Kevan jumps into this week’s video by talking about penny auctions. He discusses the difference between an auction site like eBay and penny auction sites by pointing out that you only pay for what you win on eBay. Kevan breaks down how the use of bid tokens and a refreshing timer by penny auction sites can often lead users to buy tons of bids but still lose an auction. He then reports that Scambook users have experienced not receiving items they won but still getting hit with all the fees and charges. Kevan advises everyone to stay away from penny auction sites and always do their research if they still want to try.
There’s hardly any debate that so many consumers are always looking for the next hot deal or bargain. This is even more so as so many people in our country are still fighting through tough economic times. So, it should come as no surprise that penny auction sites have really burst through the gates over the last year.
Unfortunately, Scambook users have reported alarming experiences with penny auction websites. Users have filed over 600 complaints with over $65,000 in damages against zBiddy.com and over 1000 complaints with roughly over $150,000 in damages against BidRack.com – just to name a couple of the more prevalent sites.
According to our user reports, some penny auction sites don’t deliver items that are won fair and square in an auction. Sometimes, customer service even gives the excuse that there was a glitch in the system so the item in question was not actually won, but still charges the user for all of the bids that were used along the way.
Other Scambook users have reported signing up for what they thought were free trial accounts, but ended up getting charged up to $100 for bids without any way to opt out or be refunded. Some of these penny auction sites are indeed complete shams and will have no real customer service department, making it virtually impossible to find a live person to speak with, according to user reports.
“Virtually impossible” is an appropriate theme when it comes to taking a good hard look at penny auctions operate. Are there legitimate sites where you really can indeed win big-time items like a new 55-inch Samsung flat panel TV or a brand new Macbook Pro for pennies on the dollar?
Yes, there are.
Be that as it may, it still does not change the fact that these sites make money because people spend a ton of money on bids, refreshing the countdown clock for a penny at a time and virtually turning each auction into a game of roulette. It also does not mean in any way that you will be one of the lucky ones to nab big ticket items.
Don’t forget, even if you appear to have won an item, you might not receive it due to a “glitch in the system.”
We understand if you really can’t resist the idea of potentially winning that new TV or laptop for next to nothing. We just hope you will remain diligent in doing your research first on Scambook and seeing what kind of experiences other people had before you engage any penny auction site.
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