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Time Warner Cable Modem Lease Fee Class Action Lawsuits
By Kimberly Mirando
Angry Time Warner Cable customers have slapped the company with two class action lawsuits over a new fee it snuck into its contract that charges customers for leasing used modems.
The Time Warner modem fee class action lawsuits were filed by Kathleen McNally of Manhattan and New Jersey resident Natalie Lenett. Both plaintiffs are asking the court to order refunds for all Time Warner Cable customers charged the new modem fees in violation of consumer fraud laws.
“Prior to October 15th, the company provided customers with Internet modems included as part of their monthly service plans,” McNally says in her Time Warner class action lawsuit. “Now, however, TWC is charging millions of customers an extra $3.95 per month for the privilege of ‘leasing’ old modems — used pieces of equipment that the company supplied and typically wrote off as worthless years ago.”
McNally says the new Time Warner Cable modem lease fee adds up to “a virtually guaranteed $40+ million cash flow per month” at the expense of loyal customers.
“It’s a massive hi-tech consumer fraud accomplished by low-tech methods,” attorney Steven L. Wittels said. “Send customers confusing notice of the fee in a junk mail postcard they’ll throw in the garbage, sock them with a $500 million dollar a year rate hike, then announce on your website that customer satisfaction is your #1 priority. That’s some way to deliver satisfaction.”
According to McNally’s class action lawsuit, the lease fee constitutes “massive consumer fraud and breach of contract,” and violates Time Warner’s “code of professional business conduct,” which instructs its employees to ask themselves three questions when making a business decision: “Does it feel right? How would the person I respect the most view this decision? How would this look in a newspaper?”
McNally answers these questions for them in the class action lawsuit: “No, the surprise new Lease Fee doesn’t feel right; the people you respect would call it a scam; and it will look terrible once the media gets hold of the story. Yes, it’s the same old story once again, a corporate behemoth putting profits over people by way of some sneaky fee.”
The Time Warner modem lease fee class action lawsuits are seeking to represent all Time Warner Cable customers who now have to pay for the new modem lease fee. They’re asking for an injunction to stop Time Warner from imposing the fee in 28 states in addition to damages for alleged breach of contract, consumer fraud, unjust enrichment, and more.
Updated November 15th, 2012
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11 thoughts onTime Warner Cable Modem Lease Fee Class Action Lawsuits
If businesses could be trusted we wouldn’t need regulations. I pay one hundred fifty five dollars a month for internet and two tvs with HD package one w/o. And they turn in hundreds of millions of dollars in profit a quarter. Therein lies the real meaning of Freedom.
Tengo cable y internet en mi casa y mi vecino vive atras el llamo para instalar internet ellos pusieron un moden en mi misma linea que puedo hacer ellos estan cobrando por el mismo servicio
I insisted on a written statement from the local Time Warner sales rep, 18 months ago that guaranteed my rate on a set of services for 2 years. Time Warner now wants to say I have no contract, but that is untrue. I have a copy. They refuse to credit these modem charges that began back in October of last year. They are extremely arrogant and act as if we have no alternative.
HOW DO I GET IN TO THIS LAWSUIT??
I HAVE HAD MY MODEM FOR 10 YEARS AND LAST MONTH THEY STARTED CHARGING $4.95 A MONTH FOR IT.
YOU CAN BUY CABLE MODEMS ON EBAY FOR $17.99 WITH FREE SHIPPING.
THEY MUST THINK EVERYONE IS STUPID!!
THIS IS THE MOST ABSURD THING I HAVE SEEN IN ALL MY DAYS. WHEN THE BANKS CRASHED, MANY FOLKS DOWN GRADED THIER CABLE AND THE COMPANY LOST MILLIONS IN REVENUE. SO WITHOUT LOOKING TO RAISE RATES FOR CABLE THAT NOW HAVE BACK DOORED THE AMERICAN PUBLIC WITH THIS 3.95 CHARGE. OVER 40 MILLION A MONTH FOR EQUIPTMANT THAT MANY PEOPLE HAVE HAD IN THIER HOMES FOR MORE THAN 1 YEAR OR IN MANY CASES LONGER. THIS CORPORATE BACK DOORING OF AMERICAN PUBLIC HAS GOT TO BE CHECKED BY THE GOVERNMENT. I WONDER JUST HOW MANY POLITICAINS GOT THERE POCKETS LINED TO ALLOW THIS. EVERYONE SHOULD WRITE THERE CONGRESS REP AND COMPLAIN. SOME OF THE WORST THINGS THAT HAVE HAPPENED TO THIS COUNTRY WAS DEREGULATION OF THE UTILITIES. ALLOWS THEM TO DO ANYTHING THEY WANT TO CREATE REVENUES. LOOK AT NATIONAL GRID AND THIER DELIVERY CHARGES…..I USED 18.00 IN NATURAL GAS LAST MONTH AND IT COST ME 37.00 TO GET IT DELIVERED TO MY HOME…..THIS COUNTRY NEEDS TO LOOK AT THE PRIDE AND HARD WORK THAT BUILT THIS COUNTRY AND KNOCK THE PAPER ROBBERS AND PROFITS HUNTERS DOWN A NOTCH OR 2…..
I feel that the box ibought should be free they just gready companies just gready.
I see they offer fee wifi in the ads to get new customers but then charge existing customers ! The bill I just got they changed up the wording for the charges I paid for Lite Internet 31.95 and home network 7.95 on prior bills , now this month I paid for Lite Interne 3i.95t, (Home WiFi 7.95 ) and a new charge Internet Moden Lease 3.95 ! I orderd wireless internet 4 years ago and that was what the 7.95 charge a month was for the moden what a play on words !
All Time Warner will do is just add all kind of fees on your bill when they know damn well those should not be on your bill, it is a damn shame.
TWC also charges $8/month to lease the box for digital cable. Without the box you only get analog, but packages are the same price. THAT is another scam charge!
I want to know how do I add my name to this class action law suit ?? I called TWC , and they have nerve to charge me for something I all ready have for years , and get this ?
If you buy a modem , you need a splinter , to connect both of them together, I was told on the phone by tek from TWC, so you get to keep the Modem box anyway.
you need a number from the new box to take your name off the list so you will not be billed!
I cut my cable , because I have a lcd tv and connet the line to receive tv . and ,get HD anyway and watch some programs on the internet, , now because of this , I’m getting the magic jack plus, to cut my phone service, and if I can find a internet company , I will cut time warrer all together. please lawer , contack me , thanks