MCA Roadside Assistance TVC Marketing Scam Opinion

It has been a few years since I last shared my opinion on the Motor Club Of America (MCA) roadside assistance TVC Marketing scam.  The time has come for an update on what has changed and what has remained the same.  Showing a stack of cash seems to never grow old for the promoters of MCA.

MCA Motor Club of America Scam Claims

Claim your financial freedom in three easy steps.

Register. Share. Profit.

Here is a video example of how MCA is promoted:

MCA Motor Club of America Scam Promotional Video

MCA Motor Club of America Scam Reality

William W. Green, is the founder of the Motor Club of America and its chief executive from 1926 to 1986. In 1986, Mr. Green and his family sold their controlling interest in the Motor Club of America. – Source nytimes.com

In December 1986, the Green brothers sold their entire holdings to Trac., Inc., an Oklahoma company that also owned Thrifty-Rent-A Car System, Inc. While the Green brothers remained directors and officers of the company, the management effectively changed hands.

In 1996, Trac, Inc., sold MCA, Motor Club of America Enterprises, Inc., to JVL Holding Properties, wholly owned by Virgil W. Coffee, In the early 80’s, Virgil Coffee was a marketing associate for Pre-Paid Legal Services, Inc (Now known as LegalShield). He and John W. Hail founded the original incarnation of TVC Marketing in 1982 as an independent network marketing arm for Pre-Paid Legal. John Hail was responsible for Introducing the company to direct sales, it was Virgil Coffee that designed the marketing plan that helped Pre-Paid Legal grow from $1.2 million in 1982 to $48 million in 1986. Coffee and Hail sold the original TVC to Pre-Paid Legal that year, but Coffee left the company the next year to form the second incarnation of TVC.

JVL Holding Properties, at the time of the MCA acquisition, owned two entities, TVC Marketing Associates, Inc., and TVC Pro-Driver, Inc., plus founded or acquired, Auto Help Line of America, Inc., Auto Club of America, Corp., and Small Business Club of America, Inc. In 2010 JVL Holding, Inc., was renamed TVC Holding, inc. – Source mcaeagents.com

Income claims with stacks of money being counted are made by many MCA representatives without an income disclosure. This is against FTC guidelines for promoting a business opportunity. Without an income disclosure there is no way to know how much new representatives are actually making with MCA.

If sellers make any claims about how much money you might make, they have to give you a separate paper with more specifics. Like, the number and percentage of people who got those results or better. – Source FTC Bogus Business Opportunities

For a long time MCA did not have an official website. They have now rolled out an official website: motorclubofamerica.com.

What they allowed and still allow are websites by their representatives that make the consumer think they are dealing directly with MCA until they read the fine print of the website. Here are some examples of these types of websites:

motorclubamerica.net – Rodney Walker

mcamotorclubofamerica.com – Justine J Allen DBA CCB Marketing

mcamotorclubofamerica.com

In my opinion, the current MCA compensation plan turns the MCA business opportunity into a recruiting scam. They get you in for free and then require you to purchase a roadside assistance plan and recruit others to advance in their compensation plan.

To receive all of your commissions and bonuses you need to be an ACTIVE ASSOCIATE with an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, worth $19.95 per month or more.

Earned Commission: Associate’s earned commission pays back their debit balances based on collected funds. Anything that is sold “as-earned” and never advanced, is paid “as-earned” for twelve (12) months as long as you are an ACTIVE ASSOCIATE. Once your debit balance is zero, all earned commissions are paid to you, as long as you are an ACTIVE ASSOCIATE with an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, worth $19.95 per month or more and you qualify with 36 PGV the previous month, or you have qualified for vesting as National Training Director.

2nd – 5th generation override commissions are always as-earned, regardless of how the selling Associate is paid.

To qualify for the health bonus you must have an ACTIVE MEMBERSHIP with an on-going method of payment worth $19.95 or greater.  – Source MCA Training Manual

To raise up in the MCA compensation plan you need to purchase a $19.95 per month or greater plan and you need to recruit people.

Here are the requirements for a National Training Director: Associate who in any one calendar month has 36 or more PGV, an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, of $19.95 per month or greater and who have 20 or more qualified 1st generation Executive Directors with 36 or more PGV in that same calendar month, qualify as a National Training Director. National Training Directors are vested for earned commissions and overrides and never have to re-qualify for earned commissions and overrides, as long as they keep an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, of $19.95 or greater in Force. – Source MCA Training Manual

This is what one of the top MCA reps had to say about how many customers he has that are buying MCA just for the service. “I don’t know, and I truly don’t care.”

MCA does offer a legitimate product. But, they are charging over 2x the rate per year of AAA for half the amount of miles on the first tow and an equal amount of miles on the next three tows. Are the extras you get with MCA really worth it or even necessary for someone looking for towing?

But what about the unlimited road side assistance claim? That has great value right?

Good Sam offers unlimited distance towing to the nearest service center and no set limit on service calls for $124.95 per year for your car and multiple RVs.

http://www.goodsamroadside.com/rv/

What about your RV?

MCA offers $100 for towing for each RV call. With RV’s it does not offer 100 mile towing for each call like it does for other vehicles.

