T-Mobile Keeps Charging For Canceled Service, Refuses To Issue Full Refund
Taylor just noticed that T-Mobile has been billing him $19.99 for a data package he asked them to cancel seven months ago. Yes, Taylor should've caught the mistake sooner, but now that he's found it, he wants T-Mobile to refund the $140 in unauthorized charges. T-Mobile, citing policy, is only willing to credit him $60.
Taylor writes:
I've just gotten off the phone with T-Mobile—actually, they hung up on me, immediately after I told them I wanted to cancel my service and would be sending a report to The Consumerist. I had a Blackberry Pearl that broke on me, back in August. I replaced it with a non-data phone, and used t-mobile.com to cancel my Blackberry data add-on in August of 2008. Flash forward to earlier this afternoon, when I received notice that my bill was past due, and for an amount significantly higher than what I thought it should be. I opened up 'My Services" on the their website, and found that I've been charged $19.99 a month for the Blackberry add-on since August, with no interruption, despite my canceling the service and not even owning a Blackberry. T-mobile admitted their error and offered to credit back the last 60 days of Blackberry service, but refused to credit back the remaining five months they've charged me for services not rendered. As mentioned at the begining of this email, I was hung up on immediately after mentioning the consumerist.The call went like this:
Tmobile: "Sorry, that's all we can offer you, the last 60 days."
Taylor: "So, roughly $40?"
Tmobile: "It would be... let's see, it comes out to $39.98"
Taylor: "And you owe me, doing the math in my head, $140?"
Tmobile: "We can only credit back the last 60 days, I'm sorry."
Taylor: "That's unacceptable."
Tmobile: "Sorry, that's all we can do."
Taylor: "Okay, please cancel my service immediately"
Tmobile: "Are you sure?"
Taylor: "Yes, please cancel my service."
Tmobile: "You're out of contract, there's no termination fee. You can get a new phone if you extend—"
Taylor: "Please cancel my service."
Tmobile: "We can credit you that $40."
Taylor: "When you owe me $140? That's unacceptable, please cancel my service, and I will be writing The Consumerist about this."
*click*I'm on my way to the nearest Verizon store.
Verizon's policies aren't any more consumer-friendly than T-Mobile's—telecoms are all largely the same—but the incident should serve as a reminder to keep a close eye on your bills, and to immediately dispute problems as they arise.
(Photo:Crawfishpie)
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Comments:
While it is puzzling why they continued to charge you once you canceled the data plan (Do you have a record of that e.g. a printout of the confirmation page?), it is up to you to look at your bill each month and make sure everything is OK. Two months credit is pretty standard across a variety of companies for billing issues like this.
I had a similar experience with T-mobile maybe 4 years ago. It's a little complicated, but basically I suspended one phone on a family plan for 3 months when I was out of the country, and was told by the rep who helped me suspend the line that she would notate that it be automatically switched back to the family plan when it was automatically unsuspended 3 months later. After I got back into the country I used the phone as I normally would and was assessed about $120 of overages because I had instead been put on an individual plan with almost no minutes and (if I remember correctly) 0.40 a minute for overages.
I called and spoke to a rep that said that yes, it was possible to be automatically switched back, but that the other rep hadn't notated it so it hadn't been done. He offered me a $60 credit, and said he didn't have authorization to offer me more than that. I politely asked to speak to a supervisor.
The supervisor immediately took an accusatory tone with me, and told me that I must be lying because it was impossible for a rep to automatically switch a plan back like I had been promised. He didn't care that 2 different reps contradicted him. He offered me 60% off the $120 overages. I told him that I wanted 100% off, since it was their mistake. He said "I'm only offering you 60%, take it or leave it" and I said yes, I'll take it. Plus I want the other 40%. He hung up on me.
He did credit me the 60%, but it goes without saying that I switched to ATT 3 months later the day that my contract expired, and have been happy (and treated well) ever since.
Not a fair comparison.
