$2400 early termination fees from Qwest!!!!

May 14, 2008 8:46 AM

How should I contest the big bad phone company? More inside.

I recently terminated service at my business with Qwest and was surprised to receive a $2400 ETF fee. I feel I've been slimed.

Original Qwest Centrex 21 contract signed 4/11/05 to conclude 5/31/08
Early termination prorated fees determined by months remaining in contract
8 lines =$395 monthly

Qwest choice business prime contract approved by bookkeeper on telephone 5/26/07 without approval from management
Early termination fees $300 per line
8 lines = $449 monthly less $65 credit for business prime contract

I had previously called to ask about any contracts or ETF’s and was told there were no contracts by a dsl customer service agent. Apparently she only checked for contracts on our dsl account and neglected to check our phone account.

When I called back to inquire about the fees I was told that our Centrex plan was being discontinued and they needed to change all customers over to the new plan at that time. I found on the Qwest website that previous Centrex customers would be grandfathered in until their previous contracts ended.

After checking my previous contract I saw that the original Centrex contract ended this month but the prorated ETF would be relatively low if I made the change based on the previous contract. On the next call to customer service I mentioned the grandfather clause and got no real response. It was typical dodging the issue from the agent. He said the contract was ending in 2007 anyway and that if we did not sign a new contract our monthly non contract charges would increase greatly. He did not realize the original contract did not end until this month and his argument was moot.

I asked for a copy of the new contract which we did not have on file. He said they did not have it on file either. They had this info in their computer. I asked for a tape of our bookkeepers call to determine what due diligence was done on their end to make sure they were talking with a decision maker. He said they do not record those calls. I asked how they had a contract with us without any paperwork and he said that by paying our bill we had agreed to the contract then. The phone agreement wasn’t valid anyway; it was the payment that sealed the deal. After checking more recent bills I found the small print that we had entered into a contract. There was nothing stating that paying is our agreement to the new terms.

I have researched slamming and cramming and it looks like my issue does not quite fall into either category. It looks to me like they are renewing contracts as often as possible to reduce customer churn and increase the penalties for leaving. The only thing I get when talking with Qwest agents is misdirection and/or lies. I understand this is typical of many phone service providers. I also believe my bookkeeper was influenced with discounts that didn’t really exist and told little of new contracts or termination fees. The PUC and BBB say this is probably not within their regulation and will most likely become a civil case.

What course of action or defense should I take? Are we really liable for these fees?

posted by 4Lnqvv to work & money (4 comments total)

and will most likely become a civil case

Then stop telling your future defendant about your plans on the Internet, and start talking to your legal counsel.
posted by mendel at 9:02 AM on May 14, 2008

Yeah, seriously. Ask a mod to delete this--if you're going to court, you don't want this out there. Talk to competent legal counsel, not a bunch of mooks online.
posted by dirtynumbangelboy at 9:19 AM on May 14, 2008

I've worked in telecom consulting for 2 years now an without a copy of the contract, there is no way to tell if you are liable for these fees. However, unless you had a contract negotiation with the vendor, it's likely that you are.

The standard telecom contract are filled with outrageous fees for early termination. What's worse, the language used in the contract gives little power to the customer in the event of a dispute. Rest assured, if you begin legal proceedings and you had a standard telecom agreement, your missing contract will quickly materialize showing that you are in fact responsible for the fees. Good luck!
posted by alrightokay at 9:25 AM on May 14, 2008

I'm not sure why this post would need to be deleted. What harm could befall her if the phone company knows... what she already told them?

A contract requires agreement of terms and exchange of goods/services for money. You got the phone service and paid for it, so the last two are non-starters. The "agreement" portion of it is obviously trickier. If there was an insert in the phone bill that said "by paying this bill, you agree to these terms", and you paid the bill, that counts as you agreeing to the new terms.

Unfortunately for you, it isn't the phone company's fault your bookkeeper didn't exercise her duty to you properly. If you give her authority to sign checks, you've given her the authority to do anything signing a check might entail. Whether you knew it or not. And if she writes the checks and you sign them, and signed that check without looking at the bill, shame on you. Sorry.

I think the only thing you have a real shot at is getting them to prove that somewhere, somehow they sent you new terms. If they say you have a contract with them and are trying to hold you to it, they have to prove they actually had a contract.
posted by gjc at 6:00 PM on May 14, 2008