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View Full Version : Early termination fees


Tranzure
08-01-2008, 01:00 AM
I've actually never been charged an early termination fee when ending a cell phone contract, because I've never ended one early.

But: http://money.cnn.com/news/newsfeeds/articles/djf500/200807290957DOWJONESDJONLINE000447_FORTUNE5.htm

A coworker had his phone shut off for not paying his charges, for whatever reason (I think it's likely due to his maturity level), but he just called today and got his outstanding bill cut in half. He was quoting this ruling as he talked to customer service. Saved him a couple hundred bucks, anyway.

Greystone Thorngage
08-01-2008, 12:14 PM
its a constant battle, but sprint was cutting corners and accessing fees against their contracts.

you may get a discount on disputed charges just because they want to collect something as opposed to nothing.

Greystone Thorngage
08-01-2008, 12:16 PM
Also, to add. These changes to laws are going to actually piss off consumers. They dont understand that once the contract buisness model goes away, free phones go away, and MINIMUM phones will be $170, and go up signifigantly from there. Also, i would bet my next paycheck that all the major carriers drop insurance via 3rd party all together, which again will tick off customers since they cant throw their phone in the pool and get it replaced for cheap. But /cry the evil contracts that save them money.

Sanchek
08-01-2008, 12:41 PM
They dont understand that once the contract buisness model goes away, free phones go away, and MINIMUM phones will be $170, and go up signifigantly from there.

As long as that means the phones are unlocked, it'll be great for the consumer.

There's no such thing as a free lunch. All of the smoke and mirrors to get the phone price low was never a good deal. No different than the car dealership that tricks you into financing the car above MSRP, with low monthly payments.

Palarran
08-01-2008, 12:59 PM
MINIMUM phones will be $170
Maybe they'll switch to used phones, then.
First link on Google: http://www.cellularcountry.com/
There are plenty of phones in the ~$50 range there.

Greystone Thorngage
08-01-2008, 02:46 PM
i wouldnt buy a used phone in a 100 years, i would go without, and thats not me being a salesman. SOOO much can go wrong with phones, IMO its not worth the savings.

As far as phones being unlocked, issue with that is the new largest carrier in the USA Verizon+AllTel, is CDMA and you cant have "unlocked" phones on the system. So there lies the largest issue.

Kanyli
08-01-2008, 02:53 PM
Phone cost is high because we keep throwing more and more into them. If people had to pay cost for phones, I'll bet we start seeing more budget phones. For a working adult, how many people need all of the extras that come with a phone anyway? I don't even remember the last time I used my phone for music, pictures, video...might be different if I had Internet access on it, but I think it's a safe bet that a large portion of the population just uses their phone as a phone.

I have a drawer full of 'budget' phones - old phones that I still have after my upgrades from Verizon - which strangely aren't as free as they used to be anyway.

Sanchek
08-01-2008, 02:54 PM
Out of a dozen phones over the past decade I've never broken a phone nor had one fail. Maybe it's because I don't buy cheap phones?

All I know is that I can now have an awful bad luck streak and still come out way ahead on that phone insurance scam.

Regardless, if you're afraid of a used phone, you can always get a refurb.

Taleren Bloodsong
08-01-2008, 03:59 PM
Also, to add. These changes to laws are going to actually piss off consumers. They dont understand that once the contract buisness model goes away, free phones go away, and MINIMUM phones will be $170, and go up signifigantly from there. Also, i would bet my next paycheck that all the major carriers drop insurance via 3rd party all together, which again will tick off customers since they cant throw their phone in the pool and get it replaced for cheap. But /cry the evil contracts that save them money.

Sure the cell phone companies do the contracts because it helps the consumer... suuuuure, keep drinking that kool-aid.

fildien
08-03-2008, 08:51 AM
Phone cost is high because we keep throwing more and more into them. If people had to pay cost for phones, I'll bet we start seeing more budget phones. For a working adult, how many people need all of the extras that come with a phone anyway? I don't even remember the last time I used my phone for music, pictures, video...might be different if I had Internet access on it, but I think it's a safe bet that a large portion of the population just uses their phone as a phone.


If that is true what a shame. But, you say as a "working" adult, that is not really a good argument. B/C I would argue that having those extras really depends on what it is your work entails. If you're not someone who needs to be at the beck and call of your company 24/7 then you probably don't need immediate access to log in and check things out or keep up with your email while attending conferences, at another site in another city etc.

