Direct TV Not So Direct With Cancellation Fee
A Long Island family gets charged early cancellation fee for twelve-year old account.
The Kirsch family have been a long time customer of Direct TV, ever since 1997. In their house alone they had as many as five receivers in different rooms. There were never any service problems, until last year, when one of their receivers began going. Direct TV offered the Kirsches several tips to get the receiver going again, but finally even the satellite TV company admitted it had to be replaced.
So the Kirsches packed up the non-working receiver and sent it back to Direct TV, who sent out a brand new receiver, which the Kirsches installed in their home. When 2009 came around, the Kirsches decided they wanted a change and cancelled their service with Direct TV. That's when they were told that they would be charged an early cancellation fee, which had them asking, how was that possible when they had been customers for so long?
According to Direct TV policy, when the Kirsches activated the replacement receiver, that re-started their account, making them subject to the company's 24-month policy for brand new accounts. That meant that if they cancelled their service, they would have to pay an early cancellation fee, because according to Direct TV, their account was only about 12-months old, even though they had been customers for nearly twelve years.
Even though the Kirsches disagreed with Direct TV, last month the satellite company took $ 320.00 out of their bank account for the early cancellation fee. So we called Direct TV to find out how this policy could be attributed to long-time customers and why did it have to be so high? This is what Direct TV had to say:
"We are careful to disclose to customers all relevant terms and conditions of their agreement with DIRECTV, including the requirement that if they accept discounted or free equipment and an installation offer, they must remain a customer for 24 months. And if they fail to keep that commitment, there is a cancellation fee. We believe our fees are fair reasonable and related to actual costs such as hardware and installation, and they are pro-rated - for example if a customer cancels in the 23rd month of their commitment they would be charged only $20. Customers are fully informed at each step in the process of becoming a DIRECTV customer, beginning with the customer service reps sales script, (retailers are also required to disclose programming commitment terms), in confirmation letters that are sent to customers after the sale, and in equipment lease addendums signed by the customer at the point of installation. Reminders are included in the customer's monthly bill statements and the agreement is detailed on our web site directv.com."
Direct TV did go on to say that they didn't understand why the Kirsches' fee hadn't been pro-rated, so they took another look at their case and that was when they credited the entire amount of $ 320.00 back to the family.
If you are a New York State resident having a hard time getting your satellite or cable tv company to address your concerns or you just want to know what your rights are, contact the State of New York Public Service Commission, they will get involved to make sure the company answers your questions. Other states can contact their State Attorney General's office for help.
Comments: 16
We had an issue with Direct TV, too. Our roof receiver was was slightly moved in a windy, summer storm. Direct TV told us that, since we didnt have a service contract, they would charge us an outrageous hourly rate to come out to shift the receiver back into its normal spot. That is unless we purchased a service contract over the phone. Needless to say, we purchased the contract. But this was extortion.
We had an issue with Direct TV, too. Our roof receiver was was slightly moved in a windy, summer storm. Direct TV told us that, since we didnt have a service contract, they would charge us an outrageous hourly rate to come out to shift the receiver back into its normal spot. That is unless we purchased a service contract over the phone. Needless to say, we purchased the contract. But this was extortion.
The same exact thing that happened to the Kirsches has also happened to me! DirecTV wants a $300.00 early cancellation fee from me and I have been a loyal customer with them for 7 years. I have refused to pay the fee & I have written a letter to DirecTV billing dispute dept & the FCC. I also had a very nasty person on the phone when I cancelled my account on 03/13/09. She told me that DirecTV would use my credit card information to charge me the $300.00 (this of course is without my authorization). If DirecTV does charge my credit card I can promise that I will be disputing it with my credit card company! After my experience with DirecTV I will never never use them again!
I filed a complaint with the BBB after I got my first DirecTV bill and it stated that I had contracted to keep my service for 24mo after I upgraded to a DVR. I had signed up for a year of service when I picked the package I wanted. The technician who did my install presented me with a contract to sign after the install was complete. This contract contained the 24mo clause and I refused to sign it. I told the technician to uninstall the product. He then said that I didn’t have to sign the contract. DirecTV held me to the contract I never signed. I was not able to get anywhere with the BBB. DirecTV’s response to the BBB was that I should have known about the commitment because it was on there point of sale materials. I made my purchase online. I eventually locate these terms and conditions on their website but they were never presented to me during the online ordering process. I found a near microscopic link with blue lettering on a blue background at the bottom of one of the web pages called additional details. When I clicked on this I was taken to some more fine print with additional terms and conditions. I believe these additional terms and conditions were purposely hidden from me.
