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Abuse of ETF
Posted Mon June 18, 2007 4:53 pm, by alistair t. written to T-Mobile USA, Inc.
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I entered into a two-year contract with T-Mobile a few years ago with few complaints. This plan was for two lines (family plan). When the contract expired, I was very diligent about not entering a new contract, as it is important to me to be able to go where the best technology is without penalty.
A temporary life change in early November, 2006, required us to use the phones more, and a call to T-mobile assisted us increasing the plan without entering into a new contract. The discussion with customer service assured me that we would be able to return to the old (cheaper) plan with no problems and without entering into a new contract - which I did online in mid December, 2006. I did NOT purchase any subsidized phones, nor did I pick a better plan than would trigger a new contract, I simply selected the 800 minute 59.99 plan and did NOT agree to a contract.
Recently, to take advantage of faster data rates, I purchased a new phone with another carrier and had one of the phone numbers ported to the new carrier. T-mobile has now charged me a $200 early termination fee, and also informs me that the other line is under contract and will incur another $200 fee when I decide to port that number over as well.
While ETFs are understandable when phones and/or service has been subsidized in some way, however they are also abused as in my case. T-mobile has absolutely NO RIGHT to charge me $400 for cancellation of this account.
1) Rebate the account (*****8145) $200 for the erroneous termination fee.
2) Remove the contract from the account.
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by alistair thurber Posted Tue July 3, 2007 @ 7:58 PM
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I received another call yesterday from customer service. T-Mobile has now owned up to the fact that their computers should NOT have renewed this contract and that I was correct all along. This is unfortunately too little / too late, as I was already forced to cancel the account and lose the phone number.
The language in their TOS might elude to the fact that they can renew your contract whenever a change of service is made, however there are certainly conflicting views and results on this.
They have different promotional plans that are clearly marked as requiring a contract, with less attractive plans that do not require a contract.
Again, make changes over the phone and keep documentation on who you spoke with, and you should be OK in making changes to an account without extending or renewing a contract!
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by alistair thurber Posted Thu June 21, 2007 @ 8:52 AM
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All:
Thanks for all the feedback. My advice for anyone who wants to remain out of contract but would like to alter their plan, is to only do it over the phone, through a representative, with thorough explanations of what ramifications will occur by altering the plan. Take good notes (date, rep name, #)
I am happy to report that as a result of this letter, T-Mobile swiftly refunded the $200 ETF (my second positive result from planet feedback).
The gentleman who contacted me would not remove the contract from the account. The "compromise" was to cancel the account on the spot (thus losing the second phone number) and avoid an additional $200 fee.
I accepted this offer rather than stay with T-Mobile. While I am content to have been given a rebate, I will always take the position that I was completely swindled into a contract that I never agreed to, and that I should never have had to compromise on this.
It would have been a much better gesture for them to have simply removed the contract from the account as I had asked.
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Wow! Sounds like cacellation the fee is t-mobile's secondary revenue stream...too bad I always considered them a good company until the same thing happened to me.
Time to revolt...
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by DragonflygrrlTheGreat Posted Tue June 19, 2007 @ 3:42 PM
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The best thing I could suggest would be to call customer care, and ask the representative to check the notes on your account. Agreeing to change a rate plan without requiring a contract extension is unusual, so the rep that did that should have put notes in to that effect. In general, however, a rate plan change to certain plans will result in an automatic contract extension, and there is a whole script which the rep reads to that effect.
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by Lee H. Posted Tue June 19, 2007 @ 7:44 AM
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Okay, here's a general question for anyone which may have a legal background to answer.
How can this subscriber, or anyone else for that matter, be held to a contract or contract extension without clearing signing such an agreement?
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by S. Brown Posted Mon June 18, 2007 @ 6:59 PM
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ANY change to an existing plan, expired or not, will result in the renewal and/or extension of the contract. The new plan doesn't have to be "better" to trigger a new contract nor does the customer have to purchase any "subsidized phones". Even if you call T-Mobile and tell them to move you to a less expensive plan - - bingo - - your contract is automatically extended. So you may not think you agreed to a new contract but your actions say otherwise.
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