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Spectrum Salesperson Lies to Customers About the Competition: “We Bought Them”

Phillip Dampier January 21, 2020 Charter Spectrum, Competition, Consumer News, Video No Comments

This Spectrum door-to-door salesperson tells a Bath, N.Y. customer the cable company bought the competition.

A Spectrum door-to-door sales representative has a new trick up his sleeve to win back customers who switched to a competitor: lie and tell them Spectrum bought out the competition and sooner or later customers will once again be dealing with the cable company.

Spectrum Rep: “To get you guys back on board with our service, we’re going to lock your price in for two years.”

A Bath, N.Y., customer of Empire Access, a competing fiber to the home provider offering service in the Southern Tier of New York: “I’m not interested.”

Spectrum Rep: “We just bought Empire, you know, so sooner or later you’re going to be with us.”

Customer: “So you’re going to raise up your rates?”

Spectrum Rep: “No, we’re just going to get everybody switched over, so whenever you’re ready. The official switchover is in March, so sooner or later you’ll be on board with us or you’ll be on satellite for internet. Right now we’re offering you a deal to get on board early.”

The “deal” was $50 a month for 100 Mbps internet, which is hardly a deal at all considering new Spectrum customers in competitive service areas can often sign up for 400 Mbps service for $29.99 a month for two years. More importantly, the salesperson openly lied to make a sale.

Empire Access marketing director Bob VanDelinder says Empire Access did not sell to Spectrum and has no plans to sell itself to anyone.

“Our company is locally owned and operated, and deeply rooted in the communities we serve,” VanDelinder said. “We can keep our customers based on our service, our price. We’re very competitive and play fair. We think that’s extremely important to play fair and keep it a level playing field and be honest to our customers.”

The customer captured most of the conversation on his Ring video doorbell and shared it with Empire Access. At least one other Empire Access customer said he experienced a similar encounter with the deceptive salesperson.

“The content of the video is not accurate and we’re investigating these apparent comments by the sales representative,” responds a Spectrum spokesperson.

Spectrum typically contracts out its door-to-door marketing to third party companies, with employees typically earning a commission or bonus based on each successful sign-up.

Empire Access is requesting customers who have experienced similar misleading claims to contact the company at: 1-800-338-3300.

Spectrum representative lies about the competition.

WENY-TV in Elmira, N.Y. reports on a Spectrum door-to-door salesperson using dirty tricks to try and fool customers to switch back to the cable operator. (2:32)

Rep. Brindisi Questions Spectrum’s “Unfair and Sneaky” Debt Collection Practices

Brindisi, as he appeared in a campaign ad slamming Charter Spectrum in the summer of 2018.

Rep. Anthony Brindisi (D-N.Y.), who made his battle with Spectrum into an election issue in 2018, is not done with the cable company yet.

This week, Brindisi appealed to the Consumer Financial Protection Bureau (CFPB) to launch an investigation into the cable company’s debt collection practices.

“Fighting Spectrum on rising rates also includes making sure they can’t use debt collection as another money-making tactic,” said Brindisi. “And the only way to get to the bottom of this is for the CFPB to ask the questions I outline in my letter.”

Brindisi is targeting Credit Management L.P., a Plano, Tex. collection agency that Spectrum relies on to pursue former customers, often to seek compensation for “lost or unreturned equipment.”

“After believing they had paid their final bill in full and returned their equipment, customers are finding themselves face-to-face with this unknown debt collector from Plano, Texas,” Brindisi told the CFPB. “One former Spectrum customer learned from Credit Management L.P. that they owed over $100 long after amicably ending their service. Spectrum never notified this customer they owed a penny. Instead, they sent them to collections, potentially damaging their credit rating and giving up their social security number and other personal information.”

In some cases, customers are being turned over to the collection agency for as little as an allegedly unreturned remote control. As a result, consumers are ending up with damaged credit because of the reported collection activity.

