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PrepaYd Wireless is in Trouble, Customers Need to Port Out NOW

Update: It's been a week since the news broke that Sprint had terminated PrepaYd Wireless' MVNO agreement, essentially putting PrepaYd out of business. I've heard nothing new since then from PrepaYd or Sprint. 

PrepaYd's threatened law suit against Sprint doesn't seem to have been filed. I suspect that PrepaYd is insolvent and Sprint has cut them off for non-payment.

If you are a PrepaYd customer and don't want to lose your number I recommend porting out now. If I'm right and PrepaYd is broke, sooner or later they will close up shop completely and it will be difficult or impossible to port.

You need your account number and passcode to port. Your account passcode is your four digit security PIN. The only way to get the account number seems to be by contacting PrepaYd or a PrepaYd dealer.

If you want to use your current PrepaYd  phone you need to port to another Sprint MVNO that supports "Bring Your Own Sprint Phone" (BYOP) such as EcoMobile TingRed Pocket CDMASExpo MobileRingPlus  or Chit Chat. See Sprint and Sprint MVNO Prepaid Plans Compared for details of each operator's plans.

The PrepaYd meltdown began on 2/14 when PrepaYd dealers received this message:

We regret to inform you that Sprint has terminated PrepaYd Wireless’ Sprint MVNO Agreement and that we will no longer be able to activate new customers on PrepaYd Wireless. We have suspended all Top Ups and activations. We have made the Account Numbers available for you Customers in the Dealer Portal under the Customer Report. We are in the process of filing an Anti-Trust Claim against Sprint for what we believe have been anti-competitive and unfair business practices by Sprint to PrepaYd, Wireless Customers, Wireless Dealers, and to other Sprint MVNOs. If you have felt that at any point Sprint has harmed you or your customers in any way to contact us at mvnofraud@prepaydinc.com.

PrepaYd also issued a press release (copied below) saying that it's filing an anti-trust suit against Sprint and asking other MVNOs to join them in the suit and for customers who feel they have been harmed by Sprint's actions to contact Prepayd:

PrepaYd, Inc. Announces it seeks other Sprint MVNO's to Join proposed Anti-Trust suit over the Sprint MVNO Program

PrepaYd provides wireless services to U.S. residents with little or poor credit

Henderson, NV (PRWEB) February 14, 2014

PrepaYd Inc. formerly Known as Prepaid Card Holdings, Inc. (OTC: PPDC.PK) which is a Sprint Mobile Virtual Network Operator “MVNO” announced today it is looking for additional past and present Sprint MVNO's to join PrepaYd in an Anti-Trust suit involving the Sprint MVNO program. PrepaYd has prepared a suit to be filed in the District Court , Clark Count , Nevada.

PrepaYd is currently interviewing law firms to represent them on this matter.

Wireless subscribers whose phone was shut down with little notice, MVNO shareholders, creditors and dealers who wish to be part of this proposed anti –trust lawsuit please send an email to Bruce@PrepaYdinc.com detailing how you were harmed and what your estimated damages were.

http://www.PrepaYd.com


Originally publisher 2/14/2014, updated 2/20/2014

Press release source: PRWEB

29 comments:

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  1. They outed their draconian Blacklist crap and are now retaliating against them.

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  2. In my opinion and based on observation of the market, Sprint is willing to sign on just about anyone for MVNO and offers the most flexibility backend support to allow un-traditional technologies like RingPlus, Republic and FreedomPop. While I don't know the backend dealings between the companies, I find it surprising that Sprint would just terminate a MVNO. There has to be another side to this story...

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  3. Don't know if Sprint is trying to send a message to their other MVNOs, to keep in line, but it also sends a chill to ANY customer of Sprint, Boost, Virgin, PayLo, Clear, and whatever else they have branded this month.

    Does Mr. Son of Softbank know what's going on? Another Japan, Inc. failure in the making?

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    1. There's no reason to believe this affects any MVNO except PrepaYd or any of Sprint's prepaid brands. I don't know what's behing PrepaYd getting cut off but when other established MVNOs have gotten the boot is been because failed to make required payments to the operator.

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  4. HOFO ID Grateful4adviceFebruary 14, 2014 at 11:51 AM

    Although non payment is the obvious reason one might think a carrier would cut off a small MVNO, I suspect a different cause. A reasonable actor would not threaten antitrust litigation without cause. Antitrust actions are extremely costly and difficult to prove. I know nothing about PrepaYd but have experience with Sprint. Based on that experience and years of trading firm posts concerning Sprint, it seems very likely Sprint acted in bad faith.

