JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

When it sounds too good to be true ...

Kogan chief Ruslan Kogan.

Kogan chief Ruslan Kogan.

Neil Gill admits he likes "to have a yak".

But he was sure his penchant for a chat was not going to rack up large phone bills because he had found what has now proved to be a deal too good to be true.

Dissatisfied Kogan Mobile customer Darren Chapman.

Dissatisfied Kogan Mobile customer Darren Chapman.

The man from Wamuran in Queensland is one of a number of Kogan Mobile customers who have unexpectedly had their services discontinued.

Mr Gill signed up with Kogan to be a prepaid customer and pay $29 a month for unlimited calls.

He said he thought it was a good offer that would allow him to call his girlfriend, who lives an hour away, whenever he wanted and keep in touch with his father in Western Australia, who had been ill recently.

Neil Gill from Queensland with his girlfriend.

Neil Gill from Queensland with his girlfriend.

Unfortunately for Mr Gill, a pensioner, the offer only lasted about three months.

When he went to top up his credit a week ago, his phone kept getting an error message.

He called Kogan and was told he was not allowed to use his phone for business purposes.

Mr Gill said despite telling the person on the phone that he did not use the phone for business purposes, they would not believe him.

He said after much heated discussion, the conversation ended with some swearing and no resolution.

Mr Gill later received an email to inform him about the termination.

“We have further investigated your account and you will need to churn your services to a new provider as we believe you are not using the service for personal use and we are no longer able to provide you services,” the email said.

“Your service will not be terminated and you will have 90 days after expiry before your number goes into a passive status so you will need to churn out your number before this time.”

Mr Gill said Kogan must have decided he was using his phone too much, which did not make sense considering he was supposed to have unlimited calls.

He said he planned to take the matter to Consumer Affairs.

“It doesn't seem fair, unlimited should be unlimited,” he said.

Another Kogan user, Darren Chapman was disconnected in February after being with the provider for less than a month.

“What I would consider normal use, thinking I had 6GB to use. I didn't make many calls,” he said.

On February 5 he realised his phone had no service.

He tried contacting Kogan by phone and online but got nowhere, so Mr Chapman moved his number to Telstra.

“I couldn't have what I thought was an unreliable service. “

While Kogan may be losing business from customers it does not appear to want, it may also lose a number of other customers deterred by its actions.

Perth man Jay Shah signed up with Kogan about a week ago but since hearing about customers being cut off, is already considering moving to another carrier.

with Ben Grubb

7 comments

  • Unlimited with all telephone and internet companies includes fair use policies. And who the hell is Jay Shah? A friend of a friend of the reporters?

    Commenter
    Peter
    Location
    Perth
    Date and time
    March 20, 2013, 3:46PM
    • Exactly, and everyone knows it.People do read things apart from news.And the unlimited ,fair use deals Ihave had stipulate the actual number of calls per billing cycle that constitutes "unlimited"Course the Governments slack labelling laws are to blame for the publics upset.

      Commenter
      Kane
      Date and time
      March 20, 2013, 5:18PM
  • poor customer service is a sure sign that a company is struggling. When you annoy your big users ( who may be your staunchest advocates) you are just asking to be pummelled in the PR stakes. As for the user proving that they are not using the service as a business, surely if you are the carrier it is up to you to prove that the service is being used contrary to T&C not make the assumption that the customer is in the wrong. In the case above, I dare anyone to sit on a phone for hours whilst running a business. Most business people want to get off the phone as soon as possible. ie if the calls are for a business there will be a lot to short calls (unless you regularly call government departments, or HP's helpdesk in India) , if the calls are personal they are more likely to be longer.

    Personally I think Kogan is going to be spanked big time over this as they have taken the OPTUS unlimited ACCC decision and thumbed their nose at it.

    Commenter
    hazmoid
    Date and time
    March 20, 2013, 4:01PM
    • Great reporting here.

      A 60 second google search for Kogan's T&C would reveal section 5 where kogan reserve the right to cancel the service for inappropriate use at their discretion.

      But I guess sensationalising news stories from a single perspective is easier than researching the issue and presenting a balanced and factually accurate article

      Commenter
      Steve
      Location
      Rockingham
      Date and time
      March 20, 2013, 4:46PM
      • Why is there no detail on just how much use these guys did? Every telco struggles with the "abusers" and it would have been more insightful to know how much over the top use went on for them to be barred. Its another lightweight piece looking to bash a telco .

        Commenter
        Mitch
        Location
        Sydney
        Date and time
        March 20, 2013, 5:08PM
        • And as usual, deservedly so.

          Commenter
          Paul D
          Location
          Brissie
          Date and time
          March 20, 2013, 5:24PM
      • TOS is irrelevant, if you advertise UNLIMITED then you have to provide. I think Mr Kogan may be in a bit of trouble here, as have the other telcos when they also abused the 'unlimited' word.

        Commenter
        Demon Rob
        Location
        Melbourne
        Date and time
        March 20, 2013, 5:28PM
        Comments are now closed
        Advertisement
        Featured advertisers
        Advertisement