ComplaintsforRackspace US

• Initial Complaint

  04/15/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  My complaint is about Rackspace - our e-mail provider. Their website is very circular, it's incredibly hard to navigate and to find the portal to open a ticket. They have no direct way to e-mail a complaint, or to speak to someone regarding a complaint. I spoke with rep ******** today and when I requested a supervisor, I was told no. I was told they worked remote and they would not be able to transfer me to a supervisor.The reason for my call was to open a support ticket. I was calling to ask them to guide me through opening a ticket on the website, I was informed they could not walk me through this as I was not an admin member. I reiterated I did not them to open the ticket, I wanted guidance on how to open the ticket -- I explained that the website does NOT let you do it.****** made no efforts to resolve my issue, and repeated the same jargon every time they spoke. When I went to the rackspace website, I still was not able to open a ticket regarding my technical support issue NOR my complaint about the company. Our business has been using rackspace since 2015. This is atrocious behavior and support. And I'm left with no where to turn. We still have an admin email account that cannot use its search function (imagine how frustrating that is) and no way to escalate this matter thanks to the lack of support offered both online and via phone by Rackspace.

  Business response

  04/16/2024

  This has been sent to the correct support team to assist customer and it has been resolved. ******************** Technology considers this matter closed.
  

  Regards,

  Rackspace Technology
  

• Initial Complaint

  02/09/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I am an 18-year loyal customer of ******************** and unfortunately have witnessed the decline from their "Fanatical support" to "Zero support". In august 2023 I convinced my management team to migrate our server to a Rackspace cloud server option with backup. My company assigned me the goal of getting a better solution than what we had before and immediately Rackspace was first choice on my mind due to my past experiences. 2 months into my service contract with Rackspace ($3,092.81 later), my virtual cloud server started causing unpredictable issues with my instance resulting in all sorts of problems to my client websites. After deeper inspection, it turns out around 1/3 of my virtual memory was used by Rackspace services internally that was not in my control. When I wrote to support about this issue, (ticket #******-ord-0000666), they kept blaming me for the problem. Eventually (September 2023) my company decided to move to Azure and close our Rackspace account so we can get this problem under control before we start losing our clients. As expected, in September 2023 we moved to an Azure virtual server and all of these issues disappeared. With no changes to our source code other than moving our code over and re-configuring for routing into the new Azure virtual server.Now months go by and we are doing fine and I notice my credit card continues to be charged by Rackspace for the past 3 months. So, I write the ticket to Rackspace and here is the summary of the Fanatical Support timeline:I wrote again to support (ticket #******-ord-0000910). Fanatical support at your best:- January 24, 2024, I opened the ticket asking why am I charged all this money after I already closed my account.- January 24, 2024 Support person ***** says he will get this over to the account team.- January 30, 2024 (6 days later) someone write they are reviewing my ticket - February 9, 2024 (10 days later) I get a message saying they regret that I am leaving them and they will close my service and I should expect more billing for February. This is crazy!!!!! I closed my service in September. They never read my messages, bounced me around their support and did not acknowledge the money owed to me. I want a refund for the following services which should have been closed Owed to Me:10/20/23 $539.16 11/20/23 $130.20 12/20/23 $126 1/20/24 $130.20 Total $925.56

  Customer response

  02/09/2024

  What is the question *************** about?

  Business response

  02/19/2024

  Customer Account was on Legacy Infra which means Customer manages their account, we manage hardware and networking and refer customer to How-To articles for help. This was conveyed to customer on Ticket Number -******************, by *********************************** on 9/26/2023(SS attached). Rackspace never deletes files, backup, images for any customer,unless specifically asked by customer. ******************** is never liable to remove the files related to deleted server. At all times, customer is. This is to safeguard customer and ******************** interest both. All the above is backed by Cloud Terms of Service & Cloud SLA and shared with customer. 
  
  Ticket# ****************** does not mention of a request from customer about Account Cancellation. Customer deleted the server at their end, assuming Account is cancelled, and charges will stop. Customer correctly said that on ****************** at ******************* +05:30. They cancelled their server (only), never cancelled account, or deleted files related to server. They weren't charged for server post deletion. We billed exactly as they actioned. SS attached (Image 3).
  
  Customer raised another ticket ****************** on 01/24/2024, mentioning they just noticed that they have been billed for the past 3 months for some fees for cloud block storage. They also mentioned that they have just removed the Block instance. SS attached (Image 2).
  
  Deleting server, removes server. Does not remove any files, backups or Images left on the Account. Files are removed only when files are deleted manually, or when Account is closed by us. Customer is liable to request for account closure by visiting Rackspace portal. We closed the Account on 2/9/2024 to stop any further billing after confirming with the customer.
  
  As per ******************** SLA Customer is not eligible for any Credit.
  

