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Comcast: Galveston customers are owed apologies for debt collection letters

04:11 PM CDT on Friday, October 24, 2008

By Laura Elder / The Daily News

Cable provider Comcast Corp. said 81 island residents who received letters from a debt collection agency demanding the immediate return of, or payment for, converter boxes, remotes and modems lost in Hurricane Ike are owed letters of apology.

AP

But some island residents who opened their mail Thursday didn’t find apologies. Instead, they got more hounding from the collection agency advising them to pay up or return the ruined equipment. The letters come as frustration and bafflement about Comcast’s post-Ike policies on flooded equipment mount.

Comcast said Thursday it had directed Carrollton-based Credit Management LP to suspend collection efforts against island customers who canceled cable service after Hurricane Ike struck Sept. 13 but did not return equipment submerged in seawater when thousands of houses and apartments were flooded.

Misfired Missive

The collection agency should never have sent letters to people still sifting through the sodden ruins of their houses, Comcast said. Some of the letters demanded payment of more than $600.

“People are still working to rebuild their homes and their lives,” said Comcast spokesman Michael Bybee. “We’ve asked the collection agency to generate an apology letter to send to everyone assuring them they have received the letter in error and nothing has been done to affect their credit.”

Typically, when consumers cancel cable service because they’re moving, dissatisfied or for other reasons, they’re expected to return the rented equipment to a nearby Comcast service center.

All cases of unreturned equipment are automatically referred to collection agencies, Bybee said. But Comcast said it clearly instructed the agency to hold off on sending collection letters to customers living in disaster-struck areas, including Galveston.

$694 Owed

Island resident and business owner Tom Carey’s home and two Comcast converter boxes inside were severely damaged by storm surge.

On Sept. 20, when it was clear it could be months before he could repair his house and return, Carey, 62, called Comcast and canceled service, he said.

After retrieving mail from a temporary center in La Marque on Sept. 25, Carey found a cancellation notice from Comcast stating he owed the company $694.34 — $44 of which was for past service and the balance for equipment.

When Carey, who owns Restaurant Express Employment Services, called Comcast, customer service representatives told him to turn in the equipment at the nearest center, damaged or not and he’d be off the hook for the cost of the converter boxes.But clean up crews already had removed the equipment, along with all the personal belongings his family had lost to storm surge, he said.

“How do I find them, put them in the car and find out where to deliver them when I’m in a disaster,” Carey said.

Carey received a letter Oct. 5 from Collection Management. Carey called the firm and explained that the equipment had been destroyed in the storm, he said.

“They said: ‘We’re sorry, you have to pay it, we’re working through the cable company. But we can buy you some time,’” Carey said. “I said: ‘Buy me some time? I can’t believe you people are talking this way.’”

Futile Effort

Carey’s attempts to resolve the issue have been futile, he said. Now, when he calls Comcast and tells them he’s from Galveston, customer representatives avoid speaking to him by putting him on hold until he hangs up, he said.

“It’s not like I’ve called up cussing and yelling and they don’t want to have anything to do with Tom Carey,” he said. “Everybody’s running from it.”

Carey received another letter Thursday from Collection Management, but it wasn’t an apology. According to the letter dated Oct. 18: “Per your request, Credit Management LP notified Comcast Houston of your claim regarding your past-due account. This letter serves as notification that Comcast Houston has researched their records and verified that your account is overdue and that you continue to owe the amount of $694.34.”

Talking-to

Comcast has talked to its employees, who should now understand how to handle accounts from disaster-struck areas, Bybee said.

Some island residents are perplexed by Comcast’s policy requiring customers to return damaged equipment or pay for it.

Comcast has said they need the equipment, even if it’s damaged, for insurance.

Carey has always been satisfied with cable service, until now, he said.

“It’s just unbelievable. Most of all the other companies — the phone company, electric — are deferring payments, everyone is helping you,” he said. “But this is worse than price gouging, this is criminal.”

Along with a letter of apology from the collection agency, Comcast is supposed to send Carey and other consumers guidance on what do with damaged equipment.

What To Do

If Comcast customers have been able to recover their converter box, cable modem or remote after the storm, they should return the equipment to one of the company’s area service centers, Bybee said. In Galveston, Comcast has set up a temporary service center at the Island Community Center, 4700 Broadway.

Once the equipment was returned, Comcast would remove the charges from their accounts so they wouldn’t be billed, Bybee said.

Comcast would not charge for damaged equipment, he said. But if the equipment was lost because of the storm, Comcast is advising customers to file the loss on their homeowners’ insurance policy at the same time they file other household claims, such as appliances and electronics.

Charges

Comcast said the charge for the equipment would appear on a customer’s monthly statement. However, the company would not require payment for at least 90 days, allowing enough time for consumers to receive insurance reimbursements.

But because the equipment is rented, most insurers won’t reimburse policyholders for it, said Jerry Johns, a spokesman for industry trade group Southwestern Insurance Information Service.

If insurers won’t cover it, or some cable subscribers don’t have insurance, then they should send a letter to Comcast saying so, Bybee said.

“We want to work with every one of our customers,’” Bybee said.

+++

What To Do

For cable subscribers whose insurers won’t cover costs for the rented equipment and for subscribers who don’t have insurance, send a letter to Comcast saying so. The letters should include a complete address — not a P. O. Box — phone number and a copy of the letter they receive from Comcast. For more information, call 800-266-2278. Send letters to:

Comcast Billing and Collections 8590 W. Tidwell Houston, TX 77040

This story is available through KHOU, Ch. 11's partnership with The Galveston County Daily News.

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