Charter Spectrum Threatens To Ruin Potential Customers Over Debt They Don't Owe
from the class-act dept
There's a reason U.S. cable and broadband companies have some of the worst customer satisfaction ratings of any companies, in any industry in America. The one/two punch of lagging broadband competition and captured regulators generally mean there's little to no meaningful penalty for overcharging users, providing lackluster services and support, and generally just being an obnoxious ass.
Case in point: a new Charter (which operates under the Spectrum brand) marketing effort apparently involves threatening to ruin the credit scores of ex-customers unless they re-subscribe to the company's services. It basically begins with a letter that threatens ex-users that they'll be reported to debt collectors unless they sign up for service. It proceeds to inform them the letter is a "one-time courtesy" allowing them to sign up for cable or broadband service before the debt collector comes calling:
"A well-established credit history will more likely allow you to qualify for lower mortgage rates, better chances for obtaining credit cards and approvals for home rentals,” the letter says, suggesting that Schklair’s finances could be in serious trouble unless he returns to the Spectrum fold. "You have worked hard to build a great future for yourself and your family,” it says. “We look forward to welcoming you back.”
Maybe it’s just me, but that has a Sopranos-like ring of “You’ve made a nice life for yourself. Be a shame if something happened to it.”
The catch: the people being targeted with this latest dumb marketing ploy say they don't owe Spectrum any money:
"I asked if he owes Spectrum any money.
“No,” Schklair replied. “It’s been years since I was their customer, and they’ve never said anything about my not paying any bills.”
No notices of missed payments?
“No.”
No warnings about adverse reports to credit agencies?
“No, nothing like that.”
Leave it to a U.S. cable company to think up a marketing strategy that involves threatening the livelihoods of folks who don't actually owe it any money. My assumption is this kind of threat is levied heavily against lower-income communities where the constant fear of debt collection prods folks who may not even owe Spectrum to re-subscribe for fear of getting into trouble. Charter being Charter, of course, it tried to frame this as an "effort to reconnect":
"A Spectrum spokesperson confirmed the letter’s authenticity and called it “an opportunity to reconnect” with the cable company."
83 million Americans currently live under a broadband monopoly, usually Comcast and Charter. Between a lack of competition and captured regulators there's fairly consistently zero real repercussions for idiotic behavior like this, which is why historically things don't really change much. Increased competition in streaming TV has helped drive some improvements on that side of the coin, but the largely broken U.S. broadband market is a problem we don't seem intent on seriously addressing anytime soon--in part because we refuse to even acknowledge the core problem (monopolization and the corruption that protects it).
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: broadband, competition, cord cutting, debt collection, threats
Companies: charter spectrum
Reader Comments
Subscribe: RSS
View by: Time | Thread
RICO? ...RICO? ...RICO?
Polo!
[ link to this | view in chronology ]
They are not wrong, you know
Also known as "see you in court".
[ link to this | view in chronology ]
so, basically, your fucked if you stay with Charter, fucked if you leave! the lengths companies go to in the USA just to keep taking peoples money and the lengths law enforcement and politicians DONT go to to stop them from behaving like this! how can any self-respecting legal firm actually adjoin themselves to sanction the behavior?
[ link to this | view in chronology ]
That's a nice credit score you got there
... it'd be a shame if something happened to it.
[ link to this | view in chronology ]
Re: That's a nice credit score you got there
Um, yeah, that exact line is in the article.
[ link to this | view in chronology ]
I received a similar letter
but i do owe Charter money for and my letter says
"As a one time courtesy, Spectrum is pleased to announce that we will remove the prior debt associated with the account number allowing you to come back in good standing as a new customer. And, when you become a customer we will both remove your debt and cease reporting it to any credit bureau. That means a greater chance to qualify for lower mortgage rates, a better chance to obtain credit cards, and may allow you to gain approval for home rentals."
[ link to this | view in chronology ]
Re: I received a similar letter
Join and immediately cancel with the legally-mandated 14 days cooling off period?
hehe
[ link to this | view in chronology ]
Metastasize
Credit card companies have been doing something similar for many years. Some will attempt to contact a delinquent customer and offer to reactivate the card if they make a payment to bring the account current. The kicker is that the consumer actually owes the bill. I can understand one sleazy company taking ideas from another. But using it as a threat to retain customers who don't owe anything is unconscionable.
[ link to this | view in chronology ]
Re: Metastasize
I feel like a Credit Card company offering to allow you to pay off your balance and regain access to credit (and possibly clearing your credit report of the genuine delinquency) is a very different story than an internet company trying to drum up business by committing mail fraud.
