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How to Deal w/ Dubious 'Contracts'?

phorm asks: "It seems that for almost every service out there nowadays businesses want to fix customers into a contract. Some are pretty obvious (cellphone service, etc), but others are downright sneaky. About a year ago, my grandparents signed up for internet service with one of the bigger ISP's (Telus). They were offered an lesser rate for the first year, followed by $10/month more for following years, as well as their DSL modem for free (to be returned when service ends). None of the documentation received with the modem indicated that any 'contract' was being entered, nor were any documents signed. However, when they recently tried to cancel their service, Telus has indicated they will be charged a fee due to being within the 'contract'." Similar to EULAs, sometimes companies will enter you into a "contract" without providing anything to sign and will hold you to terms you may not even know about simply by your use of the service. How can you deal with companies practices, especially if dealing with their representatives becomes...difficult? "On first questioning of this, they believed that they had somehow been contracted by agreeing over the phone when initial service was setup (despite that they don't remember being told about such a thing). However, when I called the ISP to dispute this, they indicated that upon connecting the service they would have been presented with a dialog indicating the contract terms and had to click 'OK' online.

My assumption would be that this was done through their setup CD, which comes with the modem. However, the ISP's software is not installed on their machine (I don't trust it not to have snoop-ware), as I had their machine manually registered through a web-interface (which did not indicate contracts at that time, I am not sure about now).

Despite this, calls to their hotline have indicated that they will not rescind the cancellation fee. Moreover, the last operator from the 'Loyalty Department' I talked to refused to separate the internet bill from the phone bill despite being told they would no longer be authorized to bill the given VISA account (they said they will not change that billing process unless given another account, and refuse to just 'send a bill' in the mail). When I questioned the legality of this the operator told me to 'get a lawyer and have them contact the legal department.' Obviously, this is an option but seems rather to be a bit extreme and I'm sure the company realizes it. So what does one do when a big company is bilking pensioners with contracts they have no proof of? Certainly there are no signed documents, and whether a particular button was clicked or not seems to have no proof except in the ISP's say-so, as well as the dubiousness of button-click legality under local law. My next step will likely be to explain the situation to VISA but then things can definitely get ugly as the ISP is also the local telco.

By the way, this is in Canada, so Canadian law would apply, but I would definitely appreciate suggestions as such cases seem more and more common."

9 of 589 comments (clear)

  1. You already have the answer. by dougmc · · Score: 5, Insightful
    When I questioned the legality of this the operator told me to 'get a lawyer and have them contact the legal department.' Obviously, this is an option but seems rather to be a bit extreme and I'm sure the company realizes it.
    Extreme or not, that IS the appropriate answer. They'll probably back off immediately with a simple letter from a law firm, and if that's all it takes, it won't even cost much.

    If you really want to stick it to them, you might be able to get the local TV news to do a story on the practice (around here, Austin, TX, we have `[channel] 7 on your side' stories, where they go into detail about how somebody was being screwed and how the TV cameras made all the problems go away.

    1. Re:You already have the answer. by Kadin2048 · · Score: 5, Insightful

      Bingo.

      Basically, what these companies are doing, when they pull out these bogus contracts, is bluffing you. They're blowing smoke up your ass, and hoping that you won't have the balls* to actually call them on it.

      Your options are basically:
      1) Call their bluff: get a lawyer, and sue them; or make them think that you're going to.
      2) Bend over and take it, and whine a lot. Whining includes going to the BBB and other toothless organizations. (No large corporation gives a shit about the BBB.)
      3) Bend over and take it, and like it.

      Lawyers are how you get business done in civil society. They are in many ways even superior to violence, because they can be used to attack vaporous legal constructs that you can't well go out and shoot if you wanted to. They're like samurai: have enough of them, and you can do anything you want. Don't have any, and you're just a peasant.

      It helps if you happen to have a lawyer who's willing to work for you cheap, or better yet for free. Lawyers willing to work for free are notoriously hard to find (your best bet is probably to marry one, and even than it's not guaranteed to work). Short of actually having a lawyer, the next best thing would be someone who's familiar enough with the language of law to write a nasty letter that makes them think you're a Force To Be Reckoned With; of course, there's always the risk that they'll call your bluff, and then hang your lawyer-less ass out to dry. Or you could try suing them in small-claims directly, where you don't need a lawyer and can represent yourself; if you really haven't signed any contracts or agreed to anything, then they can't force you into arbitration (which is a normal stipulation in many sleazy contracts), and you can sue them in your own jurisdiction and force them to show up and defend their conduct. If you act like a reasonable, rational, average person, you might do well this way. (Particularly if they just don't want to bother to show up in court.)

