Contract Extortion? Need some advice.

[Rathji]

I moved out of town a couple years back and since there isn't any real internet out there I finally decided on a wireless radio service provider, Xplornet. They offered me a deal on a contract for free install, and since I was planning on living there for that long I had no problem paying it.

Fast forward to now, and we have moved back into the city since the house we were living in was slated to be sold/moved. So we consider our options with our internet contract, either we cancel which amounts to $25 a month over the rest of the contract, or we keep it in town and pay $30 a month. So we decide to keep it and move it into the city so at least we are getting something for our money we are being forced to pay. Sure it sucks, but we did sign the contract so whatever.

Now the installer went to the new place and turns out they cannot provide service there due to line of sight issues and they give me 2 options

1) Upgrade our service to their satellite service, which is $100 a month for the blazing fast 1.2Mbps download speed, plus $400 bucks for equipment and about $200 to install. No this is not a joke, they want me to pay twice what Shaw charges, for less than 10% of the speed. Check here if you don't believe me

-OR-

2) Cancel our plan and pay the cancellation fee even though they are unable to provide the service we signed up for, which is about $400.

I want to refuse to pay the cancellation fee, since why should I pay a penalty because they cannot give me service. I am willing to keep the service I signed up for for the price we agreed upon when I signed the contact, but I am not willing to be forced another more expensive service because they cannot provide the other one any further.

The problem is they don't care what I think is right, or what makes sense. They only care that they get their money. If I refuse to pay, it goes to collections, I take a hit on my credit until I decide to shell the cash out. I do pay, and I validate their extortion tactics for them to keep screwing people.

Any advice on how I can get out of this? Taking someone to court for $400 would be good for troutman's wallet, but kinda pointless on my end.

[Peanut]

How much longer is the contract for?

This kind of happened to us with an alarm system and we moved houses. The contract doesn't end for another 15 months or so, we asked about buying it out for a lump sum amount, but the buy-out fee is just the 15 months of charges added up and we pay for it today. So, since they aren't really giving a discount for the time-value of money aspect, we decided to just keep paying them the $30/month until the contract expires even though we're not actually receiving any service from them.

Annoying, but it doesn't really make sense to pay the buy-out fee since it would actually cost us more to do so.

So anyways, if it's the cheapest option to just keep paying them the monthly fee until the contract expires (even though you're not receiving their services), I guess you could always go that route even though it's not a great option?

[Rathji]

Originally Posted by Peanut

How much longer is the contract for?

16 months on the contract.

And no, it isn't cheaper to pay it out in the long run, but the 5 bucks extra a month is worth having the service compared to not having it.

[RougeUnderoos]

It doesn't really seem like it's their fault that you can't receive their service.

It is their fault for trying to get you to pay for that useless equipment and lousy service though. Pay them off, get rid of them.

Shaw and Telus both seem to be falling over themselves to get new customers. Maybe you can make some of your money back with a deal from them (Shaw just offered me two free high-speed months yesterday, and a digital cable deal).

[jammies]

Have you thought about asking the new people that moved into your old place if they want to assume the rest of the contract?

[Rathji]

Originally Posted by jammies

Have you thought about asking the new people that moved into your old place if they want to assume the rest of the contract?

Haven't yet. I just found out about the problem with transferring it this afternoon.

Can't hurt to try I guess.

[T@T]

Originally Posted by Rathji

I moved out of town a couple years back and since there isn't any real internet out there I finally decided on a wireless radio service provider, Xplornet. They offered me a deal on a contract for free install, and since I was planning on living there for that long I had no problem paying it.

Fast forward to now, and we have moved back into the city since the house we were living in was slated to be sold/moved. So we consider our options with our internet contract, either we cancel which amounts to $25 a month over the rest of the contract, or we keep it in town and pay $30 a month. So we decide to keep it and move it into the city so at least we are getting something for our money we are being forced to pay. Sure it sucks, but we did sign the contract so whatever.

