Vitamin Scam: Warning About Subscription Trap & Debt Collection for Supplements

Unordered vitamin capsules, followed by debt collection notices and demands for several hundred euros: A subscription trap involving dietary supplements is currently causing concern in eastern Germany. Consumer protection agencies are speaking of a “debt collection carousel” designed to position pressure on those affected with ever-new reminders. This type of scam can be particularly harmful to vulnerable populations, like seniors, who may be targeted.

The Saxony Consumer Protection Agency is currently warning about a subscription trap surrounding dietary supplements. According to the advisory centers, consumers are surprisingly receiving packages containing vitamin capsules. Shortly thereafter, they receive invoices for alleged annual subscriptions, as well as debt collection demands for several hundred euros. Older people are particularly frequently affected, according to consumer advocates.

According to reports, the companies Naturnah and 2N-Naturprodukte GmbH are behind the demands. Their approach resembles a veritable debt collection carousel, in which those affected are put under pressure with reminders and additional fees.

Debt Collection Demands After Unordered Vitamin Capsules

The scam begins with an unassuming package in the mailbox. It contains dietary supplements, such as vitamin capsules. A purchase is supposedly already made. However, those affected consistently state that they never ordered anything. Shortly thereafter, an invoice follows for an alleged annual subscription to the products. If this is not paid or consumers object to the demand, the case ends up with a debt collection agency.

For example, an 83-year-old woman from Görlitz reports that she first received a package with vitamin capsules. A few days later, according to MDR Sachsen, 39.95 euros were debited from her account before a debt collection demand of several hundred euros followed. According to the Saxony Consumer Protection Agency, such scenarios are currently occurring more frequently. Numerous affected people with similar experiences have reported the issue, particularly in eastern Saxony.

80-Year-Old Reports Phone Call and Debt Collection Demand

An 80-year-old man from the Zittau Mountains also describes a similar procedure to MDR Sachsen. He received a call from an employee of the Naturnah company. He was offered to “test” vitamin capsules “without obligation” on the phone.

Shortly thereafter, money was debited from his account with the justification that he had concluded a paid subscription. Shortly after, debt collection demands followed. The affected man reports:

“I never concluded a subscription with this company. But then it started with the debt collection demands. I was supposed to pay 690 euros.”

The man and the woman from Görlitz have filed a complaint with the police and contacted the consumer protection agency in Görlitz. The consumer advocates filed objections to the debt collection demands on their behalf and requested proof of the alleged contract.

That resistance can pay off is shown by the current case of the 80-year-old from Lusatia in the advisory practice of the Saxony Consumer Protection Agency. After he sought support there, one of the debt collection companies involved, Media Finanz, withdrew its claim. Consumer protection agencies therefore advise against paying questionable invoices prematurely, but rather having them checked.

Dietary Supplement Subscription Trap: Debt Collection Carousel Business Model

According to the Consumer Protection Agency, the scheme usually follows the same pattern. Consumers first receive unordered dietary supplements. Shortly thereafter, an invoice follows for an alleged subscription. If the payment is not made, the claim ends up with the debt collection agency Quatripay GmbH.

Even if those affected object to the claim, the reminders continue. Sometimes, installment payments are even offered. If no payment is made, the claim is then passed on to another debt collection agency, Media Finanz, which charges additional fees.

According to the Consumer Protection Agency, proof of an actual contract, power of attorney, or lawful assignment of the claim is often not presented despite objections from those affected. However, with each step, the fees and thus the pressure on those affected increase.

The head of the advisory center of the Saxony Consumer Protection Agency in Görlitz, Kamila Kempfert, therefore speaks of a typical debt collection carousel that aims to force payments, even if the legal basis is unclear:

“A typical debt collection carousel. The main goal here is to build pressure, even though the legal requirements are missing.”

Caution with Installment Payment Offers

Installment payment offers are particularly insidious, according to the Consumer Protection Agency. What those affected may initially welcome as a relief also harbors a legal risk. Accepting such an agreement could be considered an acknowledgment of debt. This can make it considerably more challenging to challenge the claim later.

Claims Can Be Legally Challenged

From the point of view of consumer protection agencies, You’ll see several reasons why many of the claims are fundamentally objectionable:

• A central point is the lack of a contract. A contract only comes into being if both parties make concurring declarations of intent. Many of those affected, however, state that they never concluded a subscription.

• a cancellation instruction is often missing. Without proper instruction, the statutory cancellation period often does not begin at all.

• A delay in payment is also often not given from the point of view of the consumer protection agency. Debt collection costs may only be charged if a due claim exists and proper reminders have been sent.

• If there is no valid principal claim, no legitimate debt collection fees arise.

The transfer of personal data between debt collection agencies can also be problematic if a claim has already been disputed.

What Those Affected Should Do Now

The Consumer Protection Agency advises those affected not to make hasty payments as long as the claim has not been clearly proven. Instead, consumers should object to the claim in writing and seek support from a consumer protection agency or legal advice if necessary.

The current case, already mentioned, showed success after the Saxony Consumer Protection Agency became involved. One of the debt collection companies involved withdrew its claim.

Companies Reject Allegations

The companies concerned apparently reject the criticism. 2N-Naturprodukte GmbH and the debt collection agency Quatripay stated on request from MDR Sachsen that the allegations were unfounded from their point of view. They do not deliver unordered goods or make unauthorized deductions.

According to the companies, contracts are only concluded in a lawful manner. Consumers are also properly informed about their right of withdrawal.

Caution Against Subscription Traps and Debt Collection Pressure

The case once again shows how quickly consumers can fall into a subscription trap and debt collection pressure, here concerning dietary supplements. Unordered deliveries, invoices for alleged subscriptions, and ever-new reminders are typical elements of such models.

Whether a systematic business model lies behind the current cases must be clarified by investigations and courts. However, anyone who receives debt collection notices for products they never ordered should carefully examine the claim and by no means pay it hastily.