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View Full Version : Mobile phone group 3 attacked over ‘disgraceful’ sales tactics



3GScottishUser
3rd September 2006, 09:22 AM
From The Sunday Times (03/09/2006):

SALES agents acting for 3, the mobile-phone company, persuaded an elderly and mentally handicapped man to take out 10 contracts for expensive 3G handsets in only a few months.

Most of the sales were made by direct-selling firms that contacted the 68-year-old by telephone, having seemingly acquired his address in Wimborne, Dorset, from database companies.

Although the handset contracts were all registered to the same address, 3 had not picked up the problem by the time the man’s older brother attempted to recover the hundreds of pounds withdrawn from his younger brother’s bank account.

The company initially refused to deal with the older brother, who does not wish to be identified, because of the Data Protection Act.

This weekend 3 said that the problems with its customer in Wimborne were “very clearly an exceptional case”. However, it highlights concerns about the quality of the customers 3 has taken on in its dash for growth.

Ten days ago, Hutchison Whampoa, the Hong Kong conglomerate that owns 3, referred to the “poor average quality” of its UK business.

Hutchison’s half-year results revealed that 3’s customer turnover, or churn, was running at a far higher level than the company had previously admitted.

Most of the sales to the mentally handicapped customer in Wimborne seem to have been made in May or June, when 3 said it was focused on improving the quality of its business.

Industry sources said the customer should have passed a credit check each time a new phone was sent out to him.

The man’s brother said: “The industry is disgraceful for its telephone-selling tactics. I’ve put the whole lot in front of trading standards.”

One sign of apparently slipshod sales techniques is the frequent mis-spelling of the customer’s name. It was spelt correctly on only one out of eight contracts of which The Sunday Times has been given details.

According to a man who gave his name as Keith Cunningham, a supervisor in an Indian call centre, Letscall, an online-phone retailer with offices in Frimley, Surrey, was responsible for selling four of the phones.

Fone Logistics, another small firm, was responsible for another sale. Ian Gillespie, its managing director, said: “If the network credit-checks the customer and he passes the credit check, then we dispatch the product to him.”

In a statement, 3 said: “Once it was brought to our attention we suspended the accounts. All the accounts have now been closed and a cheque will be sent reimbursing the customer(s) for any money he has paid us.

“We apologise to the people affected and we will now be investigating the background of the case.”

http://www.timesonline.co.uk/article/0,,2095-2340029.html

Hands0n
3rd September 2006, 10:35 AM
Hmmmmm, I've been bugged by these "independent" sales companies in the past also. Mostly "representing" Orange, when I had a contract with them. Perhaps, then, this is a historical link with Hutchinson :D They make a bit of a business of selling on their Customer lists? No! Perish the thought, that simply would not happen!! :p

Most of those cold-calling me on behalf of Orange (their words, not mine) caved in when challenged as to who they were. Their scripts are carefully worded to make the strongest suggestion that they are the Mobile Network Operator (MNO) itself. Only when pressed for clarification do they tell the truth, that they are an independent selling that MNO's products.

When I moved across to 3 the calls moved with me, only now trying to sell me 3, no worse nor better. Possibly the same companies, certainly the same sounding script. And they had an uncanny knowledge as to the maturity date of the contract - that alone is what disturbed me the most. Data Protection Act? How the hell do they get this information if my only dealings were with the MNO itself and I did not at any time opt out of being protected by it (not that I believe one can anyway).

To be sure, the quoted tale in this thread is extremely shabby (the politest word I can find on a Sunday morning). 3 are to be castigated for allowing this to get so far. Where are their "systems" for validating sales against addresses and names? Why are these either not there or so innefective? How did the credit checks go through so easily? These and many more questions need to be answered and I do hope that Trading Standards take this all the way in their investigations.

Maybe the DTI would care to get involved - if this is but one example how many more are there. The "exceptional case" claim should be investigated thoroughly - surely it is not, unless there was a one-off conspiracy between all of the independent sellers, or one of those strange coincidences which none of us believe in.

Footnote: I have never had this happen with my Vodafone contracts. I have not, to date, had it happen with my T-Moble contract. The Mrs has never had it happen with her O2 contract. So, that kind of leaves it to the pair of Hutchinson-started companies. Conspiracy theories abound. OooWeeOooWeeOoooooooooooooo :eek:

miffed
3rd September 2006, 10:35 AM
Absolutely disgusting - but TBH not surprising :(

I get a few calls every week from these twats , end EVERY time it is Three they are pushing , never any other network

In fact I had one the other day - For some reason , I let him blab on rather than just hanging up - and he promised me he'd cut my phone bill in half AND give me a much better handset
He the asked how much I paid per month in my average bill

"£19" - I replied (true - as I rarely use the o2 account he was enquiring about since they began charging for data.... )

"Ah right" he replied " Well these contracts start at £35 , but you will get 750 minutes , plus double minutes - so you will save in the long run "

Eh ? :confused: :confused:

" OK , so what is the 'much better' phone on offer ? The one on this contract is an XDA exec ? "

His reply " It's the latest Motorola V3X .... It has state of the art features like ....."

INTERRUPTS .. "Whoah - hold on ! You told me you wanted to half my bill AND give me a better handset ? - but in reality you want to DOUBLE my bill , You want to downgrade me from one of the most expensive 3G handsets on the market , to the WORST 3G hands on the market (I was getting a little carried away - apologies Moto fans ) , while moving me from one of the country's MOST STABLE networks to THE LEAST STABLE network ? Why on earth would I want to do that ??? "

He mumbled somethiing about double minutes - so I just hung up (which Is what I should have done from the outset )

It does worry me that some people actually take up these deals - and it is even more worrying that the salepeople in question have no morals and are happy to exploit people as in the Gentleman above

Time for some legislation on this kind of stuff I think :(

Hands0n
3rd September 2006, 10:46 AM
Time for some legislation on this kind of stuff I think :(

Kinda makes one wonder what the folk at Ofcom do for a day job! :confused:

Clearly it shows that, once again, the industry cannot regulate itself properly.

3GScottishUser
3rd September 2006, 10:51 AM
I have only ever experienced this type of call once as I am on the TPS list and have registered my landline to avoid sales calls from outwith the UK.

The one and only time I got a call was pretty similar to the above experience and I have to agree that it was very intimidating and high pressure stuff throughout. It's no wonder 3 UK have 'poor quality customers' when this type of tactic is employed by third parties on a commission trail.

No surprise there has been an increase in this activity as of late as there now appears a vacuum left by the High Street majors where 3's products now don't appear to be promoted to any great exent. On-Line sales were never going to make up for the 1000's of connections that CPW, The Link and Phones4U generate each month.

Not a nice way to promote a mobile phone service, and that goes for all of the networks who encoursge this practice. These callers should be treated in the same manner as one would deal with any other nuicence sales calls, just hang up and don't even bother to listen to the rotten sales pitch.

Alio
3rd September 2006, 02:36 PM
(3GScottishUser) Not a nice way to promote a mobile phone service, and that goes for all of the networks who encoursge this practice. These callers should be treated in the same manner as one would deal with any other nuicence sales calls, just hang up and don't even bother to listen to the rotten sales pitch.

I agree.......

Plus have you noticed that when these poeple call you, they don't seam to understand or grasp the words "Im not interested" or "please don't call me again with your crap phone offers" :p