Charter told former customers it would forgive their debts and cease reporting them to credit agencies if the customer resubscribes to its Spectrum TV, internet or voice service. According to the Los Angeles Times story. After Steve Schklair shared a letter detailing the deal with the LA Times, the one-time courtesy offer was discovered. Schklair claims he hasn't been Spectrum customer for many years and does not owe any money to the company. Charter later confirmed that the letter was genuine, stating that it was intended to help Spectrum customers reconnect with Spectrum and give them a head start on their finances.
According to the LA Times, Charter's letter to Schklair stated that the company would cancel his debts if he resubscribed. He also promised that his account would remain in good standing. The letter implied that Charter had reported the debt to credit reporting agencies, potentially lowering Schklair's credit score. It also stated that he would not have to worry about it if he was a new customer.
Although reporting debts is Charters legal right, Schklair claims that the offer feels like blackmail.
It tries to portray it as a charitable offer by the ISP. The letter states that having a good credit record will help you get better mortgage rates and credit cards. The company has a history sending customers a lot of letters. However, the Times humorously points out that this letter is almost Sopranos-like. It's almost like the company is saying, "You have made a nice lifestyle for yourself." It would be a shame if it happened.
Charter is legally allowed to report ex-customers' debts to credit agencies if they owe money. This is how the credit reporting process works, for better and worse. However, if the letter offered no strings attached debt forgiveness or a reasonable repayment plan, it wouldn't be called corporate blackmail. It would likely not be described as sleazy or corporate blackmail. If you don't tell people about the better options available to them and only want to get their money back, it is difficult to appear altruistic.
Spectrum customer service representatives couldn't locate outstanding payments for Schklairs accounts
Charter might have sent Schklair the debt forgiveness offer. Schklair told The LA Times that Charter had not been monitoring his credit reports and hadn't been contacting him regarding missed payments. Two customer service representatives also said that he didn't owe any money. Charter said that it would not discuss Schklairs case in private. Charter stated that the letter was a targeted promotional offer to former customers with a past-due balance of less than two years and who are currently in collections. The offer allowed customers to escape collection without having to pay that balance.
Disclosure: Comcast is a competitor of Charter and an investor in Vox Media. Vox Media is the parent company of The Verges.
Although I am not a financial advisor, most experts agree that it is important to be cautious about companies promising financial freedom by allowing you to consume. According to the LA Times, the offer goes up from $50 to $75 after one year. This is a significant increase for someone who has struggled to pay their bills in the past. Spectrum may also try to lock them in a debt forgiveness program. Charter could reconsider its standard corporate approach to trying to win customers back. Instead of sending out standard we missed you letters, Charter should make helpful offers to customers and not just trap them in the same debt cycle.
