ATTORNEY GENERAL ANNOUNCES SETTLEMENT WITH VONAGE, RESTITUTION TO CONSUMERS (press release)
Attorney General Richard Blumenthal announced that consumers who have unresolved complaints against Vonage — an Internet-based phone service — may be entitled to restitution under a $3 million settlement reached with his office and other attorneys general.
The settlement, reached by Blumenthal in coordination with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr., provides $246,000 to Connecticut taxpayers, in addition to direct refunds to consumers.
Blumenthal urged consumers to contact his office in writing if they have unresolved complaints against Vonage dating as far back as Jan. 1, 2004, that may involve unauthorized or questionable charges; inability or difficulty in canceling service; and confusion about the need for consumers to already have high-speed Internet service and to purchase additional equipment in order to receive Vonage service.
Such consumers should immediately contact Blumenthal’s office in writing before the end of February to allow time for his office to review their complaints and potentially transmit them by March 16, 2010, to Vonage for refunds.
Blumenthal said, “This settlement stops high-pressure practices — tactics that cornered consumers into unwanted contracts, and provides money directly back to customers. Our investigation revealed a pattern of consumer confusion abetted by Vonage about contract terms and costs for Internet phone service. When consumers felt misinformed and misled, Vonage raised virtually insurmountable obstacles to cancelling contracts.
“I strongly urge consumers wronged by Vonage to take advantage of this settlement and seek restitution — ranging from $30 to nearly $1,500 — for unauthorized or unfair charges as soon as possible. Meanwhile, my office will continue to monitor Vonage’s practices and compliance with this settlement to ensure fairness going forward. Consumers should contact my office no later than Feb. 28.
Blumenthal was one of the lead attorneys general of a coalition of 32 states in reaching a $3 million settlement with Vonage, one of the nation’s largest Internet-based phone service providers, that requires the company to make significant changes to its marketing practices, to honor consumer cancellation requests, and provide refunds to eligible consumers.
Blumenthal’s office received more than 40 complaints from consumers who have alleged that they incurred charges that were contrary to Vonage’s representations and were unable to cancel their Vonage service or experienced difficulty in cancelling service, which resulted in additional charges.
Vonage formerly paid incentives to customer service representatives for retaining or “saving†customers in lieu of cancellation, when consumers called to cancel. As a result, consumers said cancellation was extremely difficult and sometimes impossible.
Blumenthal’s multistate settlement with Vonage strictly limits these practices and requires recording and verification of these retention telephone calls.
The settlement also compels Vonage to revise its disclosures regarding the offer of “free†services, money-back guarantees and trial periods. It requires restitution to eligible consumers who previously filed complaints as far back as January 2004, or who file complaints with the Attorney General through the end of February, 2010, which have not been fully resolved.
This settlement is separate and distinct from a settlement that Blumenthal reached with Vonage Holdings Corporation in March 2008 to assure its Internet telephone subscribers have full and fast 911 emergency access. Blumenthal had sued the company for failing to fully inform consumers that their 911 calls could be delayed or not go through.
Vonage subsequently upgraded its system to assure its consumers have the same ease of access to 911 as traditional phone subscribers.
The investigation of the case was led by Connecticut, Illinois, Michigan, Oregon, Pennsylvania, Texas, and Wisconsin. States that also participated in the settlement include: Alabama, Arizona, Arkansas, Florida, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Missouri, Montana, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Vermont, Washington, West Virginia, and the Commonwealth of Kentucky.
Consumers should send written complaints to: Attorney General’s Office, 55 Elm St., Hartford, CT 06106 marked “Vonage Settlement.â€
when i tried to cancel my service i had to spend almost an hour trying to make understand vonage that i dont needed them anymore, they did not want to take a No as an answer i had had to be very rude and yell at them.
just to advise you iam a senior 68 years old I signed up with vonage april 14th 09 and called them on april 14 2010 to concel my service the phone service was terrible. Elaine one of their reps told me to call back then and i wouldnt be charge a fee. Well I called back got aother rep mary told her what elaine stated and she told me no it would cost me 48.00 for breaking a two year contract. I told her I had lung cancer only needed the phone for doctors and family. she said if you signed before or after april 07 and after may 29th then it would not cost me. she told me to read the terms of service. I told mary its very hard to understand the terms its about a block long. I said you advertize on the net 6 month or 1 year contract that is what I signed up for not 2 years. So I spoke to another rep. and his name is james he told me the samething and that elaine made a mistake. They went right into y cking acct and took 48.00 which, Im trying to get back . there service was terrible had to send their equip back in may because drop calls , couldnt talk to anyone cutting out. so can you tell me how to go about it im in fl
Apparently nothing has changed at Vonage. I was a customer in 2009 and finding no need for a home phone anymore I cancelled my service….or so I thought. Having heard nothing from Vonage for the last three years I had completely forgotten about it. That is until today, when I received a letter from a collection agency claiming that I owed Vonage $99.67. I called the agency to inform them that they were mistaken and they told me to contact Vonage. When I contacted Vonage I asked several times, why, in three years, did they make no attempt to contact me with their claims or even inform me that my account was still active. They claimed to have called (the phone that I had just thought was disconnected and was not using), and emailed (an old email that I had no updated because, again, I thought my Vonage account was closed). When I further questioned why, seeing as they obviously have my name and address, they had no contacted me by mail, the only response I received was they, “…don’t do that….” After filing a report with the Better Business Bureau and the FCC, I began searching the internet and found that apparently Vonage is known for these types of business practices. They do not honor customer’s requests for cancellation and continue to charge them. Apparently many people have attempted to cancel their services only to find out days, weeks, months, or in my case years, that Vonage never honored that request. I cannot for the life of me understand Vonage’s business practices or how they are still getting away with this.