DreamHost Wrongly Bill 1000’s of Customers Some As Much As $9’000

dreamhost_logo.pngWebmasters that are hosted by DreamHost woke up to a nasty billing surprise this morning after DreamHost made a major mistake with their billing system, their entire customer base on Credit Cards Payments was billed a total of $7,500,000 overnight. What’s not amusing is the lack of “Taking This Seriously” attitude that has once again spilled out from DreamHost staff, maybe they should consider a rename to NightmareHost.

So we have all heard the horror stories about DreamHost and their hosting package speed issues, customer service, support etc, today it was the turn of their billing system and a member of staff “Josh” to make the biggest cock up i can remember in the hosting sector for a few years. Dreamhost had a billing glitch and billed thousands of customers for as much as 2 years in advance, with debits/charges over $400.

The particularly bad part about this error is that DreamHost customers are reporting that their credit cards or bank accounts are now overdrawn, it has been reported that a few cannot now make their mortgage payments.

Last year DreamHost wrote this post on their blog:

It’s something we like to do every day!

Yep, the secret to our crazy low prices and amazing ferraris, finally revealed:

We take your billing address and go to your homes at night to steal your jewelry, plasma TVs, and all valuable toiletries!

Not to mention all the credit card numbers we get fund our wild vegas benders (roulette is a great way to launder money) and illicit basketball leagues!

(Damn PayPal and Google Checkout, not sharing the credit card info with us!)

Yeah, overall it’s a pretty sweet scheme we’ve had these past 10 years; and now that we’ve gone into hiding you’ll never catch us, coppers!

I think those statements might come back to haunt them somehow.

Luckily LunarPages have stepped in with an unbelievable offer for DreamHost customers that have been affected, and they are taking the offer up on mass.

For all DH webmasters looking for an escape, Lunarpages has created a coupon code just for you! Use code DHRefugees to receive $40 off hosting with Lunarpages and we will also buy out the remainder of your contract with DreamHost! (Up to 9 months!) If you have several months left on your contract with DH, sign up for Lunarpages and email us your billing receipt (not the triple billing ones.. lol) and we will add that extra time to your account with us!

You can read the blog post dreamhost made after this major error http://blog.dreamhost.com/2008/01/15/um-whoops/ their tongue in cheek attitude to the scenario has not gone down well with customers causing a backlash, most calling it the final straw.

And if your looking for web hosting for you social CMS project please DO NOT consider using DreamHost under any circumstance’s, you have been warned. If you want to read some more info on DreamHost Services go HERE.

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Author: on January 15th, 2008

Category: Blog

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