Formal Complaint: Unauthorised Contract Upgrades, Misrepresentation and Disputed Charges

Dear MTN Complaints Team,

I am writing to lodge a formal complaint regarding unauthorised contract upgrades and two additional device contracts that were sold to me through Rewardsco, acting on behalf of MTN.

In July, I was contacted telephonically by a person who represented himself as calling from MTN regarding my existing MTN contracts. I have subsequently been informed, after speaking to several MTN call centre and in store agents, that the individual was in fact from Rewardsco, acting on behalf of MTN.

At the time of the call, I was 38 weeks pregnant and specifically told the agent that I was not interested in taking out any new contracts or upgrades.

The agent then explained that he was not offering me an “upgrade”, but rather an update to my existing contracts. He told me that I could either pay the same total monthly amount and receive more data, or pay a lower total monthly amount while retaining the same data.

I specifically and repeatedly asked whether my total monthly MTN payment would be lower than what I was already paying. The agent assured me that it would be and discussed the before and after amounts with me on this basis. This was the only basis on which I agreed to proceed.

After this, the agent asked how long I had been an MTN customer. I told him that I had been with MTN for more than 10 years. He then told me that he was going to send me two FREE phones.

He repeatedly represented these devices as free, even going so far as to suggest that, if I did not need them, I could give them to my mother, child, domestic worker or somebody else.

At no point did I knowingly or willingly agree to purchase two additional phones, nor did I knowingly agree to enter into additional 36 month device contracts or to increase my overall monthly financial commitment to MTN.

I have now discovered that, contrary to what I was expressly told, my existing contracts were upgraded and I was signed up for two phones over three years. I did not sign any documentation agreeing to this, and I did not knowingly give telephonic consent to these additional financial obligations.

To be clear: this is not a case of me changing my mind after agreeing to an upgrade. I dispute that valid and informed consent to these contracts was ever obtained. The products, contract terms and financial obligations ultimately placed on my account were materially different from what was represented to me during the sales call.

I have subsequently contacted MTN on multiple occasions. Each time, I have effectively been told that MTN cannot assist me and that I need to deal with Rewardsco.

This is completely unacceptable. Rewardsco contacted me on behalf of MTN, sold me MTN products and caused contracts and charges to be placed onto my MTN account. MTN cannot simply distance itself from the conduct of a sales channel acting on its behalf while simultaneously holding me liable for the resulting contracts and collecting payment from me.

To make matters worse, when I refuse to pay amounts that I dispute, MTN suspends my account, leaving me unable even to use my MTN service properly while attempting to resolve the very dispute that caused the suspension.

I therefore formally require MTN to:

1. Immediately investigate the sale and retrieve and listen to the complete recording of the original sales call, including all representations made regarding my existing monthly amount, the alleged “update”, and the two “free” phones. 2. Provide me with a copy of the complete call recording, together with any documentation, electronic records, confirmations or other evidence on which MTN relies as proof that I consented to the upgrades, device contracts, 36 month terms and associated charges. 3. Reverse the disputed upgrades and device contracts in full and restore my contracts and account to the position they would have been in had these transactions never occurred. 4. Arrange, at no cost or inconvenience to me, for the collection and return of both phones. 5. Refund all amounts already debited or charged to me as a result of the disputed transactions, including any associated fees, penalties or charges. 6. Immediately ensure that my services are not suspended or otherwise prejudiced because I dispute amounts arising from these transactions. 7. Investigate the conduct of Rewardsco and the individual agent concerned and take appropriate action in respect of the misleading sales practices used. 8. Immediately investigate and confirm in writing whether my credit record or credit profile has been negatively impacted in any way as a result of these disputed contracts, charges, alleged non payment or the subsequent suspension of my MTN account. This must include confirmation that no adverse information, arrears, defaults, missed payments or other negative payment information relating to this dispute has been reported to any credit bureau. If any such information has already been reported, I require MTN to immediately take all necessary steps to have it corrected and/or removed, and to provide me with written confirmation once this has been done. I will not accept any adverse impact on my creditworthiness arising from contracts and charges which I maintain I never knowingly or validly agreed to.

I am extremely concerned that the manner in which these contracts were sold involved material misrepresentation and misleading or deceptive marketing, including a failure to properly disclose the true nature, price and duration of the agreements and the creation of additional financial obligations without my informed consent.

This raises serious concerns regarding MTN and/or its agent’s compliance with the Consumer Protection Act, National Credit Act and other applicable South African consumer and credit legislation.

Should MTN not resolve this matter promptly, I reserve my right to escalate the complaint to the appropriate external bodies, including the National Consumer Commission, ICASA and, where applicable, the National Credit Regulator and/or relevant Ombud, together with the details of the sales process and the call recording.

I have been an MTN customer for more than 10 years. I find both the original sales conduct and MTN’s subsequent refusal to take ownership of the problem completely unacceptable.

I expect MTN to take responsibility for a transaction concluded through a party acting on its behalf and to resolve this matter urgently.

If this matter is not satisfactorily resolved, I will also reconsider and, where contractually possible, terminate my remaining business with MTN.

Please acknowledge this as a formal complaint, provide me with a complaint/reference number, and confirm in writing what action will be taken.

Kind regards,

Chrislé Nel