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Deceased Open Range Somehow Still Billing Users
Company No Longer Exists, But Can Still Bill For Nothing
by Karl Bode Wednesday 08-Feb-2012 tags: legal · business · wireless · bandwidth · scam · consumers · wireless
Back in October Mobile WiMax operator Open Range Communications filed for Chapter 11 bankruptcy protection. At the time, Open Range still owed $73.5 million of a $267 million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program (RUS) designed to improve rural connectivity. With a Congressional inquiry launched into what the company did with the money, somehow Open Range thought it was a good idea to threaten to sue the FCC for failing to give the green light to LightSquared.

Despite their offices being just a shell, the Denver Post reports that Open Range is still billing dozens of customers:

"Open Range just made another big withdrawal out of our account," Arkansas insurance agent Gary Henry said Monday. "They sent an e-mail in November saying they were done, and now they take out $87 and some change for January." Marlene Voss of Wisconsin said after no bill for two months, Open Range took out two monthly charges — $59.95 and $64.04 — on the same date. "There's no way to contact them," Voss said. "How can they be bankrupt and still send bills, and we don't have service? We want to know what's going on."

The Better Business Bureau has also been fielding complaints from users about a non-existent company billing users for nonexistent service -- but has nobody to contact because technically the company no longer exists. Company equipment has been auctioned off and sold, yet somehow someone's still running the phantom billing machine. Open Range lawyers are still working as well, this week asking a Delaware court to shift them from Chapter 11 to Chapter 7 bankruptcy claiming no chance at company resuscitation.

The company's bankruptcy filing lists contact phone numbers and e-mail addresses which don't work. Open Range Communications former CEO Bill Bearns still exists on LinkedIn with Open Range as his current employer, but we're guessing he's no longer concerned about helping customers with phantom charges.

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GeoStar

join:2011-02-10
j2e6f5

money for nothing

thats the way of the internet ,
bill people for nothing

usage ubb links anything that the show allows

extra doe for cd's , for using oil filters , lookin at babies in a hospital ,

anything the traffic lets by , the heist is fair game and the MAFIA ? runs the show ...
mogamer

join:2011-04-20
Royal Oak, MI

Follow the money!

Some investigative reporter should find out what bank account the money is going to and who has access to it. Or better yet, the bankruptcy judge should have the trace done.

In the meantime, everybody should have their bank deny withdraws from them or failing that, change banks or create a new account with your current bank.

battleop

join:2005-09-28
00000

Re: Follow the money!

Buahahahahahah This was their master plan all along.

Or maybe the auto drafts were setup and the people who were in charge of that have lost their jobs and have filed this stuff under "Not my problem."

I am going with the second.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Bank drafts

And this is why bank drafts are a bad thing. Once a company has your account info, they can essentially write themselves checks drawn against your account, and it's up to you to try and stop it.

If you must do an automatic payment, at least have it charge to a credit card. That way, you can always dispute the charge before you actually lose money, and, if you have to, you can always have a card reissued with a different number, or, if you absolutely have to, close the account. That's much easier than having to close your bank account and get a new one.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ

Re: Bank drafts

This is why I pay all my bills online but I still pay them manually. I will never setup automatic payment when its just as easy to setup a reminder and login and click pay. no checks but also no giving them the ability to just take money.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
mogamer

join:2011-04-20
Royal Oak, MI
said by ISurfTooMuch:

If you must do an automatic payment, at least have it charge to a credit card. That way, you can always dispute the charge before you actually lose money, and, if you have to, you can always have a card reissued with a different number, or, if you absolutely have to, close the account. That's much easier than having to close your bank account and get a new one.

Yep, I only have two automatic withdraws. Netflix and Dish Network. They're both on a credit card that I can put stop payments or even cancel if needed. Then I'll use my back-up cc until a replacement card is issued.

FBGuy
yippee ki yay
Premium
join:2005-03-19
pay with a credit card and you can reverse these charges relatively easily.

firephoto
KDE
Premium
join:2003-03-18
Brewster, WA
Reviews:
·Frontier Communi..