T-Mobile didn't take any money from him, rather, he voluntarily surrendered this money to T-Mobile. He should have been paying closer attention.
@lotussix:
None of us know how complex his account is with T-Mobile. For all we know, he's got multiple lines and services with them, in which case it's easy to miss the $20.
Then again, if he really was on a single line, with no extra services, then yeah; tough luck. I'm amazed they even offered the $40.
I'm also not sure what the bill being past due has to do with noticing the service was still there. Surely you pay what the bill tells you to pay, not what you think you should be paying?
I think their offer is completely fair. Yeah, it sucks that he was too lazy to actually check his bill to ensure it was correct, but he essentially accepted the charges as accurate when the paid the bill without dispute. When you get a bill and you pay it without any sort of dispute, you are acknowledging that the bill is accurate. The fact you chose not to read the bill because you were "too busy" is irrelevant. Obviously there was a mistake somewhere, but T-Mobile can't really correct a mistake unless they are made aware of it. In my opinion, they would have been just fine saying "Ok, we'll ensure you aren't charged for it again" and offered no credit at all. This is why it's important to actually read your bills.
From the T-Mobile terms and conditions, after less than 5 minutes of searching:
"If you have a dispute regarding your bill or charges to your account, you agree to notify us of the dispute within 60 days (20 days for Puerto Rico customers) after the date you first receive the disputed bill or charge ("Dispute Period"), unless otherwise provided by law. If you do not notify us of your dispute in writing within this time period, you may not pursue a claim in arbitration or in court."
This is really a case of, learn to read your terms and conditions before you agree to a plan, and read your bill every month. If you refuse to do either, you can complain all you want, but it's your own fault.
AT&T did this to my mum when she was on auto-pay. They also tried to bump her from a plan she was contractually obligated to for two more years because they wanted to discontinue it.
She fought them, and had to give up any phone upgrades and any chance at having a loyal customer bonus if she resubscribed, but she got to keep her plan (it was unlimited voice for $75 back when unlimited wasn't very common).
@P_40E: I know it's not you writing the terms, but why do customers in Puerto Rico only get 20 days? Just wondering.
@Wombatish: She had canceled their roadside service (since it stranded her twice) and they continued to bill her for it for ~4 months after it was confirmed that it was canceled.
It was only 10 dollars a month, and with the combination of auto-pay and the fact that she didn't have a text messaging plan back then (this was 5+ years ago) her bill actually did differ a little from month to month, so she didn't notice the auto pay was a little more.
They credited the whole four months, though, once she pointed it out.
@P_40E: Another thing, I have a problem with this sentence: "T-mobile admitted their error and offered to credit back the last 60 days of Blackberry service, but refused to credit back the remaining five months they've charged me for services not rendered."
It's not that the services weren't rendered, as you had full access to the data plan every month, you just didn't use it. Granted, you had tried to cancel it, so it's not entirely your fault, but continuing on with the "read your T&C/bill" bit, the credit you were offered was fair. Try not to wait too long before accepting the offer, or it'll go down another $20.
That said, I'm glad the limit for billing disputes is 90 days where I work, but it's still the most strictly enforced rule we have.
@nybiker: I have no idea, as I don't work for T-Mobile, and I'm not even an American. I was curious about it also, but I didn't feel like reading through Puerto Rico law to find out.
Whenever I read exceptions like this (in Canada, it's always Quebec), I always like to think the answer is "because you live in Puerto Rico, loser."
@Adhominem: Sure, or something like that because they'll just cancel your account after a month or two of non-payment.
@Adhominem:
I'm pretty sure Verizon would notice within 60 days. And then they'd send you a little reminder, by disconnecting your phone when you don't pay up.
@Justin Larson: Again, it's not the same. T-Mobile didn't steal money from him, they simply continued to provide him a service. It's his fault for not noticing for 7 months that he was still being charged.
