In the past three years, more than 53,000 customers have complained to the Better Business Bureau about satellite TV providers, with 39,000 of those complaints filed against DirecTV and 13,000 filed against Dish Network. Many complaints stem from fees and terms outlined in the customer agreement and BBB recommends that TV viewers planning to make the switch to satellite should read the fine print closely.

According to company reports, DirecTV has more than 18 million customers in the US and Dish Network has more than 14 million. The complex policies and fees that are sometimes unique to satellite service has led many customers to complain to BBB about the contractual obligations outlined—but often overlooked—in the fine print of their agreement.

“Many complaints to BBB about satellite providers stem from steep cancellation fees,” said Kim States, BBB President. “If customers aren’t satisfied with their service or they can’t afford the cost after the introductory period, it isn’t that easy to cancel because the early termination fees can run into the hundreds of dollars.”

Following are examples of common complaints BBB receives about satellite TV providers:

• Early Termination Fees – Complainants report paying cancellation fees amounting to more than $600. Commonly the customer felt that the company didn’t provide the services promised and they shouldn’t have to pay to cancel service they weren’t happy with or didn’t receive. In some cases the customer claims they were not aware of the policy or that a sales rep misrepresented the terms.
• Introductory Offers – Many promotions will offer a lower price or premium channels for an introductory period, after which the customer will be charged the full price. Some complainants state their monthly bill increased substantially more than they anticipated. Others state they were promised gift cards for signing up that never materialized or rebates that couldn’t be redeemed immediately.
• Billing issues – Some complainants state that they were charged for services they didn’t order—such as pay per view movies—or were charged for services which they thought would be (more…)

Better Business Bureau of Southern Arizona is warning cash-strapped families to beware of some online payday lenders that claim they are not beholden to state or federal laws regarding licensing requirements, debt collection practices or caps on interest rates.

“Desperate times are leading people to the Internet to apply for payday loans and many are falling deeper into debt after getting tangled up with a lender who has zero regard for the law,” said Kim States, President and CEO of the Council of Better Business Bureaus. “Unlike a payday loan that you might get from a local business, online payday loans require your bank account number and, as a result, the borrower is at the mercy of the lender as more money than they counted on is withdrawn from his or her account.”

Hundreds of people, including at least one Tucson consumer, have complained to BBB after signing up for a payday loan on sites like OnceClickCash.com, 500Fastcash.com, rbtloans.com and Ameriloan.com. Complainants state that they agreed to what they believed was a one-time payday loan — typically a few hundred dollars to be paid off in two weeks. They supplied their bank account information to the lender and the money was promptly deposited.

The arrangement quickly turns into a debt spiral. Complainants state all of their subsequent payments went toward paying off recurring finance charges and never toward the principal. As a result, they report paying two and three times the amount of the original loan and still having the same amount of principal to pay off.

Sherry Hinojosa, of Tucson, told BBB she was forced to cancel her bank account after taking out a $300 loan with PDL Ventures, which operates multiple online payday lenders. The company, she said, continued to withdraw money from her account, even after she had thought the original loan was paid off.

“They virtually wouldn’t let me pay it off, and they wouldn’t tell me what my balance was,” Hinojosa said. “They just kept taking more money out each week.”

Eventually Hinojosa took her case to her bank and was able to place a “stop payment” on the reoccurring charges, but initially even that proved inadequate in preventing the company from gaining (more…)