With the new iPhone 3G coming out tomorrow (July 11), some retail analysts predict consumers will be "on a weekend buying frenzy." I won't be one of them, although with my Palm Pilot on the fritz I could use a portable calendar to sinc with my computer. How about you? (Here's a closer look at the new iPhone from CBS news.)
Rumor has it that Apple may make the latest gadget fairly affordable - but the catch is that buyers will have to sign lengthy service agreements. This could spell trouble if users ever want to get out of their contracts early.
The FCC is still in talks with cell phone companies to eliminate or at least decrease the amount they charge customers for canceling their contracts early. Since these new rules would apply to NEW customers only, so soon-to-be iphone owners might want to listen up...
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It's looking like the beginning of the end for those triple-digit early termination fees that have trapped consumers in cell phone contracts or required them to shell out hundreds of dollars to get out early. Two of the biggest cell phone companies have already started scaling back termination fees, two others are preparing to, and the Federal Communications Commission (FCC) also is on the job.
But consumers shouldn't get too excited just yet, cautions Angie Hicks, founder of Angie's List, (http://www.angieslist.com/), the nation's leading consumer rating service.
"These early termination changes would only affect new customers," Hicks said. "Current customers who are facing early termination fees will need to be smart negotiators if they want to get a break."
The FCC met June 12 to discuss an industry-sponsored proposal that would give new cell phone customers a 30-day grace period to cancel their contracts without penalty. After those 30 days, early termination charges would be pro-rated over the life of the contract. Pro-rated billing would result in customers paying much less to terminate a contract in its 20th month as compared, for example, to its fourth month of service. The termination fee proposal comes as cell phone companies are facing class-action lawsuits that claim the early termination fees are unfair. If the FCC approves the proposal, those lawsuits could be dismissed.
"Sometimes you can't negotiate your way out of early termination fees, but it's definitely worth a shot - especially with these changes underway," Hicks said. "The worst thing that can happen is the company won't budge. But if you keep your cool and plead a good case, you could undo the contract you're in and get a fresh start."
Angie's List Tips to avoid paying a full termination fee:
- Know your contract: Understand what you've signed up for, so you can negotiate out of it. Have your contract with you when you approach the company and quote from it to bolster your position - especially if you didn't get all the service the contract promised.
- Shop the competition: Determine what other providers are offering and use that as leverage. Even if you have to pay a termination fee, you may be able to save overall by jumping ship.
- Start with the Customer Service Department: Lay out your case for why you want to end your contract early. Be specific about what you signed up for and outline what you haven't gotten (if that's the case.)
- If necessary, go to the top: If the representative insists that you must pay the full termination fee, remind him/her of the actions the FCC and some providers are taking. If you still don't get anywhere, ask for a manager and lay out your case again.
- Ask for customer retention department: If you have a good payment record with the company, ask to speak with the Customer Retention Department and lay out your case one more time. If you have a good record, the Retention Department will work hard to keep you as a customer, possibly forgiving the termination fees altogether and offering you a better deal.
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Comments: 24
and when there is a need,
say when the Aspca had a phone stolen
and they were in contract,
I ordered them a new phone at no cost... Yes we care and even the co's we work for are willing to negotiate, not with people who get greedy (there are many) but with real people with real issues...
the ETF's say 200.00 usually are less then the sign up discounts we give on new devices. in case you wondered.
He's not going to change to Apple at all, as he's a Microsoft business Sprint user.
By the way, I like my seven year old, at least, Sanyo cell phone, and need no other
As it is, I have a decent quality phone, no camera, good battery life, the capability to use my phone in Germany and other European countries when I visit there. I can change out the SIM card as long as you have a quad phone.
Great customer service and good rates. My carrier offers one or two year contracts and that contract ran out years ago.
Thanks for the information on the phone contracts! Very useful information.
Glad the information on cell phone contracts helped out. A special thank you goes out to Angie's List for supplying us with those tips.
P.S. If anyone here does sign up for Vonage, it's around $30 per month with everything included (including taxes). You'll need cable access and a regular phone, but that's the only requirement other than the modem while is included in your phone package. Let them know customer 5032873980 referred you, and you'll get a free month to!