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'Magic Jack' has F rating
(The Daily Courier Via Acquire Media NewsEdge) Sep. 12--Tammy Cochran wanted to save money on her phone bills. She saw an advertisement for a device called a "Magic Jack" that would allow unlimited calls through her Internet broadband service for $19.99 for one year. The jack itself was an additional $30.
"Their Web site said to put in my credit card number and they would not debit it for 30 days. They took the money the next day. I had to pay for the item up front, even though they said it wouldn't be debited for 30 days," the Scottdale resident said.
Cochran said she has asked her bank to freeze the account "and the attorney general is looking into it."
In addition to being charged sooner than she planned for the Magic Jack, Cochran has not yet received the device. "They said it would arrive in seven to 10 days. I've had no contact in 22 days," she said. "I want my money back."
Adding to Cochran's frustration is the fact that Magic Jack has no customer service telephone number, just an Internet chat site, which Cochran has used. But she still has not received satisfaction.
"I have a lawyer," she said.
An employee of Magic Jack reached through the Web site, www.magicjack.com, identified himself only as Roderick. In e-mail correspondence, Roderick responded, "For debit card, we automatically get the money since we can't put a hold status for such transactions. But, even if we got them billed, we will still keep that bill as hold/pending on our end. If they decide not to continue with MJ and they're still under the 30-day trial period, then we will give back the charge as 'refund.' Let them contact their debit card company for more details."
As for the shipping situation, Roderick responded, "There could be possible reasons why the delivery has not yet been delivered, such as insufficient funds and wrong address."
Cochran's delay could not be due to insufficient funds, because she said the charge has been taken from her account.
Eric Shirk, spokesman for the state Attorney General's Office, said he could not comment on whether or not the office was investigating Magic Jack.
Shirk referred to the Better Business Bureau's online analysis of Magic Jack.
"They got a pretty poor rating," he said.
Magic Jack is based in West Palm Beach, Fla., and the BBB Southeast Florida office rated it F, the lowest rating given. The BBB Web site's explanation of an F rating reads: "We strongly question the company's reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law's licensing or registration requirements, their complaints contain especially serious allegations, or the company's industry is known for its fraudulent business practices."
These explanations may not all apply to Magic Jack. The BBB's complaint experience with the company reads: "Our file contains a pattern of complaints from consumers who allege they were offered a free 30-day trial period for their product. After accepting the offer, consumers allege funds were withdrawn from their account before the end of the free 30-day trial period. Consumers also allege experiencing difficulty in contacting the company and receiving refunds. We have received a significant number of complaints against this company. In at least some cases, the complaint allegations are serious."
The BBB recorded 559 complaints against Magic Jack, which started business on April 13, 2007, according to the BBB. Of those complaints, 338 were resolved by making a full refund, at the customer's request, 10 by making a partial refund and 211 by agreeing to perform according to their contract.
As far as the free trial period, the BBB's Code of Advertising indicates "the word 'free' may be used in advertising whenever the advertiser is offering an unconditional gift. Consumers allege that after applying for the free trial, Magic Jack is immediately charging the customers' accounts for the full purchase price."
Individuals encountering problems with Magic Jack should contact the state Attorney General's Office. The main phone number is 717-787-3391. The consumer protection line is 1-800-441-2555. The BBB online site is www.bbb.org.
To see more of The Daily Courier or to subscribe to the newspaper, go to http://www.pittsburghlive.com/x/dailycourier/.
Copyright (c) 2008, The Daily Courier, Connellsville, Pa.
Distributed by McClatchy-Tribune Information Services.
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