Cellphone company keeps customers on hold Cellular company keeps customers on hold

Cellphone company keeps customers on hold,

products allegedly not delivered

Cellular Blowout, an Internet-based discount cell phone and accessory company, is leaving a trail of angry customers from coast to coast who say they are ready to hang up and hit delete on the Agoura Hills company.

Disgruntled customers say when they order phones or other products online, their credit card is immediately charged whether the company has the product in stock or not. Buyers are notified that the item is on back order, but they say weeks or months go by without delivery of the item.Often the customers attempt to cancel their credit card orders, but if they wait too long they are forced to accept a financial loss.

The company employs 10 people at its offices on Agoura Road.

As of Dec. 17, about 920 customers nationwide had registered complaints against Cellular Blowout. The Better Business Bureau gave the company an "F" rating.

Company founder and president David Bleeden said all businesses have a certain percentage of unhappy customers. He charged the bureau with trying to "shake down" his company for monthly payments.

"It's kind of like extortion," Bleeden said.

The Acorn received complaints from California to Florida, and Internet blogs blasted the company's shoddy business practices.

Terrence Keenan, a 31-year-old from St. Louis, MO, was among the first to contact The Acorn.

"After buying a phone from (Cellular Blowout) and them charging my credit card, they sent an email a week later saying it was on backorder," Keenan said. "That dragged on for two months."

Keenan said he could not reach anyone in customer service via the telephone, and was forced to proceed with his complaint through the company's website.

"When you go to e-mail them, it must be through their site, so that you retain no copy of your correspondence," Keenan said.

Amber Coontz from Hawaii said that she ordered a phone on Nov. 2 and received an email saying the product was on backorder even though information on the company's website said the item was in stock. She asked for a credit to her account but was told the transaction would take up to 14 days. She worked with her credit card company to dispute the order.

Dan Fotou, a New York City resident, said he was "scammed" by Cellular Blowout in July and is still waiting for his credit card to be adjusted.

"Trying to reach customer service by phone proved futile," said Tom von Nieda, from Half Moon Bay, Calif. "Eventually I contacted my credit card company to dispute the charge."

The Better Business Bureau says the company has failed to respond to complaints and that their advertising is grossly misleading.

The bureau also says the company violates the Federal Trade Commission's mail order rule and other licensing and registration requirements. According to the bureau, if the seller cannot ship within a 30 day period they are required to notify the buyer in writing of the delay and give them the option of waiting or having their money returned within seven days. Credit card refunds take one billing cycle.

State law enforcement agencies can take action against the firm for violating consumer protection laws. The company also risks penalties from the FTC.

Agoura Hills officials have received complaints also, but say they can't take action because the company is correctly licensed and obeys all city ordinances.

Even though Bleeden believes his business is operating smoothly considering the sheer volume of orders, he said he's investing money to create a better communications system. "We're trying to figure out a way to touch as many customers as possible," he said.

He said he might open a call center in the Philippines to handle the customer complaints.

Bleeden defends the company's online customer service practices. He said customers are immediately alerted if an item goes on back order, and after seven to 10 days they are contacted again with the option to cancel their orders.

Bleeden said the Better Business Burea reports are "unsubstantiated claims" and that all companies—Walmart, Amazon.com, Best Buy and others—are "bashed" through online watchdog groups.

"There's consumer madness out there," said the 47-year-old owner. "People who complain are all over the Internet, (but) people who are happy don't post (on the Internet).

The consumer madness has lead to crimes against the firm. Bleeden said Cellular Blowout has been burglarized three times, rocks have been thrown through windows, and one angry customer has repeatedly come into the office screaming and threatening employees. "We've absolutely had challenges," Bleeden said. "We're just trying to survive."