Investigation Finding Report

After analyzing the information and evidence from both parties, we determined that the service provider reasonably performed its obligations towards the customer and found no fault in its handling of the issues brought forth.

Issue 1: The customer’s complaint is that the service provider makes an error or takes an action which the customer considers to be a breach of an existing agreement.
• The customer disputes the device charges billed to their account on their December 1, 2024 invoice.
• Specifically, the customer explains that on November 28, 2024, the provider informed them that they would not be charged for the devices if they returned the devices within 30 days, but the provider proceeded to charge them $900 for the devices on December 1, 2024.
• We reviewed the signed copy of the customer service agreement, which shows that the customer entered a two-year commitment period for wireless service on two lines:
o (Line 1) November 28, 2022 to November 28, 2024
o (Line 2) November 29, 2022 to November 29, 2024
• We note that the customer subscribed to a device discount program for two devices with a two year commitment period:
o (Device 1) November 28, 2022 to November 27, 2024
o (Device 2) November 29, 2022 to November 28, 2024
• The agreements for the devices indicate a device return amount of $450 for each of the two devices.
• The device agreement explains that at the end of the program (on November 27, 2024 for device 1 and November 28, 2024 for device 2), the customer would have two options to settle the device amount:
o Bring the device back in good working condition to a store.
o Pay the amount ($450) for each line in order to keep the device.
• We reviewed the accompanying terms of the agreement for the devices, which specify that the device discount program is only available while the customer is subscribed to the wireless service and that if the service is cancelled, the remaining balance will be automatically charged on their invoice.
• The terms of the wireless service agreement also note that if the customer cancels the wireless account associated with the devices, they will be charged the device return amount.
• That said, we reviewed the service provider’s internal policy, which provides that if customers return the device within 90 days of cancellation, the charge is to be credited within one to two billing cycles.
• We reviewed the service provider’s procedure for when customers initiate a return over the phone, which shows that once the return is submitted by a representative using their internal tool, a return shipping label will be automatically emailed to the customer. Customers have a 90 day period from the date that the order is submitted to return the device.
• We reviewed the account notes, which show that the customer contacted the provider by phone on November 28, 2024 and requested to initiate the return for both devices.
• The account notes show that the provider submitted the return on November 28, 2024, per the customer’s request, using the internal tool to send a return mailer to the customer, in line with its regular procedure.
• That said, the notes do not indicate that the customer was informed that they would not be charged; they only confirm that the return process was initiated.
• We reviewed the available account records, which show that the customer cancelled the associated wireless account by porting out on November 28, 2024.
• We reviewed the subsequent invoice of December 1, 2024 and confirm that the customer was charged $900, the amount for both devices.
• A further review of the available account notes shows that the customer contacted the provider on December 6, 2024 to dispute the charge for the devices ($450 x 2) on their December 1, 2024 invoice.
• The provider informed the customer on December 6, 2024 that the charge was due to the cancellation of the wireless account prior to the receipt of the devices. However, once the devices were received, the customer would be credited in full within one to two billing cycles.
• We reviewed the email provided by the customer, which shows that the provider confirmed receipt of the devices on January 15, 2025.
• We note that the credit was applied towards the customer’s account on their February 1, 2025, invoice.
• As such, given that the customer cancelled the wireless account associated with their devices prior to returning the devices, we have determined that the provider did not fail in its obligations by charging the customer for the devices upon cancellation of the wireless account.

Issue 2: The customer’s complaint is that the service provider did not apply promised credit(s), discount(s) or refund(s).
• The customer’s complaint is that the provider did not apply their refunds in a timely manner.
• Specifically, the customer explains that although the provider advised them on December 6, 2024, that their wireless account would be credited $900 for the disputed device charges indicated in issue 1, the provider did not refund the amount promptly.
• In order to determine what information was provided to the customer surrounding the promise of the credit/refund, we reviewed the account notes of December 6, 2024, which show that the provider advised the customer that the refund would be credited within one to two billing cycles following receipt of the devices, per its internal procedure.
• We reviewed the account notes dated January 14, 2025, which show that the customer contacted the provider about the refund of the charges.
• The provider informed the customer that the refund would be credited within one to two billing cycles following receipt of the devices and advised the customer to wait until the next billing cycle, which was on February 1, 2025.
• We reviewed a copy of the email provided by the customer, which shows that the provider confirmed receipt of the devices on January 15, 2025.
• We reviewed the customer’s explanation, available account notes and the February 1, 2025 invoice, which shows that the customer reversed the payment via a chargeback through their credit card company on January 15, 2025.
• We reviewed the invoice of February 1, 2025 and note that the provider credited the total amount towards the device charges.
• As such, we have determined that the provider met its obligations by applying the promised credits within one to two billing cycles following receipt of the devices, as previously explained to the customer.
Issue 3: The customer’s complaint is that the service provider withdrew an automatic payment from the customer, either without consent or in the incorrect amount.
• The customer disputes the automatic withdrawal of the outstanding amount of $888 on December 19, 2024 via their preauthorized payment method.
• The customer explains that on December 6, 2024, they called the provider to dispute the charge on their invoice (issue 1), and despite advising them that the invoice would be credited, the provider proceeded to withdraw the outstanding amount of $888 from their credit card on December 19, 2024.
• We reviewed the internal account records, which show that the customer had subscribed to preauthorized payments.
• A review of the service provider’s Terms of Service specifically surrounding preauthorized payments indicates that the provider is to immediately withdraw the full amount owing each month via the customer’s payment method.
• The Terms of Service also indicate that after the cancellation of an account, the customer remains responsible for any chargeable amounts.
• We reviewed the customer’s January 1, 2025 invoice and note that the amount due on the December 2024 invoice was paid via preauthorized payment on December 19, 2024.
• Per our analysis of issue 1, we note that the disputed charges are valid due to the cancellation of the account. However, we note that the provider informed the customer on December 6, 2024 that the amount would be credited within one to two cycles following receipt of the devices.
• We reviewed the account notes dated January 14, 2025, when the customer contacted the service provider to report the withdrawal of the amount from their credit card on December 19, 2024. The provider advised the customer to wait until the next billing cycle, which was on February 1, 2025.
• We reviewed the customer’s explanation, account notes and the February 1, 2025 invoice, which show that the customer retracted the payment via their credit card company on January 15, 2025.
• We reviewed the invoice of February 1, 2025, and we note that the provider credited the full amount following receipt of the devices.
• As such, we find that the service provider reasonably met its obligations by adhering to its preauthorized payment process by withdrawing the outstanding amount on the account at the time of the withdrawal.