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Chicago Tribune notes “No ICC Licensing Control” Because NorVergence only resold phone service provided by other carriers, such as Sprint and Qwest, it required no licensing by the ICC, Hurley noted. "This is the kind of thing we have to be wary of," said Hurley. "We allow just about anybody to get into this business. That's what competition is about." Even some people experienced with fraud became NorVergence customers. Karl Dickhaus, a consumer fraud attorney practicing in the St. Louis area, signed up for NorVergence. "Their office here is near my office," said Dickhaus. "I went over there a lot to complain about their terrible service. I asked them if they really wanted to mess with a consumer law firm. Apparently, the answer was yes." Dickhaus said he became aware that NorVergence's problems extended beyond poor customer service when NorVergence employees sought his representation in collecting unpaid wages. He represented more than 60 clients from the pool of former NorVergence customers stuck owing money to finance companies holding their leases. Dickhaus said NorVergence victims can go to court to get their leases voided because of the fraudulent means under which they were obtained. Going to court costs about $5,000, he estimated. "To hold down costs, we try to get several clients who can sue the same finance company," Dickhaus said. "If you have 10 clients on one suit, they can each pay $500, which is more reasonable. "Of course, they have to understand, in litigation there are no guarantees," he said. full story at: http://www.chicagotribune.com/business/chi0409040171sep04,1,5834696.story |
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