Action: Error blemishes credit rating

Shortly before Christmas of 1999 I purchased a cell phone for my parents for 1 penny, along with a yearly contract. I specifically requested and was told that my parents would be able to call their children in Cleveland, Ohio, at no charge as part of their normal monthly minutes. I was even shown a map covering the northeast United States.

Upon receiving the first bill in January 2000, considerable roaming charges showed up. I paid the bill and immediately returned to the store where I had bought the cell phone. The manager explained that the salesman had made a mistake. GTE Wireless agreed to cancel the contract. I returned the phone and bought another for $99 from another cellular company that included the free minutes for Mom and Dad to talk to their children.

The problem is that in spite of visits to the store and calls and letters to GTE Wireless regarding the cancellation of the contract, I have been turned over to a collection agency for not continuing to pay for the phone.

My attorney also sent a letter in August 2000. Superior Asset Management, on behalf of Alltel Communications, has somehow assumed this account. Despite repeated calls and mailing copies of my dispute, I have never received any response from Superior.

My enclosed credit reports show many years of excellent credit. My credit score has now dropped 80 to 100 points and I have been denied credit. My credit has been ruined and I had planned to finance a major business expansion. Please, please help me. I'd like Superior to remove this collection from my file with all three credit bureaus. If that's impossible, I'd like it to report the collection as mistakenly filed. Paula Cason

Response: Karen Hern, regional communications manager for Alltel Communications in Charlotte, N.C., said Alltel has no record of any letters having been sent to GTE Wireless two years ago by you or your attorney. At the time of your attorney's August 2000 letter, Alltel was in the process of purchasing GTE Wireless and making the attendant transitions. Billing information is no longer available from your account.

However, given the fact that you returned the phone and were told that GTE Wireless would cancel your account with no disconnection fee, Hern said Alltel will honor that. As a result, the collection agency has been contacted and asked to remove your bill from its collection efforts. She said it should no longer appear on your credit reports.

We suggest that you wait several months and then get copies of your credit reports from all three credit bureaus to make sure the adverse reporting has been corrected. We will also send you a copy of the letter we received from Alltel in case you need it as proof that you do not owe anything on this account.

Service charges credited

On Dec. 31, Fashion Bug billed me $30 for something I did not charge or authorize. I made three phone calls trying to get this off my bill and finally paid my balance, minus the $30 charge. The $30 stayed on for another billing cycle before it was finally credited. Because of this, I was charged $4.47 in finance charges which I do not think I owe. Please help. Caroline Humes

Response: Done. The $4.47 will be credited to your account. Fashion Bug's off-line customer service department in Hollywood said the problem arose when you were automatically re-enrolled in the store's discount program. The store notifies customers 30 days prior to the expiration of their FB10 (discount) cards and if the store does not receive a cancellation request, the $30 fee is charged.

Utility allowance

According to my rent agreement, I am supposed to receive a $67 utility allowance. However, I get only $13. I have tried over and over to get this solved without success. Please don't send me any papers to go to legal aid. Can you just get a straight answer without going through all of that? If you look at my monthly bills, what is $13 going to do? V. Dunn

Response: Kenneth Hart, portfolio manager for Jordan Park Apartments in Landex Management's Baltimore office, said that the problem is one of misunderstanding. Jordan Park provides its residents with a utility allowance that is approved by the U.S. Department of Housing and Urban Development. What this means is that the rent the resident pays is reduced by the amount of the utility allowance each month. This reduction is given to allow the resident to pay for utilities.

Hart said each resident at Jordan Park pays 30 percent of his or her adjusted gross income for rent. If a resident's adjusted gross income dictates a rent of $0, the entire amount of the utility allowance is given to the resident to pay utilities. This is called a utility reimbursement.

In your case, your monthly rent is calculated at $54. After backing out your HUD-approved utility allowance of $67, your actual rent is $0 and you are given $13 to help you meet your utility expenses. Hern said you get the full benefit of your $67 utility allowance by not having to pay your $54 rent and having $13 refunded to you monthly. If you have further questions, Hart said that Randy Papai, the property manager, will review your file and utility calculations with you.

-- Action solves problems and gets answers for you. If you have a question, or your own attempts to resolve a consumer complaint have failed, write Times Action, P.O. Box 1121, St. Petersburg, FL 33731, or call your Action number, (727) 893-8171, or, outside of Pinellas, toll-free 1-800-333-7505, ext. 8171, to leave a recorded request.

Requests will be accepted only by mail or voice mail; calls cannot be returned. We will not be responsible for personal documents, so please send only photocopies. If your complaint concerns merchandise ordered by mail, we need copies of both sides of your canceled check.

We may require additional information or prefer to reply by mail; therefore, readers must provide a full mailing address, including ZIP code. Names of letter writers will not be omitted except in unusual circumstances. Letters may be edited for length and clarity.

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