Quit picking on the job creators

Without bankruptcy how would we have these fine job creators formed with limited liability to anything that can stimulate their economy with making the payments to their top employees even in hard times.
--
Say no to JAMS!

gballer

@reyrey.net

This is why

you don't ever never ever give a company access to your bank account..I still can't believe people do this and trust these companies not to make a mistake..
travelguy

join:1999-09-03
Santa Fe, NM

Re: This is why

Exactly.... Never, never, never allow a company to pull money from your account. Most banks offer push payments at no charge - one off or recurring.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ

this is a crime

which should be investigated by many Federal and state agencies..

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

1 edit

Re: this is a crime

I am always getting weedled about setting up paperless billing, I learned a hard lesson with US West. What I don't understand is why these people have not cut off the withdrawal, it is your account and you have to give premission for outside access. Withdraw that permission and that is it. I think this is as much about inattention, as it is about a ripoff. What is bad about this whole issue is the people will probably not see any refunds because the company is in chapter 11, and if it goes to chapter 7 they can kiss their money goodbye.

Here is an interesting site: some really pissed off people.
»open-range-communications.pissed···mer.com/
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption
Chubbysumo

join:2009-12-01
Superior, WI
Reviews:
·Charter

Re: this is a crime

paperless billing is okay, at least to me, because it stops my small mailbox from getting stuffed. Also, I dont have any automatic drafts set up, except for my car loan, personal loan, and my insurance, because that was required by the leanholder on my car(both loans, same bank). I pay everything else with a card or in person. I would never give a cable company my bank acct number, because they would NEVER issue a refund into your account, only a credit to your bill, which would not help if they overdrafted your account, or erroneously pulled monies. Also, automatic payments are bad because you are more likely to miss billing errors because you are not reviewing your bills. I may receive my bills electronically(including my electric), but I still review them. Hell, I dont even get a physical paycheck from my employer anymore, they come electronically, and if you dont have Direct Deposit, you get a prepaid Debit card in the mail, not a paper check. It saves costs in the long run, and I am hopeful, that in the next 10 years, that the endless rate hikes will bust, and prices will go way lower. Charter also charges $1.50 a month for a paper bill(which is not surprising, because that seems to be about right for what it costs in labor, postage, and materials).
othas3

join:2002-07-15
Los Angeles, CA
I advocate paperless billing. It forces you to be proactive and unpredictable. Account fraud crimes are less about opportunity then they are planning. I wouldn't steal your bill just to break into your account, but to find out when it comes. I'll rob you THAT day, and you'll be none the wiser for 30 days.

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

And here is the rest of the Story

»www.stimulatingbroadband.com/

Open Range, which had been rolling out a WiMAX network using wireless broadband equipment from Alvarion Ltd. (NasdaqGS: ALVR), in 2008 secured a $267 million Broadband Program Loan issued by the Rural Utilities Service of the U.S. Department of Agriculture (RUS).

The failed loan was awarded in the last months of the administration of former president George W. Bush. It is the largest single loan awarded by USDA for the support of rural telecom infrastructure in the history of any such federal programs since their inception in 1949.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

You can block autodrafts.

You can go to your bank and report the withdrawal as fraud. They'll get stopped.
Chubbysumo

join:2009-12-01
Superior, WI
Reviews:
·Charter

Re: You can block autodrafts.

and because it was automatically withdrawn, you will never get it back, because you had to give them your account number, and you gave them permission to do so(as read by their terms, at any time, for any amount), there is no chance you will get your money back or get reimbursed by your bank. If you pay with a debit or credit card, sure, but EFT rules are a little different.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Re: You can block autodrafts.

True, getting it back is tougher, but you can stop the withdrawals immediately---- rather then this "there's nobody to contact to stop the payment, so they keep charging me."

Getting it back is a problem, but you can stop further bogus withdrawals.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable
said by KrK:

You can go to your bank and report the withdrawal as fraud. They'll get stopped.

Its not always that straightforward, and getting your money back isn't always possible.

Checking accounts are much more vulnerable than you might think. When the thief drains your account, your bank may be quick to break-in to any other funds or line of credit you have at same institution to settle "your" debt. Oh yes, they do.

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