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Class Action Accuses AOL of Double-Billing Scheme

September 29, 2003
A consumer class action lawsuit accuses AOL of deliberately double-billing hundreds of thousands of customers through a deceptive scheme involving multiple screen names. The suit also names ICT Group, which operates customer service centers for AOL, a division of Time Warner.

The lawsuit alleges that over the past two years, AOL has regularly double-billed many of its subscribers by creating what it refers to as "spin-off sub accounts."

"I noticed in Feb., March, April, 2003, I was getting double-billed for one account. I contacted AOL, told them of the problem and was told that I could only be reimbursed for 2 of the months," a consumer from Michigan told ConsumerAffairs.com recently.

The spin-off accounts are created for subscribers who maintain multiple screen names in a deceptive manner that's intended to deter customers from realizing they are being billed for two separate accounts, the suit charges.

Allegedly, AOL charges subscribers' credit cards at the beginning of the month for one subscription fee and will then post a second subscription fee towards the end of the month. Consumers reviewing their credit card statements see two charges for $23,90 and assume that one charge is for the most recent month and the other is for the current month.

Only by carefully examining their credit card statements each and every month would consumers realize they were being billed each month for two accounts, attorneys said.

When consumers discover the double billing and contact AOL to remedy the problem, they encounter the brick wall for which AOL has become famous -- a complex maze of voice-mail prompts and long periods on hold, both intended to discourage consumers from pursuing the matter, the suit charges.

When consumers finally do reach a live representative, who in most cases is an ICT Group employee, they are subjected to a vigorous sales pitch encouraging them to keep both accounts. If the consumer persists in demanding a credit, the representative flatly refuses to provide a full refund.

"I found out that I was double-billed $23.90 by AOL, from February 2002 - to October 2002," said Jill of Carson, Calif. "When, I finally caught the error, I called AOL and they said my stepson called and opened his own account. My husband and I both of accused of him of this and he swore up and down that he did not do it."

ConsumerAffairs.com is collecting evidence from consumers victimized by AOL's double-billing. Affected consumers should file a consumer complaint immediately.

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