"Although this company is currently defunct, I figured the entry here should get a proper burial/explanation; some closure considering the amount of customer outrage.

I've ordered from them twice: the first time via Amazon.com, and the second time via their site (where I used Paypal). In both instances, I've never had any problems, so I might consider myself lucky. With sales "via Amazon", I heard from a different vendor that they never know the customer's email address when orders are placed, so I'm guessing that they never find out your CC number either. And with Paypal, you'll always have some semblance of security with any transaction.

The items from ClassicCloseouts were sometimes on the cheap end for materials used, but it was usually a hit or miss. (I never had any reason to return stuff, and am still making good use of my purchases--albeit not exactly in their intended ways.)

Nevertheless, I was considering ordering from them again late 2009 to hit up their "secret 20% off for the 20th" deal, but when I got around to checking their website, I found the server's empty Plesk cpanel, i.e., "this domain doesn't exist".

I rechecked my email logs and found that they stopped sending out their sales mail after the 27th of July. I thought, "How odd that I didn't even receive any information about this."

After poking around, I found these bits at the Federal Trade Commission's site:

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July 1, 2009

Federal Trade Commission v. Classic Closeouts, LLC, a limited liability company, also d/b/a Classiccloseouts.com, Daniel J. Greenberg, individually, as an officer of Classic Closeouts, LLC, and d/b/a Thirdfree.com
(United States District Court for the Eastern District of New York)

Civil Action No. 09-CV-02692
FTC File No. 082 3236

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For Release: 07/01/2009

FTC Cracks Down on Scammers Trying to Take Advantage of the Economic Downturn
New Public Education Video Helps Consumers Steer Clear of Business Opportunity Fraud

The Federal Trade Commission today announced a law enforcement crackdown on scammers trying to take advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes, such as promising non-existent jobs; promoting overhyped get-rich-quick plans, bogus government grants, and phony debt-reduction services; or putting unauthorized charges on consumers’ credit or debit cards.

Dubbed “Operation Short Change,” the law enforcement sweep announced today includes 15 FTC cases, 44 law enforcement actions by the Department of Justice, and actions by at least 13 states and the District of Columbia.
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Operation Short Change: FTC’s Law Enforcement Actions

The FTC today announced that it has brought eight new cases against companies that have conned consumers who are struggling to make a living and pay their bills during these difficult economic times. The Commission brought seven additional cases challenging similar conduct earlier this year.

In each new case, the FTC alleged that the defendants’ practices were deceptive or unfair. In some of the cases, the FTC also charged the defendants with making illegal electronic funds transfers or violating the Telemarketing Sales Rule.
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In the law enforcement actions announced today, the Commission charged:

John Beck/Mentoring of America ...

Wagner Ramos Borges, through a host of front companies, including “Job Safety USA,”...

Grants For You Now and its affiliates and principals operated Web sites such as grantsforyounow.com, grantoneday.org, and easygrantaccess.com...

Cash Grant Institute...

Mutual Consolidated Savings...

Google Money Tree...

Penbrook Productions...

Classic Closeouts, illegally made unauthorized charges and debits to the consumers’ accounts months or years after they bought low-cost clothing or household goods from classiccloseouts.com, the FTC charged. The charges usually ranged from $59.99 to $79.99, and Classic Closeouts charged some consumers’ accounts multiple times. Consumers’ efforts to contact the defendants to contest the charges were unsuccessful. Many consumers also disputed the charges with their financial institutions. After the financial institutions reversed the unauthorized charges, the defendants contested these disputes, falsely claiming that consumers had chosen to join the Classic Closeouts “frequent shopper club.” This case was filed in the U.S. District Court for the Eastern District of New York.
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There's no mystery as to what happened, but just a tad unnerving that they were still gung-ho about scamming at the end of July, even with a filed complaint.

FTR, I know this company was horrible, but my rating only reflects my own experiences with them, while ignorant about the illegal activity. I guess they didn't mind being lawful on occasional if only to prove to themselves this: "you win some (with successful scamming), you lose some (because you need to keep up the façade of a legit business--if only to get people to spread good news)."

Fortunately, ResellerRatings wasn't on my mind at the time of the purchases, and if anything, the third-order-that-never-happened may have determined a great deal."

"I returned 3 items to Classic Closeouts. The delivery confirmation states they received the merchandise on 09/18/2008. After emailing them at the end of Sept., "Yuris" wrote me back on Oct. 1 saying the return had been processed and my credit should appear in a few business days. After a few weeks, I emailed again, again and recieved no response. I called their number and spoke with "Sam" on 11/04. He said he would give it to his supervisor and have him call me back. Never called. On 11/06, same guy...same story. On 11/09 I called and he started getting nasty with me claiming "We've already been thru this." Yes, we have, but I want my money back. Still noone has called me back. DO NOT BUY FROM THIS PLACE!!! I don't doubt one bit the positive reviews on this site are from the scam artists running this sham of a company."

