news-record.com

RALEIGH — Internet phone company Vonage will pay $3 million to 32 states and provide refunds to eligible customers to settle a case against it.

The N.C. Attorney General's Office announced the settlement today. North Carolina was one of the states included in the settlement.

The agreement addresses complaints that customers had trouble or were unable to cancel Vonage service after a trial period. A subsequent investigation found that Vonage paid incentives to customer service representatives who retained customers who called to cancel.

In some cases, customers were put on hold for a long period of time or were unable to reach a representative. Others said they got a monthly bill from the company or had money withdrawn from their bank account even after canceling.

The agreement limits this practice and requires customer service calls to be recorded and verified.

Since 2007, 65 North Carolina residents complained to the Attorney General's Consumer Protection Division about Vonage's customer service and cancellation practices.

Customers who have unresolved complaints against the company should file a complaint with the Consumer Protection Division no later than March 16 to be eligible for a refund. Complaint forms are available at www.ncdoj.gov.