• Report: #790767

Complaint Review: Eastbiz Corporation

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  • Submitted: Thu, October 20, 2011
  • Updated: Thu, October 27, 2011

  • Reported By: consumer101 — Thailand
Eastbiz Corporation
2972 Columbia Street Torrance, California United States of America

Eastbiz Corporation Shipito.com Nightmare Torrance, California

*Author of original report: Horrible experience with shipito.com

*UPDATE Employee: From Eastbiz Corp./Shipito

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Nightmarish experience with this mail-forwarding company shipito.com. I just feel the duty to spare others from the same fate. I wouldn't trust this company again with my package nor with any personal information.

They set arbitrary monthly spending limits as an excuse to hold your package. In order to get YOUR package mailed out to you, they force you to upload your IDs, utility bills, and to post them a notarized and signed 1583 USPS form (regardless whether or not you use USPS). You do have the option of wiring them cash, but then you lose the consumer protection that comes with paypal and credit card. Think twice before you give them any personal details, beware of identity theft, as other mail forwarding companies don't ask for IDs from you.

There are lots of hidden fees. For example, there is a "bank charge" of 4.3% that I wasn't aware of before I signed up. There is also an insurance fee on top of shipping--I always thought if I use DHL, for example, shipping includes insurance. There are daily storage fees when they're the one refusing to mail out your package, even after they have charged your credit card for shipping and fees.

There is a $5 refund processing fee. If you signed up and paid $8.50, you will get $3.50 back if you want a refund. If you get the form notarized, there is a fee for that, usually at least $20 (though I would advise against sending them this). Oh, but they do "trash your package for free."

Don't trust them with your package. If you can afford to forget about it and "trash it for free," then go ahead. Just be aware of the possibility that once your package arrives at their warehouse, you will not see it again unless you do all of the following (which they call "completely verifying your account"):
1. 2 forms of IDs, recommended driver's license and passport (30%)
2. utility bills (30%)
3. form 1583 (notarized by public notary, needs to be sent by postal service, 40%)
4. form 1583 (signed by you, 10%)

If I knew all of this from the beginning, I would never have signed up. They say they're protecting themselves against credit card fraud, but I don't see why bigger companies such as Amazon and Paypal never ask for IDs. And they don't say how they are protecting their customers' sensitive information.

I had to "trash for free" my second package worth $30, wasn't worth giving them the notarized form 1583 by post that they requested. But as I had already given them my IDs and utility bills and signed form 1583 for my first package (before I was aware of possible identity theft and before I did research), I asked them to remove my personal information and close my account. They replied saying my account has been permanently closed and all my information removed from their system. However, I tried logging in again, and I found my account was just deactivated.

I requested again through the BBB that my personal information be removed. They replied that my information must be kept on file for their records according to USPS policy, as they were authorized to be my USPS mailing agent. What kind of reply is that? I didn't mail them the original notarized 1583 form, precisely because I didn't want them to be my agent! So who the heck gave them the authority to be my agent.

Save yourself the headache and try a more trustworthy mail forwarding company. One good measure of a good reputation that can't be manipulated, check www.compete.com and see how popular the company is. People talk.

This report was posted on Ripoff Report on 10/20/2011 07:18 AM and is a permanent record located here: http://www.ripoffreport.com/r/Eastbiz-Corporation/Torrance-California-90503/Eastbiz-Corporation-Shipitocom-Nightmare-Torrance-California-790767. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
1Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

Horrible experience with shipito.com

AUTHOR: consumer101 - (Thailand)

Thailand has a high credit card fraud rate? They've got to be kidding me. Where did they get this information, I'd like to know. In any case, they've already charged my credit card for my first shipment, it was approved and they took my money. But they still requested form USPS 1583 for my second shipment, without which they ended up refusing to ship my package to me. What legitimate reason do they have for holding my package? None. There are at least 3 problems with their request:  

1. This USPS form is irrelevant to ID verification, why did they still request it as ID verification when they already had my passport, driver's license, and utility bills? (Do not give these to them, by the way, better stay safe than sorry, right? Just let them "trash your package for free" and spread the word)

2. Why is this form 1583 that is a requirement by USPS suddenly not required if you pay them by cash? This form authorizes them to become a USPS mailing agent for the customer, and thus regardless how the customer pays, this form should still be required, should the customer decide to use USPS services.

3. I am not using USPS services, yet they still demand that I post them the original notarized USPS form (only a requirement by USPS, and not required if you use DHL, FedEx, UPS, etc). This doesn't make any sense. For this silly requirement, I had to "trash" my package, because they refused to mail it out.

