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Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

latimes.com

11–20 of 51 posts

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#11
From the letter:

> “You have worked hard to build a great future for yourself and your family,” it says. “We look forward to welcoming you back.”

I think I just threw up in my mouth. "Shame if something happened to that great future you built", indeed.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#12
Spectrum has turned old equipment into a profit center. Twice now when I canceled and turned in my equipment I still had to file an appeal to keep from being charged. Full price of course - for some old cable box or modem they just throw in a landfill.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#13

I've never understood why ISPs and cellular carriers aren't prepaid by default, which would avoid the credit system entirely. Do these companies benefit somehow by being post-paid and relying on credit?

I'd assume the late payment fees and cancellation fees make up a good chunk of their income.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#14

I've never understood why ISPs and cellular carriers aren't prepaid by default, which would avoid the credit system entirely. Do these companies benefit somehow by being post-paid and relying on credit?

Using centurylink now. It's prepaid.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#15
post #5

I don't know the details of his debt but this seems a lot less sinister when you realize that they're offering to cancel a debt if he resumes service

That's what the mobsters say as well, and somehow even they get a bad reputation. Can't people see we are trying to do them a service?

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#17

I've never understood why ISPs and cellular carriers aren't prepaid by default, which would avoid the credit system entirely. Do these companies benefit somehow by being post-paid and relying on credit?

It's a massive benefit. There's a couple parts to it, but a huge thing is you need to remember is there's effectively zero marginal cost to the ISP/cell carrier for the next customer - it's nearly all fixed costs.

If a pre-paid customer doesn't have the money, they'll either go without or downgrade their service. Less revenue for the company.

If a post-paid customer doesn't have the money...they might later. Their bill can be rolled forward, half paid, eventually sold to collections, whatever. More revenue in the long-term no question. Also, if you can charge your post-paid customers for all the things they opted into but didn't think too hard about the pricing on - SMS messages used to be $0.10 in my market, lots of parents opened up bills with 2000 text messages on them. Long distance and overseas calls were hugely expensive (and still are, in some cases) - big money makers for the carriers.

And contracts, of course. Customer acquisition is one of the biggest problems in the industry, getting people on a monthly billing cycle keeps them from easily switching.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#18

It's outrageous that companies in the modern day and age can just elect to make cancellation difficult or impossible and keep taking money from you.

It is outrageous, but the blame doesn't lie with companies doing precisely what companies are intended to due, the fault lies solely with politicians who reliably fail to put their voters interest above that of their donors.

Re: Renew your service or we’ll trash your credit score, Spectrum tells ex-customer

#19

I've never understood why ISPs and cellular carriers aren't prepaid by default, which would avoid the credit system entirely. Do these companies benefit somehow by being post-paid and relying on credit?

Using centurylink now. It's prepaid.

And it's fantastic until you need anything beyond the most basic service. Their IPv6 deployment is awkward and requires a fairly complex script to work on my router. I called asking to add on static IPs and learned they aren't supported on the prepaid plan.
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