Archive for Services
ATandT Offers $18 Million to Settle Early Termination Fee Complaints
Posted by: | CommentsAT&T has filed a class action settlement in a New Jersey U.S. District Court regarding customer complaints about the company’s flat-rate early termination fees (ETFs). Although the document is dated Sept. 15. 2009, those involved in the lawsuit were notified Jan. 26.
The carrier has offered $16 million in cash, plus $2 million in “non-cash benefits” as a settlement to those who submit a claim by June 14.
“The Settlement Class includes all current or former customers of AT&T Mobility or its predecessor in the U.S. who paid or were charged a flat-rate ETF at some time during the period January 1, 1998 through November 4, 2009; and/or who have or had a contract for service with AT&T Mobility that included a flat-rate ETF…” a document posted to a site not run by AT&T states
The move follows government criticism of Verizon Wireless’ ETF, which the carrier announced on Nov. 5 would double, to $350, for certain subscribers who cancel their contracts early.
“Changing your wireless provider shouldn’t break the bank,” said Minnesota Senator Amy Klobuchar in a Dec. 3 statement. “Forcing consumers to pay outrageous fees bearing little to no relation to the cost of their handset devices is anti-consumer and anti-competitive.”
That day, Klobuchar, with three other senators, introduced a new piece of legislation, the Cell Phone Early Termination Fee, Transparency and Fairness Act, which would prevent carriers from charging ETFs higher than the discount that the carriers offer to consumers for entering into multiyear contracts.
The FCC legislation would additionally prorate ETFs, enabling customers who remained in their contracts longer to pay less. In this vein, the AT&T settlement offers repayment reflective of the amount of time left on a contract when an ETF was applied.
“The Court has not decided whether the claims in the lawsuit have any merit. However, if you are a member of the Settlement Class, you have a choice to make now,” states the settlement document.
Google phone brings in more complaints than sales
Posted by: | CommentsThe gadget that was hailed before it debuted as Google’s long-awaited answer to Apple’s uber-popular iPhone has seen disappointing sales. Google sold just 20,000 Nexus Ones worldwide in the first week after it launched.
In addition, the new smart phone is drawing numerous complaints from users _ and so is Google, for not doing a better job of providing them with customer support.
Google’s not commenting on initial sales of the Nexus One, which costs $179 if you sign up for a two-year contract with T-Mobile or $529 without a contract. But company officials, including Andy Rubin, who heads up Google’s smart phone efforts as its vice president of engineering, have acknowledged that the company needs to improve its customer service.
“We want people to have a positive experience,” said Carolyn Penner, a company spokeswoman. “We will continue to address any of the issues as quickly as possible.” The biggest complaint among users is access to the 3G high-speed data network offered by T-Mobile, Google’s only domestic carrier partner so far for the Nexus One. Customers started posting complaints about spotty 3G coverage on Google’s support forum Jan. 6, the day after the Nexus One went on sale. Several said they were unable to get 3G service in areas where either T-Mobile’s maps indicated they should or where they could get such service with previous phones.
“I’m at the point where I’m about to send this thing back,” read one post on the forum. “It ruins the whole experience if I can’t ever stay on 3G for more than a few seconds.” Penner said the 3G connection problem was affecting a “small” number of Nexus One users, but she declined to say how many or what proportion of them. Google doesn’t have a solution for the problem yet, she said.
But other complaints focused on the lack of service Google was providing for it. Google is attempting to pioneer a new way of selling smart phones; unlike the iPhone or other devices, which can be purchased in stores and directly from wireless service providers, the Nexus One is only available through Google’s Web site.
Business Bureaus top 10 Complaints 2009
Posted by: | CommentsThe Better Business Bureau has released a list of the top ten scams to be aware of. This year, the list focuses in on dubious practices of online commerce, such as asking consumers to read the fine print before you click “yes.” Complaints in 2009 run the gamut from teeth whiteners to premium text messages to government grants, but all tie back to consumers unwittingly consenting to sign up for the service or product.
