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    Paul Wellman

    By the end of the year, more than 300 employees at Bargain Network’s call center on Hollister Avenue in Goleta will be out of their jobs.


    Goleta-based Bargain Network to Close Call Center

    Exodus Part of Company-Wide Consolidation Effort


    Thursday, April 3, 2008
    By Ethan Stewart (Contact)
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    Love it or hate it, Bargain Network has been employing hundreds of Santa Barbara area residents, most of them cash-strapped college kids, at its Goleta call center since it opened up shop more than a decade ago. But now, claiming financial prudence, the company is pulling the plug on its 805-based phone lines, leaving more than 300 employees without jobs by year’s end. Despite a checkered past with the Better Business Bureau, the Federal Trade Commission, Web sites like ripoffreport.com, countless former employees, and even Santa Barbara County’s District Attorney’s office, Bargain Network — peddlers of foreclosed home and repossessed car lists via late-night television commercials — has been a financial success story since opening its doors in 1995, ultimately being bought up by parent company Vertrue Incorporated for $27 million in late 2004. Despite what she characterized as “continued success,” Bargain President Samara Jaffe explained the downsizing this week as a money-motivated “consolidation with our parent company.” Jaffe promised, “We are not leaving Santa Barbara and just shutting down overnight.”

    According to Jaffe, Bargain’s usually voracious recruiting of employees has been on hold since earlier this year in anticipation of the layoffs announced last Friday. And, while no definitive date has been set, she expects that all 320 sales staff positions will be terminated at the Hollister Avenue headquarters by December as the company shifts its call center to Houston and Montreal. (According to anonymous tips from current Bargain employees, layoffs have already begun.) While bemoaning the downsizing, Jaffe explained that Bargain will remain in town, keeping its corporate office, media team, and Web development crew among others things here on the South Coast to the tune of about 60 full-time jobs. Jaffe explained that Bargain Network may actually hire a few additional people for these positions.

    “I can’t say we are sad to see them go.” - Santa Barbara’s Better Business Bureau’s President Rick Copelan

    Despite the hit to the local economy, don’t count Santa Barbara’s Better Business Bureau’s President Rick Copelan among those crying over the departure. “We’ve been around and around with this company since the year they opened,” explained Copelan earlier this week. “I can’t say we are sad to see them go.” According to him, Bargain Network has generated 416 consumer complaints at his office in the last 36 months alone — a track record that has earned the company the dubious distinction of an “F” rating with the bureau. Complaints range from accusations of false advertising and unsolicited credit card charges to difficulty canceling services and general disappointment with their product.

    Bargain Network, which prides itself on never cold-calling people but simply answering consumer inquiries, has made its money by selling lists or booklets containing information on land or home foreclosures as well as seized and repossessed automobiles to prospective buyers for a minimal fee. As Copelan sees it, the company has added a new wrinkle to its business plan involving limited free trials of their services, often on the Internet, which eventually become anything but free. “If you don’t tell them you want to opt out of it, they just keep on hitting up your credit card,” explained Copelan, before adding, “And what we see time and time again is they don’t make it very easy for you to opt out.” With more than a million customers and really nothing overtly illegal about their business dealings, the knock on Bargain Network rarely amounts to anything more than disgruntled customers who feel hoodwinked by the fine print. (In fairness to Bargain, a survey of the 416 Better Business Bureau complaints revealed regular refunds being doled out by the corporation.) That being said, as one former employee who wished to remain anonymous said of his two-plus years working at the Goleta call center, “It was great money if you had a knack for it, but at the end of my shift, I always felt like my soul was dirty.”

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    Vertrue Inc. and its subsidiary, Adaptive Marketing, is a fraudulent enterprise that has been sued by the AG's of at least six states. Having been stung by at least two of its "membership" plans (which I never signed up for), I frankly rejoice at any bad news for this enterprise, its phony plans, and the deceptive marketing practices that it represents. Now, perhaps, we might see some bad news for 24ProtectPlus and BusinessMax as well.