Well what everyone of you is complaining about is spelled out and in the case of The Kirsch Family it was written in RED on the box that it was a lease unit and required a commitment. In general, If you have a Service Contract (Protection Plan) then when you have to replace a receiver, it DOES NOT extend your contract. If you opted out of the service contract and need something replaced, you WILL extend your contract. As a Contract Service Tech for Directv, I know all to well that the CSR's DO explain this. If you choose not to listen and be irate etc, then it is your own fault.
As far as service, It costs $79 for them to send a tech to your home to fix whatever it is that is broke. D*'s TOS also clearly states that the Install and Equipment is only on a 90 day warranty. Even the Leased Receivers. You may not agree with it, but that is the way it is. Many times, if you are not belligerent with the CSR they may waive the service call fee or credit you with something else, but being a "jackass" with them will get you absolutely no where. If you are smart, you would buy the Protection Plan for $4.99 a month which essentially covers any possible issue that may arise, from Fido chewing a cable, hubby cutting a line with a weedwhacker, to little Billy spilling KoolAid in the Receiver. It takes about 13 months for the Protection Plan to equal $79, and if you have has Zero Problems, great.
To the person with the Dish that got moved by the wind... I am shocked you are suprised that DirecTV charged you for something they have no control over. Oh I know "But if they want me as a customer they will do it free free free, free dammit" Well that is the mentality that is ruining the service and quality industry.
Boowhoo to the The Kirsch Family, another typical cry baby I aint reading this crap customer who gets mad at a policy when its been spelled out right in front of their eyes (On the Box)
Well what everyone of you is complaining about is spelled out and in the case of The Kirsch Family it was written in RED on the box that it was a lease unit and required a commitment. In general, If you have a Service Contract (Protection Plan) then when you have to replace a receiver, it DOES NOT extend your contract. If you opted out of the service contract and need something replaced, you WILL extend your contract. As a Contract Service Tech for Directv, I know all to well that the CSR's DO explain this. If you choose not to listen and be irate etc, then it is your own fault.
As far as service, It costs $79 for them to send a tech to your home to fix whatever it is that is broke. D*'s TOS also clearly states that the Install and Equipment is only on a 90 day warranty. Even the Leased Receivers. You may not agree with it, but that is the way it is. Many times, if you are not belligerent with the CSR they may waive the service call fee or credit you with something else, but being a "jackass" with them will get you absolutely no where. If you are smart, you would buy the Protection Plan for $4.99 a month which essentially covers any possible issue that may arise, from Fido chewing a cable, hubby cutting a line with a weedwhacker, to little Billy spilling KoolAid in the Receiver. It takes about 13 months for the Protection Plan to equal $79, and if you have has Zero Problems, great.
To the person with the Dish that got moved by the wind... I am shocked you are suprised that DirecTV charged you for something they have no control over. Oh I know "But if they want me as a customer they will do it free free free, free dammit" Well that is the mentality that is ruining the service and quality industry.
Boowhoo to the The Kirsch Family, another typical cry baby I aint reading this crap customer who gets mad at a policy when its been spelled out right in front of their eyes (On the Box)
"DirecTV did go on to say that they didn't understand why the Kirsches' fee hadn't been pro-rated, so they took another look at their case and that was when they credited the entire amount of $320.00 back to the family."
"J" is a typical DirecTV employee. Can't or won't read? DirecTV admitted they made a mistake. Calling people cry babies when they were charged in error is ignorant. Like the man said, DirecTV employees can be really rude. And obviously this one doesn't know how to use a computer. Try posting just once next time.
By the way, no where does it say a technician went to the house to fix anything. He said he mailed in a broken receiver and they mailed back a working one. Did you know they charge you $150 if you don't activate it?
And why are Attorney Generals from so many states investigating this practice? Do you know how many class action suits have already been started against DirecTV for this exact thing? Maybe New York should start one too? Wasn't the guy in the story an attorney? Maybe he can start one.
