Dreamhost Overbills Customers

January 16, 2008 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Dreamhost (dreamhost.com) experienced a billing error late Monday night, causing the company to unknowingly charge almost every one of its customers an extra year’s worth of service.

The billing occurred when a Dreamhost employee accidentally ran the company’s automatic billing system for outstanding charges as of December 31, 2008, instead of 2007, says Dreamhost’s blog (blog.dreamhost.com/2008/01/15/um-whoops/).

The company has received hundreds of emails and blog comments from upset customers, including customers who are facing overdraft charges after the overcharged fees were made on their already overdrawn bank accounts.

Dreamhost has apologized profusely to customers for the billing error, both in emails and blog updates, and says it is currently working to resolve the problem. The Web host says customers need not contact their credit card company or bank concerning the billing error. However, it is recommended otherwise for those customers who are facing overdraft charges.

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