  Customer response

  02/19/2024

  Complaint: 21269281
  
  I am rejecting this response because:

  They charged me for 3 months for a service I was not using.  When I canceled my server (due to their lack of support) they could have informed me that I was paying separately for another related service that was directly bound to the service I canceled.  I do not expect they will offer any refund OR ANYTHING other than a repeat of their last response to me because they are a business in decline and that is clearly reflected in their lack of fanatical support from start to finish of this business relationship.  The mantra fanatical support means nothing to them anymore but at one time brought them to greatness.  
  

   They knew I canceled, I told them in advance. There is a ticket that she failed to share. The service they continued to charge me for was for backups of a server that no longer existed.  So what are they backing up?  ********************, nothing.  Why wouldnt they tell customers about this?  
  

  Now they defend their action by throwing this into legal documents that they know no one can be expected to read so they basically cover themselves and draw money for a few months extra!  great business model!  Take from your customer on the way out.  Woo hoo fanatical something but certainly not support.  Maybe Fanatical Billing? 
  

  Hopefully enough people report this sneaky way of business and karma has its turn on them  

  - ****

  Business response

  02/27/2024

  Hello-
  After carefully reviewing details of your account and considering the circumstances surrounding the dispute, a proper closure of your account was missing. The proper format is found in the ****** Services Agreement under Section 4.1 Term- either party provides the other with written notice of termination at least 90 days prior to the expiration of the then-current term. Customer is liable to request for account closure by visiting Rackspace portal. We never received a request to cancel account from customers end, the customer instead deleted the Servers, without requesting all Services be terminated.  Since some customers move servers and still utilize other Services provided by Rackspace, we will never delete a backup or any customer data without the customer requesting and confirming we do so in writing.  Rackspace is never liable to remove the files related to deleted server or backups. At all times, customer is.
  All the above is backed by Cloud Terms of Service & MSA which has been shared with customer.
  The account cancellation was performed after the customer requested full cancellation on February 9th, 2024. As per Rackspace the Terms of the Agreement. Customer is not eligible for any Credit. All the invoices are valid.

  Customer response

  02/27/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, I do not see how any further interaction will render any mutually agreeable result.  Let the public review this correspondence and make their own judgment as to the way in which the company decided to handle this matter.  I am done trying to make sense out of this mess. 
  
  Regards,
  
  ******* ****** **** ***********************

• Initial Complaint

  01/23/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Rackspace is unreliable and their service and support is terrible.I have been trying since 01/19/2024 to close my account (I have a dedicated server and a firewall). I've already opened two tickets and they just ignore it.I started to delete all mailboxes and today I'm going to turn off the server.If they charge me something, I will ignore it just like they are doing.What a worst company.

  Business response

  01/24/2024

  Hello, 
  
  Thank you for bringing this to our attention. Your customer success manager has been made aware of the ticket submitted on January 19, ****. The ticket has been update within your customer portal with details regarding the processing of your termination request in accordance with your Rackspace contract. Your customer success manager will be able to continue assisting you through the termination process.
  

  Regards,

  Rackspace Technology
  
  

• Initial Complaint

  12/18/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I had an issue with Rackspace regarding unauthorized charges on my credit card. My account, inactive (no services used) since 2014, was charged $148.26 on Sept 18, 2023. The credit card on file with my account had been expired since 2015. Rackspace knew the card was expired (it clearly showed as expired in the account) and should not have let any activity happen on my account since the card was expired. Upon noticing the charge, I contacted Rackspace's customer service. They told me that my account was compromised and the charges were from services used by a hacker who got into my account.Despite not using Rackspace services for nearly a decade, AND not having an up to date card on file (AGAIN, Rackspace should never have let services happen in the account since there was not a valid way to bill me), they are telling me I have to pay this charge, even though they let a hacker into my account and they let activity happen without having a current credit card on file. I reported the charge as fraudulent with *****, who rejected the charge and re-issued my card. (Unfortunately, ***** now have a "feature" that lets vendors charge you even if they have an out of date credit card, which is how the charge came through to me in the first place.)I requested an account closure with ******************** support and requested that the charge be wiped out, since I should not be liable for charges resulting from the hacker, given the account's dormancy and expired billing information. Rackspace did close my account, however they did not wipe out the fraudulent charge.This morning, Rackspace again charged the same amount to my new credit card, despite my previous dispute. Multiple discussions with different agents, including an attempt to escalate the issue, have not resolved the situation. If I continue to dispute this with my credit card company, Rackspace is going to send this to collections, which will make it even harder to resolve so I am looking for a speedy resolution.

  Business response

  01/08/2024

  Hello-
  Rackspace has looked into your complaint. We are writing in response to your recent inquiry regarding the dispute on your account.  After carefully reviewing the details of your account and considering the circumstances surrounding the dispute, we have taken the necessary steps to credit your account accordingly. ******************** considers this matter closed. 
  Regards,
  Rackspace Technology

  Business response

  02/15/2024

  The charge of $148.26 was reversed on January 24th and the customer's account is showing as closed with no charges. 

