
Hans of Newport Beach, CA on May 14, 2008
Can you imagine having to pay $15,000 to cancel a contract for phone and internet service after only a few weeks of service? We are currently being held hostage to a contract that was signed as the result of negligent misrepresentation by the perpetrators sales representative and now they are using scare tactics to keep us from our rights to cancel early without penalties. Us versus CBEYOND
On 3/15/08 a representative from CBEYOND (Mike Smith) met with our company execs to talk about consolidating all our communication and technical services to CBEYONDs Beyond Voice Communications Package?. The benefits included replacing what the sales rep described as our crappy Vonage phone service? with CBEYONDS much better VOIP phone solution. The other benefit was that rather than having separate bills for all our cell phones, Vonage, AT& T, and other services, they could be consolidated into one bill. The sales rep also stated the installation charge will be dropped and indicated it in the contract.
During their pitch, we discussed our current situation relative to our cell service. The sales rep gave us a low quote on cell service for each phone, but we soon discovered that the low rate did not include the additional $40 per month for internet service on the phone. After discussing it with the group, we decided to go with the phone service (minus the internet). We were then asked to select free phones to use with the service. We chose the Blackberries.
We then discussed the rest of the services being offered and took the CBEYOND package into consideration. It was evident that the sales representative did not want to leave without closing the sale, so they offered us $800 in rebates that expired the next day. There was 6 pages of fine print to review, however, we asked the sales rep if there were any hidden charges in the contract and he stated no. The contract looked like a standard boiler plate contract and we signed it. The sales guy also said all our existing landlines (vonage phone lines) would be ported over to the CBEYOND phone service.
Some issues started to arise in the billing portion of the contract. Various options that were supposed to be part of the package were being billed as new line items. The bill was higher than originally expected and it turns out some additional services were added. A blackberry service of $40 per phone was added to each blackberry phone. Per our contract, we were told we wouldnt have to pay for that service. When discussing it with Samuel from their Mobile Escalations Department, he stated the sales rep made a mistake and regardless of what the contract says, Blackberry service is required with the Blackberry and our choices are to either pay it or downgrade the phone to the Sanyo Katana. So we were sold a Blackberry and now told to send it back if we dont want to be charged for Blackberry service.
The second issue is that our main phone line could not be ported over from Vonage to CBEYOND. As a result we still have a Vonage bill every month and experience some of the Vonage issues that made us switch to CBEYOND in the first place. CBEYOND did not come through on their contractual obligations relative to replacing our existing service with their service (relative to porting the existing Vonage phone line) and also not honoring the contract relative to foregoing the Blackberry monthly service charges of $40 per phone.
We attempted to rescind the contract and void it based on the negligent misrepresentation by the sales rep and CBEYOND will not let us out. They pointed out their early termination policy which states we are liable for 100% of the fees for year 1, 75% for year 2, and 50% for year 3 of the remaining contract. They threatened to enforce this policy on us if we cancel.
We feel like we are being bullied by CBEYOND. They have clearly breached the contract and stated that if we cancel, they will send us a bill equal to the early cancellation fee? in their contract (scare tactic); in which case we would have to sue and so forth. It feels like they are forcing us to keep their service and making it economically unfeasible to cancel. There has to be some legal issues here. We are paying additional monthly fees for services we did not agree to. One of our Vonage phone lines could not be ported to the CBEYOND network and still experiences Vonage related issues. And after one month of service, CBEYOND threatened to charge us an early termination fee of over $15000 should we cancel early.