1. Health Claim Scams
Bogus products that make “breakthrough” health claims on the Internet or promise cures for illnesses, such as cancer, target the most vulnerable consumers. Be wary of on-line swine flu remedies not authorized by Health Canada that are making unsubstantiated health claims that they kill or ward off the virus. Consult your health care practitioner before trying any new treatment. Don’t be influenced by “miraculous” testimonials discussed on websites and blogs. Think twice before buying a product that claims it can “do it all.”
QUICK TIP: If you have questions or complaints about counterfeit drugs and/or drugs purchased over the Internet, please call Health Canada’s toll-free line at 1 800 267 9675. If you suspect that a website is promoting a treatment or cure that is too good to be true.
2. Not So “Free” Trials
You may want to try out a new diet product, an acne cream or teeth whitener, but be careful about signing up for ‘free’ trial offers. Many websites offering a free trial for products do not disclose the billing terms and conditions or do not have such details prominently displayed on their website. Before providing any credit or debit card information, review the website fully to avoid in repeated billing. Remember that money transfers and direct debit are two of the main methods by which scam artists seek to obtain your money.
QUICK TIP: When considering trial offers, be sure to first determine whether you are enrolling in a membership, subscription or service contract that allows the company.
3. ID Theft
Often people find out that they are victims of identity theft after they are contacted by a collections’ agency for an account they never set up or because their credit has taken a hit. ID theft is when someone uses your information to obtain loans, goods, or services and does not pay the bills. Increasingly, people are being lured online into revealing personal information.
QUICK TIP: Do not fall for requests for information, or other scare tactics. Online scammers send emails that look legitimate, requesting that your “account information needs to be updated.” Another new tactic called “scareware” has a pop-up message showing that your computer is infected with a virus and that you need to visit a website to purchase and download anti-virus software that would fix the problem. These are all phishing tactics, ways to get you to reveal personal or financial information. If you receive these messages just delete them and do not click on any links. Doing so may compromise your computer’s security. If you are a victim of ID Theft call your financial institutions to request that your current cards be cancelled and that new cards be issued. You should also contact your local police and Canada’s main credit reporting agencies: TransUnion Canada at tuc.ca (1 866 525 0262) and Equifax Canada at equifax.ca (1 866 779 6440).
4. Home Repair Rip-Offs
Imagine hearing that your furnace is leaking dangerous carbon monoxide into your home. Many times homeowners are told that they need to do an immediate replacement due to a crack in their heat exchanger or because the contractor has a gas-sniffer device which shows high carbon monoxide levels. This high pressure safety situation often ends up in unnecessary and costly repairs.
QUICK TIP: Do not make a decision to repair right away. Start with the Better Business Bureau and search for a company reliability report at bbb.org. Ask the person to provide a gas permit and a license with the BC Safety Authority and call to verify it at: 1 866 566 7233.
6. Free Government Money Schemes
Do you think you are entitled to free money from the Canadian government? Be suspicious of companies offering “free” advice on obtaining government grants. Often social networking sites and online ads will point to blogs that appear to be written by everyday people who are sharing the secret of how they received thousands of dollars in grants from the government to pay off their debt. In reality, this is a mass marketing scheme that does not provide an easy way for you to get a government grant. Rather, it costs you money to participate.
7. Business Opportunities
Your friend or a family member may have invited you to attend a presentation involving an investment opportunity. You don’t know anything about the company, and are desperate to hear that it is legit. These investments appear lucrative, but often involve more hype than substance. The promoter convinces investors that they can be part owners of an exciting investment portfolio, provided that they enlist new recruits. The promoter may even offer promising commissions in cash and bullion.
QUICK TIP: In reality, this could be an illegal pyramid scheme. The new capital brought on by new investors is keeping this imaginary investment afloat. Get the facts. If you attend an information session, be sure to collect business cards and promotional materials
8. Cashback Fraud
Cashback fraud usually begins when you advertise something for sale, such as a car. A buyer agrees to pay your asking price, but sends you a cheque or banker’s draft for a larger sum. The person asks you to bank his cheque and send him a money transfer for the difference. Sure enough, his or her cheque bounces a few days after your money transfer has left your account. You’re now out of pocket and looking for a bogus buyer who’s out-of-reach.
