Billing for services that customers did not ask for has become a common act within many fast-growing organizations. T-Mobile US Inc (NASDAQ:TMUS), which is the latest victim of this sort of fiasco through its sales reps is alleged to have misled customers into enrolling them in unwanted services. Change to Win (CtW), a labor union, has filed a complaint with the Consumer Financial Protection Bureau claiming that the carrier is engaging in unwarranted practices.
As the company’s standard operations are questioned, some T-Mobile customers in five states have indicated that they were enrolled in services they did not consent to. Apparently, CtW Investment Group has also raised its eyebrows over T-Mobile’s accounting and disclosure practices. The group has further made a request to the Security and Exchange Commission to investigate the scenes behind the company’s non-standard accounting efforts.
Pressure on sales team to meet unrealistic goals: A reason for the unwarranted practices
While every company is seeking to make money on new customers, T-Mobile may have used the wrong approach. The company may have some ambitious but unrealistic goals for its sales teams. But while this may promote excellence in sales and friendly competition among co-workers, the goals are too lofty. Pressure to meet them occasions the addition of fraudulent charges to customers’ bills by the sales reps. After all who wants to lose their jobs for not meeting their targets?
A report by CtW states that 83% of the company’s employees said that the pressure is too much because managers monitor sales goals on an hourly basis. They also confessed that they are required to sign up 80% of their new accounts with the JUMP! upgrade program.
But not all customers have experienced the add-ons
Apparently, not everyone has been hit by T-Mobiles new tactic. Emil Caillaux who has been with a T-Mo customer since 2008 says, “They’ve always been super clear when I’ve called and asked about anything. I’ve actually been very happy with how transparent they’ve been.”
But while this may just have been one of the lucky cases, T-Mono;e has previously been accused of “cramming”, or adding unwanted charges onto subscribers’ bills. Nonetheless, the company has not made any comments in regards to the prevailing issues. Hence, it remains to be seen what actions the authorities will take.
Meanwhile T-Mobile’s stock closed at $58.06 witnessing an increase of $0.26 or 0.45%.