InvestorCenter

Consumer Complaints Against DIRECTV lead to $14 million Settlement

DirecTV complaintsDIRECTV, one of the most complained-about companies in the country, has reached a settlement with all 50 states and the District of Columbia on a variety of consumer protection issues, including its notorious cancellation penalties.

The company has agreed to pay about $14 million and abide by a collection of rules of conduct for how it will treat its customers.Curiously, the settlement comes almost exactly five years after a 22-state settlement was reached with DIRECTV over similar accusations. Complaints against the company have mounted in recent years, with more than 41,000 complaints processed just by the Better Business Bureau over the past three years.

The latest round of state actions started exactly one year ago when Washington's Attorney General sued DIRECTV. Washington Attorney General Rob McKenna's office said the 2,000 complaints against the company made it the single largest source of complaints.

Washington settled its case separate from the collective settlement with other states, but with largely the same terms and a $1 million payout to McKenna's office. DIRECTV, as is customary in settlements, admitted no wrongdoing.

"Under our settlement, DIRECTV agrees to disclosures that will help consumers know exactly what they're signing up for so that there are no painful surprises," McKenna said in a statement.

The company took an upbeat approach to reaching the settlements.

"DIRECTV has worked hand-in-hand with the Attorneys General to formalize many of the customer improvements we have made over the past few years and are pleased to have come to this agreement," Mike White, chairman, president and CEO of DIRECTV, said in a statement. "DIRECTV is committed to always operating with the highest standards of integrity and will move forward with continued dedication to providing the best video experience possible for our customers."

The settlements are supposed to end the long-vilified DIRECTV policy of imposing hundreds of dollars in cancellation penalties even if the reason for the customer canceling was due to the inability to receive a DIRECTV signal.

Refunds for certain complaints will handled by the states. Generally, they would be given to those who have lodged formal complaints with an attorney general's office. It may still be possible to file a complaint for a past issue you've had with DIRECTV.

According to Washington officials, here are some of the agreed-upon policies:

  • Cancellation Fees: DIRECTV will not impose a cancellation fee on a consumer who ends service because of a recurring problem that can't be fixed.
  • Advertising and Sales Disclosures: The company must clearly disclose the cost of the service, the contract length, additional charges for HD or DVR equipment, cancellation penalties, whether a promotional price is conditional on a rebate, whether an offer requires a particular payment, and other pertinent details. Extremely important disclosures, such as the requirement for a rebate, the required term of the consumer's commitment and the period the promotional price will be charged, must be disclosed in direct proximity to the price itself.
  • Contract Changes: DIRECTV can't require consumers to enter into a new or extended contract when simply replacing or repairing defective equipment. If a service upgrade or other change by a consumer requires a new or additional term of commitment, DIRECTV must first obtain the consumer's consent to enter into a new or extended contract.
  • Rebates and Promotional Offers: DIRECTV must disclose whether a rebate is required to obtain the promotional price. If the consumer's first bill does not reflect the price agreed to at the time of sale, DIRECTV must either provide that price or cancel the contract without penalty, if requested.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum

22 Comments

Filter by:
Shoequeen731

The same day I decided to contract with Directv I also told them I wanted out of the contract and they allow me. They couldn't meet terms they promised me and I told them it wasn't going to work. They told me "sorry" but you already accepted the contract. I said to them I have a legal 3 day binding agreement, that I can get out of and they said that didn't count with them. So, I was stuck. I fought for 1 yr with them over damage they did to my house when putting the system in. I called every week to no avail......and finally after almost 1 yr.....I told them I was cancelling the contract. When they finally listened to the problem they had me do pictures and such and send them to Colorado for further research. A man finally came to my house with his helper and they said they would let us know in a couple days when they would return to fix the damage on my house. Well its been over 6 weeks and their no where in site. You can't reach them by phone....Office no......and I've left 10 messages and no call backs either. I've left messages and emails to the complaint dept. in Colo. to no avail.....but they are coming after me for $258.02 they say I OWE T

May 13 2013 at 10:38 PM Report abuse rate up rate down Reply
Piac

DIRECTV The Cheating Company. Beginning with insisting its customers for their Social Security number so it will sell to the Searching Companies for extra money and it knows its customer’s age. As I am 82 with a stupid name, DIRECTV assumes I am an 82 year old man with an Alzheimer. I chose the CHOICE Package basic with down grade HD 720x1280 resolution, receiver without DVR for 1 TV set. I suppose to pay for hardware approx. $25.00 at the first time of installation and monthly payment approx. $30.00 for one year and pay in full for the second year of a 2 year agreement. My satellite dish was installed on 07/24/2012. I pay my bill using my credit card Visa #xxxx xxxx xxxx 6233. DIRECTV charged me as the following:-

