PhonePeople is INTENTIONALLY misleading!
I wrote this comment over on ComplaintsBoard.com but feel it is important to post it here since this is a place where consumers come to find out more about which telephone companies are reputable.
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Here is the key to Phone People’s scam. You sign up for their service because you need a Toll-Free Number and you need them to get you one because only a “RespOrg” can get a toll-free number from the central pool at SMS800. Then, Phone People buries this sentence in their Terms of Service: “YOU UNDERSTAND AND AGREE THAT YOU ARE NOT THE OWNER OF ANY PHONE PEOPLE NUMBER ASSIGNED TO YOU BY THE COMPANY.” You unwittingly agree to it because when you emailed them to get service, you said “I need a toll-free number”, or something to that effect, thinking that that would result in YOU getting a toll-free number that you own and can use forever. But that is where you are wrong because when Phone People gets “your” toll-free number, they register THEMSELVES as the “Subscriber of Record” meaning that THEY OWN THE NUMBER! And then, they can merrily hold you hostage.
Funny that Phone People doesn’t bother to mention this important “Subscriber of Record” phrase in their Terms of Service. However, in their parent company’s (j2 Global Communications) most recent 10-K (http://apps.shareholder.com/sec/viewerContent.aspx?companyid=JCOM&docid=6438267) j2 knows all about it! In fact, on p. 10 of their 10-K, they include a Risk Factor in bold which states that “Our business could suffer if we cannot obtain or retain telephone numbers”. Meaning their business will suffer if they cannot continue to hold customers’ toll-free numbers hostage. Nice!
In the paragraph under that heading in the 10-K, they even go so far as to proudly state that they are “the customer of record for all of our U.S. telephone numbers” but admit that “from time to time, certain U.S. telephone carriers illegally inhibit our ability to port numbers or illegally port our telephone numbers away from us to other carriers”. It is interesting that they DON’T BOTHER TO TELL THEIR CUSTOMERS in their Terms of Service that they have designated themselves as the “Subscriber of Record” for the Customer’s toll-free numbers but then they get miffed if people stand up to them and port the toll-free numbers away. In fact, Phone People gets downright nasty at this point and starts threatening $500 penalties, disconnection of your toll-free numbers, slamming the numbers back to Phone People where they can disconnect your service and disrupt your business, etc..
The “Subscriber of Record” concept is a small but very important point, my friends, as it is the reason why Phone People feels it is able to blatantly subvert the FCC Rules on portability. If you don’t believe me, ask Phone People point-blank before signing up that if you set up an account with them and ask them to procure a toll-free number for you, who will be the designated “Subscriber of Record”??
Gotcha Phone People!
[This was left as a comment on PhonePeople changes the rules and holds customer numbers hostage by "Lawrence". This is a seperate point and clearly documented so it seemed to need it's own post.]




Todd says:
May 11, 2009 at 12:25 am
I’m really getting scared of all the virtual PBX companies because of the nightmare I had with Phone People. For years I’ve parked numbers at Phone People and then ported them my carrier when my campaigns began. All of the sudden they change their T and C to declare that the numbers unilaterally belonged to them. I had to threaten escalating to the FCC to finally get them top comply.
I guess I’ll stick with Paetec. I really appreciate your insight.
Todd
Rhino B2B Appointment Setting (1 comments.) says:
November 11, 2009 at 8:44 am
We have used phone people for 3 years and have found their service and support teriffic.
I have recently also set up hosted PBX services with ringcentral.com I find they have better bells and whistles and a much more user friendly pannel.We now have 4 toll free accounts there with Great Service and support!
I was not aware that we can’t switch our toll free number from phonepeople.com
I am glad it’s only one number.
Natalie Woolever says:
August 10, 2010 at 10:50 am
I have had the worst experience with Phonepeople. I think their customer service is terrible and their mistakes have cost me thousands of dollars in business. Most recently, someone there mistakenly changed my account settings so that all my voicemail messages from clients were erased and sent to my partner’s email address. He didn’t know that I could no longer check them manually as I usually did and erased the emails. I know have no clue who called to place an order and they have, I am sure, taken their business elsewhere. BEWARE! DO NOT USE PHONEPEOPLE. I am looking for another provider today.
Bill Quimby (678 comments.) says:
August 10, 2010 at 11:15 am
Natalie,
I’m sorry you had such a bad time with them. I would stay away from any J2 company, including Onebox and eVoiceReceptionist. There are several good services but unfortunately some of them (like RingCentral) outsource their customer service to a hut in some third world country where English is their third language.
Take a look at FreedomVoice, VirtualPBX or Kall8 to name a few good ones, too.
Bill Quimby
Natalie Woolever says:
February 1, 2011 at 5:28 pm
Thanks Bill. Again, a horrible experience with Phone People. It seems as though once a month, my phone number rings and an out of service message answers. Being that I am a sales based business, this issues could cost me a lot of money in sales. But, I feel like I am stuck with them bc my clients know my business number and it would be difficult to change. I would cation any new businesses to consider another company.