Expert: Timmy Chou - 8/7/2009

Question
I purchased a t-mobile broadband Internet service on 15/5/09 for 24 months at £40 per month, and since then have had nothing but trouble (Internet keeps cutting out & not getting the GB i signed up for). I have complained on numerous occasions and they have told me i cant terminate my contract without paying £660. What can i do?

Answer
Thank you for your question!

As I always mention, Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is far too typical.  I am not a lawyer and cannot give you legal advice but I can respond to your question from my business consulting experience.

Note that this issue may have legal ramifications and you may wish to consult an attorney.

IMO you are entirely in the right, but as you have seen, no one cares.  You appear to have complete documentation of your position, but again, no one cares.

You have to remember that T-Mobile (and many other large bureaucracies from hospitals to utilities) are just large machines with small people just doing their best to clear their desks and make their quotas.  Its not personal.

Nevertheless, they are in the wrong, but there are no incentives in the system for anyone to do anything but continue to try and get money from you.  

You should review your contract, you may wish to get legal advice at this point.

Here's a possible way if your contract allows it.  A certified letter to them saying:

1. That your service does not work.  Cite your reasons.  Make sure you mention any T-Mobile reps who have agreed with your position or promised you that you can return if it doesn't work.

2. That the inability of the company to provide the service they wish to charge you for is the grounds for the contract termination and that they are in breach of the contract.

3. That you have petitioned the company to remedy their deficiency numerous times with no compliance.  

Mail this certified, copy your state's consumer protection office, your attorney (if you have one), the Federal Trade Commission and the FCC.  Be sure to have the copied groups listed at the end of your letter so the company knows you have notified others.

If the company is convinced that: 1) you are not backing down; 2) you are going to raise hell and tell everyone; and 3) it will likely cost more money to deal with you than it would to settle with you; than they will make a business decision and forget about you.

Don't be surprised if you get contacted later by a collection agency or some attempt to sue you.  You will have to stick to your guns and may end up in litigation.  This is a risk you have to decide whether to take.  This may just hang out there for a long time in the company's mind, but as long as it does not appear on your credit file you cannot be harmed.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.


GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

   Confidential, no public record
   Limited exchange of documentation, information
   Quick, don't have to wait for a court date
   Arbitrators have expertise in the subject matter and are trained in conflict resolution
   Cheaper than litigation
   Preserves business relationships

Negatives of Arbitration

   It's a compromise, no %100 winner
   Complex arbitration can be costly
   If not satisfied, may litigate the arbitration procedure
   Poor results with an unskilled arbitrator
   Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

   Neutral mediator can objectively suggest alternatives not considered before
   Parties are directly engaged in negotiating the settlement
   Can be quicker than litigation
   Less costly than litigation
   Preserves business relationships
   85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

   may not reach a binding decision
   unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

   a clear winner and loser
   uses a prescribed set of procedures
   more predictable outcomes
   is final

Negatives of Litigation:

   waiting for court dates can do more harm
   usually more expensive than mediation and arbitration
   part of the public record