      All in all, your best bet of success is probably going to involve either the reality or at least substantial threats of spending quality time inside a courtroom somewhere. This is life; in our world, the conflicts that aren't solved with a gun or a knife are usually solved by well-paid guys in suits shuffling paper. (And depending on where you live, possibly someone in a wig.)

      * In Capitalist society, see 'wallet.'

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    2. Re:You already have the answer. by ArsonSmith · · Score: 4, Insightful

      And your credit gets fucked in the process.

      --
      Paying taxes to buy civilization is like paying a hooker to buy love.
    3. Re:You already have the answer. by UnHolier+than+ever · · Score: 5, Insightful

      Parent is right. To Visa, you are a much more important customer than Telus is. There is no way Telus is ever going to refuse payement via VISA cards, but you, on the other hand, could just as easily switch to MasterCard. If you simply refuse paying, the credit card company is on your side. If Telus request paymenet from VISA, they will ask for a copy of the contract, signed, and won't pay up until they see it. If you're right, they keep their loyal customer. If you're wrong, then you'll have to pay and they get their interest fee. VISA has a win-win situation if they're on your side, but have nothing to win being on Telus' side.

  2. Stick it to 'em by Anonymous Coward · · Score: 3, Insightful

    If you're out for blood, get a lawyer.
    If you're out for justice, demand a supervisor.
    In either case, point out that they cannot produce any record of signing the contract.

  3. At least talk to a lawyer... by Zro+Point+Two · · Score: 4, Insightful

    IANAL but if I recall correctly Canadian law (yea, I'm a Canuk) says that you cannot agree to any contract that you have not read and signed. This may have changed, but at the time when I was looking into it, the law said that you cannot give up rights without reading what rights you are giving up. This was in relation to an AUP and a EULA. The clause "subject to change without notice, and continuation of using said service constitutes that you agree to the changes" did not hold water. The contract that I had entered at the time (about 7 or 8 years ago) was the contract that the company was bound to uphold because that is the contract that I'd signed, and I could not enter a new contract without explicitly agreeing to it.

    Again, IANAL, but since Canadian and American contract laws do differ in some very serious ways, I'd at least talk to a lawyer and/or hit the local library. One thing that I found works pretty well is if you know someone taking law at a colledge/university level. They generally know a lot, and can always ask their prof. Since profs have to teach it, I've found that the better ones are really good at answering off the wall topics...they've seen them come up in papers n such and have to determine the relevance of them.

    As for the billing, you should not have any issues with cancelling any other services that you have with them (as long as they are not under contract). If it's a service that you actually want with them, but want the billing method changed, you still have the option of cancelling the service, then setting it up again. It's a pain in the ass, but it is an option.

    --
    Zro . two

    "I come from Canada...they say I'm slow....eh?"
  4. Re:Further explenation by hazem · · Score: 5, Insightful

    My lawyer tells me a verbal contract is as good as the paper it's written on...

  5. Don't take NO for an answer by rynthetyn · · Score: 3, Insightful

    I can count on one hand the times that people in my family have failed in our attempts to get large companies to settle issues to our satisfaction. Companies are banking on the fact that people either are too lazy or don't know how to follow a chain of command and that if they give you enough run around you'll give up and go away. My dad has even gone so far as to call up the president of the company on several occasions when dealing with the customer service reps and their supervisors wasn't getting him anywhere. Sometimes you have to try multiple approaches to get an issue resolved to your satisfaction--know that customer service reps are supposed to be logging calls, so even if you don't succeed with one rep, it's helpful if they have logged in their records that you're threatening to call the State Attny. General's office to get them to pursue a fraud case if the issue isn't resolved (or, on the flip side, if there isn't a log of the conversation and you just got transferred into no-man's land, that can also be worked to your advantage because the rep isn't following protocol).

    It's a bit harder when you're dealing with offsite call centers, especially if they're not in your country and you have to deal with a cultural barrier as well (British Airways, for example, is a pain to deal with because they have different cultural protocol for complaints), or if there aren't multiple levels of supervisors in the same location, but given persistance, more often than not you'll succeed.

    And, if all else fails, threatening negative publicity doesn't hurt. My mom had an issue where she paid a department store credit card bill but because of a cash register glitch the payment never posted to the main system. After months of unsuccessfully trying to resolve it with politeness, she sent off an e-mail through the corporate feedback site threatening to call up the TV stations and then walk into the store manager's office at the local store and cut up her card--the payment miraculously credited to her account within a matter of hours after she sent the e-mail.

    --
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  6. No signature = no contract by Joce640k · · Score: 5, Insightful

    If they don't have a signature or a recorded conversation where you agreed to this then you don't have a contract with them. Stop all payments at the bank, tell them to come and collect whatever they consider is "theirs", then hang up the phone. End of story.

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