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

latimes.com

21–30 of 51 posts

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

#21

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?

You are overestimating customers' willingness to prepay. Using the service all month and getting a bill at the end is a hardwired habit and how all utilities have operated forever. Increasing the up-front cost for a new customer by $50-100 is going to be a huge hit for the business.

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

#23
post #20

It sounds someone crafted a letter for people who own balance and made a mistake when they queried the CRM for a list of customers. I am not convinced that it was meant to be an actual threat to trash the recipient's credit score.

Agreed, if the customer owed something/missed a payment, then this letter makes sense.

This customer didn't owe anything, so clearly this letter wasn't intended for them, but got it by an error.

I'm all for pitchforking Comcast and other giants who have terrible business practices, but this article seems like it's trying to drum up angst when this can clearly be explained by a mistake.

If I had bad debt and an option to repay my debt or have it cancelled if I do X and X is reasonable, these are both good options.

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

#24
post #21

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?

You are overestimating customers' willingness to prepay. Using the service all month and getting a bill at the end is a hardwired habit and how all utilities have operated forever. Increasing the up-front cost for a new customer by $50-100 is going to be a huge hit for the business.

True, with one big but. Once a customer is established, especially if you can get them in the autopay system, the prepaid charge becomes just another bill as well. Most customers won't think too hard about whether they are paying last month's bill vs next month's service charge.

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

#25
post #24
post #21

Earlier quoted context omitted.

You are overestimating customers' willingness to prepay. Using the service all month and getting a bill at the end is a hardwired habit and how all utilities have operated forever. Increasing the up-front cost for a new customer by $50-100 is going to be a huge hit for the business.

True, with one big but. Once a customer is established, especially if you can get them in the autopay system, the prepaid charge becomes just another bill as well. Most customers won't think too hard about whether they are paying last month's bill vs next month's service charge.

> Most customers won't think too hard about whether they are paying last month's bill vs next month's service charge.

Sure, but you still have to switch the billing cycle from end of month to beginning of month somehow. Customers are definitely going to care if they are suddenly hit with a 2x charge.

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

#26
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

As the article clearly states, he had no debt with Spectrum. Which Spectrum admitted when questioned.

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

#27
It doesn't surprise me. Spectrum is currently the only non-dsl provider in my area, so I'm basically forced to use their service since I moved here. The first time I paid with one of my cards, the bank flagged it as suspicious and denied the transaction. Spectrum then charged me a $25 fee and initially refused to refund it until I was very persistent and annoying.

They also constantly send me spam regarding Spectrum mobile with subjects like "Your response is required". I even used their cost estimator to compare it to my current provider, Mint Mobile. When I entered my current plan into their calculator, it told me that I made a mistake (because it was so much cheaper.)

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

#28

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.

You say that like politicians and companies never talk to each other. Who do you think is exerting the corrupting pressure on the politicians?

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

#29
post #20

It sounds someone crafted a letter for people who own balance and made a mistake when they queried the CRM for a list of customers. I am not convinced that it was meant to be an actual threat to trash the recipient's credit score.

Agreed, if the customer owed something/missed a payment, then this letter makes sense. This customer didn't owe anything, so clearly this letter wasn't intended for them, but got it by an error. I'm all for pitchforking Comcast and other giants who have terrible business practices, but this article seems like it's trying to drum up angst when this can clearly be explained by a mistake. If I had bad debt and an option…

This type of letter doesn't make sense no matter what, and if people receive something like this they should immediately file a complaint with the FTC for FCRA violations.

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

#30

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?

Or instead of credit just require a one-time deposit like utilities do when you don't provide a SS# for the credit check. It can still be post-paid, just pocket the deposit and kill the service if they miss paying a month.
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