I wonder if Apple will be using Activation Lock to secure the debt of the iPhone Upgrade Program...

[Agent OrangeZ]

The lender is Citizens Bank. But since Apple is their partner, I am wondering if Apple has agreed to implement Activation Lock on those who default on their loan? (Like T-Mobile blocking IMEI's of unpaid EIP plans) It would be a good idea for them....

 

[Jordan921]

The lender is Citizens Bank. But since Apple is their partner, I am wondering if Apple has agreed to implement Activation Lock on those who default on their loan? (Like T-Mobile blocking IMEI's of unpaid EIP plans) It would be a good idea for them....

Would be the smart thing for them to do. Just so people can't turn around and just sell the phones.

 

[KUguardgrl13]

The lender is Citizens Bank. But since Apple is their partner, I am wondering if Apple has agreed to implement Activation Lock on those who default on their loan? (Like T-Mobile blocking IMEI's of unpaid EIP plans) It would be a good idea for them....

Makes perfect sense to me. The carriers have been blocking IMEIs for years.

 

[FelicityW]

No brainer. If you do not honor the commitment made via a legally binding contract, you can be assured that 1. The phone will stop working and 2. You will never again have an iPhone connected through your current iTunes account (so, start all over on your purchases), or cell service with the social security number (until your debt has been satisfied; they aren't crazy, they still want your money) and 3. It will be a derogatory entry on your credit report. Scammers, dream on; and buyers, beware. Since Apple is going to get a ton of year old phones, you can also be sure they will corner the market on used phones. Even if the aluminum is 'highly recyclable', I can't imagine that public outcry won't prevent them from mass destruction of the turned-in phones, so they have to go somewhere....

 

[scaredpoet]

If they do implement this, it would probably be specified in the lease/loan agreement that the customer signs when they buy a phone on that plan.

That said, I've bought Apple hardware and financed it through Citizens Bank/Apple (Apple educational financing). They probably could've used Find My Mac or whatever to lock it down if I skipped out on the payments, but it was actually expressly stated in the FAQ that the financing did not have the laptop I purchased as collateral. My credit would've taken a hit, and maybe they would've sued me if they felt it was worth their time, but the MacBook Pro would've still been mine to use as I pleased.

 

[mb2008]

I reviewed my NEXT contract on my 6+ purchased through Apple online and discovered the installment contract was with Apple as seller/creditor, which seems strange. It did have language allowing them to lock the phone in the event of non-payment:

"10. REMEDIES IN THE EVENT OF DEFAULT. In the event you are in default of this Agreement and to the extent permitted by applicable law, we have the right to exercise any one or more of the following remedies:
a. Disable the Device’s wireless network connectivity capabilities.
b. Require you to immediately pay the sum of the remaining unpaid Amount Financed (except that in Illinois, you must be in default for at least 30 days);
c. Require you to pay us actual and reasonable costs of collection, including attorney’s fees, except that in New Hampshire and Wisconsin, we will be obligated to pay any attorney’s fees incurred by you in any action in which you prevail.
We will give you notice of our intent to exercise our rights as required by applicable law."

 

[JayLenochiniMac]

No, because Apple has made it such that they cannot access activation-locked iPhones, much to the government's dismay.