Or if you are like my brother and someone who spends every other month doing 15hr plane rides to Japan, Taiwan, or China you may not enjoy the ability to be able to watch your favorite movie, listen to your favorite music, or play a game to curtail the monotony.

Last time I looked carriers sell phones that are "just" phones. But they also sell phones for people who want something more. So, your argument may lend crediability to your line of work or desires but definitely not all or even most working adults. I am surrounded by people who have and use every high tech gadget imaginable. That is b/c I work in a field that demands it. Perhaps you do not?

Out of a dozen phones over the past decade I've never broken a phone nor had one fail. Maybe it's because I don't buy cheap phones?

All I know is that I can now have an awful bad luck streak and still come out way ahead on that phone insurance scam.

Regardless, if you're afraid of a used phone, you can always get a refurb.

I have to agree with this. I've had a cellphone of some sort since about 1997 and I have never had any issue that required me to have it replaced. However, I have seen friends get pissed and rip their phone in two or bust it and some how still able to get them replaced. I bought my neice a refurbed phone to use while she lived with me b/c I didn't want her under a contract knowing her living with me was not a definite thing. She never had any issues with her phone.



I am personally glad to see the termination fees getting looked at. But, they've never been an issue for me either really. And as I found with Verizon if you give enough cause and are a good customer paying your bill on time then when you do want out they let you out of it. This was the first time I ever even tried to get out of a contract and had no issues. But then they knew they weren't properly servicing my area as compared to AT&T and let me go.

The thing that most pissed me off about Verizon was their previous ways of extending your contract if you changed your plan in any way... adding txt to a line, increasing minutes, etc. That stopped about 2 years ago but man it used to burn my biscuits.

My biggest gripe with AT&T at the moment is that I cannot use my corporate discount on my iPhone, argh. 26% would be nice :(

Greystone Thorngage
08-03-2008, 10:43 AM
Fildien you can us your corporate discount with the new iphone the old on you cant.

Sure the cell phone companies do the contracts because it helps the consumer... suuuuure, keep drinking that kool-aid.

I am sorry where did i say that th companies dont have a benefit as well. can you highlight that section for me simple bold letters will suffice.

Get Wiggo, or Halo to chime in here, what do phones cost. As i understand it they dont have the whole contract system there and would venture cell phones aren't cheap by any standards.

A quick google search of simple samsung cellphones and price range for unlocked somewhat basic model is $165-$200. Also just off googles search http://www.google.com/products?q=unlocked+cell+phones&show=dd

As far as ETF's, the new way is $175 (roughly the amount they subsadized your phone), subtract $5 for each month you have service.

Palarran
08-04-2008, 12:12 AM
I think our definitions of "somewhat basic" differ. To me, a "somewhat basic" phone will send and receive calls, store phone numbers, and maybe send and receive text messages. It will NOT have a camera, or support sending/receiving pictures or video, or support web browsing or games or anything like that.

Here's your search again, still sorted by relevance, but this time restricted to prices from $30 to $50:
http://www.google.com/products?q=unlocked+cell+phones&show=dd&price1=30.00&price2=50.00
Some are refurbished, but for accident-prone people (who would ordinarily benefit from insurance) a refurbished phone once or twice a year would be quite reasonable.

Greystone Thorngage
08-05-2008, 11:36 AM
clearly our definitions differ :)

the phone you describe i would describe as bare bones, a few of those models listed in there are over 3+ years old.

Palarran
08-05-2008, 11:59 AM
For most people I suspect a 3+ year old phone would do, as long as the battery is new.

When I got my current phone from a Verizon store, I could not find a single phone that did not include a camera. I didn't want a camera; I wanted a phone!

Greystone Thorngage
08-05-2008, 02:40 PM
unfortunately its really hard to find a non-camera phone now. Also the issue with 3+ year old phones is finding a battery, companies like to change their batteries ANd charger recepticals as often as we change socks.

honestly the only people i deal with on a daily basis, that want a bare bones phone are over 50.

Sanchek
08-05-2008, 02:44 PM
Most people would be more than happy with "bare bones", I think is the point. A phone with a good, simple address book is all most people use in reality.

The current (ridiculous) situation is as if Microsoft wouldn't sell you Word unless you also bought Photoshop and Outlook.

Sixee
08-05-2008, 02:52 PM
When I got my current phone from a Verizon store, I could not find a single phone that did not include a camera. I didn't want a camera; I wanted a phone!