I guess a lot of you don't have jobs and can sit around and look at bills all day. Most of my bills are automated and bill directly to a credit card. I often don't have time to verify that they billed the correct amount. When your working with several thousands of dollars of monthly bills $20 is more difficult to spot. When your scraping by to pay manually I bet you notice the $20 quicker. Keep in mind some people are working professionals and travel for a living and don't have time to examine every single bill every single time.
While the poster won't be able to port his number I think its a good thing he canceled his service like this. If more people did this companies would not pull this kind of crap. Just like a cat or dog you have to stick the companies nose in it right away so that it ends up written up in the notes. "Customer was billed for $140 worth of charges. Could only refund $40. Customer canceled his service on the spot" If he had called in later to cancel or port to another service A+B=C might not have been as apparent to Tmobile.
Idiots that "play the game" and think stuff like this is acceptable and are willing to get screwed by companies are just part of the problem. Congratulations to the poster for not putting up with BS and for not playing the game.
I currently have a Tmobile Blackberry and its coming around to renewal. Knowing that I would be presented with a similar situation makes me think it is about time to look around a bit.
I've got a few issues with this. As per the terms of service, which he agreed to when he signed up with them, he has 60 days to notice the error. It took him 7 months so he's only entitled to the past 2 months, or $40.
Secondly, I think he's being relatively childish about this. Yeah, I said it. He asked one CSR and because he didn't get the answer he wanted he's done, taking his ball and going home. Why not try to talk to a supervisor, play the card of how long you've been a customer and how much money you've given them and ask them to help you out here, ask to speak to a supervisor or try the EECB. You're still going to have to pay T-Mobile the other money, if you stay with them or not.
Think Verizon is going to treat you any differently, think again.
@ChemNerd: If more people took their ball and went home less companies would commit fraud like this. Their billing system failed to make the correct changes. The customer did not even have a phone capable of utilizing the service that they were trying to provide. One has to wonder if this was a random glitch or a way to generate revenue since they have wording in the contract about it.
With arbitration and the ticky tack wording of the contract that's the only thing consumers can do is take their ball and go play somewhere else. Its really a shame that companies can legally get away with systematic intentional fraud of this level. Only when the model starts to fail does it get looked at. Credit card companies right now have Washington up their backside because of fraud like this. Just because its written up in a contract and systematic does not make it legal.
***TYPO, Carey. I think you meant to write that they were only willing to refund him $40, not $60***
I think his point was that he was being billed for a blackberry data plan, when he no longer had the blackberry phone. In his words, he had a non-data phone--which I believe he thought would render the data plan useless and T-Mobile would remove from his account anyway. (Ahh, silly companies and their money making schemes)
I wholeheartedly agree with everyone else, that he should of kept a closer eye on his bill. I think the compensation offered is decent, although there are some CSR's that would of gone the mile to keep him as a customer and given him more. But to expect the full refund? Nada, it wouldn't happen.
I'm just wondering why he cancelled his account with T-mobile if he was otherwise satisfied with their services. Companies mess up, always keep an eye out on your bills. I hope he has better luck with Verizon.
Well i'm siding with T-Mobile. They are not responsible for web site errors and I would always confirm by calling a representative or the very least checking your next bill. In fact I check all bills, and if the amount seems off I go in deeper.
They obviously never got his cancellation request. Either their system malfunctioned, or perhaps he only though the request went thru and he in fact never did get a confirmation page.
@ChemNerd:
I think you have some good ideas here. Since cell companies LOVE to have you under contract, maybe the OP could have negotiated something where he'd accept a new contract if they'd take the charges off. You start talking new contract and they turn into Pavlov's Dog.
This is a good example of why autopay is bad. People don't look at their bills and then crap like this happens. Normally I don't like to play blame the victim, but I don't know how you go 7 months without looking at your bill. It's irresponsible.
That said, I also don't like this crazy idea where companies can make you agree to any terms and conditions in order to be a customer. Since they all do it, there isn't much choice or options. How far will it go? "As a condition of service, you agree that if you are late paying your bill by more than 5 business days, we may kidnap you and sell you into slavery." I know there's someone out there who would say that such terms are completely reasonable.
