• Report: #393166
Complaint Review:


  • Submitted: Thu, November 20, 2008
  • Updated: Thu, November 20, 2008

  • Reported By:Arlington Washington
P.O. Box 3166 Reston, Virginia U.S.A.

InPhonic is discredited by the Better Business Bureau and is an all around bad company to do business with. Reston Virginia

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On 10/27/2006 I purchased a phone plan for 3 phones through Cingular and, (I found out later) InPhonic.

The plan stated that if I kept my service for 6 months, without having it disconnected, I would keep the phones for the discounted price of one of the phones. The other two were free. Also, I was supposed to get a rebate on the one phone I had to pay for.

Well, I never received my rebate, but on top of that, Cingular decided to merge with ATT at that time, and in the transition their billing became extremely messed up. I did not receive any bills for over two months and had to contact the company to find out how much I owed each month. Which I paid.

Then, because of the billing problems and apparently not having gotten the money that I paid credited correctly, my phones were turned off on 1/9/2007. When I contacted Cingular/ATT, they apologized and immediately turned my phones back on, as it was their mistake.

It has been almost 2 years now since that incident and ever since about a month after the phones were mistakenly turned off, I have been receiving e-mails stating I have to pay InPhonic $250.00 PER PHONE for a total of $750.00 because my phones were disconnected prematurely. They don't even give credit for the money that I already paid for the one phone, or the rebate I never received.

I contacted them and told them that it was a mistake on the phone company's part, but they told me I had to have the phone company contact them and tell them this. I contacted the phone company and told them what was happening, and they said InPhonic had to contact them and they would straighten it out. Neither company would contact the other.

Then InPhonic sent me to collections. Now the collections company is stating that InPhonic sent me to collections last June and that InPhonic has not been in contact with them since. They want me to pay the money, and they don't care that the phone company has admitted it was a mistake on their part and not mine.

The last woman I talked with at the collection agency got really nasty and condescending with me. Treating me like a child who does not read paperwork, she told me that there were other restrictions that I probably didn't follow through with either. She also stated that the only way to clear this all up is for me to get on a three way calling conversation with her, the phone company and myself. I also had to be the one to initiate the three way calling. Since I do not have three way calling in my plan, she wanted me to sign up for it so I could initiate this phone call. I refused.

Since this has been going on for almost two years now, my credit is completely ruined. I am still fighting this, and there is no way InPhonic is getting any money from me. By the way, I still have, after two years, the phone plan that InPhonic claims I stopped too early to complete my 6 month obligation.

I'm including the BBB report on InPhonic.

BBB Reliability Report for
InPhonic, Inc

This is not a BBB accredited business.
BBB Rating Unsatisfactory

Find out more about this business:Reported on Thursday, November 20, 2008 8:45 AM

This business has not been accredited by BBB.

Based on BBB files, this company has an unsatisfactory record with the Bureau due to unanswered complaint(s).
Business Contact and ProfileBack To Top Name: InPhonic, Inc
Phone: (703) 636-4600
Address: Corporate Headquarters, 11130 Sunrise Valley Drive, Suite 300, Reston, VA 20191

Business Category: Cellular Telephone Equipment & Supplies, Internet Marketing Services, Telephone Answering Equipment & Systems, Telephone Communications, Telephone Equipment & Systems Service & Repair
eMail: apcustomerservice@inphonic.com
BBB file opened: January 01, 2001
Business started: November 1999
Primary Contact: Mr. Andy Zeinfeld (President and CEO)
Complaint Contact: Ms. Hollie Kapos (Legal Assistant)
Other Contacts: M. Walter W. Leach, III (Corporate Counsel)
Mr David Steinberg (Chairman of the Board of Directors )

Alternate Business Names
Cellular Choices
Continental Promotion Group
Corporate Wireless
INTELENET Wireless Customer Service
mobile Pro
MSN Mobile Customer Service
Phone Deals
SN Liquidation, Inc
StarNumber, Inc.
TMI Wireless
Wireless Marketplace
WorldPerks Wireless Service

Products and Services This company is out of business.
Additional Locations and Phone Numbers
1601 McCormick Road, Largo, MD 20774, Prince Georges County

Technology and Operations Center, 9301 Peppercorn Place, Largo, MD 20774, Prince Georges County

Office of the President, 10790 Parkridge Boulevard, Suite 100, Reston, VA 20191, Fairfax County

Customer Service Operations, 10790 Parkridge Blvd, Suite 100, Reston, VA 20191, Fairfax County

10803 Parkridge Blvd Ste 100, Reston, VA 20191, Fairfax County

1010 Wisconsin Avenue NW, Suite 600, Washington, DC 20007, District of Columbia County

(301) 361-1011
(800) 300-7066
(800) 444-9543
(800) 474-9745
(800) 973-0691
(866) 274-8573
(866) 607-9877
(866) 615-0682
(866) 635-7400
(866) 755-4237
(866) 816-5873
(866) 841-9124
(866) 841-9125
(877) 277-9233
(888) 378-6509
(888) 378-6567
(888) 466-5651
(888) 919-7692
(888) 947-3359
(202) 333-0001

This company is in an industry that may require licensing, bonding or registration in order to lawfully do business. The BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

Customer Complaint History
The company's size, volume of business and number of transactions may have a bearing on the number of complaints received by the BBB. The complaints filed against a company may not be as important as the type of complaints, and how the company has handled them. The BBB generally does not pass judgment on the validity of complaints filed.