Dtv saw the error and made good on it. What's the problem? I think that was VERY big of them to help a long term customer.
Chris, But what about the people who dont know and just pay the fee? don't you think they should know when they have an error or they will just charge you and expect you not to know???
I Don't Live in new york but i had the same problem with (DTV) and i had them as my cable provider from (2005-2008) and i moved and didn't have an add. to give them i talked to some one and let them know what was going on and if i can cut the service off at my old add. and when i get a new one call them with the new add. and let them know to turn service back on this was in early oct.08 they said they cant turn my service off at the old add. and i will be billed for the month i wasn't living there and by the next month they went into my back acc. and took out $623 with out me telling them they could and over drawn my acc. and i had to pay fee to my bank for all of this i called (DTV) asked question and only got $150 back from this what a rip off i'll never deal with them again
I am the attorney who was the subject of the DIRECTV story. First, I would like to thank Howard and his producer for accurately gathering and reporting the facts of the story. I have no doubt that I would still be fighting with DIRECTV had "Help Me Howard" not intervened. In response to the comment made by the DIRECTV employee, you really should try reading the facts of the story before making silly, off-handed comments. There was no installer when the replacement receiver was sent to me. There was no document to sign in the box and there certainly was nothing printed in RED on the box advising me of DIRECTV's unconscionable policy. When I was told by the representative on the phone that the original receiver would have to be replaced, I WAS NOT ADVISED THAT THE TWO YEAR NEW SERVICE PERIOD WOULD BEGIN AGAIN. As the call was allegedly recorded for "quality assurance", I asked for a copy of the recording but was told it would not be provided. The fact is that the recording would have nothing in it indicating that I was advised of the policy. As to the comment that it was BIG of DIRECTV to make good on their error, it is my feeling that they would not have done so without the intervention of "Help Me Howard". They haven't made good to thousands of other customers who also were charged unreasonable, non-pro rated early termination fees of which they never received notice. DIRECTV's M.O. when you call to fight the fee is to put you on hold for 45 minutes hoping that you will get bored listening to the music and DIRECTV ads and give up. Fortunately, I have all the patience in the world and don't give up when I believe in an issue. I put the phone on speaker and listened to the music while I did some work. When the nasty supervisor finally came on the phone and told me they would not reverse the charge, I calmly told her that they applied their policy to someone who knows how to fight and win and that ultimately they would be the victims of their own actions. The "Agreement" they have on their web site contains clauses that are illegal and/or unconscionable. The "Agreement" also does not contain any language that a replacement receiver will be treated as new service when activated. Even if a customer is advised by phone of this policy (and so far I have found no one who has been), the written "Agreement" takes precedence over the spoken word. I urge anyone who has been unfairly charged any type of fee by DIRECTV or ANY service provider to go to the appropriate administrative or regulatory agency and their state's Attorney General. Class action suits are another alternative, but the plaintiffs might not receive the entire amount they lost, especially if there are a large number of plaintiffs. While it will hurt DIRECTV financially, individual plaintiff in the class action might not get full satisfaction. Of course, perhaps the best method of resolving your problem is to contact "Help Me Howard" if you live in the NYC area. If you don't live in NYC, contact a local TV station that has a similar consumer help segment on their news program. Big companies do not like their distasteful treatment of customers to be made public, especially on TV. They would rather return ill-gotten money than keep it and read headlines about it.
Jeffrey C. Kirsch
Attorney at Law
(516)569-3337
After reading so many 'got cha' things DirecTv does to it's customers, I will be sure to always avoid them.
If everybody goes to the better business bureau and reports them this will be resolved. www.bbb.org
It only takes 5 minutes
Sadly, we are dealing with Direct TV on this exact thing. Same response, very simular situtation, so unethical. Thank you helping this family. I pray we have some kind of positive response from them.
Thanks to NY State Sen. Jeff Klein, who saw the story on WPIX in March, legislation has been introduced in both the state Senate and Assembly regulating Early Cancellation Fees by satellite TV providers. I would like to thank Help Me Howard as this story has resulted directly in legislation that hopefully will be enacted into law and provide protection for all NY State residents.
HI there,
i just got my direct tv installed but i didnt like the service and wanted to cancel but they told me i have to pay 460$ i dont understand it is not even a week. i got myself into a mess. what should i do?