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AT&T ECF policy clarification

J

jerkjosh

macrumors newbie
Original poster
Jun 3, 2008
15
0
I was reading the terms and conditions for the iphone plans, and I got confused with this excerpt:

The fee will begin at $175 per device and decrease by $5 each month for the term of the agreement.

The way I'm seeing this is that you sign up for a 3 year plan and get the iphone for 199/299. 1 month in, you cancel, and you pay that months charge and $170, and that's it? (tax as well)

This method was proposed way back before June 9th. Anyways, that comes to much less than the $599 no-contract price. I know I'm seeing this wrong, but can someone correct me with how it actually works?
 
I'm hoping it works like this:

$199 - Purchase price of 8GB iPhone
$12/mo service fee pro-rated for 3 days
$175 ETF
------
$386

If you cancel within the first three days the activation fee is waived. I bought on Sunday and cancelled AT&T on Tuesday. There's no reason to keep the service a whole month to save $5 on the ETF when you can save $36 by canceling within the first three days if your intent is to take it to another carrier.
 
According to the explanation of $175 ETF decrease by $5 each month for the term of the agreement, over a 2-year agreement/contract (do they have a 3-year agreement/contract?) that would only account for $120, while the remaining $55 goes into AT&T's pockets uncontested? :confused:
 
SFStateStudent said:
According to the explanation of $175 ETF decrease by $5 each month for the term of the agreement, over a 2-year agreement/contract (do they have a 3-year agreement/contract?) that would only account for $120, while the remaining $55 goes into AT&T's pockets uncontested? :confused:
Click to expand...

The $175 doesn't represent any particular value. Seeing that if you cancel in the last month of your conract (and therefore avoid about a $65-$70 phone bill), you're actually coming out ahead.
 
>Bearxor

What about the clause which says if you cancel in the first 30-days (trial period) you have to send the phone back.
 
Sun Baked said:
What about the clause which says if you cancel in the first 30-days (trial period) you have to send the phone back.
Click to expand...

I read the policy, and did not see anything that said you HAD to send the equipment back, but instead that you may have to send it back, or you may have to pay the balance of the full retail price. But this was not limited to the first 30 days.

-jt2
 
jt2ga65 said:
I read the policy, and did not see anything that said you HAD to send the equipment back, but instead that you may have to send it back, or you may have to pay the balance of the full retail price. But this was not limited to the first 30 days.

-jt2
Click to expand...


So its probably better to pay service for the first 30days if you bought a 16GB huh?

retail price of 16GB<first month+cancel fee
 
I'm fully expecting only the $175 termination fee + prorated charges. If they want more than that then they can give me instructions on returning the phone. I hope they tell me to put it where I feel like putting it >:)

Bill should be in anyday now...
 
I don't know if this applies to AT&T as well, but Verizon's ETF was as follows: $175 - $5/month of service, only until it got down to $80. Whether you canceled after 18 months or 23 months, you're not going to pay less than $80.
 
jerkjosh said:
The way I'm seeing this is that you sign up for a 3 year plan and get the iphone for 199/299. 1 month in, you cancel, and you pay that months charge and $170, and that's it? (tax as well)
Click to expand...
Dude...I got some contracts for you to sign. It's obvious you have hard time reading them. =)
 
i'm wondering about this too....
you just pay the first month with ATT, then your prorated (minus $5?) ETF of $175 and go to carrier of choice.

is there any indication that that's not the way it will work?
 
SFStateStudent said:
AT&T's billing, as is the industry standard, will consist of two months of billing. So, don't be surprised when you see your first AT&T 3G iPhone BILL; you may want to take a seat, b/c it's twice the pain...:eek:
Click to expand...

OK, so what you're saying is two months? or the first month is just going to be more expensive? and after that we could still just pay the ETF and the handsets ours, free and clear?
 
I don't understand why would they charge for an extra month when you already canceled =/

Doesn't that seem a little excessive? ATT is so money hungry.
 
rockinrocker said:
OK, so what you're saying is two months? or the first month is just going to be more expensive? and after that we could still just pay the ETF and the handsets ours, free and clear?
Click to expand...

I don't think this is necessarily right. I believe AT&T only bills on certain days, so if you start midway through a billing period, instead of a very tiny bill your first month they tack it on to the full bill of the second month. So not double the bill, but more than one.

I'll admit it's been a long time since I've opened a brand new account though...
 
http://www.wireless.att.com/cell-phone-service/legal/return-policy.jsp
Service Cancellation
You may cancel service within 30 days from the activation date to avoid the early termination fee of $175. Thereafter the fee will decrease by $5 each month for the term of the agreement. You will be responsible for all applicable usage fees, prorated access charges, taxes, surcharges or other charges through the termination date. AT&T will refund your activation fee, if any, if service is terminated within 3 days of activation.
You may have to return any handsets and accessories purchased with the service before your account will be cancelled. If you are allowed to cancel service within the 30 day return period, but do not return the equipment within the return period, AT&T may charge you an amount equal to or up to the full retail price of the equipment.
If you paid a security deposit, it will take 1 to 2 billing cycles to process the return of the security deposit. The charges for service used on the account before the service termination date will be applied against the security deposit.
Click to expand...
You only get the activation fee waived if returned within the first 3 days.
There is no ETF if service is canceled within the first 30 days. You are required to return the equipment though.
If you fail to return the equipment, they will charge you the FULL retail price for the phone.
Full retail is not $199/$299 + ETF + activation.
Full retail is in the neighborhood of $700 to $800 based on no-contract prices that have been floated around, plus any usage fees.

AT&T also bills one month in advance. Basically you pay BEFORE you use, not after. That's why your first bill is always so big. They want their money up front. ;)
 
Your first months bill on the iphones cheapset plan will be-
Voic plan $40
Data $30
Activation $36
Taxes $7

Estimated total= $115

If you cancel afer one month i think your ETF is reduced by $5. So ETF could be $170+tax. Add cost of 16gb $300+tax.

You are looking at $600 plus.
 
OK, so regardless of the size of your first bill, after one month of service you pay the ETF and the phone is yours to do with as you please?

seems like that'd be a lot cheaper then the non-contract prices that are being floated around....
 
rockinrocker said:
seems like that'd be a lot cheaper then the non-contract prices that are being floated around....
Click to expand...

Not really...

Depending on your plan $100 to $200 dollars for the first month's bill, The $175 dollar ETF and then add the cost of the phone plus tax. So for the 8GB model your going to pay at the low end $490 dollars or more. That's painful price to pay for a phone with no warranty.
 
Cynicalone said:
Not really...

Depending on your plan $100 to $200 dollars for the first month's bill, The $175 dollar ETF and then add the cost of the phone plus tax. So for the 8GB model your going to pay at the low end $490 dollars or more. That's painful price to pay for a phone with no warranty.
Click to expand...

I think the phone itself has warranty, but if you need to take the phone in for help and its on t-mobile and not ATT you are screwed.
 
jt2ga65 said:
I read the policy, and did not see anything that said you HAD to send the equipment back, but instead that you may have to send it back, or you may have to pay the balance of the full retail price. But this was not limited to the first 30 days.

-jt2
Click to expand...

This is true. If AT&T tells you you HAVE to send the phone back tell them to look at their own refund policy. It's not there. Worst they can do is make you pay "Full price" for the phone... Which is either $400 or $600... Who knows which.
 
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