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Lingo's $100 early termination fee, contract duration

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Lingo users might want to review the latest terms and conditions for their VoIP service. The company recently sent out a letter to users indicating they will either have to stay longer or pay more if they leave early.

Initial contract length for Lingo's residential service was 12 months, and the contract included a $59.95 early disconnection fee.  DSLReports says users have received a Lingo email saying that, starting on Oct. 23, 2008, customers who cancel service within 24 months of activation now will be subject to a $99.95 cancellation fee per account.

Since Lingo's typical plans run from $21.95 to $34.95 per month, "ouch" comes to mind.

Increasing termination fees and contract duration may not be the best way to win friends and attract more business, given the soft economy and the cloud of bad tidings around early termination fees in the wireless and wireline arenas.  Qwest is being sued for its early termination fee on broadband services.

For more:
- DSLreports piece on Lingo doubling contract and termination fee.  Article.

Related articles
Qwest sued over broadband early-termination feeds - FierceTelecom
FCC may cap early termination fees - FierceWireless

More stories about VoIP Technology   VoIP   Termination Fees   Termination Fee   Residential Service   primus   lingo   Contract Duration   Consumer VoIP   Cancellation Fee  

Comments

How can they unilaterally change the contract to 2 year or $100 anyone have any idea?
This is not a good business practice, What is the leagal obligation of an existing custumer??

It is totally ridiculous that they have changed it in this way. This is definitely unethical if not illegal to force down a contract down the throat. I guess it may be illegal also, but I am not sure what all we'd have signed when we sign up. Anyway, I am out of lingo, I hope that my transfer request happens before their deadline. I was in some doubt on whether or not to cancel, this decision by them definitely solidified my decision as it shows a poor customer service intention on Lingo's part.

I called on 10/20/08 and they confirmed the decision. I called to cancel today (to avoid the expense and committment period) and they explained that the decision was "rolled back". I asked to see it in writing...they gave me a confirmation number of the discussion. I'm still not certain I trust them at their word and considering calling back and cancelling simply because of the fear and doubt they have caused regarding the issue.

I just saw this email from Lingo today 5 days after they sent it. Very bad business tactic, Unethical and more than likely illegal. I'm in agreement that because of this tactic, they can no longer be trusted in service. I have no problem eating the $100 fee. It's just the idea of it and the low-handed way they went about it. I will definitely contact my State's Attorney General Office, and the FCC to complain.

The worse business practice I have seen in my life. This is not only unethical and illegal but also unjustifiable. Their Customer service is horrendous.

I am not going to pay them after one year is over. I'll close my credit card before they keep charging it.

I had to pay the 100 bucks fee to cancel today. It is terrible and the worst thing is that the customer service is SOOOOOO BAD that I had to wait like 10 minutes in order to be connected with the account manager who was the only one who could cancel my account.

**Also, try cancelling the account online or try to find info on how to cancel there. It's impossible.

Here is how to deal with Lingo (assuming they are billing your credit card):

Call your credit card company and tell them your card was lost. They will send you a new card with a new number (you will have to call anybody else who is billing your CC and give them the new number/info). Don't respond to any requests or bills from lingo. The worst they can do is cancel your service.

Anybody try this? I did this once with another company who I had a similar experience with and it worked.

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