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Debt Collectors - Koodo didn't appropriately try to get the money before selling debt


Why didn't Koodo notify me I had a debt?

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Userlevel 7
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Did they cancel your account?
Sorry, I input the first question without details.

I cancelled my account 2 years ago and went to a pre-paid plan instead.

I had my credit card attached to my account and after ending my phone plan, Koodo took the final payment from my credit card but did not notify me that I still owed on my tab which for some reason they did not take automatically like they should have.

Nearly 2 years later, after ZERO contact from Koodo via email or regular mail, I have a debt collector calling me saying I owe them $75 from a tab balance. 

Why didn't Koodo notify me this 2 years ago or take it off my credit card automatically which they had permission to do!? I would have settled this amount straight away if I was aware.

Now I have worse credit which affected a recent transaction of mine because of the clerical error / laziness / unprofessionalism in this matter.

Not happy at all with this and not sure you can do anything to fix this.
Userlevel 7
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Hi Rachel - i shared your post with some internal folks for insights, and here's some info. I got back that should shed some light on your specific situation:

  • You cancelled your account in March of 2015 - notes on your account indicate you were cancelling because you were leaving the country
  • Your final bill was generated in April of 2015
  • An attempt to take final payment in April failed because your credit card had expired that March
  • Attempts were made to get in touch with you using the contact numbers we had on file, but we got dead air (possibly because you had disconnected those numbers before leaving the country? Not sure.)
  • A final paper bill was also mailed to you, which was not returned to us
  • You would have also received an email post-cancellation advising you to check final balance for up to 90-days after your account was deactivated
We do always make multiple contact attempts in these type of situations before involving collections. Looks like we just weren't able to get a hold of you.
Hi Ranjan,

Thanks for getting back to me. 

You are correct in discovering that my account was cancelled on March of 2015. 

As per the last email I received with Koodo on March 24, 2015 when cancelling:

  • If you have negative Tab Balance, the remaining balance will be charged to your final bill.
On March 27, I had a final amount automatically taken off my credit card.  While I don't remember when that card expired, I did have another automatic payment from another company charge my card as of April 17  it seems strange that the final payment would have failed.

My apologies that you were unable to reach me at the contact number, however, having my email address I find it extremely strange that you did not try to email me.  In my cancellation email I did receive wording such as: "If you have a Self Serve account, you can continue to view your E-Bill online for up to 90 days after your cancellation date." But that doesn't really match what you mention above about checking for a final balance.

It is a shame that I did not receive a paper letter, even if you state that one that was mailed.

However, why was there no email?

Why not another letter?

There was literally no effort.

One year later I received a collection agency email stating I had an overdue balance on my Telus account. which since I was a Koodo customer I ignored until this past year when a collections agency finally got in touch with me through the phone through my partners cell phone account which happens to be with Koodo.

The debt I had with you has been sold to them and my credit has suffered greatly because of Koodo's lack of trying to get in touch with me.

One single letter in one year is not a sufficient attempt. I had in fact not left the country and remained at that address for 1.5 years after cancelling and was a Koodo Pre-paid customer less than 3 months after cancelling my month to month plan.  T

There were so many ways to resolve this before selling this debt to collectors and ruining my credit, an email is so easy, a letter just as easy. 

I am well aware that there is nothing Koodo can do to fix my  particular issue as the damage is already done, however, please take this situation and change some of your practices in future as this has had very damaging effects and would have been incredibly easy to avoid with a simple email or an actual effort.

Thanks, 
Userlevel 7
Badge +4
Rachel wrote:

Hi Ranjan,

Thanks for getting back to me. 

You are correct in discovering that my account ...

Rachel - you're totally right about the failure to contact via email when we had you on file. This is a systematic process that wasn't in place before, but we're implementing in the coming months.

Beyond that, as you've acknowledged, it's unfortunately at a point where neither of us can confirm certain points being stated.

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