Vodafone checking on 'free' US text message service

Cellphone customers are being warned of a website that offers free text messages but which has cost one man most of his credit balance.

The website www.sms.ac is based in California and claims to allow users to send free text messages to cellphones both in New Zealand and around the world.

One user, Mark, who did not want to give his last name, signed up for the service but discovered he was being sent junk text messages and being charged to receive them.

"I started getting these messages about sports trivia and stuff and I sent messages back asking for them to stop. They did, but I got a collection of confirmation text messages that also cost me money."

Mark's not sure how much, because he has a pre-pay connection. However, nearly his entire credit balance was used, leaving him with less than $10 credit on his phone.

"I looked at the website again and saw that they were charging 99 cents for each one." But there was no indication of whether that was New Zealand currency or American.

"Then I got a horoscope prediction warning me that big losses would plague me, and that wiped $9.27 in one go."

Vodafone is investigating, says external communications manager Tracey Palmer.

"We would be concerned if customers were receiving charges that they were unaware they had signed up to."

Palmer says customers need to read the fine print on such offers.

An email from Greg Wilfahrt, who describes himself as executive vice-president for the company, defends its service.

"We believe that there is absolutely no merit whatsoever to what appears to be a false allegation levied by someone that contacted you."

Wilfahrt says the company is "obsessed with the satisfaction of its registered members".

He also says that any customer unhappy about any charges is entitled to a full refund for all transactions within the past month.

The company website says: "If at any time you are not satisfied with our service - for any reason - we will work around the clock to incorporate your suggestions, or even refund any cost you have incurred in the last 30 days."

Telecom says it was aware of the issue and the sms.ac service was not live on the Telecom network at the moment.