"Worst store ever.
First purchase may seemed to go through well.
But afterwards, endless unauthorized charges!
The store front of fraudulent charges!

Don't ever buy anything from the store!

Removed my credit card from their site months ago.
Yet they just charged me recently for a "free shipping service package of $69.99" that I never signed up for."

"I already placed the order for several stuff from this merchant before stumbling into these reviews about unscrupulous charges. Made me want to cancel but I just realized I used PayPal to pay. I received all the items exactly as advertised in just 2 days, and that was only a ground shipping option. I am amazed on what a small amount bought! They’re a real steal. I even found some of the items in Ebay for twice the price w/ inflated S/H. The pics used were exactly the ones from ClassicCloseouts. It’s a shame to miss out on these impressive discounts. I am definitely buying again and of course, PayPal."

"Classic Closeouts fraudulently charged my credit card with a "program" fee that they stated I signed up for. This was an unauthorized charge and they will not respond to calls or provide a way to even dispute the charge within their company. I have filed BBB reports and Veriasigns reports (Buyer BEWARE)"

"Purchased a blanket for $5 back in Dec 2007, now in June 2008 I get hit for $69.99 charge, and then again in August 2008 for $79.99. I am disputing both of these charges with my credit card company as we speak, but from the looks of it I am not the first guy to get hit by these people...

Aren't there laws against this type of fraudulent charges, is anyone going to do something about these guys? or are they based out of some off-shore country that doesn't care about bank/credit fraud?"

"DO NOT purchase any items from this store. The first and last time I shopped at this site was september 28,2007, but recently, from June to August 08, three unauthorized charges ranging from $49.99-$79.99 were made to my account. This company is dishonest, and although it looks legit and is said to protect shoppers from hackers, you won't be protected. Also, online, there is no listing of a number for you to contact, but when you do get ahold of them for customer service, the will avoid your questions and concerns and not return your calls. Would not reccommend this site to anyone. "

"FRAUDULENT CHARGES! DO NOT BUY FROM THEM. i've never had a problem with online purchases until i shopped with them. i purchased a 9.99 jacket which was great.. but a few months later, received not one but TWO unauthorized charges for $59.99. i tried emailing and calling them to get it reversed but to no avail did i ever recieve a response. i had to settle it with my bank to get my money back. as i can see from other reviews, this did not just happen to me but a few people. HORRIBLE. "

"BUYER BEWARE: The company placed an unauthorized charge of $69.99 on my credit card 8 months after my initial purchase. I disputed the charge and had it taken off my card. I logged into my account on ClassicCloseouts.com and removed my credit card information on file. I received another unauthorized charge for $69.99 the following month. They practice credit card fraud and should be shutdown. There are several other cases just like mine."

"Complete scam!!! I last purchased something small from this site over a year ago. Just a few weeks ago I notice a charge for $29.99 from them but I DID NOT order anything from them (original order was for ~$15). I left messages with them but never heard back. So, I finally called by bank (Bank of America) and they opened a case and credited my account for the amount. Now they just did it again!! This time for $79.99. The transaction is still in "pending" status so my bank said they can't do anything about it yet. You bet I'll be on the phone as soon as it clears.
Why do the credit card companies let them continue to steal money like this?"

"BEWARE! They're fraudulently scamming hundreds, maybe thousands, of people with unauthorized charges of $69.99 to their credit cards!! BEWARE!!!

I haven't ordered from them since 2006 (had to enter random numbers in the "last order date" and "invoice number" fields in order to fill this out)....this is totally CRIMINAL!!! "

"This company charged me (along with, it seems, at least hundreds of other people) without any authorization from me. I haven't ordered from them in at least two years (according to my account on their site), and yet on 7/8/2008 I got a $69.99 charge, which has been disputed with AMEX.

Do not do business with this company. If you ever have, continuously check your CC statements closely for their fraudulent charges."

"Received a fraudulent 69.99 charge from them 6+ months after placing order. The original item ordered was the lowest quality item I have ever seen. This jacket was worse than the worst jacket sold at Walmart. No exaggerating. "

"WARNING! Classic Closeouts charged my credit card account fraudulently in June 2008, months after I had placed my last order with them. I am having to go through the hassle of a dispute, closing my CC account, and getting a new credit card number. Many others are reporting similar situations on various forums and websites. I will never again buy from this company."

"I just received a phone call from my Credit Card regarding suspected fradulent activity which occurred from the "Classic Closeouts" which were one of the businesses featured on the "Slick Deal" website. More than $150 worth of activity was charged to my account over the past two days.
I have read about this "Classic Closeouts" before but only after I ordered from them and was very unhappy with their product and service. As a result I attempted to contact them several times over the phone by leaving messages with my telephone number to return my call to resolve the issue about a clothes order and the shipping charges...........no response..........and emails which were apologetic but nonresponsive.
I contacted "Classic Closeouts" again regarding these fradulent charges and left messages that unless I heard from them in 24 hours, the Attorney General would be contacted regarding this activity.
Maybe this will help future shoppers"