Now the installer went to the new place and turns out they cannot provide service there due to line of sight issues and they give me 2 options

1) Upgrade our service to their satellite service, which is $100 a month for the blazing fast 1.2Mbps download speed, plus $400 bucks for equipment and about $200 to install. No this is not a joke, they want me to pay twice what Shaw charges, for less than 10% of the speed. Check here if you don't believe me

-OR-

2) Cancel our plan and pay the cancellation fee even though they are unable to provide the service we signed up for, which is about $400.

I want to refuse to pay the cancellation fee, since why should I pay a penalty because they cannot give me service. I am willing to keep the service I signed up for for the price we agreed upon when I signed the contact, but I am not willing to be forced another more expensive service because they cannot provide the other one any further.

The problem is they don't care what I think is right, or what makes sense. They only care that they get their money. If I refuse to pay, it goes to collections, I take a hit on my credit until I decide to shell the cash out. I do pay, and I validate their extortion tactics for them to keep screwing people.

Any advice on how I can get out of this? Taking someone to court for $400 would be good for troutman's wallet, but kinda pointless on my end.

Personally I would tell them to take a hike and I'll see you in court, any judge in the land knows that people have to move sometimes. You did your part telling them you'll keep their service but "it just doesn't work"

I highly doubt they would bother suing you over $400.00 and make sure you tell them if they flag your credit bureau you'll sue them.

[blankall]

Have you looked at the contract. Normally there is a clause in there dealing with the eventuality they are unable to provide service to you or what happens if you move.

Also, check their coverage area. If your new house is inside it and they are unable to provide service to you, this is 100% their problem.

With these kind of companies the people working the service floor and on the first line usually have zero power.

Ask to talk to managers. Make a fuss repeatedly. Never admit fault when talking to them. Just emphasize over and over again that they are the ones unable to provide service.

Do this daily if you have to, always ask to speak to higher level managers.

[4X4]

Originally Posted by T@T

Personally I would tell them to take a hike and I'll see you in court, any judge in the land knows that people have to move sometimes. You did your part telling them you'll keep their service but "it just doesn't work"

I highly doubt they would bother suing you over $400.00 and make sure you tell them if they flag your credit bureau you'll sue them.

Yeah, right. They'll still flag his credit. Because they know that 9/10 people that make threats like this don't have the time or money to actually go to court and f*** with a corporation.
Even if Rathji took them to court and won, the company would take it's sweet assed time removing the credit note.
Not worth the battle, man. As annoying as it is, you signed the contract and now you have to pay. It's not extortion that they provide good rates in rural areas but they can't compete inside the city. It's just life. I'd be pissed too, but them's the breaks. Pay the fee and never sign another contract again.

[blankall]

Originally Posted by 4X4

Yeah, right. They'll still flag his credit. Because they know that 9/10 people that make threats like this don't have the time or money to actually go to court and f*** with a corporation.
Even if Rathji took them to court and won, the company would take it's sweet assed time removing the credit note.
Not worth the battle, man. As annoying as it is, you signed the contract and now you have to pay. It's not extortion that they provide good rates in rural areas but they can't compete inside the city. It's just life. I'd be pissed too, but them's the breaks. Pay the fee and never sign another contract again.

I wouldn't go this route necessarily at first. The reason these companies drag their feat so much is taht 99% of the people wanting to get out of the contract are just having buyers remorse or are unwilling to fulfill a commitment after getting a sweet deal up front.

In cases where the consumer has geniunely been wronged, the corporations will usually fold if you are persistent in a confident yet non-aggressive way with them.

Make sure to read the contract and ensure they are upholding their end of the bargain. By not offering you service it sounds like they aren't.

Like the previous poster said there is also the possibility to assign the contract.

I worked for telus for years. For the most part we just stonewalled people, but we also had to back down when we were clearly in the wrong. People on the front lines had no power but upper level managers most certainly did.