@ChemNerd: If the bank makes an error of $10,000 in my favor and it is 61 days later before they realize it, do I get to keep the money? No. And the amount doesn't matter -- it could be $10 or, in this case, $140. The bank gets the money back.
T-Mobile should not profit because they made a mistake that wasn't realized by the other party. Consumers never get this benefit so why should corporations?
I am shocked that most are siding with T-Mobile, he canceled their service. The fact they kept taking his money for a service he stopped and did not use is stealing. It does not matter that the OP was sloppy in noticing it. It is not as if years went by. The OP should not have to go over every bill with a fine tooth comb just to make sure the (nearly forced) auto-pay is not stealing his money. T-Mobile is in the wrong, the OP was just a bit lax.
I am curious at all the comments that this is the OP's fault.
Tmobile commits fraud (billing for a service they were told to cancel)
Tmobile admits they messed up. Offers 60 days, a tiny portion of the illegally billed service.
This was not a billing mistake, this was fraud.
Tmobile illegally profits from the billing 'mistake', tmobile has no incentive to correctly bill users?
I am sure if the OP scoured the web, he could find many other people this happened to. This is systematic fraud and sounds like grounds for a class-action lawsuit.
BTW, with almost every company I deal with; changes to service, credits, refunds take well more that 60 days for the company to process, let alone bill.
/Well, curious is the wrong word I guess, wondering how the haters make it through life with their head-up is more apt.
/My insurance company took 12 months to respond to my request for an accurate accounting of my auto insurance billings for a 6 month period. Despite me calling in each month demanding they document what they were charging me verses the insurance coverage I actually had.
@statgrad: I completely agree, its not their money no matter how long the mistake went on. If the consumer was on the other end of the stick once a company realized the error they would want their money back.
I disagree.
If I had cancelled a service online, you better believe I would be checking the next month's bill to ensure that it was done.
I work in a call center, and I talk with customers every day. I do my best to make customers happy and will be glad to correct mistakes we've made.
However, I also have customers who call in about services after they've moved who have forgotten to call in and cancel - and who want me to waive their bill for the last month, two months, six months. Sorry, customers have responsibilities to LOOK at their bills.
Do you think if you call the utility company and tell them that because you didn't actually turn on your air conditioner or heater that you don't want to pay your electric or gas bil, that they will waive it?
@ChemNerd: No, it is the same. He discontinued the service, and since he didn't have a phone that could use it anyway, there was nothing for them to provide. They were taking his money and giving nothing in return.
@greggen: Why is it that someone that has a different opinion than you have is automatically a "hater?" I wouldn't want to go through life with that kind of intolerant view of people.
Cancelled Verizon in December. Went to Tracfone. Tried arguing with Verizon about the VZ Navigator that I had canceled a year earlier during the trial period. Got nowhere. Had to pay Verizon about $45 and eventually got a $11 check back. Tracfone is averaging $15 per month for 2 phones compared to Verizons $99. Tracfone sucks with portability but when it gets corrected worthwhile. Currently wifes $49 Samsung was replaced under the 1 year warranty but Tracfone screwed up its replacement and assigned another #. A sim card is on way. Lesson with Tracfone-activate replacement phones with a representative. Online activation or touchtone phone activation will always fail.
@statgrad: If your terms of service with the bank say so, yeah, yeah you do. It's that simple. That's the whole idea behind a CONTRACT.
Again, they're not profiting, they rendered service (internet) to him for those $20 a month and he just didn't use it and he didn't notice he was still being billed for it. Regardless, the terms of the contract WHICH HE SIGNED state he has 60 days to notice any billing issues, he failed to do so.
Last I checked, if you owed THEM $140, and offered to only pay the $40 from the last 60 days, they would be referring the $100 to collections and eventually sell it to some collection agency. Eventually they will tack on interest and collections fees and jack the amount up to over $500. Then they will sue you in court (or worse, via an arbitration company).
