Collection fraudsters....

Rick Lee · Rick Lee's Garage

In March I switched from Verizon to Cingular to save money and get a Razr phone real cheap. When I started my new job in August, I had to switch back to Verizon for my Blackberry and work cell phone, blah blah. My early termination fee was $192, which my boss paid for me. The switch was on Aug. 10th. Yesterday I got a letter from SimplyWireless, claiming I owe another $400 additional to the early termination fee for switching services before two years. I have never heard of such a thing, never saw any paperwork on it, never signed anything agreeing to such and can't believe they're just now contacting me for the first time, if I owed them this money as of Aug. 10th. Anyone ever hear of this? Below is what I wrote back to the guy, since he was kind enough to include his email address:

Dear Mr. X:

I received your collection letter yesterday and this is the first I have ever heard of a separate $400 early termination fee. I paid my Cingular early termination fee of $192 about three weeks ago and that is all I will be paying. I have never seen any paperwork about an additional $400 charge and I would never have signed anything like that, had it been a condition of my Cingular service. Does a total early termination fee of almost $600 sound reasonable to you or like something you would sign? I doubt it. Accordingly, I will never pay this amount and you can consider it a write off. I have already instructed my credit card company to not pay it and I will dispute the charge, should you be successful in charging my card. Since I work in the lending industry, I will have no problem getting removed whatever fraudulent collection you attempt to place on my credit report. If you really think I owe you this money, why then did you first contact me yesteday, when I changed service back in early August? Good luck. You won't get another dime from me.

Irately yours,
RL

Dave L · 10-18-2006, 07:35 AM

Any hardware you get when you sign up for a cellphone is subsidized. The actual cost of that Razor was probably close to $400 even though you probably paid $0. If you cancelled after only a few months they may charge that early cancel fee but they might also charge you for the phone. Check your contract, I bet there is something buried in there.

Rick Lee · Rick Lee's Garage

I think I paid around $50 for the phone and I thought the $192 early termination fee was it. I did ask about that when I signed up and my boss paid it for me when they told me to switch to Verizon. I doubt they're gonna pay another $400. I can't find my old contract. And I find it kinda strange that they're just now contacting me about it. I NEVER ever would have signed onto something like that. What's the worst they can do to me? Lower my credit score from 740 to 725? Darn. Just got another email from the guy saying they'd sue me. Is this for real?

Porsche-O-Phile · Porsche-O-Phile's Garage

Sounds like there's one more person in the world that needs a good swift kick to the ball-sack.

Dave L · 10-18-2006, 11:48 AM

I hope you arent reffering to me, I am just trying to explain where the charge may have come from. I dont say that I agree with it.

Rick Lee · Rick Lee's Garage

I hope he's not referring to me either!

nostatic · nostatic's Garage

Dave L is probably right....phone subsidy. Did you give the phone back?

artplumber · 10-18-2006, 02:20 PM

Quote:

Originally posted by nostatic
Dave L is probably right....phone subsidy. Did you give the phone back?

undoubtedly

Rick Lee · Rick Lee's Garage

No, yesterday was the first I had ever heard of this. I'd be happy to give the phone back, but that wasn't mentioned in the letter.

schamp · 10-18-2006, 03:46 PM

The cell phone companies are really messing with people these days. Two year contracts they will tell you are a must. But they aren't. I went to at least three different companies last month and got lied to by all three. Yes, the phones cost much more without a contract, a little less with only a year contract and almost free with two. Also, if you change the terms of anything, say more minutes or less, then the contract period starts all over. I went round and round with one over that. I have found it best to just pay for the phone (higher amount) and go with no contract. I would guess their collection agency will offer you a lessor amount in about six months. Say, 180.00 or so. If you do pay them make sure they either remove anything they have reported or report it paid as agreed, on time, etc. They train these little mental midgets and they really don't know any better. I had one tell me they had put lots of new towers in my county. Since that is kind of my area and I knew better I called him on it. His supervisor findly came over and agreed that there were no new towers. (County had stopped all towers for the past two years) One Company does there best to keep people from cancelling their phones by saying you have to do it on the day your billing cycles. Lots of people buy it. Come back a month later and are told " you missed it by a day. See you next month. They tried it with me in front of about 15 customers. I explained that if they wanted any more of my money it stopped that day. More and more of the people in the store started paying attention. As people started walking out the door they decided they could cancel the phone short of the cycle date. Its millions and millions of dollars. It may just be me but we older guys just get tired of being messed with. Hope it works out for you. Oh, lots of companies are checking their employees credit reports these days. You might want to let your boss know about this one. Then sit back and see what happens. Good luck. Spencer

