Customers Overbilled by Dreamhost

Late on Monday night, Web hosting provider Dreamhost experienced a billing error resulting in nearly all of its customers being unwittingly charge an extra year’s worth of service.

The billing took place when a Dreamhost employee inadvertently ran the company’s automatic billing system for outstanding charges as of December 31, 2008, instead of 2007, according to Dreamhost’s blog.

Dreamhost has received hundreds of emails and blog comments from disconcerted customers, as well as customers facing overdraft charges after the overcharged fees were made on their already overdrawn bank accounts.

Stating it is currently working to resolve the problem, Dreamhost has copiously apologized to customers for the billing error, both in emails and blog updates. Dreamhost says customers are not required to contact their credit card company or bank in relation to the billing error. However, for those customers who are facing overdraft charges it is advised.