Saratoga News

SOUTH BAY MUST REFUND LATE FEES TO CUSTOMERS

Court rules That company charged Viewers too much

By Clarence Cromwell

South Bay CableVision customers who paid $10 late fees during or before 1994 have a refund coming, but they have to ask for it.

Santa Clara County Superior Court Judge Read Ambler ruled Feb.21 that the company must give back $5 of each $10 fee charged.

The decision comes on the heels of a nine-month investigation by the district attorney's consumer protection unit.

The investigation also showed that 5,289 residents paid for installation of cables that were already installed: The company charged them its $42.79 full wiring rate, rather than the $15.28 fee to turn on already-installed cables. The company will repay $150,000 in installation fees.

The refunds and $193,000 in civil penalties will cost the company an estimated $1.3 million, according to a Feb. 21 press release from the district attorney's office. The company also agreed to pay $60,000 in legal costs to the district attorney's office.

A court injunction issued concurrently with the judgment ordered South Bay CableVision to further reduce late fees to $4.

CableVision attorney Richard Patch said California unfair competition laws forced the company to settle.

"The threat of civil penalties and the vagueness of the laws under which these actions were brought create an incentive for companies faced even with weak claims to settle," Patch said.

Patch said a bill before the state legislature would limit late fees to $4.75.

Former customers can get a refund by filling out a form to be printed in local newspapers. Current customers will receive a claim form with their March 15 bill.

Others can call South Bay CableVision at 988-3723.

South Bay CableVision serves 70,000 residents of Saratoga, Los Gatos, Santa Clara, Mountain View, Milpitas, Monte Sereno and Newark.

The Saratoga City Council voted Feb. 27 to transfer the rights to operate a cable system in Saratoga from Brenmor Cable Partners, L.P., parent company of South Bay Cablevision, to TCI Cablevision. The change is expected to take place within the next three months.