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Home Page >> Defective Products News >> Online Billing
Online Billing2007-03-17Online Companies in Trouble for Billing Practices By Heidi Turner Dulles, VA: A number of online companies are in trouble for deceptive practices related to their cancellation policies. One such company is AOL (formerly America Online), an organization that has paid hefty fines and reached settlements in a number of states after customers complained about repeated problems with canceling their AOL services. Last summer one AOL customer, Vincent Ferrari, decided to cancel his AOL service. Because Ferrari had heard how difficult AOL could be, he recorded his conversation with an AOL representative. The AOL representative disputed Ferrari's claims that he did not use the account, repeatedly asked for explanations of what was wrong with the account, and asked to speak to Ferrari's father. After posting his call online AOL issued an apology. Although AOL issued a statement saying that they would change their customer service procedures, people still run into difficulty canceling their accounts. A CNBC reporter tried canceling his account in a follow-up to see if AOL had really changed its ways. During the initial call when the reporter said he wanted to cancel his account his call was disconnected. It then took him 45 minutes to cancel his account. Complaints against AOL for its cancellation policy include: • That customer service representatives make it difficult to cancel services • That AOL buries its cancellation instructions or phone numbers • That customers who phone AOL are put on hold for extended periods of time or have difficulty reaching customer service representatives • That AOL ignores cancellation requests from customers • That AOL continues billing customers for accounts that have been cancelled. One customer complaint at consumeraffairs.com noted that he cancelled his account in March, 2006 and realized in February, 2007 that he was still being billed for AOL services, despite having a confirmation number for his cancellation. After calling AOL, he was told that his money would not be refunded. Another customer says that she cancelled their free trial service and had a service charge appear on her credit card. She goes on to say that she tried for 50 minutes to speak with a customer service representative and that twice after being on hold for 20 minutes her call was automatically disconnected. The Better Business Bureau reports that in the past 36 months it has received 6,926 complaints about credit or billing disputes with AOL. Total complaints about AOL were 10,831. On December 7, 2006, AOL reached a settlement with the state of Florida regarding billing issues and membership charges. AOL agreed to provide restitution or adjust outstanding balances for customers who had filed complaints with the state either prior to or during its investigation, as well as to all eligible state residents who file a complaint with the company. An earlier settlement in New York, in 2005, saw AOL agree to pay $1.25 million in penalties and costs after the state found that the company mishandled subscriber cancellation requests. AOL also agreed to get rid of employee bonus incentives based on retention of subscribers, to record all cancellation requests, and to have a third party monitor verify cancellations. AOL was also required to pay refunds for up to four months of charges for NY consumers whose cancellation requests were ignored. However, as part of the settlement AOL did not have to admit any wrongdoing. Also in 2005, AOL settled a lawsuit with the state of Ohio which alleged improper billing and violation of a previous agreement with the state. AOL, along with co-defendant CompuServe, agreed to provide compensation to consumers who opted out of a class-action settlement that was filed in Oklahoma. Online Service Legal HelpIf you have had problems cancelling or been charged after you had cancelled an online service or subscription, please contact an [Online Service] lawyer who will evaluate your claim at no charge. |
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