QUICK TIP: Criminal cashback works because cheques take longer to clear than electronic bank transfers. Do not ever wire money to a stranger. Do not allow greed to be your guide – be careful of offers higher than the asking price.
9. Hidden Cell Phone Charges
If you own a cell phone and see new and unexplained charges on your bill each month, it may be due to premium text message services. People complain that they did not realize they were signing up for this service when they agreed to play an online game or to take an IQ test. In the end they receive monthly billings which do not come from their cell phone service providers, but through other third-party companies.
10. Mystery Jobs Scams
The scenario sounds too good to be true, and it is. You have been led to believe that you will be paid to mystery shop via a wire-transfer service. You receive a cheque, which you are told to deposit, keeping a small percentage of the money as your wage. You are then asked to send the back difference via a wire transfer and to complete a survey on the service you encounter. In the end, the cheque bounces and you lose all your money.
QUICK TIP: Be skeptical of mystery shopper ads in newspapers or online. In most cases these are bogus services requiring you to pay money upfront. Avoid companies that promise guaranteed jobs, and that sell directories of companies that provide mystery shoppers
Consumer complaints ring loudly in 2009
Posted by: | CommentsFrom passengers protesting maltreatment by foreign airlines to telephone users who criticise excessive call charges, consumers’ complaints rose by over 90% between 2008 and 2009, the Consumer Protection Council has said.
As of mid December 2009, the Council said it had received 2,300 complaints from consumers who felt their rights were abused by service operators in different sectors – a wide leap from the less than 1,200 it received in 2008.
Yet, the total amount of such reports of violations for the whole year becomes insignificant when compared with the “millions of abused Nigerians” which the council acknowledges exist; “many of whom are in the grassroots.”
The Director General, Ify Umenyi, said the council opened new offices in all the zones during the year and that this helped improve consumers’ closeness with the council. It also plans several response centres in all the 774 local governments.
“Can one make complaints on every of such case in a place where you are almost sure nothing will come out from?” But the council believes the almost double record of complaints in 2009 reflected the impact of the new regional offices built in Bauchi, Awka, Katsina, Port Harcourt and Oshogbo and hopes the installed lines will improve on thatfor 2010.
“Besides physical presence, aggrieved customers can exploit the services of our new call contact center by dialing the vanity number -0700-call-cpc,” Ms. Umenyi said.
Many of the 2300 complaints during the year dwelt on adulterated consumer products, disparity between advertised and selling prices, alleged maltreatment by airline companies, excessive phone charges and calls dropping.
“About 85% of the complaints were resolved during thirty mediation meetings,” Ms. Umenyi said.
Complaints against DirecTV soar after A.G. charges “deceptive” practices
Posted by: | CommentsThe state attorney general’s office received more than 50 overnight complaints against DirectTV after Rob McKenna filed a lawsuit against the company for “deceptive and unfair practices.”
That follows hundreds of complaints filed against the satellite television business, which McKenna said Tuesday was a huge number for a company operating in the state.
“These guys are off the charts,” McKenna said in a meeting with reporters. “We’ve had more complaints about them than any other (company) in America this year. So they really do stand out.”
The California-based company is accused of attracting customers with ads for low prices that hide fees and rate changes. The attorney general’s office filed a lawsuit Monday in King County Superior Court alleging that DirecTV had repeatedly violated the state’s Consumer Protection Act.
California-based DirecTV is accused of wooing new viewers with ads for low prices while hiding a multitude of fees, planned rate changes and terms that call for automatic renewals. Following a year-long investigation by its Consumer Protection Division, the Attorney General’s Office filed documents today in King County Superior Court that allege the company has repeatedly violated the state’s Consumer Protection Act. McKenna wants the company to put its terms in writing.
