Fed-up DirecTV subscribers turn up the volume on hidden fees

[Scott Greczkowski]

A satellite TV company is getting static from irate customers for allegedly sneaky business practices, and a state legislator is pushing for a crackdown.

DirecTV, a California-based company with 18 million subscribers nationwide, has become notorious for exorbitant early cancelation fees and quietly extending contracts for two years any time they replace or upgrade a receiver.

State Sen. Jeff Klein (D-Bronx) had proposed legislation to make sure cable and satellite companies disclose early cancelation fees in a clear manner to consumers - something DirecTV says it already does.

Read more: Fed-up DirecTV subscribers turn up the volume on hidden fees

 

[Scott Greczkowski]

I am guessing the Early Termination Problem that I had is very common as the article states.

Nonetheless, the Better Business Bureau has received more than 20,000 complaints nationwide over the past three years from DirecTV customers, claiming the early cancelation fees came as a surprise.

The agency recently changed DirecTV's rating from a C-minus grade to No Rating, meaning it has received so many complaints that the company's grade is now below an F.

 

[JosephB]

I think it'd probably be easier to create a "Scott's pissed off at DirecTV" subforum to put all of these threads. Is it really required to post these every time a new local paper picks up this story? We get it, DirecTV has made an enemy in Scott and now the community here has to suffer through it

 

[lern4483]

Scott-Just tell it like it is!

I think it'd probably be easier to create a "Scott's pissed off at DirecTV" subforum to put all of these threads. Is it really required to post these every time a new local paper picks up this story? We get it, DirecTV has made an enemy in Scott and now the community here has to suffer through it

I dont think so...

Again, Scott, has to be the whistle blower for the good, bad and ugly
of all our cherished sat cos.

I dont care who it is, Dish, direc, uverse, fios...

If they do good-say it!

If they screw up-Say it!

If consumers are being taken advantage of - say it!!!

Scott-Ignor people who take this stuff personally.

Right now direc is losing focus on the big picture. The consumer.

They screwed with me as well. Notice a trend here?

 

[JustinF]

It's not just the sat companies that are doing this. It is a common problem in all of big business. The cancer of lying and deceiving the consumer is eveywhere these days. So much for running a true HONEST business. America better start to run itself more honestly and with integraty if it has any chance of survival. This spat between D* and Comcast over Versus is pretty much a bunch of kids wanting it both ways and the consumer gets stuck without the channel. Both parties are to blame for this mess. They can't seem to work together for the common good of the subcriber. D* has 18 million subs and the average sub pays about $120.00 a month. Multiply that out by the 18 million and where is the $$$ going. Thats 216 million in income for D* minus programming costs and building more sats. Just my take. If I am wrong let me know.

 

[JosephB]

Is DirecTV the only company that has contracts and ETFs? Does Dish network not require a 2 year commitment? What about cell phone companies? I'm fairly certain that DirecTV spells out the policy about the commitment when you order service. Also, why does everyone get so up in arms about it? If you're not going to have service for two years why go through the hassle of getting it installed? If people are getting cheated, then say so. If it's widespread, say so. If it's a couple of exceptions where a CSR didn't do the right thing, then I think that should be noted. DirecTV is huge and they are not going to be perfect all of the time. The internet has a huge amplification effect, and just because you read 5 or 10 stories about someone getting screwed doesn't mean it's company-wide policy that happens to everyone that deals with the company. They have nearly 20 million subs. 5-10 people are not a representative sample. The churn numbers keep dropping and their new subs keep increasing, so obviously they're doing something right.

I'm not trying to be a DirecTV fanboy, and I'm not saying they can do no wrong. I do think, however, that lately there has been a distinct bias towards trying to bash on DirecTV at every opportunity. That's especially bad since Scott has a column at an industry website. I would hope that things would be fair and objective and wouldn't be based on personal biases

 

[hankb11]

People are upset with getting a new 2 year contract when replacing a defective receiver.

 

[wcalifas831]

STOP DEFENDING THEM

Yea well someone needs to speak up, stop defending these cable crooks. It's about time people stood up and finally do something about these big cable companies and corporations deceiving the common folk. Remember there used to be a bill for de-regulation that only made cable prices skyrocket. We shouldn't have to give and arm and a leg for cable or satellite. With better technology, it should be getting cheaper not more expensive. The lack of oversight in regulating these companies has created a no-holds barred price gauging system. So Scott give it to them, they deserve it.

 

[Scott Greczkowski]

I think it'd probably be easier to create a "Scott's pissed off at DirecTV" subforum to put all of these threads. Is it really required to post these every time a new local paper picks up this story? We get it, DirecTV has made an enemy in Scott and now the community here has to suffer through it

The problem here is not Scott... the problem is DirecTV.

If it was only Scott it would be one thing... over 20,000 people have filed complaints about this. This is NOT a scott issue, its a DIRECTV issue.

Shut your moth and open your eyes and take a look whats going on.