“The Better Business Bureau has logged hundreds of complaints about Credit Management L.P.,” Brindisi added. “Many of these complaints have been about their debt collection practices related to cable and internet companies. Customers have specifically named Spectrum and other cable companies as the source of the erroneous debt. A consumer should not be sent to a debt collector, without warning, for a missing remote control. That is both unfair and a sneaky way Spectrum might be padding its bottom line, which would be unacceptable, worthy of investigation and potentially in violation of federal rules.”

Brindisi wants the CFPB to determine how many customers are being pursued by Credit Management, L.P., how those customers are contacted, how much of the collection agency’s efforts relate to being compensated for allegedly unreturned equipment as opposed to late or non-payment of monthly cable bills, and how the agency handles customers’ private personal information.  Brindisi also wants the CFPB to determine if the collection practices violate federal law.

Brindisi also urged constituents being contacted by Credit Management L.P., on behalf of Spectrum, to call his office at (315) 732-0713.

In addition to running campaign commercials that slammed Spectrum, Brindisi has doggedly pursued the cable industry as a freshman congressman representing an Upstate New York district extending from the east end of Lake Ontario through Central New York to the Pennsylvania border, including the cities of Utica, Rome and Binghamton. Brindisi introduced the Transparency for Cable Consumers Act, promising to provide better oversight of cable and internet providers and hold companies accountable that are fined by a state Public Service Commission. In November, Brindisi slammed Spectrum in an opinion piece outlining his efforts to hold Spectrum accountable. Brindisi also recently launched a district-wide survey of home internet speeds and service to determine if internet customers are getting advertised internet speeds.

AT&T Ditches Puerto Rico and Virgin Islands to Raise Money to Cut Debt, Buy Back Its Own Stock

AT&T will sell its operations in Puerto Rico and the U.S. Virgin Islands to John Malone’s Liberty Latin America, Ltd., setting up a virtual market monopoly for Liberty, which already owns cable operator Liberty Cablevision of Puerto Rico.

Liberty Latin America has agreed to pay $1.95 billion in cash to acquire 1.1 million AT&T cellular, landline, and internet customers in both U.S. territories.

AT&T intends to use the proceeds of the sale to reduce debt and allow the company to lay the foundation to buy back more of its own shares, pleasing investors. AT&T had originally sought up to $3 billion for the Caribbean networks, partly acquired from a 2009 acquisition of Centennial Communications, which cost AT&T less than $1 billion.

Analysts say the low selling price shows AT&T is feeling pressure from activist investor Elliott Management, which has been pushing AT&T to divest non-core assets. The selling price was also impacted by the distressed state of AT&T’s infrastructure and customer base, impacted by Hurricane Maria in 2017, which damaged both the Virgin Islands and Puerto Rico and displaced hundreds of thousands of residents.

Liberty already has a major presence in Puerto Rico through its cable system — Puerto Rico’s largest pay television and broadband provider. Cable tycoon John Malone will effectively control Puerto Rico’s largest wireless phone and cable company. Claro, Puerto Rico’s landline provider, will be its chief competitor.

The two companies said they expect the deal to close within six to nine months.

Charter Urges Streaming Services to Crack Down on Password Sharing

Phillip Dampier September 16, 2019 Charter Spectrum, Competition, Consumer News, Online Video 4 Comments

Charter Communications is contemplating tying piracy mitigation to renewed contracts with movie studios, cable networks, and other programmers in an effort to enforce a new authentication standard to stop password sharing on streaming services like Netflix, Hulu, Disney+, and CBS All Access.

The cable company is trying to build an alliance that will enforce authentication principles on subscribers that share passwords to streaming services. Walt Disney is the only programmer to sign on thus far, agreeing to Charter’s piracy mitigation strategies for its Disney+ service in return for a renewed contract to distribute Disney programming on Spectrum cable systems.

Thomas Rutledge, Charter’s CEO, has spoken frequently about revenue erosion caused when consumers share their streaming accounts with friends and extended family members. Spectrum enforces geofencing on its subscribers, prohibiting access to certain streamed content outside of the home. Rutledge has not been specific about exactly what types of limitations would be imposed under the new strategy, but examples could include geofencing, periodic location checks, and limits on the number of devices authorized to view content.