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    Cresence (anonymous profile)
    April 3, 2008 at 7:49 a.m. (Suggest removal)

    good for vertrue!

    as an insider at the company for many years (having left at the time of the sale) i'm glad to see vertrue moving out of santa barbara and to texas. after all, why continue to till over $50,000,000 (year in and year out) into the local economy when continuously branded a nuisance.

    i feel for the hundreds of employees who will suffer as a consequence of SB's unfriendly environment. i also feel for the hundreds of businesses in SB that rely on the $30,000,000 payroll that'll be removed from the local economy.

    bargain is a high-volume low-ticket company. when you talk to over 10mm callers per year and acquire over 1,000,000 NEW customers every year, it isn't hard to imagine that 80-100 complaints with the BBB would result. that's a ratio of 1 complaint per every 100,000 callers!

    i do miss santa barbara. you can't beat the weather, the topography and wonderful people. it isn't however, a business friendly environment. hindsight is 20/20, and my bet is that the town will miss bargain.com.

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    fotofix (anonymous profile)
    April 3, 2008 at 12:52 p.m. (Suggest removal)

    Working at Bargain Network has been a rite of passage for lots of local youths. It has been a job that pays enough to pay the rent and put food of the table while giving kids the opportunity to explore their personal values and goals. What other employer in the area provides this?

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    hmm (anonymous profile)
    April 3, 2008 at 6:51 p.m. (Suggest removal)

    I am a Santa Barbara youth that tried working at bargain networks because i needed some money. My training class was half college students and half foreign students who really needed a job. I spent 3 shifts on the floor before I walked out. It really does make your soul feel dirty.

    Imagine this, someone calls you because they want to buy a car for $500, but you have them sign up for a free trial subscription to like 3 or 4 things, it takes 20 minutes to read all the legalese and then if you can get their credit card information, you know they are going to be sent a bill for a couple hundred dollars the next month because its almost impossible to cancel.

    Im glad they are gone.

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    Tallredhairedguy (anonymous profile)
    April 5, 2008 at 3:36 p.m. (Suggest removal)

    A shining example of business ethics: ripping off old ladies for information that is free anyway? Then working their credit cards over after? Shame on you! Easier for kids to sit on their asses and lie to people than to actually work? There has got to be a better way to keep people around here gainfully employed. Don't let the door hit you in the ass to hard.

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    bimboteskie (anonymous profile)
    April 8, 2008 at 3:44 p.m. (Suggest removal)

    Here's some karma for ya: Wouldn't it be great if all of the hundreds of thousands of cheated consumers showed up at the private residences of Christian Hunter, Thomas Adams, Antoine Bordeaux and other "executives" of Bargain and demanded refunds on the spot? In 2000, eight years ago, the FTC had these people nailed and none of them were ever supposed to collect credit card numbers again for the purposes of billing consumers. Too bad the feds didn't enforce this diligently. http://www.ftc.gov/os/2000/05/settlement...

    Not surprisingly, the Santa Barbara News-Press always treated Bargain, a big classified advertiser, with kid gloves lest they rock the boat. Here's a typical valentine article from the Business section dated June 30, 2002: http://www.bargain.com/news-06-30-2002.h...

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    emptynewsroom (anonymous profile)
    April 13, 2008 at 10:18 a.m. (Suggest removal)

    I came across this company and started to investigate it what i have seen is a poor example of people taking advantage of other hardworking individuals! There parent company is vertrue.com take a look that company supports of all things lava life!

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    outkast (anonymous profile)
    May 5, 2008 at 2:02 a.m. (Suggest removal)

    The whole business model of Bargain Network is a sham - basically tricking people into using their credit card to charge them and making it very difficult for them to opt out of being charged again and again. It is a total BS scam. Anyone who works there for any length of time is participating in consumer fraud. It is embarassing to think that college students get their first part time job experience with a fraudulent outfit like this - it twists one's perspective and probably makes any college kid working there cynical, thinking that all businesses are a rip-off. I am amazed that neither the Independent of News Press, who relied on their ads, never ran an expose on these rip-off artists. Every script a sales person uses is carefully designed to thread the needle legally - the place was almost shut down in the past by the Attorney General of the State of CA - but apparently the founder Christian Hunter, got his father, a judge, to intervene. Anyway, what a slimy, soulless place Bargain Network is/was - hope they never come back and hope the parent ripoff company fails miserably.

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    RockeSteady (anonymous profile)
    September 1, 2009 at 11:58 a.m. (Suggest removal)

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