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Question about bill collectors from Vodaphone!(Help please)

Hachiro

先輩
5 Feb 2006
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Question here.....
I have a friend that has been living here in Okinawa for a few years now, he has fallen on some difficult times, he is married with a couple of kids, and just recently found a new job that will help to support his family. That is the good news.

The bad news is that since he was out of work he couldn't pay some bills and has been paying them back little by little with the cooperation of the credit card company's that he has debts with.

That's not the problem either, the problem is he had to cancel his contract with Vodaphone and has an outstanding bill for a bit over 40,000 yen. He knows he has to pay the bill, he used the service, so he knows he is responsible for it, but he can not pay it off all at once. He has no plans to run away from that, so please don't pick on that please.

The Vodaphone rep has gotten really nasty of late threatening him with calls to his new job, which is one thing he can not afford, because he wants to keep his job(of course) and asked on numerous occasions to let them allow him to make payments. The rep according to his wife used some pretty gutter Japanese and was scary as heck.

They are refusing to cooperate. One other thing is that included in the 40,000 or so bill, is a 10,000 yen fee for cancellation of the contract, because he cancelled the contract with them during the middle of the contracted period and not at an "anniversary" time. He wants to pay them off at 10,000 yen per month but Vodaphone is threatening legal action if he doesn't pay off the balance by a set date. (Sorry I am not sure what that date is, but it sounded like it was fairly soon, like this week or next.)

So my question, First, I have never heard of a contract cancellation fee being so high...I use Docomo and if I had to cancel my contract mid-term I will be charged a fee between 2 and 3,000 yen, I know I checked myself because I never faced anything like that before and was curious to see if my "fee" would be the same.

Is the cancellation fee that Vodaphone charges normal and or legal?Sounds like a lot of money to cancel a contract to me. Does anyone have any experience with something like this? In all my time here I have never encountered anything like this before and wanted to know what or how far can a company go in making threats about payments?

If the customer is willing and shows the desire to pay in installments doesn't the company have an obligation to cooperate? If he loses his job he will not be able to pay the balance, and he is fearful that if his place of employment finds out about his financial situation he will be fired.

Does anyone have any advice or has anyone here ever had to go through something like this? If I had the money myself I would loan it to him, but I have my own bills to take care of as well......:( .
 
Last edited:
Hachiro said:
The Vodaphone rep has gotten really nasty of late threatening him with calls to his new job, which is one thing he can not afford, because he wants to keep his job(of course) and asked on numerous occasions to let them allow him to make payments.
They are refusing to cooperate. One other thing is that included in the 40,000 or so bill, is a 10,000 yen fee for cancellation of the contract, because he cancelled the contract with them during the middle of the contracted period and not at an "anniversary" time. He wants to pay them off at 10,000 yen per month but Vodaphone is threatening legal action if he doesn't pay off the balance by a set date.
Is the cancellation fee that Vodaphone charges normal and or legal?Sounds like a lot of money to cancel a contract to me. Does anyone have any experience with something like this? In all my time here I have never encountered anything like this before and wanted to know what or how far can a company go in making threats about payments?
If the customer is willing and shows the desire to pay in installments doesn't the company have an obligation to cooperate?
I will tell you everything I know about this topic, which is unfortunately not very much.

First off, my experience: I cancelled my contract with DoCoMo midway through the contract of the 2nd year of use back in December of 2002. My cancellation fee at the time was \1,000. This was for a single user contract.

I checked my current contract with au, and it stated that the concellation fee is such as is determined by such and such chart, which I don't have in front of me at the moment, so I can't tell you the fee for au. Apparently, though, there is more than one possible rate depending on the circumstances.

Next, my thoughts on the legality: Your friend should reread his contract with Vodafone. I assume that most of the contracts read about the same, so let me tell you what my au contract says. It says that if I am late with a payment, they are allowed to set a new due date and collect interest on the outstanding amount in the interum period at a rate of something like 15% APR. If I miss this payment, I am in breach of contract. As far as the price of the cancellation fee is concerned, as long as they cover it in the contract, I think they can pretty much set any rate they want.

Unfortunately the company is under no obligation whatsoever to try to work with your friend as far as I know. He signed a contract that clearly states their policy. But the fact that they are taking such a hard line makes me think that he has been in arrears for some time. Is that true?

