Customers Last to Know of PSN.net Closure

BBB gets involved as an Arizona ISP terminates services without giving its customers a chance to relocate their Net connections. Are class action suits their only recourse for bad business practices?

by Jim Wagner of internetnews.com [January 15, 2001]

National Internet service provider Planet Systems Network, Inc. officials are telling its former customers, "Don't call us, we'll call you," after halting all Internet services late last week.

A former customer, who wished to remain anonymous, said the dial-up and broadband Internet service hosted two of his Web sites, which were shut off at 10:30 a.m. on Thursday. Not only was he not contacted, he said, but he is unable to switch his services to another ISP until PSN.net resolves the problem on its end.

Cold call
A recorded message to PSN.net's main phone line greets customers with a cheery "PSN.net is no longer offering Internet services. All customers will be transferred to other Internet service providers." The message also tells customers that officials will contact them in the future if a refund is available.

The corporate Web site was shut down early Friday morning and customers are deeply concerned about what the future holds for their Internet services.

"My main concern is that no warning was given, and now that we can't get e-mail from our PSN.net account, how is the company going to contact its customers?" the customer said. "No real information about transfer of service is being given—from timetables to the names of companies at the PSN.net website. Because of the disruption, as it takes time to set up new accounts, etc., there is a serious loss of communication for my online business."

Devil theory
More problems arise because all of his e-mail accounts for his online business handled through PSN.net. In order for Network Solutions to transfer his domain name information to a new ISP, they will need e-mail confirmation from his current service provider that the transfer is approved—and that's not possible until PSN.net responds.

Reports indicate the the PSN.net filed for Chapter 11 bankruptcy protection last month. Its business leader, Michael Almond, could not pull together a financially viable business plan, so the firm whet under.

BBB prepared
Martha Sessums, Covad Communications Group vice president of corporate communications, would not comment on the status of PSN.net's account. Covad, with its share of deadbeat ISPs, has been trying unsuccessfully to come to financial terms with these businesses.

Sessums suggested PSN.net customers who are having difficulties connecting to their service sign up to Covad's Safety Net program. Affected customers will be updated on the status of their Internet connection and be allowed to switch service providers—without incurring additional setup fees.

NorthPoint Communications, another PSN.net DSL provider, was unavailable for comment, but reportedly terminated all DSL lines to the ISP last month.

The dial-up and broadband provider has been under fire all year for what customers and the Better Business Bureau of Arizona call false and deceptive advertising.

Amy O'Brien, BBB director of communications, said anyone who has a complaint can report it to her office, but the bureau is not the place to go to pursue legal options. "We only report claims," O'Brien said. "That's why we encourage people to visit our site before signing up with an ISP, not after."

But legal options, in the form of a class action suit, might be soon in the making for PSN.net.

In August 2000, the Attorney General of Arizona issued an Assurance of Discontinuation for allegations that PSN.net "has directly or by implication promulgated advertisements that are false, deceptive and misleading." The infractions include making up price comparison offers with an expiration date, as well as vague and misleading purchase orders and refund policies.

— End    

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