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Video: Is phone company ripping off U.S. troops?

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    >>> back now at 7:42. and this morning on "today" investigates, are u.s. troops being ripped off? soldiers complain they're being gouged on phone calls to their families as they head to and from combat zones. nbc's senior investigative correspondent, lisa meijeyers joins us with details.

    >> for years, virtually every service member heading to tour from afghanistan have stopped in a military airport . in the secure area where the troops hang out are pay phones , which many use to call home. now one soldier is leading the fight against what he claims has been a systemic effort to rip off troops when they are most vulnerable.

    >> when the pressure is on, and the time is ticking, you're like oh man.

    >> this army sergeant was headed to iraq when their plane landed at this airport in germany to refuel. it was his third tour in iraq and his family was especially worried.

    >> both of my kids, man, they were in tears, my wife was in tears when i left. it's a very emotional time for everybody.

    >> so he decided to call home, using these pay phones inside a secure military area of the airport and paying with his debit card .

    >> we're going to a combat zone and people get hurt there i just wanted to know that everything was going to be fine and i was going to come home.

    >> he left a quick message, which his wife, dharma played for us.

    >> hey, honey, it's just me, i'm trying to call you, i love you.

    >> and how much was he charged for that?

    >> $41 for that three-second voicemail.

    >> $41, you were surprised?

    >> extremely surprised. i couldn't believe it.

    >> at fort hood , texas last week, other soldiers told us they were shocked by the outrageous charges from the very same phones. one soldier paid $176 for two calls he said were less than five minutes each. how do you feel about that?

    >> a little ticked off. it's pretty ridiculous.

    >> now sergeant quarter is suing the company he claims is responsible for systemically gouging thousands of troops. the company, bbg communications, is headquartered in this gleaming glass office building in san diego . with its own sculpture garden . the ceo lives nearby in this $4.6 million hilltop mansion.

    >> our service members have had millions of dollars taken outs of their pocketses to enrich the coffers of bbg.

    >> internet blogs and emails reveal complaints about bbg back to 2008 . from privates to lieutenant colonels . robbed by bbg. half our unit used this stupid phone. sick to my stomach thinking about how much money this company has taken from all those marines. the better business bureau monitors how companies treat the military.

    >> how many complaints have you received about bbg?

    >> we've received 453 complaints over the last three years.

    >> is that a lot?

    >> that is a lot.

    >> the watchdog group gives bbg communications an f rating.

    >> that someone would be looking to make a buck on, on the fact that they're coming and going from a war zone , i find that disgusting.

    >> bbg's lawyer told nbc news that the company only handles billing and collections on these calls. but a sister company, bbg global based in this small office in switzerland, provides the actual long distance services. bbg global says allegations that u.s. service members are being overcharged are untrue and offensive. that the phones are controlled by a german firm, which charges the same rate on all credit card calls, from its pay phones throughout germany . and that customers can get the price by pressing 3.

    >> bbg insists that members of the military are not being singled out. that in fact, making these kind of calls is just very expensive.

    >> there's no way that anybody could sit here and convince me of that. maybe you know, long distance calls are expensive. but they're not that expensive. if i can talk to my wife and family from a combat zone for $25 for ten hours, there's no reason why they can't do that in europe.

    >> and why are phones only used by the military programmed not to accept prepaid calling cards , that many soldiers carry. forcing them to use credit cards ? and why aren't the rates posted? bbg says it complies with german law .

    >> it's terrible that they would do that to us. i mean we volunteered to serve our country. we fight for their freedom. and they're going to scam us, take our money, rip us off?

    >> now, we asked the largest phone company in germany , what it charges for similar operated assisted calls to the states. they said, quarter's call would have cost about $10. a fraction of the $41 he was charged. ann?

    >> important point this morning. lisa myers , thank you.

By
NBC News
updated 3/1/2012 12:41:42 PM ET 2012-03-01T17:41:42
TODAY Investigates

Army Sgt. Richard Corder and his unit were headed to Iraq in May when their military charter made a refueling stop in Leipzig, Germany. It was Corder's third tour in Iraq. His unit had lost 28 soldiers during a previous deployment, so his family was especially worried.