In my humble opinion, the best thing your friend can do is try to borrow the money from a friend, relative or coworker/employer and then pay off Vodafone before their deadline.

It's not what you'd probably like to hear, but that's all that I know. Maybe someone knows of some option your friend has, but I really doubt it. I wish your friend the best of luck!
 
Thank you, I will pass that information along. I wonder now if there is anyone out here that would be familiar with Japanese contract law, or where one could find an attorney that could consult on an issue like this.
 
Let me tell you first that I'm not a cellphone user (a rarity in Japan 😊 ) but I got curious (a very bad habit of mine doing things that has nothing to do with my work...:p )

Anyway, I checked a few Japan forums and found that many are complaining about Vodaphone. The cancellation fee is certainly 10,000 yen, which is written in the contract and cannot be overturned. There are other service-related things about Vodaphone that the Japanese are complaining about that has led to mass migration of users to au and DoCoMo. That's probably the reason for the talk about SoftBank buying Vodaphone that is in the news today.
I understand very well the wish to consult a legal expert but wonder whether it is worth it (the time and money consumed for it that may exceed the cancellation fee and outstanding bill). Commonly, Japanese businesses dislike employees resorting to services of lawyers to resolve problems that corporate managers perceive as minor, and the person, if in employment of a Japanese company, may jeopardize his or her job that way. The only free alternative I can think of is consulting the local consumer organization (usually called "sho-hisha center" and found commonly in municipal government offices). With good luck, they might be able to offer ideas, but I'm not optimistic.

Just my two yen! :p

I've added links to Japanese complaining about Vodaphone (written in Japanese):
http://diary.jp.aol.com/mwepqms7ax/46.html
http://blog.livedoor.jp/codebook/archives/cat_91429.html
 
epigene said:
Let me tell you first that I'm not a cellphone user (a rarity in Japan 😊 ) but I got curious (a very bad habit of mine doing things that has nothing to do with my work...:p )
Anyway, I checked a few Japan forums and found that many are complaining about Vodaphone. The cancellation fee is certainly 10,000 yen, which is written in the contract and cannot be overturned. There are other service-related things about Vodaphone that the Japanese are complaining about that has led to mass migration of users to au and DoCoMo. That's probably the reason for the talk about SoftBank buying Vodaphone that is in the news today.
I understand very well the wish to consult a legal expert but wonder whether it is worth it (the time and money consumed for it that may exceed the cancellation fee and outstanding bill). Commonly, Japanese businesses dislike employees resorting to services of lawyers to resolve problems that corporate managers perceive as minor, and the person, if in employment of a Japanese company, may jeopardize his or her job that way. The only free alternative I can think of is consulting the local consumer organization (usually called "sho-hisha center" and found commonly in municipal government offices). With good luck, they might be able to offer ideas, but I'm not optimistic.
Just my two yen! :p
I've added links to Japanese complaining about Vodaphone (written in Japanese):
http://diary.jp.aol.com/mwepqms7ax/46.html
http://blog.livedoor.jp/codebook/archives/cat_91429.html

Thank you for looking into it. I will pass this information along as well. Cheers!
 
I will say that the fee is legal! If only because it was written into the contract, and your friend signed it! Many Americans here get caught up in the same deal. Vodaphone is the "new kid on the block" here and very appealing to the Americans and very easy to deal with. I have always been with docomo however and will remain with them.

I can't offer any advice that hasn't already been stated, but I do have one question? How did they locate his new employer?
 
Hachiro said:
So my question, First, I have never heard of a contract cancellation fee being so high...

Is the cancellation fee that Vodaphone charges normal and or legal?Sounds like a lot of money to cancel a contract to me.

If the customer is willing and shows the desire to pay in installments doesn't the company have an obligation to cooperate?

Firstly, yes, mine is also 10,000 yen. Its not that high. Some contracts you have to pay ALL of the remaining owing, so if theres 3 months you pay the last 3 months. Some you pay a percentage, say 50%. Some you can just cut and pay a smaller fee.

Normal and legal. He signed a contract stating nice and clear that the cancellation is 10,000yen. When I signed up the guy couldn't stop telling me that!

They aren't obliged to do that, most companies will tho. Sounds like the debt has been handed over to a collection agency, who will do they best to get it. If it did go to a legal level it would probably be organized to have it paid off in installments if he cant pay for it already.
 
but I do have one question? How did they locate his new employer?
They have no idea. I talked to him this PM to see how things were going and he appreciates the advice. I think he is going to try to work out some type of payment with them.