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    1. Frankly, I suspect the people at PrepaYd are just plain mentally insane, and that they don't have a leg to stand on. If they TRULY felt that they had solid grounds for an antitrust suit, then surely they'd be more organized and have their legal team in place BEFORE they issue a press release like this, searching for evidence and begging others to join them. Besides, they had to sign a contract with Sprint to become an MVNO, and I have a VERY hard time believing they could suddenly be crying "Antitrust, Antitrust" only AFTER they'd agreed to whatever it is in their contract that they didn't like! Something smells REALLY fishy here.

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    2. it does seem like PrepaYd is a bunch of amateurs issuing a press release like this. once they hire an attorney, that attorney will probably tell the PrepaYd folks to shut up and to let the attorney be their mouthpiece. my guess is that PrepaYd does not really have that big of a case to be an antitrust case. it's most likely a mere contract issue where Sprint determined that PrepaYd violated a contract provision or that PrepaYd simply didn't pay what it owes to Sprint.

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    3. I read an article called MVNO graveyard (Google it) on where it listed MVNO's that lost over $1,000,000,000 in opening Sprint MVNO's alone. There were other ones listed also however Sprint by far was the prevailing failure. Quite frankly it looks like Sprint picks up the pieces when MVNO's fail. I wonder what their MVNO business plan is? Right now Sprint owned Boost mobile is undercutting Sprint MVNO's prices. That alone seems like unfair trade practices but I am not a lawyer.

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    4. a lot of businesses simply fail. pick any business where there are affiliates and you will most likely find a lot of struggling and failing. add PrepaYd and now you have the crying. waah

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    5. The MVNO Graveyard article http://www.engadget.com/2008/08/26/a-stroll-through-the-mvno-graveyard/ article is from 2008 and has little relevance to today.

      The article deals with a brief period when entrepreneurs backed by huge amounts of venture capital and massive ad campaigns tried to create value-added boutique MVNOs for groups like sports fans (ESPN Mobile), families with kids (Disney Mobile) or youth (Amp'd). The boutique MVNOs failed, the concept died and no one attempts it or can get funding for it anymore.

      Today's successful MVNO startups are bootstrap operations that reply on low prices, word of mouth, especially on social media, and, in most cases, a dealer network. Some are underfunded and/or poorly run and fail.

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  5. In my opinion Maybe Sprint coming out with Unlimited Plans at $35 and Boost at $45 for what PrepaYd has been charging $60 for is an issue? Also I noticed some Sprint MVNO's like TracFone throttle data and PrepaYd Doesn't. Maybe PrepaYd doesn't have Sprint throttling capabilities. . Also PrepaYd reported doing half of Sprint BYOSD activations by PrepaYd isn't offering BYOSD for I-Phones. HMMM TracFone offers Sprint BYOSD I-Phones. Isn't TracFone owned by the man that monopolized Mexicos telecom industry. Hmmm PrepaYd most have some dirt on Sprint and probably want's others to participate in what will be a David versus Goliath case.

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  6. It's the simple law of probabilities. Sprint has more MVNOs than any other carrier, so it doesn't surprise me in the least that the failures and losses for them are also higher. I'd also be willing to bet that the percentage of failures is in line with those of other carriers, though. Remember for example how Verizon MVNOs Next G and TalkForGood were shut down?

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  7. Im a dealer and the word around is that they didn't pay sprint. I've been switching most of my customers to Red Pocket, but they only pay a $25 spiff. Not making any money.

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    1. Dude you need to stop selling these little MVNO's because they only give headaches and don't pay much. If you become a Boost or Metro dealer you will see real money.

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    2. I agree, Im a Boost dealer and every day I hear customers complaints specifically from ST, NET10 and Simple. Those are the worst. Customers tell us all the time that they are switching to Boost because they either get their internet suspended or they get disconnected days before their actual bill is due.

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  8. Only 25 dollars? Boo hoo. What about the thousands of people left out to dry? What about them?

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    1. Very simple, port out your number to another company. No body put a gun to their heads and told them they needed to do business with prepaYd. You have to understand that everytime you get service from an MVNO there is always the risk of something like this to happen. Next time they will get a more solid and well known name brand like Boost or Metro. Last year a few of MVNO'S closed their doors and this year we will see more to come.

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  9. It is much too soon to expect an antitrust action. There is a substantial amount of work to prepare. I am surprised everyone is so pro Sprint. Isn't this the same Sprint that charges customers the moment they press send irregardless of whether the call is connected? Isn't this the same Sprint that restricts use of customer phones? Isn't this the same Sprint that defrauds customers with unusable data?
    I am siding with PreypaYd

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    1. Actually Sprint is pretty good compared to AT&T or Verizon. All my family have Sprint and we've never been over been over charged or had any problems. I've heard really bad stories with AT&T.
      Prepayd must have done something in order for Sprint to cut them off just like that. If either payment fault or rules unfollowed that's not Sprint's fault. PrepaYd should have follow the rules and none of this would have happened. After all they have a contract and are very well aware of Sprints regulations. I really don't feel bad for PrepaYd.

