iPrimus to refund customer, seven weeks late

By Patrick Gray
03 June 2003 03:30 PM
Tags: iprimus, complaint, administration, patrick, band, gray, refund, adsl
Internet service provider iPrimus is struggling to explain why it has taken them nearly seven weeks to reverse a $300 charge to the credit card of a customer who applied for an ADSL connection that was never delivered.

The applicant, Gouranga Dhanagare, has been waiting since mid April for a refund, after contacting iPrimus on five separate occasions.

"I was getting the same response every time, which was 'give me your details and we'll reverse it'. When I heard it for the fifth time I lost my head," he told ZDNet Australia 

Dhanagare had the amount deducted from his card after he applied for an ADSL connection. He filled out a no-obligation form and faxed it through to the company. After three weeks he had heard nothing. He called, and was asked to fax through the form again. After there was still no response, he called iPrimus and spoke to a representative who took down his details--the same details that were on the form that had been faxed to the company twice.

In the end, it was all for nothing--Dhanagare could not get ADSL because his phone line wouldn't support it. But that didn't stop the company from slugging him with a $300 set up fee.

A spokesman for iPrimus said the initial charge was caused by some administrative confusion.

"There was some confusion surrounding whether or not his line was suitable for the ADSL. Initially it was understood that it was. Upon further checking it was found that it couldn't be conditioned," he said.

The spokesman could offer no explanation as to why Dhanagare has been waiting for nearly seven weeks to get a refund for a transaction that should never have gone through in the first place.

"It's regrettable and we would offer an apology to him for that delay," he said, attributing the problem with the refund to "an administrative bottleneck".

Next time he gives his credit card number on a no-obligation form, Dhanagare says he'll be more careful.

"I gave it in good faith ... the next time I give out my card number I'll be more mindful of what I'm getting into," he said.

There's no sour grapes with Dhanagare--he just wants his money back.

"The funny thing is I still have my dial-up Internet account with iPrimus," he said, adding that he had no plans to cancel it--he's happy with the service he gets.

Telecommunications Industry Ombudsman John Pinnock says although the situation is less than ideal, it's not indicative of systemic problems with iPrimus.

"I would hazard a suggestion that it's the classic horror story and not representative of the normal situation," he told ZDNet Australia. "If it's an issue it hasn't come to the TIO".

Pinnock says Dhanagare's nightmare experience "would appear to be a one-off type of thing".

As for his money, the company says Dhanagare is entitled to a full refund, and iPrimus making arrangements.

Is this an isolated incident? Tell us about your ISP's customer service.

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Talkback 5 comments

    Hmmph! They shouldn't just sim ...Raphael Li -- 04/06/03

    Hmmph! They shouldn't just simply apologise to Mr. Dhanagare. What about the costs in all the phone calls and time the customer spent in this farce? If they valued their customer goodwill, they should compensate with some (courtesy) gesture, especially considering that Mr. Dhanagare is already an existing customer. If I ever decide to check out iPrimus's broadband service, they won't get my credit card number! (Or use Amex with fraud protection!)

    Admin screwup. Can happen with ...MrDamage -- 04/06/03

    Admin screwup. Can happen with any company. The only thing i would ask for in this case is a refund on the interest that was charged on the $300 "purchase".

    Mr Dhanagare obviously needs t ...Anonymous -- 04/06/03

    Mr Dhanagare obviously needs to get a life. We all know the admin hangup's. If he had a problem he should have contacted the ombudsman rather than airing his dirty laundry on zdnet!

    I would just like to point out ...Anonymous -- 06/06/03

    I would just like to point out that the "no obligation form" was in actual fact a legally binding 12 or 18 month contract, and if the ADSL had been able to be provisioned, he would not have been able to get out of it. We check Telstra wholesales system and it gives us the go ahead to provision the ADSL. Occasionally this information is incorrect. I can’t explain why it took so long to refund the money, it should only have take 3 weeks. It takes roughly 2 weeks to get a credit pushed through, as this needs to go to our finance department, then 5 days to reverse the credit back onto the card. If the customer like's I am willing to give him 2 months of free dial up access for the inconvenience and have left notes on his account detailing this.

    another story Anonymous -- 02/07/08

    I hve been overcharged since relocating in feb for a contact that I had changed 6 months previously. I have spent inexces of 20 hourstrying to get them to fix it and no oe there gives a %$%. Once off?? Utter garbage. They still owe me over $200. Despite repeated calls, nothing has been done.Indicative of bottle necks in admin? No...it is indicative of the company itself through and through.

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