07/18/2012 $24.99 DIRECT SAT TV. LLC 910-6933000 NC First time installment basic.
07/26/2012 $67.19 DTV*DIRECTV SERVICE 800-347-3288 CA Payment over charge.
08/26/2012 $31.49 DTV*DIRECTV SERVICE 800-347-3288 CA Monthly payment.
09/26/2012 $31.49 DTV*DIRECTY SERVICE 800-347-3288 CA Monthly payment.
10/26/2012 $78.74 DTV*DIRECTV SERVICE 800-347-3288 CA Monthly fraud charge.
11/26/2012 $78.74 DTV*DIRECTV SERVICE 800-347-3288 CA Monthly fraud charge.
12/26/2012 $78.74 DTV*DIRECTV SERVICE 800-347-3288 CA Monthly fraud charge.
01/27/2013 $78.74 DTV*DIRECTV SERVICE Monthly fraud charge.

I have been cheated $224.70 in the first 6 month of service through my credit card account!

I have looked through websites and found several thousands of people are complaining DIRECTV for all kind of dirty-tricks and frauds on their over charge bills. I am searching to join with the group to file a lawsuit against DIRECTV. THANKS for reading.

Piac Stoughton WI

February 05 2013 at 4:57 PM Report abuse rate up rate down Reply
DJ

DirecTV regularly violates the rights of property owners by installing their equipment on apartment buildings without the express permission of those landowners. DirecTV demonstrates poor workmanship and damage the structures with their dishes and cables. They improperly install the equipment. Someone should file a class-action lawsuit against DirecTV to stop them from from continuing these practices.

November 27 2012 at 11:09 AM Report abuse rate up rate down Reply
deborah

I have had the most horrible experience with Direct tv and their service. I've complained twice to the Better Business Bureau. They told me they would access my bank account and I had to actually cancel an account so avoid them from fraudently getting access. I will NEVER, EVER recommend them. The customer service hangs up on you, you can not resolve any issue, the channels are terrible in what they offer. They claim such wonderful service; I contacted headquarters in CA prior to the BBB complaint and was talked to with rudeness and ignorance. I have asked for a final bill for 6 weeks now so I can pay the balance and not have to deal with them ever again, and I have nothing but an e-mail where they increased the cancellation fee even more. I told the woman that it was already agreed upon during the BBB what I would pay, and she took it upon herself to increase it. So, back to calling the BBB. They are limited in what they can do to help and I contacted the Federal Trade Commissin who told me to pay the fee because direct tv will drag it out, send it to collections and ruin my credit; but, when they file a complaint againt Direct tv, they will include my complaint and eventually I may recover costs I incurred in getting rid of this company. They have called my elderly parents in attempts to sign them up for service and my elderly parents had to tell them they would take legal action if they continued to call. Direct tv is TERRIBLE, the people who work in customer service and at their headquarters are rude and treat you with such disrespect. DON'T sign a contract- DON'T give them your banking info- once they have it, they will access your account. When you sign a contract- and they tell you that you can cancel if you move and service is not offered there- that is an LIE. I am traveling for my job, I informed them I do not have a permanent address and I was told "well, you can get Direct TV on your computer." Yea- let's watch television on my computer! Furthermore, they charge EVERY SINGLE TIME you move someone- at least a $200 hookup fee. They charge EVEN TO ATTEMPT TO SEE IF YOU ARE IN A SERVICE AREA, and if you rent- it does not matter what the land owner wants, if the landowner does NOT want direct tv on their property, and there is service in the area- YOU ARE REQUIRED TO KEEP AND PAY THE CONTRACT. PLEASE, PLEASE, BEWARE OF direct tv. They are unprofessional, fraudulent, disrespectful and lie to get you to sign a contract- once you agree, you are powerless over anything and they will bring you nothing but disgust.

November 26 2012 at 8:35 PM Report abuse rate up rate down Reply
I hate DirectTV

I cancelled my service because ANY time you have a late bill, you CANNOT talk to ANYONE, until you pay that bill. Doesnt matter if you are in disagreement with the bill or not, you have to pay it before they will even talk to you. Now that my service is cancelled, they agreed to wait until Dec 3rd for their 100$ I owe them, well they didnt wait, they overdrew my checking account causing 2 other checks to bounce. I am on disability and I cannot afford for them to do this to my account. I am contacting the Attorney General in DC about a lawsuit. YOu cannot just use someone's debit card because you have it on file...