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Video: Is phone company ripping off U.S. troops? (on this page)

"Both my kids, they were in tears. Wife was in tears when we left,” he said. “I just wanted them to know that everything was going to be fine, that I was going to come home.”

So Corder decided to make a quick call home, using a bank of pay phones inside the secure area at the Leipzig-Halle Airport where the troops hang out, and paying with his debit card. He didn’t reach his wife, so he left a 3-second message: “Hey honey it’s just me. I’m trying to call you. All right, love you. Bye.”

Then came the bill – for $41. Corder felt ripped off.

“It’s terrible that they would do that to us,” Corder said. “I mean we volunteer to serve our country. … We fight for their freedom. And they're going to scam us, take our money, rip us off?”

Now Corder and his wife, Dharma, are suing a U.S. company they allege is responsible for gouging thousands of troops for phone calls to loved ones while headed to and from Iraq and Afghanistan.

Read more investigative journalism from Rossen Reports

The company — BBG Communications — is headquartered in a gleaming glass office building in San Diego, with its own sculpture garden.

“Our service members have had millions of dollars taken out of their pockets to enrich the coffers of BBG,” said John Mattes, one of the Corders’ attorneys.

In the last four years, more than 800,000 soldiers, sailors and Marines have traveled through the refueling stop in Leipzig, heading to and from a war zone, according the U.S. Transportation Command.

It’s not clear how many used the phones, but blogs and emails complaining about the phones date to 2008, from privates to senior officers: "robbed by BBG"; "half our unit used this stupid phone"; "sick to my stomach thinking about how much money this company has taken from all those marines," read just a few.

Army Lt. Col. Kathy Urick told NBC News that she used one of the phones in December 2010 while headed to Afghanistan. She left a 20-second message for her husband and was shocked when the bill arrived. “I knew it would be expensive but I didn’t expect $40. That’s outrageous!” Urick said. “I thought of all the soldiers on a limited budget who’d used those phones.”

Army Sgt. Jeremy Burnes said he was stunned to be charged $176.25 for two calls of under 5 minutes each from Leipzig to tell his wife he was safely out of Iraq and what time he’d be arriving home. “There’s no sign or anything like that,” Burnes said. “It was a rip-off.”

The Better Business Bureau said it’s had 453 complaints about BBG in the last three years and gives the company an “F” rating.

"That somebody would be looking to make a buck on the fact that they’re coming and going from a war zone … I find that disgusting,” said Brenda Linnington, director of the BBB’s Military Line.

BBG's lawyer, who spoke on background, told NBC News that the San Diego company only handles billing and collections on these calls, and that the long distance services are actually provided by a sister company, BBG Global, located in Switzerland.

NBC News visited BBG Global's headquarters in Baar, Switzerland, on Friday and found only a small office in a multi-use building with a simple sign on the door. A producer knocked on the door during normal business hours, but no one was there. The building handyman said that he seldom sees anyone in that office.

After we contacted the company through the lawyer, BBG Global responded with this statement: “Any accusation, or inference, that American Military Personnel are being targeted with inflated rates is untrue and offensive.”

BBG Global said the Leipzig phones are operated by a German firm, which charges the same fee for international operator assisted credit card calls on all its pay phones in Germany. It also said that it complies with all applicable German laws and that customers can get the price of a call by pressing “3.”

Sgt. Corder said he doesn’t buy it.

“There’s no way anybody could sit here and convince me of that,” he said. “Maybe long distance calls are expensive, but they’re not that expensive. If I can talk to my wife or family from a combat zone for $25 for 10 hours, there’s no reason why they can’t do that in Europe.”

And if troops aren’t being targeted, he asked, why aren’t the phones programmed to accept the less expensive pre-paid calling cards that many soldiers carry, instead of virtually forcing service members to use credit or debit cards? And why, he said, aren't the rates prominently posted so service members are clearly warned of the cost?

NBC News asked the largest phone company in Germany, Deutsche Telekom, what it charges for similar operated-assisted calls to the States. An official told us that Corder's call would have cost about $10 — a fraction of the $41 he was charged.

© 2013 NBCNews.com  Reprints

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