Come August - Shocking AT&T Bill

[ubersalad]

I know there is a lot of theory out there discussing possible ways of exploiting iPhone's subsidized pricing. But the fact of matter is, AT&T doesn't clear out your account the moment you cancel, instead they send you the "last bill" and collect any outstanding fees. So come August or so, when people receive their bill, they may be in for a big shocking bill...

P.S. Anyone else able to figure out exactly what AT&T's term and condition is saying about early cancellation?

 

[illutionz]

I know there is a lot of theory out there discussing possible ways of exploiting iPhone's subsidized pricing. But the fact of matter is, AT&T doesn't clear out your account the moment you cancel, instead they send you the "last bill" and collect any outstanding fees. So come August or so, when people receive their bill, they may be in for a big shocking bill...

P.S. Anyone else able to figure out exactly what AT&T's term and condition is saying about early cancellation?

pay your ETF of $175 and pay any outstanding monthly bills...

What else lol

 

[ubersalad]

pay your ETF of $175 and pay any outstanding monthly bills...

What else lol

What else is the concern. What if they decide to charge you the retail price or demand you return the equipment?

 

[t0mat0]

What else is the concern. What if they decide to charge you the retail price or demand you return the equipment?

Then you pay and return the handset. Contract means a contract.
If you can't pay, then that's another issue. No excuse not to give the handset back.

 

[xerostyles]

I don't know where these assumptions of a "shocking" bill keep coming from. Some people mentioning a penalty or "retail price phone payment."

I have read over the agreements and there is no mention of any "penalty" or "fee" other than a $175 ETF if you choose to cancel your contract after 30 days. (Please alert me to where this information is located if I have missed it.)

Assuming people keep their contracts live for 31 days, no matter if they pawned off their phone to the CEO of ATT, they will incur no other fees than: phone price (199/299 or 399/499) + 1 month fee + activation fees + ETF.

It is in the contract! ATT can NOT legally charge you anything else! Not a handset charge, nothing.

If you cancel within 30 days, which is just stupid because you can easily swap sims into the phone/sell it while leaving your contract live for the remaining days, then this obviously doesn't apply.

 

[mkoesel]

If you cancel within 30 days, which is just stupid because you can easily swap sims into the phone/sell it while leaving your contract live for the remaining days, then this obviously doesn't apply.

Out of curiousity, what does the contract say you owe for cancelations within the 30 days? I have no copy of the contract because Apple said it would be mailed to me, else I'd just look it up. Also, are there provisions in the iPhone contract that differ from a normal AT&T plan contract?

 

[xerostyles]

The contract is available online, look for "iPhone terms."

If canceled within 30 days then: Prorated bill + "May be required to return handset" (NO ETF or activation fees).

 

[ubersalad]

I don't know where these assumptions of a "shocking" bill keep coming from. Some people mentioning a penalty or "retail price phone payment."

I have read over the agreements and there is no mention of any "penalty" or "fee" other than a $175 ETF if you choose to cancel your contract after 30 days. (Please alert me to where this information is located if I have missed it.)

Assuming people keep their contracts live for 31 days, no matter if they pawned off their phone to the CEO of ATT, they will incur no other fees than: phone price (199/299 or 399/499) + 1 month fee + activation fees + ETF.

It is in the contract! ATT can NOT legally charge you anything else! Not a handset charge, nothing.

If you cancel within 30 days, which is just stupid because you can easily swap sims into the phone/sell it while leaving your contract live for the remaining days, then this obviously doesn't apply.

That is what I am saying, and I agree! I just want to make sure if anyone else have the same opinion about it.

 

[mkoesel]

Thanks for the link xerostyles.

So based on this, why are people so eager for a non-contract iPhone at the oft-quoted (though still only theoretical I believe) $599/$699 price? It seems you can get an iPhone now just by signing up a new account for $199/$299 + $175 + $1 month bill + $36. I guess its just people who have bad credit who are interested?