US Copyright Chief Breaks Handset Locks
Chargebacks?
I wasn't able to open the entire article, as I am at work. Do companies have the right to decline new customers an unlock code?
Since it is the holiday season, and most companies are going to give away some huge discounts on phone pricing, what stops customers from activating with Company A, getting their unlock code, then cancel Company A to bring their phone to their existing account with company B? Will company A get screwed? Will the employee get a huge chargeback? Is there anything to protect the company ore saleperson?
Like I said, I wasn't able to read the entire article, just had a few questions.
Since it is the holiday season, and most companies are going to give away some huge discounts on phone pricing, what stops customers from activating with Company A, getting their unlock code, then cancel Company A to bring their phone to their existing account with company B? Will company A get screwed? Will the employee get a huge chargeback? Is there anything to protect the company ore saleperson?
Like I said, I wasn't able to read the entire article, just had a few questions.
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If you cancel through customer care within thirty days and don't return the phone, you are generally responsible for the full retail price of the phone; if you don't return the phone, they bill you for that difference.
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As an agent this really wouldn't apply. We have a below cost agreement, where we can charge up to $200 if customer cancels within 6 months a does not return equipment, but the odds of collecting are 1/100
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i work for an indirect agent and we do something very similar. we charge $350 if they cancel in the first 6 months and dont retturn the phones, but we also take a credit card impression at the point of sale and charge that card if they do cancel out.
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You know I used to work in the cell phone industry and it should be against the law for the store to charge the customer if they cancel before 6 months... cause by canceling they're already paying the etf, and then they have to get slammed with equipment charges? That's b.s.
Not to mention many people send in rebates and the upc is cut out of the box, people may lose stuff that came with their phone... So there's no way they could return with the box dismantled and stuff missing....
Not to mention many people send in rebates and the upc is cut out of the box, people may lose stuff that came with their phone... So there's no way they could return with the box dismantled and stuff missing....
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It's simple economics. The agent buys the phone for let's say $150.00. They let the customer take it for free. The customer cancels and keeps the phone, the carrier charges the agent back the commission for the activation.
At this point the agent is out $150.00 because the customer did what would be considered a delayed shoplifting action.
It would not take too long before agents and carrier owned retail would not be willing to sell the phones at a subsidized price anymore. So by trying to be "in" with the consumer movement these thieves would end up ruining it for everyone else.
At this point the agent is out $150.00 because the customer did what would be considered a delayed shoplifting action.
It would not take too long before agents and carrier owned retail would not be willing to sell the phones at a subsidized price anymore. So by trying to be "in" with the consumer movement these thieves would end up ruining it for everyone else.
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The details of the agent/carrier relationship are nothing but a red herring in the situation you describe.
If a business sells a product with a contract, and that contract is terminated in accordance with the terms of the contract (the ETF) there is no gripe either party can possibly make in regards to the termination of that contract.
If the business loses money, perhaps they should review their business model as opposed to recouping costs from the consumer.
Comparing it to shoplifting is silly and illogical.
If a business sells a product with a contract, and that contract is terminated in accordance with the terms of the contract (the ETF) there is no gripe either party can possibly make in regards to the termination of that contract.
If the business loses money, perhaps they should review their business model as opposed to recouping costs from the consumer.
Comparing it to shoplifting is silly and illogical.
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but the thing is, people buy the phone at the discount and cancel the next day-still inside the trial period. that means no ETF. they get away with a dirt cheap phone and no penalty. and the agents lose the commission from that sale. the person buying that phone, just to cancel out is not really shoplifting, but they are committing fraud.
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That's why agents should do what wirefly.com does: charge you a seperate ETF if you change or cancel your service. That would prevent this from happening.
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I thought it was standard practice that if you cancel service in the trial period and you do not return the phone then you would have a charge for the phone? Is that not correct?
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you would be charged for the equipment if the handset has been ordered over the phone (i'm talking about Sprint's side) or the web, and don't return it, cuz basically you're getting the reabte in exchange of a contract, so, you break the contract, you lose the discount.
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Well, that is what the early cancelation fee is for, but with most companies, they are now offering deals where you have so many days to try out the network and phone and you can cancel with no strings attached. But, with Cingular, you have to give all equipment back. So im not sure how that will work. Good question. You have my brow raised. 😕
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This forum is closed.