  Customer response

  02/15/2024

  Complaint: 21024342
  
  I am rejecting this response because:

  On February 6th (which is after January 24th when Rackspace claimed my refund was granted), I received the email (see attachment First Past Due Notice Ticket#_ 240206-ord-0000996.pdf). I called Accounts Receivable, I spent couple hours talking to agents explaining the situation and wound up being told by an Agent that I still owed the $148.26 in another email (see attachment Conversation-******.pdf). Thank you for deleting payment methods on my account but as you can see my account is still in the system as owing money and agents are telling me that I still owe, despite this ongoing complaint.

  I would like it in writing that my account has a 0 balance and is closed. I'd also like some reference number and/or the name of the agent who helped me so that I can cite it in the future if this dispute remains unsettled.
  
  Regards,
  
  *************************

• Initial Complaint

  10/20/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Rackspace Technology was our email host provider until a ransomware attack upon the provider shuttered our email and business in December of 2022, where we were left in a blackout with no way to reach out customers or them to reach us, no email forwarding option- and all of our customer data and history gone/inaccessible. The loss and damage to us has been incalculable and we are still being impacted adversely.Several class action lawsuits ensued, as there were reports that Rackspace knew about vulnerabilities with their server yet were negligent in addressing. Furthermore, calls were routed to "third party" companies, none of whom were able to help us- and upon opening several tickets thru Rackspace for help, we heard from no one. No alternative methods of communication were offered by Rackspace, outside of digital correspondence, despite the compromise. As soon as our email services were rendered unavailable last year in 2022, our data inaccessible or lost, Rackspace was no longer our provider- and we instead migrated to a new host email, we were no longer a customer of ********************. And given none of our tickets were responded to- and they were unreachable, we assumed they were no longer in business. Unbelievably, almost a year later since the event, we received what appeared to be legitimate emails claiming we have an "active and past due" account- upon investigating and speaking with ****, we were told again there is "no way to cancel our account with past due balance and no available account manager to help." **** opened a ticket, of which I have yet to hear.Rather than reimbursing their customers for their losses, they are attempting to extract more money by holding onto their long-gone customers by holding them hostage to an "active account and past due balance" that can't be cancelled, which at the very lease is immoral and unethical.We simply want to be left alone from Rackspace to continue to try and recover from our losses.

  Business response

  10/30/2023

  Our Customer Success leadership team reached out to ***************** ********************************* on Wed. Oct 25, 2023 and resolved matter amicably. Rackspace considers this matter close.

  Regards,

  Rackspace Technology
  

  Customer response

  10/31/2023

  Complaint: 20761372
  
  I am rejecting this response because I am still uncomfortable with Rackspace claiming we even have an active account under the circumstances- as well as an outstanding balance (with no mention of the amount) AND no way to cancel. 

  I have no trust or way to verify Rackspace's response- given their behavior, how can I possibly take them at their word or know they will not come back months or years later saying we have an "active" account? They mention to log into your account to cancel, yet I have no active account, email or valid credentials to log in with. 

  I have to agree with another customer's sentiments that ******************** seems to now be running some sort of "scam" - while I hope the matter is resolved, it is unfortunate that on top of the losses and damage incurred, we are left with this concern. I just want the facts- and this concern expressed for the record, should we receive future communications from Rackspace. 

  Regards,
  
  Creative ***************** *****************

• Initial Complaint

  10/05/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Dates of transactions:August 5th, October 4th Transaction amount each time:$81.85 Transaction Name:Rackspace Cloud Servers I was a previous Rackspace employee who quit there in August 2019. I had a Rackspace Cloud account that was closed when I left the company. Exactly 4 years later I started getting billed for cloud services that I do not use. I contacted them in August to dispute those charges nobody would help me because I couldnt verify my account information for an account that doesn't exist. After a few more calls someone on the tech side said the account was compromised and that is why I was being charged. I disputed with ********** and they refunded me, Rackspace claimed it should not happen again. 2 months later again I was billed for this. Called today and they refused to transfer me to billing due to their red tape policy nonsense. They can fraudulently charge my card for services I do not use and then won't try and track down why this is happening.This issue needs to be remedied at the source. Canceling my credit card will not stop them from accruing bills and eventually sending me to collections for lack of payment. I say again THIS IS FRAUD! Stop charging my credit card immediately and do the right thing.

  Business response

  10/18/2023

  Hello-

  Rackspace has looked in to your complaint.  A refund of $81.85 has been initiated and should be processed within 5 to 6 business days. The account is closed and you should no longer see any charges.

