Open letter to Sleepy's Mattress Professionals

Hello Sleepy's.

My husband and I proudly bought a "Sleep to Live" mattress (and pillow!) from your Sleepy's store in Revere, Massachusetts in May 2009. We decided to buy from Sleepy's because to our understanding, it is still independently owned and we like to support this idea. Even though you have 700 stores, the fact that one individual started and maintains ownership is wonderful to us. We love our bed, and have enjoyed our purchase immensely. The problem is the financial institution you have chose to represent Sleepy's. It is a sneaky, dishonest and conniving company called GE Money Bank. I would like to help you help your customers because I am SURE we are not the only one that have been confronted by this negative situation;

GE Money Bank will, by their own admission, charge people exorbitant fees when they break the terms of their contract — which sounds perfectly fine until there is any deviation from normal. But, when a contract starts out sneaky and cruel with the intention to deceive people that's where the situation goes badly astray. Our terms were communicated to us by a man named Kenny Grossman in your Revere store as "Interest Free for one year!!" and even said "It's like free money!" to use his words, with no additional detail. How could we go wrong? What wasn't emphasized to us were 2 important things:

1. IF you don't pay off the loan within the one year period, you will be charged the ACCRUED interest from the start of the loan, (May 2009 for us) to the current end date of the terms. In addition a super high interest rate of 29.99% would be charged going forward.

2. IF you are late on your loan 2 times you are charged an accrued interest rate up to the time you are late from the start date. (Which is $244.78 for us) In addition to this, you are charged late fees of $39.00 each time AND, the One Year Free Interest rate is revoked.

I fully understand the "terms of the contract" to which we signed, but when the terms are so deceitful and so unfair, I wanted to do something about it. This certainly sounds like predatory lending practices to us and probably will sound the same way to you if you view the contract terms from your customer's point of view.

The problem for us started when we found out by accident about #1 (above) ... As a result, I decided to pay the loan off quickly so we didn't get charged the accrued interest. I paid off more than 1/3 of the loan in large sums until we unfortunately were late twice. (One time I embarrassingly forgot to put a stamp on the envelope!!) This is how I found out about #2 (above). They charged us a Finance Charge of $244.78 (!!!) of being late twice and revoked the "Interest Free For 1 year" and have jacked up the interest rate to 29.99%. I had made the payments, I didn't "skip" a payment, I was merely late. I also called to tell them of my error before I was late. Who isn't late from time to time? Typically when/if you are late with a credit, you are charged a perfectly fair fee (typically $35.00 +/-) The fee GE Money Bank is charging; $244.78, plus a late fee AND cancellation of the policy of "interest free for 1 year" is utterly and completely unfair.

In my entire life span I have NEVER ever had this experience or have I heard of terms like this. I have excellent credit, and have held many loans, mortgages and credit cards. I find what GE Money Bank is applying unjust and sneaky practices which results in extremely high fees with unfair consequences. GE Money Bank depends on errors like I had made to make their grossly unfair money from finance charges.

If I was the owner of Sleepy's I would not want my company to be represented in the same manner that GE Money Bank is representing you. I am certain this happens to other customers of Sleepy's, and I am also sure they view Sleepy's negatively as a result, just like I do. These are the reasons I am writing Sleepy's directly. If I were in your position I would highly consider changing financial institutions. It is one of the many important interfaces to your company after the sale is completed - and as we all know, first impressions are the most important.

I would like you to contact GE Money Bank on our behalf and have them reconsider the fees I have to pay. In the best interest of Sleepy's hard won reputation. On your behalf (Sleepy's) should I contact the Massachusetts Attorney General's Office and notify them of GE Money Bank's predatory lending activities to help you out?

I am sure you will want GE Money Bank to revise their contract terms and conditions of the onerous conditions so Sleepy's reputation is not further tarnished.

NR