Check your contract and see if you signed away all your legal rights under Mandatory Binding Arbitration. If not, then sue them in small claims court (if the amount meets the court required minimum). It would cost them more than $100 just to show up or even respond.
@Ninjastorm66: Inability to use the service doesn't mean they didn't provide it. If your power goes out do you ask the cable company for a refund because you couldn't watch TV? (I know it's not the same, I'm only comparing usability versus providing) He could have thrown his SIM card into any other phone (or blackberry if you must) and used it.
AT&T (residential) did the same thing to me when I canceled my voicemail and they continued to bill me for it. I caught it way late and they only gave me two months refund. I kicked myself because I know that I should always assume a high degree of incompetency when dealing with billing departments and should have checked my bill.
However, I did feel somewhat cheated all the same. I paid for a service that they didn't provide. I don't blame Taylor for canceling his service and telling his story here. I think it would have been a good business practice for T Mobile to refund all the money they didn't genuinely earn from him and they are taking their chances when they don't that word-of-mouth about this incident wouldn't hurt them.
@greggen: Two reasons why I'm against him:
1) The 60 day limit is in the terms and conditions. One may think it's unfair, but it's what he agreed to. Nobody forced him to sign up for a cell phone plan.
2) There's no actual evidence he ever tried to remove the plan. The T-Mobile rep just took his word for it, and offered the maximum allowed credit, which I think is a fair deal.
CSRs are bound by the terms and conditions, too; the billing system can be set up so that's it's impossible to credit a charge after a certain time period.
This is more of a personal feeling, too, but reading the transcript up there, he just comes off as a jerk. As another commenter said, he's just taking his ball and going home; nobody wants to deal with a customer who's just going to throw a tantrum when they don't get what they want, instead of trying to resolve the problem. (One thing he could have tried would have been to ask for a goodwill credit, or monthly credit applied to his account for the inconvenience, and bring it up to a supervisor or retention CSR if needed. Which will never be given now, since they know he'll just cancel right away.)
@chris_d: Thank you. Dangling that contract in front of them is a golden ticket almost.
Part of the contract issue is what's standard and fair to both parties. Usually cell contracts are some of the more unbalanced, but they're also some of the less read ones it seems to. The arbitration clauses are the worst, but the sad part is that you're not going to get anything better elsewhere. It wouldn't surprise me to see something along those lines at some point in my life, I'd like to think it wouldn't happen at least.
@ChemNerd: actually, yes. When my dish goes out from bad weather, I almost always call them up, complain and they give me a few free movies or a credit.
@say what?!: And that's nice that they do it, it doesn't mean they have to (unless your contact states something about uptime or availability of service or something similar). That's the distinction here that people seem to miss.
Do I think T-Mobile should give him the money back, yes. Do they have to, no.
I'm really surprised at all of the people here who are blaming the OP without realizing why T-Mobile may be doing this.
T-Mobile is is a no-lose situation. Let's say, for the sake of argument that T-Mobile continues to bill people after they cancel some of their services.
If T-Mobile is caught by a customer within the first 60 days all that happens is that they are forced to pay back the money. They keep the interest they've earned on it however.
If the customer doesn't catch the billing error for a longer period of time then T-Mobile keeps any monies taken that are older than 60 days.
What incentive does T-Mobile have to stop the billing when the service is dropped since the most that would happen is they have to pay back the customer only for the 60 day period?
@Matt Peters: He doesn't have to go over every bill with a fine tooth comb, they clearly give him 60 days. Further, you should know that the bill would go down by $20 or so. Do you not check your bank statement every so often? How could you not notice that they continued to bill you at the same rate for 7 months? Did he just not check his bank account for 7 months either?
And again, it's not stealing. They continued to provide a service that he just didn't (or arguable couldn't use) that he previously had and tried to cancel online.















I smell EECB!
It should be illegal for companies to do this. If I stop paying my bills to Verizon for a year, do I only have to pay for 2 months worth?