The state attorney general’s office received more than 50 overnight complaints against DirectTV after Rob McKenna filed a lawsuit against the company for “deceptive and unfair practices.”
That follows hundreds of complaints filed against the satellite television business, which McKenna said Tuesday was a huge number for a company operating in the state.
“These guys are off the charts,” McKenna said in a meeting with reporters. “We’ve had more complaints about them than any other (company) in America this year. So they really do stand out.”
The California-based company is accused of attracting customers with ads for low prices that hide fees and rate changes. The attorney general’s office filed a lawsuit Monday in King County Superior Court alleging that DirecTV had repeatedly violated the state’s Consumer Protection Act.
California-based DirecTV is accused of wooing new viewers with ads for low prices while hiding a multitude of fees, planned rate changes and terms that call for automatic renewals. Following a year-long investigation by its Consumer Protection Division, the Attorney General’s Office filed documents today in King County Superior Court that allege the company has repeatedly violated the state’s Consumer Protection Act. McKenna wants the company to put its terms in writing.
“They’re telling people they can sign up for a low introductory rate of $29.99 a month for 12 months, but literally in the fine print at the bottom of the ad there’s this rebate process you have to go through in order to obtain the introductory offer,” McKenna said. “Here’s the trick. Once they install they equipment you’re on the hook for the minimum period of the contract of two years. If you decide it’s not satisfactory…(there’s) up to $480 cancellation fee…We’ve been telling DirectTV they need to clean up their act for a long time and they’ve refused to make the changes that we require.”
DirecTV, in a statement, refutes those charges.
“We always strive to provide 100 percent customer satisfaction,” the statement said. The company also said that the number of complaints in Washington state represent less than 1 percent of their customers here.
Study: Toyota receives most complaints about sudden acceleration, followed by Ford
Posted by: | CommentsToyota was the target of 41% of all consumer complaints about the problem in 2008 cars, according to a Consumer Reports analysis. Ford received 28% of complaints.
Toyota registered far more complaints about sudden acceleration in its 2008 model-year vehicles than any other automaker, a new study has found.
Toyota and Lexus vehicles received 41% of all consumer complaints to a federal database about runaway acceleration, more than Chrysler, General Motors, Honda and Nissan combined, analysis by Consumer Reports found. Other than Toyota, the only automaker with double-digit rates of complaints was Ford, which was the subject of 28% of complaints.
Chrysler’s 2008 model-year vehicles received 9% of complaints and GM’s 5%; Honda had 4% of complaints and Nissan 2%, the study showed.
Toyota’s share of the U.S. market in 2007 and 2008, when 2008 model-year cars were sold, was roughly 16%.
Toyota could not immediately be reached for comment.
Toyota has been the subject of increasing scrutiny over sudden acceleration in the wake of an August accident in an an out-of-control Lexus ES outside of San Diego that took four lives, including that of an off-duty California Highway Patrolman.
That prompted Toyota to announce its largest-ever recall, of 4.26 million vehicles in the U.S. and Canada. Starting in January, the automaker will modify or replace accelerator pedals in seven Toyota and Lexus models, alter carpeting in some models and install new safety software. The recall includes vehicles from the 2005 through 2010 model years.
Toyota has repeatedly blamed interaction between the gas pedal and floor mats that could cause the pedal to become entrapped in a full-throttle position. But investigations into a number of accidents, including the San Diego county crash, have not conclusively found that the floor mat was responsible.
A Times review found that 19 people had died in sudden-acceleration accidents involving Toyota vehicles since the 2002 model year, more than all other automakers combined. In addition, The Times found that complaints of sudden acceleration increased dramatically after the automaker began replacing mechanical throttles with electronic throttle systems in the 2002 model year.
On Friday, the San Diego sheriff released a report on its three-month investigation into the Aug. 28 wreck, finding that “additional factors causing a sudden acceleration event (re: electrical, mechanical or computer generated) should not be ruled out.”
