Slashdot Mirror


Congress Investigates Carriers' Debt Collections

Julie188 writes "'Tis the season for the government to crack down on abusive practices by your secretly evil national wireless carrier. Next up: a congressional committee will be looking into a debt collection practice that prevents customers from filing lawsuits. Rep. Dennis Kucinich (D-OH) will be examining a contract clause that forces customers to waive their right to sue and instead agree to forced arbitration. He is hot on the tails of the carriers after a similar investigation of credit card companies lead to nine banks removing the forced arbitration clause from their contracts. This follows the week's earlier news that the FCC was going to try to come up with new rules to prevent wireless bill shock."

7 of 134 comments (clear)

  1. Hmm this word you keep using... by jeffmeden · · Score: 5, Insightful

    Tis the season for the government to crack down on abusive practices by your secretly evil national wireless carrier

    That is the worst kept secret EVER. They are all evil, every last one of them, and if you don't know this by now then you must not have ever had a cellphone before.

    1. Re:Hmm this word you keep using... by Runaway1956 · · Score: 4, Insightful

      Enumerate? 1. Subsidizing all those "smart phones" that are worth $500 to $800 (more?) by scamming the public into accepting expensive two year contracts. Yes, it's a SCAM! Sell those phones at their real value, be open and honest about what the phone really costs, then just sell phone service for ~$20/month, with unlimited talk and text, plus maybe another $20 for unlimited data. 2. Charging crazy rates for text. Everything that I've read says that it costs the phone company almost NOTHING to send out those text messages. 3. Accepting government funds to build infrastructure that never gets built. Phone and data companies are tripping over each other in the inner cities and wealthier suburbs - but the infrastructure doesn't make it out into the rest of the country. 4. Blocking local governments from building the infrastructure that the phone companies don't want to build anyway. 5. Sending out zillion dollar phone bills without ever even questioning the crazy amounts. I mean - if you sold a phone to an old guy who only calls his daughter once a week, and he talks for 10 minutes each time, then suddenly his bill is $20,000 - SOMETHING IS WRONG!!! Someone stole his phone, or your computers are borked! 6. Ironclad contracts that say that the company can never be wrong, never be liable, and if there is any question, review rules one and two. 7. Customer service SUCKS. They don't intend to serve any customers, it's just that simple. Enough?

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
  2. Just ban "forced arbitration" by jonwil · · Score: 5, Insightful

    They should ban forced arbitration clauses in any one-sided contract including credit cards, telecommunications service, cable service and utility service.

    1. Re:Just ban "forced arbitration" by TheGratefulNet · · Score: 5, Insightful

      and employment contracts!

      those are even worse and we all have a lot more to lose on those.

      want to work for another company? is it related to what you do now? there is probably a 'no compete' clause that is actually illegal in your state and yet still prominently listed in your contract.

      cell phones affect 'the masses' and the worst that happens is you lose your phone and get upset. its a problem but its not 'americas biggest problem' right now. not saying employment is, either, but its FAR more life damaging if your company wants to put the screws to you than some stupid cell phone toy gadget. you NEED your job (or a job) to live. no one NEEDS cellphones, those are toys for the rich (even though every single commercial tries to convince you that 'everyone needs a cellphone'). I lived decades and decades without carry a portable phone. its NOT needed!

      but jobs, those are needed.

      forced arb. in employment contracts are far more evil an than any cellphone co.

      and nothing is being done about the state of employment contracts.

      arbitration is evil but why is congress only attacking the cellphone part of the problem?

      --

      --
      "It is now safe to switch off your computer."
  3. Arbitration == Corporate Justice by ObsessiveMathsFreak · · Score: 5, Insightful

    Arbitration is essentially a system of parallel, private courts run by corporations, for corporations and for the express purpose of denying justice and avoiding the laws of the land. It's an absolutely corrupt system and should not be allowed to exist in any form whatsoever. Allowing seemingly innocuous instances of this practice has lead to private companies forcing rape victims to give up their rights. Corporation employees can abuse people in any way they please and can rely on their own private courts to avoid any reprecussions. Judges support this creeping privatisation of the judiciary as they are rewarded with handsome salaries as the private magistrates of these twisted courts.

    Around the time of the Jamie Leigh Jones rape arbitration scandal, I remember speaking with someone in management about arbitration--I live in Ireland. He claimed that the trend in business--magazines, conferences and so on--was pushing arbitration heavily. As the "modern" way of doing business. The conversation sent a chill down my spine. The laws of my country and the people in it were being put in dire jeopardy, our legal protections being replaced right under our noses by this latest innovation in American savagery. At least I live in the EU; I can only imagine what must be occurring in Latin America or indeed the US itself.

    Arbitration is lawlessness. It is rule by the powerful over the weak. It's not even a form of order, as arbitration courts have no strict rules, no obligation to consider precedent, no means of appeal, and are not even obliged to publish their rulings, let alone have an open court. The North Koreans have a more enlightened legal system--and again that is not hyperbole. Any society that accepts the rule of such courts has abandoned all pretence of justice and equality and has turned the clock back a thousand years before even the Magna Carta. And no other society should follow them down the path to ruin.

    --
    May the Maths Be with you!
    1. Re:Arbitration == Corporate Justice by ObsessiveMathsFreak · · Score: 5, Insightful

      And, you fail to point out, it is *completely voluntary*.

      So is any con game. Victims are willingly tricked into deals designed to hurt them. But that's not enough to make it legal, let alone ethical.

      --
      May the Maths Be with you!
  4. Re:Ummmmm... No by ObsessiveMathsFreak · · Score: 4, Insightful

    The whole point is just to keep costs down.

    Yes, and this is done by denying people their rights. It's much cheaper to pay a rent-a-judge to deliver the verdict you'd prefer; I'm not disputing that. But my position is that this is an illegitimate system, and is essentially lawlessness in a pinstriped suit.

    Also please note that the KBR case is a bit of an oddity.

    It was the purest form of arbitration. The whole rotten system was laid bare for the world to see just how corrupt it really was, and exactly what its true purpose is. There are numerous examples of companies having people signaway their rights with smallprint mines in contracts. It's fraud, and the financial system once again leads the way, with credit card contracts being rife with these crooked mandatory binding arbitration clauses.

    The problem was that there was (and really is) no Iraqi justice system to go to.

    So where there is no law, we must rely on private industry to make its own. No. Never. Better no law at all than a corporate one--and that's not hyperbole!

    --
    May the Maths Be with you!