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VOguy
03-08-2008, 09:25 AM
Friday, March 7 at 05:00 am CT by Bob Sullivan, NBC News Channel

You might call it a friends, family and ID thieves plan.

Last year, identity thieves wormed their way into Michael Carner’s Sprint account, tacked on 14 new cell phones and began ringing up phone charges. Even though he reported the intrusion, things only got worse. For nearly a year, the real estate agent was hit with late fees, frequent automated collections calls, service interruptions, and a $5,000 bill.

When Carner finally gave up and tried to cancel his account, Sprint had one more piece of bad news: The imposters had extended his service contract for two years, meaning he'd have to pay a $200 early termination fee to get out of his contract.

"It was just maddening," Carner, who lives in O’Fallon, Mo., said. "Common sense should have prevailed, but it never did. ... I wonder how many other people go through this."

Last month, Sprint was still trying to collect about $250 from him. But after receiving inquiries from msnbc.com, the company reduced the balance to zero.

Sprint officials said they couldn't discuss details of a customer’s account, citing privacy issues. But spokeswoman Roni Singleton confirmed the company was investigating the situation.

"When a customer accumulates incorrect charges on their account due to fraud, we will always work with the customer to ensure he or she is not charged for anything more than the appropriate balance," she said in an e-mail. "We are investigating the internal handling of Mr. Carner’s situation, and we will work directly with him to resolve any remaining issue."

Carner's fiasco began in February 2007, when someone added the 14 cell phones to his account without his permission. He didn't discover the problem until he was vacationing in Palm Springs two months later.

"I got an automated message from Sprint saying my account was overdue, and if I didn't pay it, 'We'll shut it off,’” he said. “Then it said I had a $3,500 outstanding balance. I called right away and said, 'There must be an accounting error, I never go over $95 a month.' "

Regular service interruptions

Sprint's fraud department spotted the problem immediately, Carner said., but resolving it was another matter.

Sprint began removing fraudulent charges, but only piecemeal. Each month, some fraud charges were refunded, but new ones appeared, and Carner's balance remained at several hundred dollars. Then, the late fees piled up. He wasn't receiving bills – they were going to an address in St. Louis used by the ID thieves -- so he computed the average of his prior 6 months' worth of bills and began sending a check to Sprint for about $95 each month.

He also spent, in total, about 25 hours on the phone getting transferred back and forth between Sprint's fraud department and its billing department, with ample time spent on hold each time.

"That just escalated my blood pressure," he said.

About once each week, he received an automated call from Sprint's collections department, even after he was assured the calls would stop. "That was just harassment," he said.

Worst of all, for a real estate agent who relies heavily on his phone, he suffered regular service interruptions.

He could receive calls, but he couldn't place them -- a common tactic used by cell phone providers to encourage bill payment. "I was exasperated. I need my phone, this was a very serious issue," he said.

ID thief termination fee

At one point, a Sprint operator told him he’d have to pay the remaining fraudulent changes. "We have extended to your account $4,200.00 and there will be no further credits. Pay your balance or we are not reinstating your service,” he quoted the operator as saying.

In October, he decided enough was enough and decided to switch cell phone providers. He sent in his last payment of $96 on Nov. 8.

The next month, he received a call saying he still owed $200 because of an early termination fee. Carner thought his contract had expired months earlier, but when he called Sprint he was told the contract had been extended to February 2009 -- two years after the fraud had occurred.

In addition to stealing Carner's identity, the thieves had extended his cell phone contract, he discovered. And Sprint insisted that he had to pay the fee.

"I said to them, 'Produce a signed agreement saying I extended the contract,' but they said they couldn't do that,” he said. "I told them 'That's insane. Anybody can extend an agreement on a whim?' "

Bickering over the $200 early termination fee continued through January and February, until Carner contacted msnbc.com. He soon received a call from a "gracious and apologetic" Sprint fraud expert, who immediately eliminated the fee.

Now, Carner says, he's a happy Verizon customer. But he's concerned that other Sprint customers might pay up in a similar situation, just to end the madness.

"Imagine the millions they unjustly collect using these intimidation tactics," he said. "I feel sad and angry for the Sprint masses that find themselves similarly in the middle of an unjust dispute."

Divinorumus
03-08-2008, 10:59 AM
Use those no-contract pay-as-you-go cell phones where you have to fill them up with minutes before use, thus limiting your liability. They are also anonymous if you pay cash (or use an unregistered Visa gift debit card) for them. They are also a LOT cheaper if you don't use it a whole lot, or just want to turn it off for a month or longer.