[4X4]

Yeah, I tend to agree, blankall. I wouldn't just curl up and die. But the whole court thing (or threatening to take it to court) just wont fly.

[Rathji]

Originally Posted by blankall

Have you looked at the contract. Normally there is a clause in there dealing with the eventuality they are unable to provide service to you or what happens if you move.

Also, check their coverage area. If your new house is inside it and they are unable to provide service to you, this is 100% their problem.

With these kind of companies the people working the service floor and on the first line usually have zero power.

Ask to talk to managers. Make a fuss repeatedly. Never admit fault when talking to them. Just emphasize over and over again that they are the ones unable to provide service.

Do this daily if you have to, always ask to speak to higher level managers.

Both the lady I talked to before I moved and the website claim that they have service in the area. I have talked to managers all afternoon and no matter where I escalated it they were unwilling to budge.

They will get their pound of flesh I guess.

[Kjesse]

I'm not sure why you're blaming the company for their not being available in your new area without satellite upgrades.

They paid for or licensed lines and service to where your subdivision or area was, based on expectations of commitment over time.

You want to end the contract because you moved.

Now you complain it takes a satellite to get the service to you and you say the satellite service is not competitive in your new market.

In other words, you want them to pay for the upgraded hardware even though without that hardware you gave them a guaranteed contract, and complain that because now you're in an area where someone else can service you cheaper you should be allowed to break your contract.

Or you just want them to forgive the money you promised them and let it go, because you moved.

You didn't sign a month to month contract. You signed a term contract.

You should suck it up, you're the one in breach. Let it go.

Sometimes consumers are just whiny.

EDIT: Contract extortion is the title of this thread? Lol. How about, "I don't like to pay for my commitments help me break them"

[Mrs. Rathji]

The people who we have spoken with repeatedly have told us the contract is with the location that the service is with. Last I checked the land didn't sign the contract and therefore isn't liable. Who out there expects to be screwed over for moving. As someone who is directly affected by this issue and who works in a similar industry I know that if my company can't provide service to an area you don't have to continue paying for that service. Honestly we would keep the service if they were willing to provide the service we signed the contract for but they are unable to provide that service. Moving in not a breach of contract! We either want the service they promised us for the money agreed upon or the contract to be voided. Doesn't sound to out of the ordinary to me. But apparently I am just a whiny consumer. Go figure!

[Rathji]

You have misunderstood my post, I might not have explained myself in great detail because posts that are 4 pages long are not fun to read:

Originally Posted by Delgar

You want to end the contract because you moved.

I want to move my service to an area they told me before I moved would be able to receive service. I want to end the contract because I didn't sign a contract for satellite.

Now you complain it takes a satellite to get the service to you and you say the satellite service is not competitive in your new market.

Why should I be forced to pay twice as much a month and a huge install fee for a new service that was not what I signed up for?

In other words, you want them to pay for the upgraded hardware even though without that hardware you gave them a guaranteed contract, and complain that because now you're in an area where someone else can service you cheaper you should be allowed to break your contract.

This has nothing to do with cheaper service in town. I am willing to pay for what I signed up for.

Or you just want them to forgive the money you promised them and let it go, because you moved.

I have no problem giving them the money I promised them, for the service they promised me. How does this contract entitle them to my money without them providing service? Somehow they are automatically in the right for screwing me over and I am automatically in the wrong?

You didn't sign a month to month contract. You signed a term contract.

You should suck it up, you're the one in breach. Let it go.

Sometimes consumers are just whiny.

Customers can be whiny, especially when lied to. When I called them and asked specifically about this location they promised me it would work. They said that if they could not provide service they would not charge me the cancellation fee. Like an idiot, whining customer, I assumed she was telling me the truth. This isn't the first time they lied to me either, but "since they have no record of it" or "they wouldn't have told me that" I have been forced to deal with.

EDIT: Contract extortion is the title of this thread? Lol. How about, "I don't like to pay for my commitments when the company forces me to break them"

Fixed that one for you. I am willing to pay for my service, but being forced to cancel or upgrade it when they told me it could be moved is extortion.