[ link to this | view in chronology ]
Re: Re: Metastasize
its not mail fraud.
its wire fraud (across state boundaries as the letters were generated out of state).
Also extortion AND attempting to obtain money via false pretences.
All of which carry prison time and can pierce the corporate veil.
[ link to this | view in chronology ]
Re: Metastasize
Charter is abusing credit reporting by falsely threatening to damage your credit report if you do not reactivate. Credit card companies extending an offer on an actually delinquent account is a more of a courtesy to the customer. The credit card companies are doing anything illegal while Charter is threatening to do so. These are very different actions.
[ link to this | view in chronology ]
Re: Metastasize
A credit card company offering to help you get back into good standing is nothing at all like a cable company threatening to ruin your credit.
How is it that you suck so badly at this?
[ link to this | view in chronology ]
One word...
CREEPY!
[ link to this | view in chronology ]
This article leaves me wanting more info. Even the original story doesn't address it. What steps if any is being taken to address this with Charter or with the law or what can be done? This feels half baked to me.
[ link to this | view in chronology ]
Re:
They did address it with Charter, and their response is quoted in the article.
Even then, there's as yet no indication whether this letter was a mistake, or if Charter is routinely sending these to people who don't owe them money. Charter refused to clarify, and of course without publishing this information it wouldn't be feasible to track down everyone who doesn't owe Charter money to ask them. So the first "step" is to publish this, and see if that gets a better response, either from Charter (who wants to head off more bad press) or other former "customers" who got threatening letters about non-existent debt.
[ link to this | view in chronology ]
Claiming a non-existent debt and threatening your credit score seems like a blatant violation of FDCP and worthy of civil and criminal penalties.
[ link to this | view in chronology ]
'Nice credit score you got there...'
Looks like someone's taking lessons from organized crime in how to drum up 'customers'.
[ link to this | view in chronology ]
Re: 'Nice credit score you got there...'
Dear Charter Spectrum.
How shall I reply to your offer?
I know, how about I use my 2nd amendment rights to express my 1st amendment rights?
P.S. My "Little Friend" says Hello.
[ link to this | view in chronology ]
Fun isnt it.
THEN?
You sign a contract that states you HAVE TO HAVE service for 3-5 years. And if you stop the service you will still Owe, All the fee's for those 3-5 years, Including a cancellation fee.
Beyond the Letter of intent. Even these contracts should be against the law.
So, what is the state and fed gov. doing? NOT A THING.
[ link to this | view in chronology ]
Funny... they got all up in arms about "debt" collectors randomly calling/texting people for bills they didn't owe & yet someone at Spectrum decided we needed to use the mail to send veiled threats against consumers credit...
If only there was some sort of agency to actually punish this behavior... well it exists but has no teeth to do anything so the campagin coffers stay filled.
Whats adding more fear and anxiety to citizens lives when the corporate bottom line needs to be bigger so they can get slightly larger donations.
[ link to this | view in chronology ]
Re:
Congratulations, you just passed the test covering Inflation, in Econ 101.
[ link to this | view in chronology ]
I received the same letter from spectrum. I haven't had an account with them in 5 years. Nothing reported to the credit agencies prior to this letter, no letters saying anything is owed. All equipment and bills were outside before I left for AT&T. This letter from them really upset me as it came across as threatening.
[ link to this | view in chronology ]
Re:
find a shark lawyer. sue for the 'emotional distress' as obviously you now can't sleep at night, and are having panic attacks etc....
Get a lawyer that will happily fuck them over for as much as possible.
[ link to this | view in chronology ]
need to see the letter
At least we assume that it is the same letter, as seems incredibly likely. The problem is that neither the original article nor the response here give us the actual text of the letter.
[ link to this | view in chronology ]
Spectrum are notorious for faking the signatures of the elderly, claiming they've signed up to all sorts of services, then threatening them with prison time because they haven't paid their debts. (because faking a signature didn't give them the persons bank details).
We have a few large ISPs/TV providers in the UK that HAVE managed to get hacked data and set up elderly people with direct debits they never asked for or knew about.
They get fined, but when the fines are a fraction of the profit made.....
[ link to this | view in chronology ]
Article seems disingenuous
[ link to this | view in chronology ]
Re: Article seems disingenuous
It may not use the word "collection" but it does say this: “To take advantage of this special debt removal offer, all you have to do is purchase a Spectrum TV, internet and/or voice product.”
The obvious implication is that if you don't, the "debt" (which may or may not exist) will remain outstanding, and we know what often happens with outstanding debts.
It's also suggesting bad things could happen if they don't.
[ link to this | view in chronology ]