Here is an example of the expected actual costs of towing an RV: Heavy Duty Towing: $200 hook-up fee + $3.50 per mile. – Source Heavenlytowing.com

If you have an RV you are going to want to look for an actual RV towing package like the one offered by Good Sam.

With MCA For $239.40 per year you get unlimited 24/7 roadside assistance including towing to any facility within 100 miles for covered cars or pick up trucks.

One of the most common ways that MCA is sold is that you are told you can turn a $40 sale into $80.

Once you sign up and pay your $40 to become a member you just simply promote the company you get $80 for each referral that actually pays their $40 to become a member. – Source manta.com

The problem with this is that the $80 is an advanced commission payment on the full year of membership the person is responsible for paying. Advance commissions are paid on Visa, MasterCard and Discover credit cards, as well as, electronic fund transfers from your established personal checking account. If this person cancels their membership before the year is up you will receive a chargeback for the commission you did not earn.

What are chargebacks?

When a member cancels their membership and an advance commission was paid on the original sale, a commission chargeback may apply.

  • The amount of the chargeback is the advance commission minus the earned commission on that membership. If the resulting amount is greater than zero then a chargeback is triggered.
  • The chargeback is deducted from commissions for the sales week, but the total deduction cannot exceed 50% of that week’s commissions.
  • Full membership refunds are classified as a “no sale” and the entire commission is deducted from that week’s commission payment.

You do NOT receive advanced commissions on all other forms of payment such as but not limited to, prepaid credit cards, gift cards, one-time pay cards, on-line banking accounts, offshore accounts etc. These commissions are paid once your debit balance is zero, you are an ACTIVE ASSOCIATE with an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, worth $19.95 per month or more and you qualify with 36 PGV the previous month, or you have qualified for vesting as National Training Director.

To top it all off they throw in recruiting scam. When your Associates begin recruiting new Associates, you begin receiving downline overrides, as earned, at the Executive Director level on your 1st, 2nd, and 3rd levels. 1st through 4th levels as a Sr Director and 1st through 5th levels as a National Director.

If you are wondering where the money is at in the MCA business opportunity, Associate Services Manager Lynn Havener makes it clear that “all” the money is in the overrides from your recruited team.

Cost 

It is free to become a representative, but you may have to purchase a licence in your state.

If you wish to qualify for all commissions and overrides, $239.40 per year.

A Data Processing Fee will be deducted from weekly commission checks, according to the following chart:

WEEKLY COMMISSIONS FEE
Up to $100 ……………………………… $ 3.00
$101 to $200 ……………………………… $ 6.00
$201 to $300 ……………………………… $ 9.00
$301 to $400 ……………………………… $12.00
$401 and above ……………………….. $15.00

Products

MCA Security Plan
$9.95 / Month

Total Security Plan
$19.95 / Month

Compensation Plan

The amount of advanced commissions you earn for each sale with on-going payment increases the more sales you make each week. For example, when you sell Total Security memberships, you could earn: from $80.00 to $90.00 per sale.

When your Associates begin recruiting new Associates, you begin receiving downline overrides, as earned, at the Executive Director level on your 1st, 2nd, and 3rd levels. 1st through 4th levels as a Sr Director and 1st through 5th levels as a National Director.

2nd – 5th generation override commissions are always as-earned, regardless of how the selling Associate is paid.

Earned Commission: Associate’s earned commission pays back their debit balances based on collected funds. Anything that is sold “as-earned” and never advanced, is paid “as-earned” for twelve (12) months as long as you are an ACTIVE ASSOCIATE. Once your debit balance is zero, all earned commissions are paid to you, as long as you are an ACTIVE ASSOCIATE with an ACTIVE PERSONAL MEMBERSHIP, with an on-going payment method, worth $19.95 per month or more and you qualify with 36 PGV the previous month, or you have qualified for vesting as National Training Director.

To qualify for the health bonus you must have an ACTIVE MEMBERSHIP with an on-going method of payment worth $19.95 or greater.

Click Here for an overview of the compensation plan.

Income Disclosure

They offer no income disclosure.

Refund Policy

I authorize my bank or credit card to debit my specified account for the amount of my payment. This is a recurring payment which will occur on the next business day or as soon as practical thereafter and will renew on a monthly basis, unless I cancel this authorization by contacting the company at 8002882889 at least 15 days prior to the next scheduled payment date.

If my payment cannot be completed for any reason, including insufficient funds or error in the information which I submitted, I will retain the same liability, which is my sole responsibility, for payment as though I had not attempted to make the payment. I also understand that additional fees and penalties may be collected to the extent of applicable law. – Source MCA Terms & Conditions

MCA Motor Club of America Scam Conclusion

In my opinion, MCA offers an expensive roadside assistance plan that would be difficult to sell. Their business opportunity turns into a recruiting scam by requiring you to purchase their plan and recruit others to advance in rank. The majority of money to be made in the MCA business opportunity is in the overrides from your recruited team. Income claims with stacks of money being counted are made by many MCA representatives without an income disclosure. This is against FTC guidelines for promoting a business opportunity. Without an income disclosure there is no way to know how much new representatives are actually making with MCA. I would avoid the MCA business opportunity.