WEST PALM BEACH, FL -- How would you like a total phone bill of 20 bucks a year? Sound like magic? They call it Magic Jack. The company claims it's easy. Just plug the Magic Jack device into your computer, insert your phone line and dial. But Contact 5 found, not all customers are pleased with this discount phone company. It's a little device that promises big savings. The company’s ads call it After a one time fee for the simple plug, Magic Jack claims your phone bill, will only cost you about 19 bucks a year for unlimited calling throughout the U.S. and Canada. But Contact Five found some Magic Jack customers say they don’t even want to test the product, "I have no idea if it works...I don't care if it works," said Penny Goldberg from Boca Raton. Goldberg ordered the product but refused to try it once it arrived in the mail."They got me hook, line and sinker," said Goldberg. She's angry because of promises in the company's ads that guarantee a free 30-day trial. "They say we don't take money out for thirty days. Well guess what, they took money out that next day," Goldberg said. Penny claims Magic Jack debited too much money from her bank account--$205. "I have no idea where they arrived at that number. I had just paid all of my bills, so the spiral effect started. I got 14 overdrafts at 32 dollars an overdraft," Goldberg said. "I can't afford to pay this." Magic Jack company officials said they refunded Goldberg all of her money quickly, but Goldberg said the refund process was very confusing. Contact Five tracked Magic Jack back to a warehouse in West Palm Beach. Company owner Dan Borislow wouldn't talk to us on camera, but in a series of emails told us: "There was not a mistake made on our part." (Customers are) "told that there will be a hold on their cards. I presume they did not know that the hold would appear similar to a charge when using a debit card, although we told them a few times," said Borislow. (Customers) "had the opportunity to cancel or change the order two times before we mailed it." But Contact Five found Penny Goldberg isn’t the only one complaining about customer service issues with the company. We found more angry Magic Jack customers at the Better Business Bureau. "Within the last six months, we've had over 280 complaints," said Brodie White, President of the Southeast Florida Better Business Bureau. White said he’s getting complaints from across the country. Some angry users said Magic Jack simply didn't work for them. Others claimed it was too difficult to install and the directions were insufficient. Consumers complaints also revealed difficulty getting refunds, despite the company’s 30-day money back guarantee. "I would say the common theme among all 280 complaints here is the frustration in doing business with this company," White said. But Dan Borislow told Contact Five,"The amount of complaints (at the BBB) on 600,000 Jacks sold, is very very little, and the percentage of complaints is reducing dramatically." Contact Five conducted it’s own tests on Magic Jack. With help from our engineering teaming, we set up two computers. On one computer, we left our company's firewalls in place. On the second computer, we removed Channel Five's firewalls. After downloading the software and answering a series of questions, the device worked and we placed a series of calls out of state. Our reception was not clear on the first call out, but the reception improved with subsequent calls. Keep in mind, our engineering team explained that our T.V. station’s internet lines are probably busier than most homes and offices. In the end, both computers were able to dial out long distance and the calls were connected.
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