DirecTV is not bad... hell I sold 70 DirecTV systems this weekend. It is still some of the best television service out there, the issue here is on the customer service side of things and they need fixing...

I just don't think so.. neither does 20,000 other American's and neither does the BBB or the New York Post. There are real problems here.

This was not some rinky dinky newspaper reporting the problems on DirecTV, this was the new York Post.

 

[Stargazer]

Dish Network does NOT require a two year contract extension when you replace a receiver that has a warranty on it, even if it is the DHPP warranty. They only require a contract when you upgrade a receiver. I have heard about this problem with Directv for quite a while. Dish Network has its own issues though. Every company has their advantages and disadvantages.

 

[cfb]

I'm fairly certain that DirecTV spells out the policy about the commitment when you order service.

Then you'd be incorrect. I was aware of the commitment and carefully observed to see where I'd be told about it. Nobody mentioned it when I ordered service. Nobody mentioned it when I upgraded. First time I saw the policy was in the fine print on the back of the document I signed after the installation was completed to acknowledge my acceptance of the install.

Also, why does everyone get so up in arms about it? If you're not going to have service for two years why go through the hassle of getting it installed?

Because the ability to cancel service if its inadequate or poorly delivered is a consumers best weapon. If it werent for the ETF I'd have probably canceled my Directv service after six months of pulling my hair out over the HR20's...the box that my Directv rep told me would provide me a great directv experience. To be fair, they've offered me plenty of credits to make up for my problems, but I might have been better served to take my business elsewhere.

Unfortunately that was an expensive option.

This sort of thing also masks bad products and services, since there are fewer customers canceling as a result.

Lastly, when directv lets me keep my receivers and I can unlock them and use them on another service, the cell phone analogy will be reasonable to make.

If it's widespread, say so. If it's a couple of exceptions where a CSR didn't do the right thing, then I think that should be noted.

If you read the article before complaining about it, you'd see that the Better Business Bureau received 20,000 complaints about this. Thats the people who actually complained about actually canceling (presumably because they had a big problem) and were unaware of the fees, and actually went through the trouble of filing with the BBB.

Thats more than 10 or 20.

The churn numbers keep dropping and their new subs keep increasing, so obviously they're doing something right.

Yes. They have a big fat termination fee, so people arent leaving them as often. See how that works out once the initial 2 year contracts start expiring.

All that having been said, I agree that incompetence is a better explanation most of the time than deception.

 

[JosephB]

The problem here is not Scott... the problem is DirecTV.

If it was only Scott it would be one thing... over 20,000 people have filed complaints about this. This is NOT a scott issue, its a DIRECTV issue.

Shut your moth and open your eyes and take a look whats going on.

DirecTV is not bad... hell I sold 70 DirecTV systems this weekend. It is still some of the best television service out there, the issue here is on the customer service side of things and they need fixing...

I just don't think so.. neither does 20,000 other American's and neither does the BBB or the New York Post. There are real problems here.

This was not some rinky dinky newspaper reporting the problems on DirecTV, this was the new York Post.

First of all, I'd like a refund of my pub membership. I don't think you should take an attitude like that with people who pay for this site.

Secondly, I've had no trouble whatsoever out of DirecTV. I don't call weekly to change packages or swap equipment or try to scam them out of free upgrades or move to get locals I'm not entitled to or any of the other games that go on. 20,000 people are one tenth of one percent of DirecTV's customer base. Sure, I bet they have some issues with customer service and with CSRs not doing what's right. I'm sure they also have some holes in the process and people are getting caught up. I don't think, however, that this sprung up overnight. It DID spring up pretty much immediately when all the CE drama did. Now granted, that has nothing to do with the reporting going on in the wider press, but I think the piling on going on around here has other motives.

 

[wildbill129]

Is DirecTV the only company that has contracts and ETFs? Does Dish network not require a 2 year commitment? What about cell phone companies? I'm fairly certain that DirecTV spells out the policy about the commitment when you order service. Also, why does everyone get so up in arms about it? If you're not going to have service for two years why go through the hassle of getting it installed? If people are getting cheated, then say so. If it's widespread, say so. If it's a couple of exceptions where a CSR didn't do the right thing, then I think that should be noted. DirecTV is huge and they are not going to be perfect all of the time. The internet has a huge amplification effect, and just because you read 5 or 10 stories about someone getting screwed doesn't mean it's company-wide policy that happens to everyone that deals with the company. They have nearly 20 million subs. 5-10 people are not a representative sample. The churn numbers keep dropping and their new subs keep increasing, so obviously they're doing something right.

