
Beware Of “Phone”-y Salesmen
By Paul Wein
In 1912, the Better Business Bureau was founded and from day one, has been dedicated to, “fostering fair and honest relationships between businesses and consumers, instilling consumer confidence – and contributing to an ethical business environment.” Supported by more than 300,000 local business members nationwide, the BBB tracks unscrupulous businesses, alerts consumers when a company defrauds a customer – and puts out a yearly list of the Top 10 Businesses Ranked by Consumer Complaints.
According to the 2003 list released by the BBB, the type of business that was second only to Automobile Dealers for generating the most complaints were Mobile and Cellular Telephone Companies – with 18,591 complaints processed that year. This does not surprise me since this column is about a cellular telephone dealer who should certainly be at the top of the BBB’s Most Wanted List.
On July 13th, I purchased a cellular telephone from Extreme Wireless on Sheepshead Bay Road in Brooklyn. According to a flyer that promised huge savings on Pre-paid phones, which is what I originally wanted, I went to the store seeking a cell phone – and instead got scammed, misled – and ripped off.
As I said, I originally wanted a pre-paid phone, both for the convenience of never getting a huge bill and for the fact that my credit is not exactly the best. After telling the salesmen in the store that all I wanted a pre-paid phone, he tried to offer me a plan anyway. “Just run your credit, what could it hurt?” he said. So I did, and was told that T-Mobile had approved me for a phone under their “T-Class” credit tier. When I asked what that meant, I was told only that I was approved for a cell phone with no credit deposit needed – and all I had to do was buy a phone and sign a one-year contract with T-Mobile. So, again, I did. I purchased a Nokia 3390 telephone for $125 along with a $75 activation fee – totaling $200.
I then asked him what happens if I go over my minutes. His answer was, “Pay your bill no matter what it is.” In other words, I signed up for a plan that would give me 600 “Whenever Minutes” for $39.99 a month, along with free roaming, long distance and nights and weekends – but should I exceed the aforementioned 600 minutes, I am simply to pay the bill when it is due, whatever it may be. Hearing that and seeing as how he handed me a phone that worked, I assumed everything was peachy and began to incorporate my new cell phone into my daily routine.
Here’s where the scamming begins.
On August 4th, I was at Bon Appetit and went outside to make a telephone call on my cell phone when I heard a recorded voice tell me that my phone service had been suspended, “due to non-payment” and that I was going to be connected to a T-Mobile representative for more information. When the representative got on, she told me that my account balance had reached $152.05 and that my service would not be turned back on until I brought the balance under $100. Flabbergasted and very angry, I asked the representative to explain what she was talking about, as I was under the impression that my bill, which was not even going to be sent to me until August 8th, was not even due yet. She told me that keeping the balance under $100 to avoid service interruptions was commonplace for all of T-Mobile’s “Smart Access” customers – something I apparently was.
According to T-Mobile, a “T-Class” Credit Tier makes you a “Smart Access” customer, which means that if you go over your minutes and reach a balance over $150 dollars for the first 12 months of your plan – T-Mobile will shut your service off until you bring the balance under $100. As I stated earlier, I asked the salesman what happens if my balance reaches a high amount when I had signed up for the service at Extreme Wireless, because I live on the telephone and knew that my minutes would probably be exceeded every month – and was told absolutely nothing about the Smart Access Plan or that I was a member of it. In fact, on my Service Agreement, which I have the pink copy of although the pink copy is, according to the Agreement, supposed to go to T-Mobile – the customer is supposed to initial next to the amount of “Total Monthly Access” they are allotted – and I did not because I was not told to. In addition, I was also supposed to initial next to the “Important Customer Information” that explains the $200 Early Cancellation Fee – and was again not told to do so. And worse than that, when I explained my situation to the representative on the phone – she told me that the phone I received, which I paid $125 for was not only three models old – but was given away free with any new T-Mobile account setup.
After owning this phone for only 23 days, you can understand why I cancelled my T-Mobile service on the spot. Infuriated and feeling scammed, I told the T-Mobile representative to shut the phone off immediately and never turn it on again. After calming down over that weekend and realizing that I do need a phone, I called T-Mobile back and turned it back on, but not before getting a thorough explanation of what my Service Agreement entails – and a promise that “Jake” from Extreme Wireless was going to be investigated by T-Mobile for unscrupulous business practices – something I also intend to take up with the BBB.
If I learned anything from this experience, it is that some shady businessmen take products and services offered by other, credible companies and use them to extort customers for their own selfish reasons. Through false advertising, phony promises and misinformation – slimy salesman can make money from unsuspecting customers without the companies they represent even knowing about it. I encourage all companies that farm out their products and services to conduct thorough background checks and random visits to their authorized dealers to ensure that they are being properly represented. I also encourage all American consumers to double check who they do business with – just in case they run into a company like Extreme Wireless, who chose to do to me and Lord knows how many other customers exactly what T-Mobile’s slogan states – “Get More.”