Yes, their fees are explained somewhere on their website, but I shouldn't have to look for it! It should be made very clear on their main page where they mention only the $8.50 fee. Only after I've been charged, did I know you have all these fees for every single little thing! And by then it's too late to switch to another business, as your package is already at their warehouse!  

When you already have your package at their warehouse, and they won't ship it out, and they give only 7 days free storage, you'll start to worry about having to pay storage fees. They make it very difficult to get the package (which doesn't belong to them) mailed out. There is no way of knowing beforehand whether or not you will be over your spending limit. If you are under this limit, you will be safe and happy. If you are over this limit, then be prepared for hell! Or if your account is otherwise locked, be prepared for hell! You will have to upload all those personal documents (where identity theft is a danger) I posted above, plus you will have to mail them the original 1583 USPS form, regardless whether or not you use USPS services.

If you use DHL, or UPS, or FedEx, then you aren't required by these companies to sign and notarize a USPS form 1583. But shipito.com neglects to mention this. And they demand the form from you regardless.

They refuse to close my account, I didn't request my account to be deactivated but closed. And I'm no longer doing business with them, yet they keep saying they are authorized to be my mailing agent? I never even mailed them the original USPS 1583 form which would authorized them to be my USPS mailing agent.

They have no legitimate reason to keep my personal information on file and they refuse to directly address the issue. What need do they have to keep all my IDs, utility bills, credit card number and shipping address on their database? None. I'm no longer their customer. They say they don't store credit card numbers, but they have it nonetheless, because they charged it. They're not a bank, for God's sake.

Also, sometimes you can't pay with paypal with shipito.com although they give you that as a method of payment, so you end up having to use your credit card directly. Well, this is what happened to me. For my first charge of $8.50, I paid by paypal, but afterwards, shipito.com refused to accept paypal, and I had to pay directly by credit card.

I found internationalcheckout.com to be pretty reliable and you can pay with paypal. They have a slightly higher shipping fee, but at least they never ask for your IDs, utility bills, or USPS form 1583. And, they never hold your mail!
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#2 UPDATE Employee

From Eastbiz Corp./Shipito

AUTHOR: Lindsey - (United States of America)

We do explain on our website that we have security measures in place to protect ourselves as well as clients. This information is on our website in multiple areas as well as in the terms and conditions which are electronically signed and agreed to at the time of account registration. Nobody can register for an account unless they agree to the terms and conditions.

Regarding the spending limits: All accounts have a spending limit, which we state on our website. This limit is in place to reduce the amount of fraud that we receive. Countries which have high fraud rates will have a lower spending limit. The spending limit applies to payments which are made by credit card or paypal. If anyone wishes to spend more than the limit will allow they can send payment by wire transfer, or there is an option to increase the spending limit by fully verifying the account. The spending limit also increases over time as a client uses our services.

Regarding account verification: Again this is noted on our site and in the terms and conditions. We do ask that clients upload 2 forms of ID, the 1583, and a utility bill. We use these documents to confirm that the account holder is in fact a real person, and that they are the same person making the payments. The 1583 form is a USPS document which authorizes us to receive mail on the client's behalf. This is a requirement by USPS of all mail forwarding companies. Please note that ID cards are issued for identification purposes, which is all that we use them for. We do not share your documents with anyone and they are securely stored.

Regarding fees: All fees are explained on the website and we do not have hidden fees. The mailout cost for packages up to 30 pounds is $8.50, heavier packages have additional surcharges. The 4.3% fee is again something that is clearly explained on our website. Insurance is charged on all packages shipped and is included in the price, you are not charged additional insurance costs. Storage fees also are explained on the site, and the free storage period depends on the plan you register for. We also send an email before you are charged storage so that you can make arrangements accordingly. Refund fees are explained in the terms and conditions agreed to. It takes time for us to process refunds and we are charged fees for them.

Regarding account closure: We do deactivate accounts when requested by the client. The documents you have submitted are stored securely. We must keep the submitted documents on file as required by USPS. The form and IDs submitted record that we provided a mail forwarding service for the client as they requested and agreed to. When you registered for an account and provided the documents you have requested that we act as your mailing agent to receive and ship packages on your behalf.

Basically all the points made in the report are explained on the website and terms and conditions, which they neglected to read. We have all the information available and it is the client's responsibility to read through terms before agreeing to them and doing research beforehand.

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