I'm not trying to be a DirecTV fanboy, and I'm not saying they can do no wrong. I do think, however, that lately there has been a distinct bias towards trying to bash on DirecTV at every opportunity. That's especially bad since Scott has a column at an industry website. I would hope that things would be fair and objective and wouldn't be based on personal biases

Sure other companies do it. But they make it clear. If I logon to my Verizon wireless account, I can instantly see when my contract expires. Can you do that with DirecTV? No. Did I sign a document indicating I agreed with the contract when I signed up for Verizon? Yes. Did I with DirecTV? Nope, never signed anything agreeing to a 2 year comittment. (Although I personally knew what I was getting into, cause of sites like these)

And the big issue...if my LEASED receiver breaks, and DirecTV replaces their broken machine, why should I incorrectly get signed up for a new two year comittment?

Those are the issues D* is facing. And...remember the old saying, "The squeaky wheel gets the grease?" If there is enough negative press, lawsuits, and legislation, maybe D* will do something about these issues, and get back on top!

 

[jessshaun]

Know what's funny..... I had the exact opposite problem with Directv.

I had a receiver go bad, and my commitment which just restarted 2 months before that, was completely removed.

To make matters even better, Directv just called last night and offered me the new customer offer of free premier for 5 months, free DVR service for 5 months, with the purchase of NFL sunday ticket. I jumped on the offer.

I have no complaints at all.

 

[JosephB]

Sure other companies do it. But they make it clear. If I logon to my Verizon wireless account, I can instantly see when my contract expires. Can you do that with DirecTV? No. Did I sign a document indicating I agreed with the contract when I signed up for Verizon? Yes. Did I with DirecTV? Nope, never signed anything agreeing to a 2 year comittment. (Although I personally knew what I was getting into, cause of sites like these)

And the big issue...if my LEASED receiver breaks, and DirecTV replaces their broken machine, why should I incorrectly get signed up for a new two year comittment?

Those are the issues D* is facing. And...remember the old saying, "The squeaky wheel gets the grease?" If there is enough negative press, lawsuits, and legislation, maybe D* will do something about these issues, and get back on top!

Did you sign a piece of paper when you had your system installed? On the back is the lease agreement. Did you buy your system at best buy? You signed the electronic pad which displayed the lease agreement.

As far as the 2 year commitment getting restarted when you replace a receiver, who knows. I haven't run into that problem. Is it happening every time? who knows, we only know that it's happened to a handful of people who post on an internet message board. Again, 5-10 people on an internet message board, or even 20,000 people who have filed complaints with the BBB are not a representative sample of 18+ million subscribers. Take a statistics class.

 

[bamaweather]

They have a right to be upset. Who isn't upset about hidden fees these days?

 

[JosephB]

I think if you put the past FTC and other regulatory records of Dish Network up against DirecTV and cable companies, DirecTV comes out on top. How many times has Dish been fined and successfully sued because of deceptive and illegal marketing practices? And apparently they can't do any wrong.

And don't get me wrong either. I think DirecTV has a lot of stuff they should be doing, like being less focused on sports and paying attention to regular content in HD. They aren't providing my local PBS in HD when the same station is in HD in other markets. I desperately want a Tivo but who knows if I'm ever going to get it. I'm not giving them a free pass here.

 

[Albie2]

Did you sign a piece of paper when you had your system installed? On the back is the lease agreement. Did you buy your system at best buy? You signed the electronic pad which displayed the lease agreement.

As far as the 2 year commitment getting restarted when you replace a receiver, who knows. I haven't run into that problem. Is it happening every time? who knows, we only know that it's happened to a handful of people who post on an internet message board. Again, 5-10 people on an internet message board, or even 20,000 people who have filed complaints with the BBB are not a representative sample of 18+ million subscribers. Take a statistics class.

Really? 20,000 people if actually stratified across the population would be more than a representative sample. Not saying that is necessarily the case here but you don't need 20,000 for a representative sample of 18 million. If you want a confidence level of 99% with a 3 percent confidence interval you don't even need 2,000 for your sample.

 

[lefatman]

The problem with D* Customer service is a very real one. I have filed a complaint with both the BBB and the Attorney General of Maryland over their handling of the MLBEI package since the beginning of the NFL season.They took my money and did not provide the service they promised. When I finally got a CSR who admitted the problem, I was offered a credit for the next 6 months, which I quickly refused.I don't want credits, I want the service I was promised and paid for. I have said many times in these forums, if it were not for the sports, I would leave D* in a nanosecond. I have already cancelled ESPN Full Court and Game Plan and in all probability will not renew ST and SF next year. Unfortunately, they have me by the gonads with MLBEI.

 

[riffjim4069]

Dish Network does NOT require a two year contract extension when you replace a receiver that has a warranty on it, even if it is the DHPP warranty. They only require a contract when you upgrade a receiver. I have heard about this problem with Directv for quite a while. Dish Network has its own issues though. Every company has their advantages and disadvantages.

That's correct...even if an "owned" receiver were to be replaced under DHPP, the customer could cancel the very next day if they were not under an existing contract. Come to think of it, D* has every incentive to push bad software to customers in order to bamboozle them into another 2-year contract. As Ed Grimley once said, "What you are doing [DirecTV] is far from decent, you know."