“Ultimately our goal is that we can get an alliance of a large enough group of programmers and operators to protect the value of the content that people produce and the content that we distribute and we pay for,” Chris Winfrey, Charter’s chief financial officer, said last week at the Bank of America Merrill Lynch 2019 Media, Communications & Entertainment Conference in Beverly Hills.

Winfrey severely criticized programmers that turn a blind eye to the practice of password sharing, claiming such practices are “insane.”

“To think that it doesn’t impact the way we get paid, it does,” Winfrey said. “And it conditions the entire marketplace to think that content should be devalued, it should be free, and that’s the way it is and I shouldn’t have to pay for it. It’s our firm belief that we’d be growing and growing significantly [if it wasn’t for password sharing].”

CNBC: Justice Dept. Gives T-Mobile/Sprint Merger One Week to Settle Issues

WASHINGTON (Reuters) – The U.S. Justice Department would sue to block the merger of T-Mobile US Inc and Sprint Corp if the parties do not settle next week, CNBC reported on Thursday, citing sources.

T-Mobile and Sprint did not immediately respond to Reuters requests for comment. The Justice Department declined to comment.

In June, a group of U.S. state attorneys general filed suit to block the merger, arguing that the deal would cost consumers more than $4.5 billion annually.

To win over the Justice Department, which is not involved in the lawsuit, T-Mobile and Sprint have agreed to a series of deal concessions, including selling the prepaid brand Boost.

The companies have been in talks for weeks to sell Boost to Dish Network Corp but are haggling over issues such as restrictions over who can buy the divested assets if they are sold in the future, with T-Mobile and Deutsche Telekom seeking to prevent them from going to a cable or technology company.

T-Mobile is about 63% owned by Deutsche Telekom and Sprint is controlled by Softbank Group Corp.

The companies told the court in late June that they were willing to refrain from closing the deal until after the state attorneys general case is completed.

The two companies have a July 29 deadline to complete the deal but are expected to extend it.

Federal Communications Commission chairman Ajit Pai has given his blessing to the merger in principle and is expected to circulate a formal order within weeks.

Reporting by David Shepardson and Diane Bartz in Washington and Akanksha Rana in Bengaluru; Editing by Sonya

CNBC’s David Faber reports the biggest stumbling block in the merger is a fear Dish might sell its wireless service to a cable company. T-Mobile wants contract language restricting that possibility. (5:13)

 

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  • Ken: I've started a Facebook group, https://www.facebook.com/groups/xFinityDataUsage/, to try and fight back. There's no reasonable explanation for the dat...
  • Ken: Hi, I've started a Facebook group, https://www.facebook.com/groups/xFinityDataUsage/, as many folks are like myself finding we are getting overages wh...
  • waldo Barnes: Hate those Rats...
  • John C. Hall: What you say is still true, in 2020. Our home phone service is very high and they offer only 1 home phone package. To drop the home phone line and k...
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  • Phillip Dampier: The thing about this policy change is that it appeared as a cryptic bill notice buried on a single invoice mixed in with lots of other notices. Most p...
  • Phillip Dampier: They turn you over to collections and potentially hit your credit. Your score will probably drop by more than 20 points and this will stay on your rep...
  • Phillip Dampier: If they admit you returned your equipment, you should be able to cancel this bill. If they don't help you by phone, file a BBB complaint online. If yo...
  • Phillip Dampier: You may live in a state where pro-rating is mandatory. Also, you transferred your account, which means it remained open, only the accountholder's name...
  • Dee McCarthy: Spectrum is trash sent us a bill weeks after we gave back boxes and had stopped service since beginning of the year...Our bill was zero then we got a ...
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  • Roux Oli: The system worked just fine. As a matter of fact, as a former Technician for TWC/Spectrum, we were installing new systems not very long ago. Asking pe...

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