It is not right for a company to be able to do what they have done. Sure, I am at fault to, for not realizing the exact ramifications of the contract, but that shouldn't give the company a free pass to screw me however it wants.

[mykalberta]

Originally Posted by T@T

Personally I would tell them to take a hike and I'll see you in court, any judge in the land knows that people have to move sometimes. You did your part telling them you'll keep their service but "it just doesn't work"

I highly doubt they would bother suing you over $400.00 and make sure you tell them if they flag your credit bureau you'll sue them.

I am not sure that flys. What if you had a contract with Telus for high speed and decided to move to bumsville Sask or AB where Telus highspeed isnt available. It isnt Telus's fault you signed the contract.

Just IMO

I would pay them out and be rid of them. Or stop paying and let them take you to court.

[Boblobla]

Originally Posted by mykalberta

I am not sure that flys. What if you had a contract with Telus for high speed and decided to move to bumsville Sask or AB where Telus highspeed isnt available. It isnt Telus's fault you signed the contract.

Just IMO

I would pay them out and be rid of them. Or stop paying and let them take you to court.

They won't though, they will just rape your credit rating.

[LChoy]

Just a suggestion maybe
Call them back again, and let them know very clearly that you are recording the conversation because you feel you are being wronged and is forwarding the complaint to the media and/or better business . Re-explain your position, and have them re-explain theirs. Global is always doing that consumer segment
Maybe that will help

[valo403]

Originally Posted by Delgar

I'm not sure why you're blaming the company for their not being available in your new area without satellite upgrades.

They paid for or licensed lines and service to where your subdivision or area was, based on expectations of commitment over time.

You want to end the contract because you moved.

Now you complain it takes a satellite to get the service to you and you say the satellite service is not competitive in your new market.

In other words, you want them to pay for the upgraded hardware even though without that hardware you gave them a guaranteed contract, and complain that because now you're in an area where someone else can service you cheaper you should be allowed to break your contract.

Or you just want them to forgive the money you promised them and let it go, because you moved.

You didn't sign a month to month contract. You signed a term contract.

You should suck it up, you're the one in breach. Let it go.

Sometimes consumers are just whiny.

EDIT: Contract extortion is the title of this thread? Lol. How about, "I don't like to pay for my commitments help me break them"

Nobody is in breach here, I'm not sure how you came to that conclusion. Without reading the actual contract it's impossible to tell if the provider is in breach, but there is absolutely no question that Rathji is not in breach at this point in time. Unless he defaults upon the payment there is no breach, that's about the most basic contract law issue there is.

As for your options, I think the 'go to the media' option might be your best bet. I kind of doubt there is any legal basis for you to get out of paying the remainder of the term, I'm suspecting there's a clause that covers situations where the service cannot operate unless upgraded. Maybe some public pressure will get them to just say forget it and let you off the hook.

[Bring_Back_Shantz]

Originally Posted by valo403

Nobody is in breach here, I'm not sure how you came to that conclusion. Without reading the actual contract it's impossible to tell if the provider is in breach, but there is absolutely no question that Rathji is not in breach at this point in time. Unless he defaults upon the payment there is no breach, that's about the most basic contract law issue there is.

As for your options, I think the 'go to the media' option might be your best bet. I kind of doubt there is any legal basis for you to get out of paying the remainder of the term, I'm suspecting there's a clause that covers situations where the service cannot operate unless upgraded. Maybe some public pressure will get them to just say forget it and let you off the hook.

Why should he go to the media.
I'm on board with the folks that say, "Too bad, you moved, and you're the one causing the problem with service, not them. Pay up".

Let's say I signed a lease on a car, and then 6 months later decided to move to Australia.
Would I get the "Go to the media" reactions if I came on here complaining that the car company is holding me to my contract, of making me find someone else to make the payments? Probably not.


It's not contract extortion, it's contract ENFORCEMENT.