Consumer Law, Warranties Are These Early Termination Fees Legitimate?

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dogger

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I work for a Charity that had 5 phone lines and DSL internet service from ATT. A few months ago, we switched over 4 of our phone lines to another phone company and left 1 phone line and DSL with ATT. When we got our last bill that still showed all of the lines on them, we saw we were being charged over $1400 in Early Termination Fees. I called ATT to inquire about this. They said that we had a contract with them and the fees were because we switched service. I told the representative that we still had service with ATT and gave him the phone line that had our DSL service on it (which is still with ATT).

Our account number (which is the main telephone number) is were all of the lines, including the one with DSL, were being billed to. Since we switched our provider for our main telephone number (and 3 other lines), our phone number associated with the DSL service became our new account number with ATT.

I told the rep that we didn't even know we had a contract and we definitely were never made aware that we had to keep a certain number of lines. He said he would put the contracted plan on the DSL account and waive the Early Term Fees since we still had a phone line and internet service with them.

I thought everything was taken care of, but a month later we get a collection letter in the mail for these charges. So I called again to see what was going on and was referred to an account manager (I repeatedly got her voice mail, and it took over 2 weeks to speak with her).

She told me that our contract was for all 5 lines and putting the plan on the DSL service was not sufficient.

I told her the same thing I told the representative the first time; We were not aware that we even had a contract and we were never told we had to keep a certain number of lines. I also brought up that we still had service with them (the line with the DSL), but she didn't seem to care and told me the charges are valid and are being sustained.

I then asked her for a copy of the contract we have with them and they told me it was a verbal agreement. I asked if they had a recording of us agreeing to the contract, and they said they don't keep the recordings. I asked them if they can send me a copy of the terms and conditions of the contract and she told me they don't have a contract and its just a verbal agreement.

Can they legally charge us these fees for a breach of a contract that they can't even show us the terms? One that we never signed?
 
That is one of the more unusual phone termination stories I've heard. I can't believe there is no written contract (there's ALWAYS a written contract, otherwise they don't give you phone service), and I can't believe they are trying to hold you to terms and conditions that are not set out in writing anywhere.

If the debt is on your organisation's credit report already, send the credit bureau a dispute letter. And tell AT&T that unless they have written documentation showing that you owe early termination fees, they can try suing you. Good luck to them convincing a judge.
 
Thank you! Now I don't feel so crazy! I will contact the credit collection agency and ATT in the morning and let them know I am disputing these charges. I will follow up with any details.
 
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