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Disappearing Promotion/Retention Deals from Time Warner Cable; Watch Your Cable Bill

Phillip Dampier April 27, 2015 Consumer News, Editorial & Site News 1 Comment

shellYou negotiated for a better rate from Time Warner Cable and thought you were all set for another year or two, only to discover the promotion ended early or never got applied at all.

You are not alone.

We did some negotiating of our own back in February and thought we managed an agreement to cut our bill from $175 to $112 — a savings of $63 a month. Instead, the first bill under the new rate was $150.

timewarner twc“You’d be surprised how many people never bother to pursue reneged on promotions like this,” said Sam Tremblay, a telecommunications bill analyst for a major regional supermarket chain.

Tremblay analyzes his employer’s telephone, broadband, and wireless bills that total close to $100,000 a month. He says he saved his employer over $50,000 in 2014 finding billing errors and getting companies to deliver on the rate promises made by salespeople.

“What a salesperson or customer service representative promises and what is actually compatible with their billing system are often two different things,” Tremblay tells us. “You are most at risk of billing errors when making changes to your account, especially if those changes involve a billing credit or special discount.”

Did you get what you were promised? (Image: Bruce Kushnick)

Did you get what you were promised? (Image: Bruce Kushnick)

He explains that many billing systems are not tied directly to call center employees offering promotions or, in our case, customer retention offers. If an employee attempts to apply a promotion the customer was not entitled to receive, or one that had expired by the time it was processed by the billing system, it is typically rejected.

The latter is what happened to us, despite initially seeing the promotion applied.

Time Warner Cable often generates a temporary “virtual” mid-cycle bill available for review online when significant changes are made to your account. We were able to see the promotion correctly applied to this temporary “bill” but it was gone by the time the official bill was mailed. By the time we noticed it, a second inaccurate bill was ready to be processed.

Other customers have found their promotions canceled or unfulfilled, especially when the offer involved a high value gift card, tablet, or other electronics. As we reported earlier, fighting for a rebate card or tablet is often a waste of time. It is typically better to request a bill credit equal to the value of the gift card or promotional item because Time Warner relies on a third-party to fulfill those offers and getting an exception made to a rebate/offer rejection is extremely time-consuming and often fruitless. Use the savings from a substantial bill credit to buy your own tablet.

“A lot of customers just don’t bother to pursue things like this, believing they were bait and switched by customer service, have no recourse, and chalk it up as another reason to hate the cable company,” said Tremblay.

Not us. We pursued the mysterious disappearing promotion with Time Warner’s social media team who forwarded the complaint to the nearest regional office and we received a call early this morning with an apology.

It turned out Tremblay had figured out the problem before Time Warner Cable.

The retention promotion we were offered on Feb. 27 expired Feb. 28 — a Saturday. By the time the account changes were processed by Time Warner’s billing system the following Monday, the promised promotion could no longer be applied, hence a $150 bill instead of $112.

To resurrect the promised promotion, the Time Warner representative placed us on the next best valid promotion — $130 a month, and before we could complain about the $18 difference, also offered a $275 credit making up for overpayments already made and ensuring the two offers are financially equal.

Tremblay said such errors are usually unintentional, especially when there is lag time between the first customer contact and the date a company’s systems are updated with the changes.

“If a company’s call center or customer-facing system is not directly tied with the billing system, it is easy to apply a credit or promotion the customer isn’t entitled to receive based on the rules programmed into the billing system,” Tremblay said. “Once the change is received by the billing system, it rejects it.”

He added the mistake Time Warner Cable made was not following up after the promotion was rejected, correcting it before an unexpected higher bill was generated.

“A customer should not have to call a second time to get a provider to live up to its original commitment, but it happens all the time,”  he said. “In my experience, 80% of billing errors are in their favor, 20% in ours.”

What Washington Didn’t Like About the Comcast-Time Warner Cable Deal

Phillip Dampier April 23, 2015 Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't, Video Comments Off on What Washington Didn’t Like About the Comcast-Time Warner Cable Deal

[flv]http://www.phillipdampier.com/video/Bloomberg What Washington Didnt Like About the Comcast-TWC Deal 4-23-15.flv[/flv]

What Washington Didn’t Like About the Comcast-Time Warner Cable Deal: Comcast is planning to walk away from its proposed takeover of Time Warner Cable, people with knowledge of the matter said, after regulators decided that the deal wouldn’t help consumers, making approval unlikely. Bloomberg’s Peter Cook, Scarlet Fu, Alex Sherman and Cory Johnson have more on “Street Smart.” (6:18)

FCC Staff Recommends Sending Comcast/TWC Merger to Seventh Level of ‘Deal-Killing’ Hearing Hell

Phillip Dampier April 23, 2015 Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't Comments Off on FCC Staff Recommends Sending Comcast/TWC Merger to Seventh Level of ‘Deal-Killing’ Hearing Hell

fat+lady+sings-featureThe staff at the Federal Communications Commission decided Wednesday to make a non-decision decision regarding the merger of Comcast and Time Warner Cable, and are recommending turning over the matter, including millions of pages of company documents and 14 months of investigative findings to an administrative law judge to sort out.