And there are some places of business that won't allow you to bring a phone with a camera on premises.

One of my company's clients is an aerospace firm, that wishes to keep production techniques a secret. If you are found with a camera phone without a camera pass, it is confiscated.

Greystone Thorngage
08-05-2008, 04:19 PM
The current (ridiculous) situation is as if Microsoft wouldn't sell you Word unless you also bought Photoshop and Outlook.

i wouldnt use that as a fair analogy. Power Steering was a upgrade option on cars, now its just a standard option on most cars, same with AC and CD player. The bare bones phones don't sell....plain and simple. We have a Nokia 2610, that has no camera is just a basic non-flip phone we RARELY sell it and its on the wall next to all out other phones. No one is forcing people to get iphones and blackberrys (would it be -ies since its a brand name???? Malse?).

Palarran
08-05-2008, 04:53 PM
That's likely because the customer ends up paying for most of an expensive, full-featured phone/camera/etc. through the 2-year contract regardless of what phone is selected.

If the customer paid the full cost of the phone up front, I bet the Nokia 2610 (priced at $30 (http://www.techforless.com/cgi-bin/tech4less/2610?mv_pc=google_base&tts=20080804020700)) would sell much more quickly.

Kanyli
08-05-2008, 06:27 PM
That was my point too. With the contract credit, I have a color display, camera, MP3 player, and so forth that I never use. Big deal, since I had the credit, and every once in a while I take a crappy low quality picture. If I had to pay for the phone directly, I wouldn't bother with those features.

Sanchek
08-05-2008, 08:21 PM
The bare bones phones don't sell....plain and simple. We have a Nokia 2610, that has no camera is just a basic non-flip phone we RARELY sell it and its on the wall next to all out other phones. No one is forcing people to get iphones and blackberrys (would it be -ies since its a brand name???? Malse?).

That's because the whole "get a phone with a camera and forty other useless options" thing is pushed so hard. Not only that, but if you want a decent phone at all, you have to get one of the feature laden models. Of course they sell well.

If there were a high quality, well styled phone without the bloat, it would be very popular.

Greystone Thorngage
08-06-2008, 07:11 AM
define "pushed so hard". As a sales rep, i get paid based on your minute package, and text/internet package. Every phone can talk and every phone can text even the bare bones ones. I could give a rats ass which phone a customer gets, as long as it in all honesty, ensures i wont see them again because its too hard to use or they just dislike the phone.

The nokia 2610 is probably the BEST reception phone we have, most nokias are, but people, "meh" it all the time. That phone cant get any more basic. The $30 is listed for pre-paid service its discounted for the purpose because the profit on prepaid is rediculous. The $149.99 a little lower on the page is a little closer to actual, though i think its $139.99.

My point is if the US suddenly switched to non-contract buisness model and everyone we told that came into the store $139.99 for this nokia (brand new) they would shit themselves. A large group, would go refurbished and used, and again fine with me because i dont get paid on the phone i get paid on the service, but then if something happens to those phones, AT&T isnt going to warranty a phone bought refurb from a 3rd party.

People want their cake and eat it too in the cell phone industry.

Sixee
08-06-2008, 07:30 AM
Retail is a funny world. As a sales associate, you get to see the epitome of 'monkey see, monkey do' when it comes to customers.

And "pushed so hard" probably refers to all the neat television commercials that show all the other 'monkeys' having perfect lives once they have thier combination mp3 player/camera/cell phone in thier opposably-thumbed hands...

Greystone Thorngage
08-06-2008, 07:48 AM
I guess i see your point Sixee, but what company in ANY commercials show you the baseline/barebones models?

Grift3r
08-06-2008, 10:21 AM
People want their cake and eat it too because they have never been treated any differently with respect to phone costs.

It really shouldn't even be a point of debate. If all phones increase in price by $100-200, people will begin looking for ways to find cheaper phones thereby creating a demand for less expensive phones.

What do companies do when they see demand? They respond with supply. This will, without any shadow of a doubt, bring to market models of phones that are less expensive and less 'robust'.

Kanyli
08-06-2008, 10:42 AM
People want their cake and eat it too in the cell phone industry.Actually, that would be the problem in many industries right now.

There's a commercial on TV right now that makes me want to vomit. The voice over says something along the lines of how we're a nation of consumers, and that's all right! There's just so much stuff to choose from. Yes, our biggest problem has been deciding what to choose from...uh huh...