By
Emily Lee
October 6, 2008
When Connecticut resident Christine Negroni’s daughter decided to study abroad in Europe last year, she thought the best option to keep in touch was to rent a phone through PicCell Wireless, which specializes in providing solutions to study abroad students.
Their first month’s bill came out to be $1,200.
Shocked, Negroni set out to investigate what went wrong. A year later on Sept. 25, 2008, Negroni, along with five others, filed a class-action lawsuit against PicCell Wireless on behalf of other affected customers.
“They were charging her for phone calls three times what the competition was charging and three times what PicCell is charged [by the local phone companies],” said Negroni.
“They bill six weeks after the fact ... so many students said, ‘well I made a mistake and I won’t do it again’ but the bills kept coming in.”
The Seattle-based company is being sued on the account of violating the Washington State Consumer Protection Act and the Fair Credit Billing Act by charging consumers “excessive and undisclosed roaming and currency exchange fees.”
The Danish Institute for Study Abroad (DIS) is one of the study abroad programs offered by the UW that promotes PicCell services. While students receive credit for their academic work from the UW, most of the program’s organization is done by the Danish educational system.
Senior Jason Wonacott spent a year in Denmark through DIS, starting August 2007.
During orientation, he said, a representative from PicCell Wireless gave a pitch to students explaining the benefits of renting a phone or SIM card through the company.
“They did make it seem like it was the best deal,” said Wonacott. “And it was easier because everyone was doing it.”
He estimates that 80 percent of the approximately 1,000 people in the program last year had phones from PicCell Wireless. His bills came out to range from $100 to $400 a month but he said some students were charged thousands of dollars.
“I’m not surprised they’re being sued but I think it’s more poor management than [PicCell] trying to scam people,” said Wonacott. “There were lots of rules and regulations that were convoluted that they didn’t make clear upfront.”
The class-action lawsuit seeks reimbursement and possibly payment of treble damages, which would ask for three times what customers were overcharged.
“[We’re] hoping PicCell would at least change their disclosures about the billing if not the actual billing process,” said Adam Berger, an attorney filing the lawsuit. “There’s no guarantees but we feel that the this is a strong case.”
Berger said that the lawsuit is still in its early stages of processing, and he expects it to receive trial early in 2010.
In a statement issued via e-mail, CEO of PicCell Wireless, Brandon Ferrante, said that the case started when a customer accumulated roaming charges from using her phone before arriving at her study abroad location.
“We are vigorously contesting the allegations of wrongdoing,” said Ferrante.
He added that an instructional video has been made to explain roaming charges and the risks involved.
Negroni thinks that the company joins with study abroad programs to turn a profit by giving programs commission for promoting the company.
“My daughter didn’t pick PicCell because she researched it, she picked it because [her study abroad program] recommended it,” said Pegroni. “Why would a study abroad program, who is supposed to be servicing me, make money off of my kid’s phone bill?”
She said that while similar cellular phone rental companies are upfront about commission policies, PicCell Wireless is not.
PicCell is one of the few cell phone rental companies that specifically markets to study abroad students and prides itself on offering low-cost wireless solutions. The company started in 2002 and has services in more than 25 countries.
If Negroni and others win the lawsuit, it is unsure whether it will affect the UW policies regarding the DIS program or other study abroad programs that promote PicCell.
Reach reporter Emily Lee news@dailyuw.com.
4 Comments
#1 Peggy G.
on September 1, 2009 at 12:36 a.m.(Pompano Beach, FL)
Do you have and update on this law suit. My daughter came home from Europe June 23, 2009 and we are still getting bills. Thank You, Peggy Gustin
#2 Joann B.
on September 27, 2009 at 4:44 p.m.(Hampstead, MD)
We had a tremendous problem with Piccell after my daughter came home in May. She returned all the equipment promptly but they couldn't find it in their mail room. They extended her contract for a month so she didn't get late fees- but then when they found it and disconnected her service they hit her with two $50 fees for early termination! They did eventually waive the fees though. (many emails and some blocking of credit card payments)
However, the phone service itself was great overseas. She had a free phone and we could call her at no charge to her. Our bills were mostly $5-10 per month. Good coverage. Get a sim card for each country you might visit and take them with. Roaming will kill you.
#3 Betsy Birdsall
on October 15, 2009 at 9:44 a.m.(Agoura Hills, CA | Unverified Name)
My daughter spent two months in Paris. The American University urged the students to sign on with PicCell to get a great rate. Her final bill was almost $3,000 and her account is still considered "open" because she can't find her sim card to return it. I logged on to read about PicCell and saw there had been a class action suit filed. I'm now madder than mad! I've never had a phone company rip me off to this extent.
#4 Judy DeWitt
on October 21, 2009 at 11:19 a.m.(Mount Pleasant, MI | Unverified Name)
My daughter came home from Italy on Aug 8, 2009. Since then I've received two charges to my credit card and it's now the end of Oct. I called the phone number on my statement, but was only allowed to leave a message. How do I get in contact with someone at the company?
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