Read the details and small print for each of those phones. Get a sales person to state specifically that it does or doesn't do whatever you want it to do so be able to return everything easily if they lied (bring a witness - I always switch on voice record on my little pocket camera when speaking to potentially dishonest sales people, ha, it's how I got Comcast high speed internet with no cable TV service for $22 a month, ha).

Some of those pay-in-advance phones are a major rip-off and nickel and dime you. Even if you just turn your phone on for 3 months without making or receiving a single call they can swipe all your pre-paid minutes.

I use a T-Mobile pre-paid cell phone, and it's 10˘ a minute to call anywhere in the continental US, and no daily fee to just have it switched on. I can send/receive SMS messages for 15˘/5˘ (I think sending picture email is a little more), and check and read CNN and ABC headline news stories and the weather and get stock quotes for free using it. It takes me 3 months to go through a $100 pre-paid.

Judee
03-08-2008, 01:59 PM
I use a T-Mobile pre-paid cell phone, and it's 10˘ a minute to call anywhere in the continental US, and no daily fee to just have it switched on. I can send/receive SMS messages for 15˘/5˘ (I think sending picture email is a little more), and check and read CNN and ABC headline news stories and the weather and get stock quotes for free using it. It takes me 3 months to go through a $100 pre-paid.

What would you recommend for someone who just wanted a cell phone strictly for emergencies ONLY? In other words, it's never on unless I need to make a call for roadside help or whatever.

Divinorumus
03-08-2008, 05:06 PM
What would you recommend for someone who just wanted a cell phone strictly for emergencies ONLY? In other words, it's never on unless I need to make a call for roadside help or whatever.

I'm not sure. I know most deactivated cell phones still allow 911 calls.

Your requirements are different, and the first concern that comes to mind is the battery. It would probably be dead when you needed it, unless you happened to be in your car and have a 12v power cord for the phone. Even a fully charged phone battery will be dead in less than a month even if the phone is always left off. And, LION batteries can go dead in 30 minutes when it's left in the car when it's 10 degrees outside.

I know they sell emergency cell phones that allow 911 calls that you can keep in your car and plug into the cigarette lighter when needed, but that won't let you call AAA or a friend when stranded somewhere with a dead car battery. And, they can cost $100, which is kind of a waste just to call 911.

The cheapest solution (and probably free too) is to just get an old deactivated cell phone with car adapter from a friend who bought a new phone and see if it can dial 911 and keep that in the car. Make sure it's digital, analog cells are being phased out.

Alternately, if you want something you can keep in a purse and always with you is to get the cheapest T-Mobile prepaid phone (probably around $45 and fill it with $25 airtime) and leave it off and check the battery every couple weeks and fully charge it at least once a month.

Emergencies can happen anywhere and that last mentioned solution would work if you're out for a walk in the forest and happen to start having chest pains. And, you can still use it like the regular cell phone it is when needed, or not.

I like the T-Mobile prepaid because you can leave the phone off or on for a few months and all your minutes will still be there if you make/receive no calls. (other prepaid cell phone providers can charge you a buck or more everyday if you turn or leave it on) And, you could always leave it on and let anyone that calls it roll into your voice mail and use a landline phone to check your voicemail without using any of your minutes. $75 or so should get you a basic phone with 250 minutes of airtime which won't expire for a year (I think, it could be the $100 card last longer, I just can't recall). You'll probably have to replace the battery every 12 months.

BTW, I got mine at Target. Read the fine print though. The devil is always hiding in the small print details, ha.

added: Also, check your home phone, see if it still works when the power is out. A cell phone can be handy if you have a home phone that doesn't work when the power is off or you have to leave a burning home.


added: check out http://www.t-mobile.com/shop/phones/prepaid.aspx
It looks like you can get a basic phone and 10 starter minutes for $40 (the Motorola V195 T-Mobile To Go). I got the Samsung Black Stripe T-Mobile To Go w/$100 card which lasts me for 3 months before having to refill it ($100 will get you 1150 minutes).

VOguy
03-08-2008, 07:46 PM
The big issue in the story is the fact that people have to fight with the company to make it right. Personally, I feel that if you have to fight with a company, and you're found to be in the right, they should compensate you for time and assets used.

But as I've pointed out before, many companies have built into their business plan to fight with the customer and stall them off as long as possible. The longer they have your money, the more they make on interest. And it's been proved that some people will give up and let them keep the money that is not theirs. Yet another page in the evil book.

I have a cell phone because the company makes me carry one. Otherwise I wouldn't have one. I have 2-way radio, and ham radio in our cars. Pay for the radio, no monthly bill. And like the lessons learned during Katrina, ham radio doesn't fail due to infrastructure problems.

BTW, anyone want a 3-watt bag cell phone? :)