Bogus Bills from Direct TV

March 23, 2006 (WPVI) -- Action News has uncovered a story about bogus bills and ruined credit. So far we've found more than a dozen consumers who've received collection notices from a big-name satellite TV company. But there's a strange twist.

You may not be able to tell but employees at Village Charter in Chester, Pennsylvania have more on their minds than students and schoolwork. More than a dozen educators have been informed they owe satellite television giant Direct TV hundreds of dollars. Deborah Gibbs-Tapper/Folcroft, Pennsylvania: "And he said, 'Yes, you have a bill outstanding for $476 dollars. It's in collections you haven't paid it.'" Direct TV claims J'me Johnson and Tamiko Barber each owe money on two accounts. Tamiko Barber/Chester, Pennsylvania: "I have good credit. I'm in the process of purchasing a house, and this is negatively affecting my credit right now so I'm very angry about that." Especially since with the exception of one teacher, none of these folks have ever had Direct TV!

Carole Berrier of the Overbrook section of Philadelphia has the same problem. "I absolutely feel vulnerable." Turns out, the Philadelphia address for the fraudulent account under her name doesn't exist.

A former independent Direct TV dealer activated the account and apparently at least 10 other bogus contracts. "There is obviously a pattern." At Village Charter School, the initial bills were sent to addresses in Fayetteville, North Carolina! And the majority of the addresses we checked there are also non-existent. Jim Hood/ ConsumerAffairs.com: "We get an awful lot of complaints about Direct TV." Jim hood is the president of ConsumerAffairs.com Jim Hood: "Their absolute responsibility is to go back and check all the orders from the area where the fraud occurred and confirm them." But the consumers say Direct TV kept referring them back to the collection agencies, leaving them guessing how they got scammed and whether they're still vulnerable. Amy Ronen/Newtown Square, Pennsylvania: "This happened and we're going to deal with it, but what's going to happen next?" One theory here is that Rogue employees at some Direct TV subcontractors may be setting up bogus accounts for the commission. Consumers say Direct TV needs to secure its signup system. J'me Johnson/Chester, Pennsylvania: "Because it's too easy right now for someone to steal someone else's identity." To open a new account , you must provide an address, phone number, social security number, and credit card number. The card doesn't have to be yours.

And Direct TV checks your credit report but apparently does not make sure the address on it matches the service and billing address.

Direct TV tells Action News it is evaluating new identity verification tools to help determine if it's receiving truthful, accurate information. It also says it takes claims of identity theft very seriously and has trained staff who investigate and help consumers.

But what should you do if you end up in a similar situation? Jim Hood: "You should in writing, contact the credit agency and dispute it." And post your complaint online to build a network with other victims.

After we contacted Direct TV, the company removed all the accounts from collections, and it promises to take whatever steps it can to help the consumers repair their credit files. The company also say it will conduct its own investigation.

(Copyright 2006 by Action News. All Rights Reserved.)

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