  Regards,

  Rackspace Technology
  

  Customer response

  10/23/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.  The refund has processed back to my credit card.  I do not expect any further charges from this establishment.  Should this occur i will open a new complaint.  Thank you to all at the BBB that assisted with this issue 
  
  Regards,
  
  ***********************

• Initial Complaint

  06/01/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I cancelled my account with ********************** on 11/14/2022 They requested a verification email which was sent same day.They cancelled one of the two line items on the account the next month because of 30 days notice.Despite my verification for cancellation of all line items Rackspace failed to cancel one item and it continued to bill until February 2023.I called numerous times but never got a call back from the accounting department.My cancellation verification was never accepted on the remaining item and the account was closed due failure to pay.Now the account is in collections.I have all the emails but RackSpace will not accept the fact that they cancelled one line item on the invoice but not both. They insist that they didn't receive any verification and cannot explain why one item on the invoice was actually cancelled.

  Business response

  07/06/2023

  Hello,
  
  Rackspace has looked into your complaint. After some investigation we have found that the charges were incorrect. A credit will be issued on your account. ******************** has also asked the third party collection agency to cease collection efforts.
  
  Regards,

  Rackspace Technology
  

  Customer response

  07/06/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Regards,
  
  ***************************

  Business response

  07/12/2023

  Hello-

  Rackspace Technology has looked into your complaint. After some investigation we have found that the charges were incorrect. A credit of $359.10 will be issued on your account. ******************** Technology has also asked that the third party collection agency cease collection efforts.

  Regards,

  Rackspace Technology
  

• Initial Complaint

  05/04/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Rackspace promised to provide favorable pricing and "Fanatical Support" "from a team of Office 365 experts". Their pricing is worse than competitors and not at all transparent. Their support is abysmal - we believe it's a totally worthless service (that we paid for). We have an SOW that says we can reduce the number of users at any time. We had several months of back and forth with the product manager. We were told we could reduce the number of users online, which we did. However we continued to get charged for the higher number of users. We had very many correspondences with Rackspace personnel who gave incoherent instructions and conflicting information. We were told that the contract changed after we entered into it and we were notified so there was nothing they could do. I believe the only reason they have any business is because they misrepresent their services and make it incredibly difficult to cancel. We tried to connect with Rackspace's legal department and were given excuse after excuse. Working with Rackspace has been a tremendous waste of company time. We want Rackspace to stop charging ** for users that we do not use or need. We are considering litigation based on fraud and misrepresentation.

  Business response

  05/18/2023

  Rackspace is reviewing this complaint and will provide a reply shortly.

  Customer response

  05/19/2023

  Complaint: 20016099
  
  I am rejecting this response because: it is a placeholder. They have all the information they need to resolve this complaint or they can reach out to contact us.  We have been trying to deal with this for months and they have given us the runaround. The response they gave has absolutely no helpful information or commitment to resolve the issue.
  
  Regards,
  
  *************************

  Business response

  06/16/2023

  Hello,

  
  We have discussed and reviewed this situation with our Customer Success Team. Our team has communicated to ************************* the difference between users and licenses and while users can be removed & added throughout the term, licenses cannot. This is stated in the signed agreement.

  Regards,

  Rackspace Technology
  

  Customer response

  06/19/2023

  Complaint: 20016099
  
  I am rejecting this response because I disagree with their position.  Service has been terrible and their internal operations people had the same understanding we did of the contract - and we relied on their interpretation.
  
  Regards,
  
  *************************

• Initial Complaint

  04/24/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Rackspace was hacked via ransomeware. Since this occurred in December of 2022 I have attempted to cancel the service for my business. I have spoken to customer service several times and was assured that my subscription was cancelled. Notwithstanding this, each month I receive a bill.

  Business response

  05/16/2023

  Thank you for reaching out. A member of our team will follow up with you at the email address you provided.

• Initial Complaint

  04/19/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  When Rackspace email was hacked with Ransomware, they added 131 Office 365 licenses to our account and recommended we upgraded. At that time the licenses showed $0 per license. We chose because of the issues and lack of support to not upgrade our accounts and migrate them to another provider. We waited months to be able to download the back up files for the 21 Exchange accounts which were affected. During this time I migrated all our accounts and closed all accounts except for the ones I was waiting for backup files.Now all accounts are closed and last month we received a $1,010.57 renewal charge as well as an additional $1,179.00 charge for the 131 Office 365 Licenses. We did not use or create email accounts with those licenses. I reached out to customer support and opened a ticket on March 14th, I've followed up with support 3/19, 4/3, 4/11. All I'm being told each time is an account manager will contact me and no one ever does.On 4/18 I contacted support again and demanded I be transferred to an account manager who told me he would take this info into a meeting going on right now and I would get a reply today. Its now 4/19 and still no reply.

  Business response

  05/01/2023

  Hello, 

  Your letter and email address has been escalated and provided to our *****************  Someone will reach out to you shortly. 

  Thank you.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