Rick Lee · Rick Lee's Garage

My boss says I shouldn't pay it, but he won't pay it either. Ha! So far I've heard this can drop my credit score between 10-30 pts., which would still keep me over 700 and I don't plan on buying another house for a while anyway. I just cancelled the credit card I had used for this phone so they can't even charge it. My guess is, that if it ever gets to small claims court, they'll make us talk to a mediator first and I'll get offered a deal. I did find the old contract and in the fine print it says the $400 fee applies if service is interrupted for any reason before 180 days. I switched at 146 days. So I might agree to pay a pro-rated fee for the one month or so I was short. But that's it.

motion · 10-18-2006, 04:14 PM

Rick, just pay the $400. Its not worth the ding on your credit. Pay it and forget it.

artplumber · 10-18-2006, 04:44 PM

Quote:

Originally posted by Rick Lee
My guess is, that if it ever gets to small claims court, they'll make us talk to a mediator first and I'll get offered a deal. I did find the old contract and in the fine print it says the $400 fee applies if service is interrupted for any reason before 180 days. I switched at 146 days. So I might agree to pay a pro-rated fee for the one month or so I was short. But that's it.

I may be old fashioned, but a contract is a contract. How would you feel if you were on the other end? You may be able to talk them down, but they would be doing you a favor.

PS your boss should take care of the whole thing..

jhc · 10-18-2006, 04:46 PM

http://www.wikihow.com/Get-out-of-a-Cellular-Service-Contract
Good info for the next time.

Rick Lee · Rick Lee's Garage

Quote:

Originally posted by artplumber
I may be old fashioned, but a contract is a contract. How would you feel if you were on the other end? You may be able to talk them down, but they would be doing you a favor.

PS your boss should take care of the whole thing..

Yes, you're right. But I specifically asked the guy when I signed up with Cingular about the early termination fee. He said $175 and I foolishly believed him. Just like I don't read the faded fine print on the 10' long register receipt from the Verizon store, I didn't read it with Cingular when the guy answered the one question I had.

Once in a while when I pay a credit card a day or so late, they hit me with about $75 in late and finance charges. Every time I call and ask them to waive it, they do. Every single time. Here I get a bill for the first time yesterday that's due the day after tomorrow for more than twice what I was told was the early termination fee three weeks after I paid that early term. fee. Ain't gonna pay it.

Porsche · Porsche's Garage

Quote:

Originally posted by motion
Rick, just pay the $400. Its not worth the ding on your credit. Pay it and forget it.

I agree with this statement. Not for $400.

zander · 10-18-2006, 11:18 PM

me too.

island_dude · 10-19-2006, 08:42 AM

Hold up a second. I would make sure he really does owe the $400. It seems to me that if there is an early termination fee and he paid it that should be the end of it. They at least owe him an explaination of the charge, and point out the clause that says he owes it. There are way too many cases with these companies claiming amount owed that are not correct. Sending the collectors after him whe he had already forked over what he thought was the correct amount seems pretty sleezy. They could have submitted a bill explaining the charge. If the money is actually for the cost of the phone, perhaps he can see if they will accept the return. $400 is a lot of money to drop just to make them go away. I might agree with that approach for $40 or $50, but this is beyond the pale.

I really resent having to deal with collection agencies when simply submitting an invoice would get the money from me. The collectors are hands down impossible to deal with. They simply approach the situation as you are responsible for the charge regardless of the facts. I recommend going directly to the company and ignoring the collection agency. Once the company decides what they will accept (or not), they will get the collection folks off your back.

stomachmonkey · 10-19-2006, 11:45 AM

Collectors suck. My father passed away suddenly in mid august. He had a second on the house that none of us new about.

Payments are due on the 1st of the month.

3rd week of September the collectors start calling. By now we have found the paperwork and are aware of it but are dealing with a botched will limiting our access to the bank accounts etc...

We tell them dad has passed away and we are working on sorting out his affairs. They refuse to deal with us on the account because we are not him. I immediately fax them a copy of death certificate and power of attorney so that I can be authorized to deal with them.

Takes them a week to get the info into their system. Meantime they are calling every day refusing to talk to me but asking for their money.

I decide to send them the Sept/Oct payment out of my own pocket.

Oct 4th they send a letter threatening foreclosure on an account that is only 33 days past due. My payment gets posted Oct 6th so it's all ok now but what gets me is their complete lack of any human emotion.

Not one of the people that called ever once said, 'sorry for you loss', they could have followed it up with "but we still want our money" and i would have been fine.

Scott

artplumber · 10-19-2006, 11:58 AM

Quote:

Originally posted by Rick Lee
...I did find the old contract and in the fine print it says the $400 fee applies if service is interrupted for any reason before 180 days. I switched at 146 days. So I might agree to pay a pro-rated fee for the one month or so I was short. But that's it.

Island, Rick found the clause in the contract..