Charter asks ex-customers to resubscribe or risk their credit scores

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A letter that was legally confirmed by the company offering loan forgiveness – at a cost

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Charter is telling former customers that it will forgive their loans and stop reporting them to credit agencies if they resubscribe to the company’s Spectrum TV, Internet, or voice service, according to a story from Los Angeles Times. The “outright courtesy” offer came after Steve Schclair, who says he hasn’t been a Spectrum customer for years and doesn’t owe the company money, shared a letter describing the alleged deal. LA Times. Charter later confirmed that the letter was authentic, saying it was an offer intended to help consumers “reconnect” to Spectrum as well as get a leg up on their finances. .

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According to LA Times, the letter Charter sent to Schclair stating that the company would cancel his (supposedly) loan after re-subscribing and that his new account would be in good standing. It appears that Charter was reporting that debt to credit reporting agencies (potentially lowering Schlair’s credit score) and that he would no longer have to worry about whether he was a customer again. Was.

The letter tries to portray this as a charitable offer from an ISP, stating that a good credit history helps you get a credit card and better mortgage rates. While the company has a history of sending annoying amounts of letters to customers, Times Hilariously explains that it comes across as “Sopranos-like,” as if the company were saying, “You’ve made a good living for yourself. Shame if anything happens to it.”

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Charter has the legal right to report an ex-client’s debts to credit report agencies if they still owe money—that’s how the credit reporting system works, for better or worse. But if the letter was offering loan forgiveness with no strings attached, or even a reasonable loan repayment plan, it might have been referred to as “lazy” and “corporate blackmail”, “full of real and implied dangers”. as will not be described. people receiving it. It’s hard to come across as a philanthropist if you’re not telling people about the better options they have and trying to get them to give you their money again.

Making the situation even more dire, Charter may have sent the loan waiver proposal to Schlair without any reason – he explained LA Times That Charter isn’t ding her credit report, the company isn’t contacting her about missed payments, and two customer service reps said she didn’t owe anything (Charter said it was due to Schclair for privacy reasons). shall not discuss the personal matter of. ) in a statement to ledge, Charter stated that the letter was “a highly targeted promotional offer to former customers who have at least two years’ outstanding dues, and are currently in the collection process” and that the offer made it so that customers could avoid collection without paying that balance.

Disclosure: Comcast, a competitor of Charter, is an investor in Vox Media, ledgeof parent company.

I’m not a financial advisor, but most experts I’ve heard say that you should be wary of what companies offer, saying it can consume you your way to financial freedom. proposal in the letter reported by LA Times Goes from $50 to $75 after a year—a huge jump that someone who has struggled with payments in the past might have a hard time (unless they’re on the spectrum to lock them into a cycle of loan forgiveness offers). not trusting). While trying to lure customers back is standard corporate stuff, maybe Charter should consider going back to either standard “we miss you” letters or a way to trap customers back in the same debt cycle instead. Must make a really helpful offer (provided, of course, the customer was already in debt).

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