Three months ago, I signed up with Web Hosting Company X. The shortest billing cycle offered by Company X is quarterly, so I paid for three months in advance. The account is due to expire on May 3, so I recently got an invoice for the next term.
However, my experience with this web host has not been pleasant. I have their lowest-level virtual hosting account, which I will refer to as El Cheapo Numero Uno. The El Cheapo account does not include a MySQL database, which I now absolutely require. The database isn’t available separately; I’d have to pay three times as much for El Package de Mucho Dinero.
So I found a new hosting company that only has one account type, but it has most of the services of El Package de Mucho Dinero and still costs less than El Cheapo Numero Uno. I’ve been hosting my site with them for the past few days, and so far it’s been great.
I also sent Company X a letter asking to terminate my account. However, they say that since the contract specifies a 30 day notice, I must pay for another month of service…
Now, I’d really rather not pay them another cent, since I’m no longer using their service and I have no reason to use it any more. They’re in Canada, and I’m in the US. One month’s service is $17.
If I say “I will not be paying you”, is there anything they can do to extract money from me? Would they bother for $17? Would it damage my credit history?
The debt would probably end up sold to a collections agency. It will hurt your credit rating, I’ve had problems before because of one $40 unpaid bill on mine.
Start writing that $17 check now. And you did send them a letter, fax, e-mail about terminating service, didn’t you? Otherwise, they are going to pull the same thing next month. I suggest a letter sent registered/certified/return reciept, just for proof. And yes, they can come after you if you don’t pay. They will hassle you to death if you don’t, and it goes on your credit record.
ME, I would not pay it, but that is just me. You have an obligation to hold up your end of the contract (pay) if they do to. If their service is so bad you have to move, then they are not keeping their side and you can leave without paying. In my experience, if you just walk away they may pester you or they may not BUT if you pester them first with your explanations and complaints they will probably be glad to see you go.
I had a similar experience some months ago when my phone line was slammed and I found a huge bill from some other long distance company. After I complained they agreed to reduce the bill to what my original company would have charged. I said fine, I am willing to pay that * to my original company* not to the slammer. I had a contract with my original company to transport my calls and I will pay them for that. But I have no contract with the slammer company and if they took my calls it is without my permission and I will not let them profit from it. It is like someone mowing my lawn without my permission and then demanding payment. Well, the whole thing dragged on for about three months with repeated calls and arguments with the slammers and the local phone company. Whenever they said anything about my credit I would say something like “if you report me I will hold you responsible for any damages I may suffer as a consequence, and, by the way, I will be applying for a mortgage pretty soon”. I made them note the time they were spending with me on the phone was worth much more than the bill and that if everybody complained like I was complaining there would be no slamming. At the end of a few wekks they just let me go (and probably with a sigh of relief).
I doubt a company in Canada would chase you for a few bucks if you make it clear how dissatisfied you are.
kmudd20001: Actually, that’s exactly who I signed up with!
I’ve grudgingly paid the bill. Since I have another month of mediocre service now, I’ve written a long description of my experiences with them - after all, I have to put something up on that site.
Am I exposing myself to legal trouble by posting it there? I’ve gone over the service contract and server use policy, and they don’t seem to mention anything about badmouthing the company. What should I watch out for?
I don’t know about the legal stuff. I am using them and have had no trouble at all. They have a 30 day money back
guarantee. Since I didn’t cancel my account I don’t know
how are to deal with that.
Thanks
Kevin
Benefits of cooperating with bill collection agency:
The debt, once paid, will reflect as paid on credit record.
You may be able to arrange a lower payment per month to liquidate the debt.
Disadvantage of not cooperating with bill collection agency:
The bill collector will turn the account over to the agency’s legal section and you will be sued.
The debt will still reflect as unpaid on your credit record until you pay it.
The court order to pay will also reflect on your credit record.
When you get the loan, read what you sign. Some of that stuff you sign is YOUR permission for the CREDITOR OR AGENT to call you at your place of work
If you made the agreement, honor it.
OK, their answer came back: “I’m sorry, but we cannot do that.” My story is up at http://web7.superb.net/hansprestige/. I’m wondering whether I should put the actual company name on there and submit it to search engines.
kmudd20001: I meant phpwebhosting is the new company, not the old one.
Monty: I don’t think I’d call it a loan, and $17 is a small enough amount that I was able to pay it all at once.
I recently received a bill for a magazine that I never subscribed to. Furthermore, I have never received a single issue.
The letter says I must send a letter to them if I wish to contest the bill. I simply threw the letter in the trash, as I figured it was some type of scam. However, I just got another letter in the mail from the same company warning me to pay the bill.
heembo, of course you don’t! Rather than ignore it I would write them giving them all sorts of complaints and warnings and you can be sure they will leave you alone. Read my previous post. The reason they do it is because many people will pay.
I was a bill collector. I have reformed. Heembo, you need to act quickly. They have to receive a written complaint about the subscription within a certain amount of time. (Often 30-60 days from when they sent you that notice. If the time has passed ask them to extend it because you were unaware of the time limit.)
You may want to ask them to treat it as fraud because you never ordered it. For many companies that puts it into a que that won’t let it get onto your credit. Make three copies of the letter, keep one, send one to the company, and send one to the postmaster general. (I also worked for USPS) This could be considered mail fraud depending on how the subscription actually started. (A door to door salesman got your name or a neighbor hates you - I’ve heard everything.) Mention that a copy is going to the postmaster in the letter. Don’t make it threatening, just sound confident that there was some mistake somewhere and that you don’t owe the money. (Make sure you really don’t owe it by talking to everyone in your household. It’s embarrassing to find out your brother did it.)
Also if you talk to someone over the phone, write down their name. Nothing throws bill collectors off balance more than a customer who documents his own account. This is also good if you find a nice person to go back to each time if you have to. Keep copies of all correspondence. This sounds like a bit to do, but the process is the same no matter the balance or type of account.
Speaking of that, kmudd, the balance doesn’t matter. A $45 purchase from a certain catalog company using their 3 month payment plan counts as a loan and shows on your credit. I think it shows as a line of credit.
