DreamHost Begs For Forgiveness

Monumental billing error slammed customers

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The hosting company overbilled virtually all of its customers due to the self-described “fat-fingers” of Josh Jones.

By treating a recent billing cycle for DreamHost customers as if it ended in December 2008 rather than December 2007, the company billing clients for what may have been in excess of a collective $7.5 million dollars.

Jones explained in a DreamHost blog post how he manually ran the billing service for what he thought were dates last month. But in appending 2008 instead of 2007 to catch up on any missed billings, Jones nailed a swath of the firm’s customers.

Commentary at the status announcement of the problem ran the gamut of relief that the error was caught, to white-hot anger. Similar remarks appeared at Jones’ blog entry.

“A new service is running right now (in parallel on all the controllers) that fixes all those future charges, re-enables your account if it was erroneously suspended, and if your credit card was automatically rebilled, refunds the payment automatically. You don

DreamHost Begs For Forgiveness
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  • http://www.whispersinthedark.com Mark Warner

    We weren’t simply billed for all of 2008 in advance. Some of us were billed TWICE for 2008. I, in particular, was billed for all of 2008, then again for 10 seemingly random months out of 2008 (all but april and september) a SECOND time. This doesn’t jibe with Josh’s explanation of a simple mistaken entry of a future date. His explanation would account for my being billed 12 periods into the future. I was billed for 22 periods. So were many others.

  • Guest

    I would also like to point out that two days later and most customers haven’t been refunded yet.

  • Guest

    "I, in particular, was billed for all of 2008, then again for 10 seemingly random months out of 2008 …"

    me too. i was actually billed 23 times, twice on the same day for each month of 2008. i haven’t seen my refund yet, either. once my refund goes through, i will be taking my hosting business elsewhere. i don’t want some wiseass, "everyting is cool and funny" twenty something handling my hosting anymore.

  • Tom

    From their current Blingy Cluster issue that have had users out of service for nearly 2 weeks now


    Their latest update of 4th April includes the following:

    "We are also pleased to note that we have more storage that will be coming early next week. We believe that this will go a long way in helping us fix this major problem."

    Excuse me? They advertise 500GB of storage per account. Are they trying to say each and every account on that server is using its full quota – because that is the only reason they’d need more storage space. The fact is, many of these accounts wouldn’t have 500MB let alone 500GB, which means, in a nutshell, DreamHost are a bunch of liars, advertising and selling a service that they do not actually physically provide. Add that to your class action lawsuit.

  • Tony

    DH lock down my web after 97 days of money back guarantee is over! and their reason is my site being attack (no proof my site is under attack) and ask me to buy Private Server which cost $245/month.  or my site won’t lift. asking for money back they deny it! they could block those IP attack out of their server but they didn’t do it and lock down my site. 

    Message from you (Jun 23rd, 2008 – 12:34:29 / #2545334)
    Subject: I tried to talk nice to u "Dastyni"

    DH: "If you want to be unthrottled, you’ll have to wait until the
    attacks stop or move to a PS I’m afraid"

    doesn’t we just block all those IP attack? doesn’t means it stop! why you keep saying that I have to move to PS! why don’t just solve the problem here? your point is want me to pay money!

    DH: "Because if we don’t keep your site in check, it stops the other customers
    sites from working. Why should they pay only to be shut down because of
    your site?"

    So you said I pay for my site to be shut down? now I dont see any site being down because of my site, I only see my site being shut down by you!

    DH: "It’s not our responsibility to decide what portions of your traffic might
    be an attack and block them. It is your responsibility to deal with the
    attacks I’m afraid"

    You Right! I been responsible for my site that why I have .httaccess on deny all those IP attack. I been checking the log everyday and adding IP to lock list everyday, I believe there no attacker posible last 3 days because you lock down my site.

    your point just want me to pay more to get for PS! not lift my site for reason of those attack?

    DH: "If you know an IP range that you WANT to visit your site then you could
    just use a "deny from all" and then allow from the ip addresses you want
    to be able to connect to the site."

    it world wide web, how do I know IP range to allow! I only know which IP atacking and locking it.


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