DES MOINES, Iowa- More than a thousand Iowans may be getting refunds, from a satellite TV company, because of a Consumer Fraud Act violation.
The Iowa Attorney General's Office says Xcite Satellite of Orem, Utah violated the state's Door-to-Door Sales and other laws by misrepresenting its business and services. The A-G's office also says the company failed to tell consumers they could cancel, within three days if they wish.
Under the terms of the Assurance of Voluntary Compliance agreement:
Xcite will pay $40,000 to the state’s Consumer Education and Litigation Fund.
More than 230 Iowans who complained or attempted to cancel their contracts will be eligible for a refund of a $400 early termination fee if they cancel, or will get the fee waived if they haven’t already paid. They will also receive a complete refund of all amounts paid under their contracts.
More than 850 Iowans who didn’t complain or attempt to cancel before the settlement are eligible to cancel their contracts without paying termination fees.
More than 240 customers who purchased a $7.99 a month warranty plan will get full refunds for the number of months they had the plan.
Xcite is indefinitely barred from selling telecommunications services in Iowa, although it can keep existing customers who decide not to cancel. Its owners, Jeremy Neves and Jay Taylor, are banned from new telecommunications and door-to-door business in Iowa for five years.
All Iowa customers of Xcite will receive an email and letter asking whether they want to cancel their contract. They have 14 days to opt out of the contract without penalty. Consumers must return all equipment to Xcite. Although all consumers will receive a postage-paid box into which they can place their equipment, consumers who may be unable to travel to a U.S. Post Office because of physical, age-related or financial barriers can arrange for free in-person pickup.