November 21 2012 at 10:22 AM Report abuse rate up rate down Reply
1 reply to I hate DirectTV's comment
I hate DirectTV

Oh FYI I called them, NO appoligy, nothing, just we cant change it, the computer did it. REgardless of the fact that they had notes in the computer where I called and told them when I would pay them. Operator told me, oh well we cant change what the computer does..IF I had been told that I couldve just paid the bill right then, but they said they would wait so I paid other bills. Now they have screwed up my entire checking account and there isnt even and apology, nothing. This company is the PITS !!!

November 21 2012 at 10:25 AM Report abuse rate up rate down Reply
FreakinMAD

On 10/29/2012 I applied for services with DirecTV. They checked my credit and told me I was approved and then also received 21.50 from my credit card to start services. I also made an appointment for them to install my services on 11/8/2012. November 8th came around and 2 hours into waiting for a service person to come and install the cable I called DirecTV to insure the person was coming out. I was then told the order had been canceled because there was a problem with the account. First of all, 10 DAYS HAD PASSED AND NO ONE FROM DIRECTV BOTHERED TO CALL AND TELL ME ABOUT THIS "PROBLEM WITH THE ACCOUNT". NO ONE CALLED ME TO INFORM ME NOT TO WAIT FOR A SERVICE PERSON TO INSTALL BECAUSE THEY WEREN'T SENDING ANYONE OUT. 10 DAYS PASSED AND NO ONE FROM DIRECTV TRIED TO REFUND MY MONEY BACK TO MY ACCOUNT. When I inquired as to why my order was canceled they asked if I knew someone named "April". I said yes, she was my sister. They proceeded to tell me because she hadn't paid her bill, they were denying me service. Their reasoning was because I lived at the same address as she at some point. My sister and I, along with 8 other people lived at the same address at "some point". I lived at the same address as my sister for 1 year, and since have had my own address, while they all continued to live at the "address" for 2 more years. How can service be denied to someone not because of their credit, but because of their address?? When did this become law? I want proof this is lawful!!!!

November 15 2012 at 2:55 AM Report abuse rate up rate down Reply
chargrove6

DirecTV has terrible customer service. I have learned that they say that a change in service means that a new contract period begins. You have to write the corporate office to get a resolution to any issue. The supervisor only has the power to give you a corporate address and if prodded will refer you to the website where there is an email address. Go to the website to see the information about the law suit that was brought against them, and the subsequent agreements.

October 10 2012 at 8:56 PM Report abuse rate up rate down Reply
Sue

DirectTv sucks. I sign up 3 months ago and they neve told me about atomatic pay, all they wanted was a credit card payment to hook up service. We had nothing but problems since day 1. Have called 4 times in the past 3 months. Talked to 4 different people 9even a supervisor0 and nothing resolved. So I cancelled. Told them they will here from my lawyer. They are going to try

August 28 2012 at 9:01 PM Report abuse rate up rate down Reply
Sue

I have had DirectTv for 3 horribble months. Today I recieved a bill and it went up. Called to customer service and talked to the first customer service rep. She couldn't do anything so I got to talk to another rep and she told me I wasn't a new customer. then I talked to a 3rd rep. and she couldn't do anything either. So I requested to speak to supervisor. He wouldn't do anything either. How can they asume that when you sign up and use a credit card(not even mine) they can take out every month. Never agreed to auotmatic pay and now you want to charged me extra every month. They took out of the credit car and I also sent in a payment in. then when you bing it to their attention they say oh well. Doin't you think they would try to keep customers instead of getting sued by them. Now they want to charge me 420 for early disconnection. That's bull! They will get contacted by my lawyer. DirectTv SUCKS!

August 28 2012 at 8:57 PM Report abuse rate up rate down Reply
Robert

I discontinued my service because I was moving. Directv could not install because I was moving to a condo complex that they did not service, but referred me to their sub contractor. After about 10 hours of phone calls to the contractor and directv, I was told they could not service me and they let me out of my contract. They were to send me a box to return my receiver in, but they sent it to the wrong address and took money out of my bank account to cover the cost of the receiver even thought it was their mistake. Got the box back to them and they still have not refunded my money. They agree that they owe me but they have 30 days to refund my money, and the 30 days passed and still no money. NEVER do direct payment with them as they will take your money when ever they want, even if they are not owed the money. Don't pay them they cut off your service, but if they have your money they do what they want with it. I notified them that I am filing a claim in small claims court and I am going to name the CEO as the defendant and call 4 or 5 of their executives as witnesses. Lets see how they like their time being wasted like they do to their customers

August 12 2012 at 3:30 PM Report abuse rate up rate down Reply