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  10. so, no one is knocking down Prepayd's door to join that imaginary antitrust lawsuit??? the PrepaYd people were probably just trying to conjure up some hype hoping in all the smoke of their imagined chaos that it would somehow become real with actual people running to their side - along with hopefully someone with a big wallet to pay the attorneys for their non-existent lawsuit.

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    1. Yup, PrepaYd is a joke. I personally know one if their account rep in florida and he even told me that PrepaYd is a month and a half behind on employees commissions and base salary. What does this tells you???

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  11. I was transferred to sprint when I called ppw trying c if I could port out my number. Sprint of course couldn't help me and we both wondered how this happened. This is crazy

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  12. Geez Dennis, why don't you clean up the Boost Mobile/Metro dealer vomit?

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    1. Independent mobile dealers are as welcome to post here as anyone else. They are an important part of the prepaid industry. Most MVNOs could not survive without dealers.

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  13. Prepay should have informed thier customers of what was to hapoen, maybe a lawsuit against prepayd is in order, unless they dkipped town completely

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  14. I was a prepayd acct. They gave me 5 hours notice to port out my nnumber, which I couldn't do. Now I've lost my number and my cell phone (Motorola Photon Smart Phone) can not be reactivated. Spent the day at Sprint trying to switch it over, but since it had already been transfered from Sprint to Prepayd about 6 months ago, it apparently can not be switched back to Sprint. I'm out half a month of service cost + my cell number which I;ve had for years + my cell phone is now apparently unusable, unless I perhaps want to go to another MVNO,,,no thanks, learned my lesson.

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  15. prepayd wireless didn't pay the money to sprint claiming they are not getting better deals. sprint gave more than enough days of notice saying they are going to shut down the service.
    i don't know how fair sprint treated prepayd when compared to other Mvno's and it's not upto us to decide, but what i know is prepayd CEO Bruce Berman being the scum bag he is made it sound like it is sprint who is to get blamed, saying like sprint shut them off out of the blue when in fact they even gave enough notice. Plus it's prepayds fault for giving mixed messages to the dealers telling them to port out thier customers, again saying to refrain from
    porting out saying there is a possibility they could get merged with another mvno, and finally giving only few hours to port out saying they couldn't come to a agreement with the other mvno (meaning most probably the attempt Bruce Berman tried to make money out of selling the existing customers to the other mvno failed). If you do a quick google search about this ceo bruce, it won't take long to find out what kind of scam artist he is. http://www.ripoffreport.com/r/berman-investment-group-bruce-a-berman/newport-beach-california-92660/berman-investment-group-bruce-a-berman-ripoff-fraudulent-advertising-berman-sends-unsol-142513
    the saddest part i got to know from one of his previous employee is that in all his ventures he gets investors to buy stocks showing them like this is the next big thing on earth with hyper growth, and finally forcing the company to go to a law suit or something like this so he can file bankruptcy and keep the money he raised for himself. Even in his book i heard there is a section about filing bankruptcy and evading the law etc. coincidence? Guess not.
    It’s very sad to know thousands of people lost their phone numbers forever who probably had them for years and years, and it's worse when Bruce Berman is pointing fingers at sprint for this.
    I don't like to talk shit about people but not telling the truth i know is worse than that. He doesn't care about any customers or the people who worked for prepayd wireless, as long as he can make money out of a law suit or in any other way.
    How do i know all this? I was a CSR at prepayd wireless.

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  16. I used to work for Bruce Berman (Prepayd Wireless CEO) a few years ago and this guy is the definition of a scumbag. Just like the comment above mentions how he raises money and then files bankruptcy, he did the same thing when he was selling stock for his company (without a license in California) and basically "shut down" the biz and kept the money while screwing over the investors.

    This man even had a meeting one day, telling all of his employees how his company is out there to help all the "Losers" He seriously said this. Being in the prepaid industry, he figures all of his customers are "losers" and makes no bones about it. Narcissism mildly describes the REAL LOSER, Bruce Berman. Just look at his infomercials from several years back when he was in the "Mentoring" industry. Watch this...it's pretty funny because it is soooo bad: https://www.youtube.com/watch?v=EY0FkAg0b34

    Anyway, lets see what this condescending douche bag will try next.

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  17. anybody work for boost mobile help please

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