Consumer Reports limited its research to acceleration incidents that “could be a real dangerous safety issue,” excluding low-speed events or ones where the vehicle movement was arrested before the problem became more serious, according to Bartlett.
In addition, Consumer Reports excluded incidents that were reported after the San Diego crash to eliminate any spikes in complaints that could have been caused by publicity.
The remaining data, Bartlett said, indicated that Toyota was not the only automaker to receive unintended-acceleration complaints, since Ford also registered a higher number. The Ford complaints, however, were mostly limited to one model, the F-150 pickup, while Toyota complaints fell across a wide spectrum of vehicles, including ones not in the current recall.
Complaints to ombudsman increase
Posted by: | CommentsComplaints about banks, insurance companies and other financial institutions have reached record levels, with a one-third increase in complaints to the Financial Services Ombudsman.
Some 7,150 complaints were made to the ombudsman, Joe Meade, in the year to November, compared to 5,350 in the preceding year.
Over €1.4 million was repaid by financial institutions to consumers as a result of the latest decisions issued by Mr Meade. Once again, instances of mistreatment and bad advice given to elderly customers feature highly in the 30 case studies published this morning.
In one case, the ombudsman ordered the maximum €250,000 compensation be paid to a retired farmer by a bank which was found to have dealt with his investment in a “cavalier” manner.
The farmer invested €2 million from the proceeds of a land sale in two bond which he understood to be capital guaranteed. Although the bonds proceeded to drop in value to €1.6 million, he was told he had nothing to worry about because the fund was guaranteed.
Eventually, the bank admitted it had given wrong advice and the bonds were cashed in at a loss of €540,000.
Mr Meade ruled that the bank confused and even misled its customer. In making the award, he ordered the bank to make a formal written apology for “belittling” remarks made by a senior official who told the farmer he shouldn’t be complaining “having done so well out of the sale of your land”.Investigating her case, the ombudsman found a series of errors in the “fact-find” drawn up by bank officials when the bond was purchased. She was identified as a widow and non-smoker, when she was separated and a smoker and her home and contents were valued at €1.1 million when they were worth only €150,000.
Mr Meade concluded that the procedure followed by the bank was hurried and haphazard and said it did not take account of her age and the concerns that would normally apply to a person working part-time and about to retire with no pension.
Since his office was set up in 2005, Mr Meade has handled 25,000 complaints and at least €60 million has been made good to consumers as a result of his investigations.
Complaints about collection calls on the rise
Posted by: | CommentsMark Poeppelmeier of Dayton gets two to three phone calls each day from collection agencies — not because he and his wife owe anyone money, but because for 17 years they have listed their number under his wife’s name of “D. Smith.”
One agency in particular, Allied Interstate Inc., has called their home at least 500 times in the last three years, he said. “They’re looking for David or Dick or Demetrius or Daneisha — they have never once called here with the correct name. You can scream at them that they’ve got the wrong number, and they call you right back the next day.”
Poeppelmeier says he doubts he’s alone, and he’s right. As unemployment and debt have risen, complaints to the Ohio Attorney General’s office about debt collection agencies have doubled since 2006, with more than 2,000 recorded in the first eight months of this year alone. A total of 386 complaints have been filed this year against Allied Interstate of Columbus, the office said.
“A line must be drawn to keep debt collection from crossing over into harassment,” Ohio Attorney General Robert Cordray said in a recent press release. “Overly aggressive tactics, such as making threats and repeated phone calls, are not allowed. Ohioans have enough financial worries without the added stress of harassing collection practices.”
Poeppelmeier said the calls from Allied Interstate finally stopped last week after he and his wife filed a complaint earlier this month with Cordray’s office. Allied’s headquarters in West Palm Beach, Fla., did not answer calls for comment Friday, Nov. 27.
Has Poeppelmeier’s phone harassment problems been solved? “I got another call this morning from a debt collection agency in Delaware,” he said Wednesday, Nov. 25. “They’re trying to collect on the financial estate of Dante Smith. I think my head is about to explode.”