First by sending them a partial payment and then calling the Vodaphone rep, after making the payment via bank transfer.

If it did go to a legal level it would probably be organized to have it paid off in installments if he cant pay for it already.

Didn't know that, but if that is the case then I am going to bet that the person calling them was directly from Vodaphone and just making threats trying to "scare" the "gaijin" living in Japan.

How long does a company, here in Japan, wait before sending the bill to a collection agent? Does anyone know?
 
Mikawa Ossan said:
...
In my humble opinion, the best thing your friend can do is try to borrow the money from a friend, relative or coworker/employer and then pay off Vodafone before their deadline.
I'm afraid he has no choice but the Mikawa Ossan's advice, for the company can easily get the court order in a day.

I lent some money to my friend's key money for his new room before.
 
pipokun said:
I'm afraid he has no choice but the Mikawa Ossan's advice, for the company can easily get the court order in a day.
I lent some money to my friend's key money for his new room before.

This is going a bit off topic but do you think that a company like Vodaphone is going to go to court for all collection matter when the amount is under 50,000 yen and for one customer?

Oh one other thing I found out the contract with them was cancelled less than 2 months ago, so isnt there a process or time period that a company has to go through before starting legal procedures?

I dont know that is why I am asking.
 
Hachiro said:
This is going a bit off topic but do you think that a company like Vodaphone is going to go to court for all collection matter when the amount is under 50,000 yen and for one customer?
Oh one other thing I found out the contract with them was cancelled less than 2 months ago, so isnt there a process or time period that a company has to go through before starting legal procedures?
I dont know that is why I am asking.
Yes, they will. It is Vodaphone policy to take legal action against every such customer, according to other forums. I don't know how long it will take for legal procedure to start, but it may have started already. (Just guessing) That's why the person must negotiate the payment scheme as soon as possible.
In addition to the bill, the person will now be charged handling fees by the collection agency. If this is not resolved as soon as possible, the person will be blacklisted--meaning not being able to subscribe to telephone service any longer. It may be recorded also in his credit standing information, which will be shared by all credit card and finance-related companies.
 
I can't help but wonder if this has anything to do with Vodaphone's impending sale to Softbank following several years of subpar performance (link here).

Sometimes companies get desparate for immediate cash flow, whether to increase their short term outlook and raise hopes of their stockholders, or to sustain some of the knocks in public image that will result from the round of layoffs that often occur after a corporation is acquired.
 
No wonder, well I will advise him to make arrangements as quickly as possible to avoid further costs. I guess Vodaphone shot itself in the foot here in Japan.

Once again I am glad I use DoCoMo.
 
Can someone be blacklisted from getting a phone from another company if they miss paying their vodofone bill? The reason I asked is when I left Japan I still had 2 months left in my contract so I left some money in my Mizuho bank account to cover the costs for the 2 extra months I wouldn't be using the phone but I'm not sure if it was enough money.
 
blade said:
Can someone be blacklisted from getting a phone from another company if they miss paying their vodofone bill? The reason I asked is when I left Japan I still had 2 months left in my contract so I left some money in my Mizuho bank account to cover the costs for the 2 extra months I wouldn't be using the phone but I'm not sure if it was enough money.

Did you cancel your contract with them? At least with my DoCoMo contract there is no need to recontract with them yearly. I am not sure if the other phone companies are the same but I have never heard of anyone recontracting for their phone services every year.

I do know that you have to fill out some paperwork for them to cancel the contract and if you do it during I think it is the anniversary month of when you contracted initially there is no extra fee involved. If you do not cancel the contract it will automatically roll over to the following year and they will continue to charge the account even if you don't use the phone.
 
Hachiro said:
...
If you do not cancel the contract it will automatically roll over to the following year and they will continue to charge the account even if you don't use the phone.
Right. And all carriers share the info now, though I don't know how long they keep the record.
Onto the court order
It is because of the small amout of money that the company easily get the order. The agent goes to a local minor court nearby, maybe in Tokyo, and the court send a letter to your friend before the one day trial.
 
Last time I heard anything his account was sent to a collection agency and he has been making monthly payments to clear the bill. From what I understand from the information I last heard was that the collection agency was pretty cool about handling the situation through monthly payments.

I do not know if any other legal action was taken.
 
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