payment failure.

  
  In an ordinary and reasonable course of business, a failed payment should trigger either a suspension or cancellation of the account, not the accrual of debt. I find it particularly egregious that Modo proceeded to engage a debt collection agency without first attempting to make contact through the secondary contact method listed on the account. This action seems even more unreasonable considering the evident expiration of the credit card on file, which clearly indicates an unintentional lapse in payment rather than a deliberate act of non-payment. Furthermore, the lack of usage, administration, or management of my account further substantiates this point.

  
  In light of these circumstances, I request a detailed explanation regarding the nature and scope of services purportedly provided in exchange for the $6 monthly administration fee. It is my contention that billing such a fee, while offering no more than an automated email service, does not justify the charge and may warrant intervention by the Better Business Bureau.

  
  I hereby initiate a formal request for a refund, premised on the fact that Modo imposes a $6 monthly administration fee, yet evidently fails to provide any substantive administrative or customer service related to my account.

  
  I look forward to your prompt response and resolution of this matter.
  
  Yours faithfully,
  
  *********************

  Business Response

  Date: 28/11/2023

  The service we provide is access to the vehicles and our booking platform in order to book them. Not using this access does not mean you do not have to pay the monthly fee. We provided services to you by sending emails to you notifying you of the expiring card and you outstanding balance. We do not cut off service when a card is declined or expired because we found it is preferable, based on feedback from the Membership, that we let people know about the card expiry through email to give people time to update the card information. We give ample opportunity for Members to do this before we cut off the service.