Number of complaints processed by the BBB
in the last 36 months: 4397
in the last 12 months: 526

Complaints Concerned:
Selling Practices (911 complaints)
580 Resolved
54 Unresolved
132 Delayed Resolution
21 Company made every reasonable effort to resolve
124 Company did not respond

Advertising Issues (292 complaints)
192 Resolved
17 Unresolved
40 Delayed Resolution
5 Company made every reasonable effort to resolve
38 Company did not respond

Service Issues (1280 complaints)
729 Resolved
34 Unresolved
306 Delayed Resolution
29 Company made every reasonable effort to resolve
182 Company did not respond

Customer Service Issues (4 complaints)
4 Company did not respond

Credit or Billing Disputes (783 complaints)
557 Resolved
40 Unresolved
68 Delayed Resolution
21 Company made every reasonable effort to resolve
97 Company did not respond

Delivery Issues (127 complaints)
66 Resolved
11 Unresolved
18 Delayed Resolution
2 Company made every reasonable effort to resolve
30 Company did not respond

Refund Practices (716 complaints)
480 Resolved
33 Unresolved
106 Delayed Resolution
17 Company made every reasonable effort to resolve
80 Company did not respond

Product Quality (35 complaints)
17 Resolved
8 Delayed Resolution
10 Company did not respond

Contract Disputes (111 complaints)
65 Resolved
12 Unresolved
18 Delayed Resolution
16 Company did not respond

Guarantee or Warranty Issues (129 complaints)
51 Resolved
9 Unresolved
35 Delayed Resolution
3 Company made every reasonable effort to resolve
31 Company did not respond

Repair Issues (9 complaints)
3 Resolved
6 Company did not respond

Government ActionsBack To Top June 8, 2006 District of Columbia

The Office of the Attorney General for the City of Washington, DC filed suit in Superior Court of the District of Colmbia seeking permanent injunction and other equitable relief, restitution and civil penalties versus Inphonic, Inc. The suit alleges that the company discloses terms and conditions of its rebate procedures far from its on-line advertising, utilizes restrictive rebate conditions, fails to disclose hidden charges, and does not provide advertised customer service.

February 15, 2007 Consent Agreement/District of Columbia

On the above date, the company, without any admission of liability or wrongdoing, entered into a Consent Agreement with the Office of the Attorney General of the District of Columbia. Under the terms of the Agreement, the company agreed to modify its advertising and listings concerning prices to clearly reflect any rebate or credit provisions concerning sales and service provisions for products. It further agreed to provide affirmative consent or rejection links to consumers regarding its sales offers, provide improved customer assistance and information processes, and to provide website access and a toll free telephone number for individual customer rebate information no later than June 30, 2007.

Under the terms of the Agreement, InPhonic is to provide restitution to all consumers who have filed complaints with either a government agency or a Better Business Bureau prior to the date of the agreement concerning rebates or billing issues concerning their transactions, and who have not obtained the rebate. A third party administrator will administer the restitution process and will contact consumers about their claims. The company also made a payment to the District of Columbia of $100,000. The Agreement is for settlement purposes only and is not an admission of non-compliance with DC Consumer Protection Act or any other law.

April 27, 2007 Federal Trade Commission Consent Agreement

The Federal Trade Commission (FTC) settled charges alleging deceptive claims and unfair practices regarding rebate offers. The order prohibits the company from misrepresenting the material terms of any rebate program and requires InPhonic to disclose all terms related to rebates prominently on any rebate form. The company is further prohibited from misrepresenting the time in which it will mail any rebate, as well as from failing to provide any rebate within the time specified, or if no time is specified, within 30 days. The order also contains a redress program, under which InPhonic will pay consumers who applied for a rebate with the company, but were denied one based on the company's deceptive and unfair practices. The consent agreement was for settlement purposes only and does t constitute an admission by the firm of a law violation.
Advertising ReviewBack To Top The BBB has no information regarding Ad Reviews at this time.
Additional InformationBack To Top Bankruptcy Filing

On November 8, 2007, the company filed for reorganization under Chapter 11 of the federal Bankruptcy Act in US Bankruptcy Court in Wilmington, DE. This permited the company to continue to operate with court supervision while developing a plan of reorganization.

In November, 2007, INPC Acquisition, LLC was formed in Delaware. In December, that entity changed its name to Simplexity, LLC. Certain assets of InPhonic were reportedly acquired by Simplexity, LLC. A separate report is available on Simplexity, LLC.

Company Information

According to information in BBB files, Inphonic has ceased operations. In December, 2007, US Bankruptcy Court approved the sale of InPhonic to Versa Capital Management. InPhonic subsequently was re-structured.

As a matter of policy, the BBB does not endorse any product, service or business.

BBB Reliability Reports are provided solely to assist you in exercising your own best judgment. Information in this BBB Reliability Report is believed reliable, but not guaranteed as to accuracy.

BBB Reliability Reports generally cover a three-year reporting period. BBB Reliability Reports are subject to change at any time.

If you choose to do business with this business, please let the business know that you contacted the BBB for a BBB Reliability Report.

ID: 23004111
Report as of: 11/20/2008 8:45 AM

2008 BBB of Metro Washington DC & Eastern Pennsylvania

Privacy Policy Trademarks Terms of Use 2008 Council of Better Business Bureaus

Arlington, Washington

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This report was posted on Ripoff Report on 11/20/2008 07:32 AM and is a permanent record located here: http://www.ripoffreport.com/reports/inphonic/reston-virginia-20195/inphonic-is-discredited-by-the-better-business-bureau-and-is-an-all-around-bad-company-to-393166. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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