The procedural move, dubbed by many regulatory experts as a “deal-killer,” is known officially as a “hearing designation order.” But executives at Comcast know it really means the FCC is sending a strong signal it does not believe the merger is in the public interest.

The sudden recommendation by the FCC is seen by some observers as a coordinated move with the U.S. Department of Justice to let Comcast CEO Brian Roberts know the deal is in serious peril. In 2011, the Justice Department declared its opposition to another blockbuster merger between AT&T and T-Mobile, and the FCC announced its own opposition just a few hours later. The merger was declared dead shortly thereafter.

Placing the matter in the hands of an administrative law judge would mean a drawn-out, complicated hearing that would probably last longer than the 1995 trial of O.J. Simpson. Few companies bother. Even if Comcast decides it will fight, if the Justice Department successfully challenges the merger in court, the hearing designation order is moot and the merger fails.

Most observers expect Comcast will call off the merger before dragging the matter out in a court or hearing room.

The Wall Street Journal broke the story last night, calling it a “significant roadblock.”

Wall Street analysts were more direct.

“The fundamental problem with this transaction is there is no major constituency outside of Comcast and Time Warner Cable that want it to move forward,” said Rich Greenfield, analyst at BTIG Research, which has been predicting the deal falls apart. Mr. Greenfield noted that it would be a “very uphill battle” for Comcast to prove its case through the FCC’s hearing process that its merger is in the public interest. “Is it really worth spending more time and resources to fight the government?”

elephant“I’d never say anything was 100 percent dead, but this is in the 99 percent category,” Greenfield added. “It’s not every day that you have a transaction that is universally hated by everyone outside of Philadelphia,” where Comcast is based.

“No, the Comcast deal isn’t dead yet,” said telecom analyst Craig Moffett on Thursday. “But it’s a bit like an elephant that has been dropped out of an airplane. At around 10,000 feet, it is technically still alive. But it is falling fast, there’s not much you can do to stop it, and its odds of survival are pretty low when it hits the ground. Engaging in a war of attrition with the U.S. government is generally a bad idea and one rarely undertaken.”

The usually brash and confident Comcast was uncharacteristically muted in their response to the latest DOJ and FCC developments.

“As with all of our DOJ discussions in the past and going forward, we do not believe it is appropriate to share the content of those meetings publicly, and we, therefore, have no comment,” said a Comcast spokeswoman.

The apparent looming defeat of the Comcast/Time Warner Cable merger would be a testament to unified opposition from consumers, programmers, competitors, and emerging online video distributors that might one day fully challenge traditional cable television.

“In a democracy like this, you have gather your forces to say no to politically powerful people,” Mark Cooper, a Comcast opponent and research director at the Consumer Federation of America, told the Philadelphia Inquirer.

[flv]http://www.phillipdampier.com/video/CNN Death sentence for Comcast merger 4-23-15.mp4[/flv]

A death sentence for the Comcast-Time Warner Cable merger? Analysts think so. CNN reports on the history of a merger deal that used to be “inevitable.” (1:42)

Comcast-Time Warner Cable Merger Setback

Phillip Dampier April 23, 2015 Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't, Video Comments Off on Comcast-Time Warner Cable Merger Setback

[flv]http://www.phillipdampier.com/video/CNBC Comcast-TWC merger setback 4-23-15.flv[/flv]

The Wall Street Journal is reporting the FCC is issuing a “hearing designation order” for the Time Warner Cable-Comcast proposal, with Henry Blodget, Business Insider. (2:10)

Plan B: What Will Comcast and Time Warner Cable Do Next?

Phillip Dampier April 23, 2015 Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't, Video Comments Off on Plan B: What Will Comcast and Time Warner Cable Do Next?

[flv]http://www.phillipdampier.com/video/CNBC Faber Report Comcast-TWC deal 4-23-15.flv[/flv]

Spelling the death knell for the deal, CNBC’s David Faber reports what will happen if the deal falls through. (3:38)

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