Verizon Ignores Customer Agreement, GameFly Does it Right
I have spoken a lot about companies that don’t understand their customers. I’ve recently had experiences with two companies where I need to cancel my subscription. I think the difference in my experiences highlights the different approaches companies can take.
Verizon
Like so many other techies, I really want an iPhone. Unfortunately, I still have a year and a half left on my Verizon contract. I thought I would just have to wait but was pointed to a clause in my Customer Agreement with Verizon. It states that when Verizon changes their fees, and these fees have an adverse effect on me, I can cancel within 60 days of notification without an early termination fee (ETF). These fees could be any type of fee that Verizon raises. A couple months ago, Verizon raised their text messaging rate and I know people who (after hours of arguing) were able to cancel their account without an ETF. In my latest bill, Verizon notified me that it raised its Federal Usage Service Charge (a fee that, Verizon clearly states in their Customer Agreement, is a Verizon fee and not a federal fee).
So, I call up customer service, explain the situation, quote my contract and let them know that I’m notifying them within 60 days and would like to exercise my right to cancel without an ETF. Here is a list of the arguments Verizon made to not allow me to do this:
Verizon: The FUSC is a federal charge and not a Verizon fee.
Me: Actually, it clearly states in the contract that the FUSC is a Verizon fee set by Verizon.
Verizon: It says in the contract that we can change the fee, so it doesn’t apply here.
Me: You’re right. It does. You’ve done nothing wrong. You can change the fee. It also says in the contract that I can cancel my account when you change the fee without an ETF. So we’re both following what the contract says.
Verizon: Well, the FUSC changes every quarter.
Me: Interesting. So according to the contract, I can get out of my plan every quarter. Thanks for that information.
Verizon: A raise in this charge isn’t a “material adverse effect”.
Me: What would you call a material adverse effect?
Verizon: If we stop providing service to your neighborhood.
Me: In the contract it states in the paragraph titled “Our Rights to Make Changes” that you have the right to change any fees. Right after that it states that if these changes have any material adverse affect on me, than I can cancel without an ETF. The change isn’t talking about coverage, it’s talking about a change in fees.
Verizon: Well, you have a different definition of material adverse effect.
Me: My definition is from your contract.
Verizon: We’ll give you a $10 credit to your account. That will make up for the material adverse effect on your account.
Me: I don’t want the credit. Nothing in the contract talks about a credit to my account. I’d like to exercise my right per the contract that you and I agreed upon.
After speaking to 4 people, I’ve been told that I’m going to get calls back today from managers. I’m not holding my breath. I’ll try again next week.
Gamefly
A friend of mine was trying to get a free Xbox 360 through one of those referral sites. How it works is that you get a bunch of friends to sign up to a service and in return, you get a free gift. My friend did lots of research and found a place that it legit. One of the services to sign up for was Gamefly. He thought he’d pay each friend $10 for a one month Gamefly subscription. After the eight referrals he’d get the Xbox 360 for $80. Not bad. I figured I’d help him out.
My month is nearly up and am ready to cancel in the next few days. A friend of mine had already canceled. Here is the process. You got to My Account page. Click on the “cancel membership link”. Follow on-screen instructions. And you’re done. That’s it! Simple and easy.
Bottom line: Verizon pissed me off and if ANY carrier out there had decent service and wasn’t horrible to their customers, I would use them in a heartbeat. Unfortunately, all cell phone providers are like this from what I hear. While I don’t have a desire to continue Gamefly right now, I was impressed with the service and would recommend it to friends. I would also consider using it when I have a video-game-playing child and don’t want to shell out $60 every time he/she wants a new game.
In the next 5 years we’re going to see technology that changes the telecommunications sector. Just like VOIP for landline service, something will come along and shake up the wireless world. And when it does, Verizon is going to pay for their mistreatment of customers. I can’t wait.
I had a horrible experience with Blue Mountain Cards. I subscribed when I was in college, I’m not quite sure why. Every year they automatically renew me and I forget and it charges my credit card… you know the drill.
They introduced a service that allows you to print cards from online (I can never remember to get cards in advance, and they’re expensive!) for an added annual charge. There was also a 30 free trial.
I downloaded the necessary programs and tried to print a card, but apparently it doesn’t work with Macs. I made a mental note to cancel within 30 days, but with a newborn at home it slipped my mind (as most things do).
I called on the 31st day at which point they told me it was too late and they couldn’t refund my money even though the service was useless to me and I have been a reliable customer for YEARS.
Well, this year when my regular subscription was up I called and canceled my membership altogether. I made it very clear that all they had to do was refund my money for the unusable service the year before and I would have renewed my membership.
Stupid.
By “30″ I mean “30 day”.
Wow Kate. Blue Mountain Cards shot themselves in the foot with trying to keep you as a customer. I wonder whose fault it is. Is it a call center manager whose main job is to not give away anything for free? Or is the directive coming down from the higher-ups as company policy?
If the CEO of Blue Mountain Cards knew what happened to you, he would be devastated (I bet).
Before I got my iPhone I was a loyal customer of Metro PCS:
+ They don’t make you sign a contract, service is month to month from the get go.
+ Service is $40/month for unlimited minutes, text messages and first gen data (slow)
- Service is only available in Metropolitan areas (I’m always in the city so thats fine)
- You have to outright buy your phone – I paid $350 for my Razr when I could have gotten one for $99 on contract.
If they were a GSM provider, I would still use them on my unlocked iPhone – which I paid $399 for… on a 2 year contract
Hello,
I have read and printed your blog for reference…
When I called Verizon they stated that they had to contact thier legal team because they had not dealt with the matter. They lied several times and I corrected them everytime. At one point I had to ask the lady if it was in her job description to lie to Verizon’s customers. She just said she must have been reading the Service Agreement wrong. It was all very laughable. They will be getting back to me after they contact thier legal team. Blah Blah Blah.
In Conclusion,
Thanks for your blog.
L.P.
Lyndsee,
Just so you know, I had almost the same experience…they have 24 hrs left before I loose it on them!! First I was suppose to have gotten a call back Friday afternoon–NO CALL–then I called Saturday, they were supose to call me Monday @ 5:00–NO CALL– so I called Monday at 6:30…they said they’d have a director consult their legal team (aka…”how do we get out of this”) and get back to me in 24-48 hrs. So we’ll see what happens. Keep this updated with what happens to you.
~Robin
Well…I am burning with anger and emotion.
As of yesterday, Sunday, I had still not received a call. I called once again and the first person I spoke with was incredibly nice and understanding but it got ugly after he transferred me. The supervisor immediately went into a rant about the contract agreement, which I had in my hand and followed along with her. She then read the paragraph (IN CAPITAL LETTERS!) but stopped at the end which would have made me correct. I told her to continue and she repeated “I’m sorry, I cannot do that for you today. Is there anything else I can help you with.” And that was it. She would not answer anymore of my questions and told me to contact a lawyer. I will be speaking with one of the professors in the business law department from my school. I don’t see a reason to hire a lawyer when I am well within my right. I have called three times and have gotten nowhere. I refuse to give up, but it seems contacting a lawyer would be more expensive than just paying the fee!