Get Out Of AT&T Without ETF Thanks To Text Message Rate Increase
AT&T is raising the rates for sending text and picture/video messages to 20 and 30 cents, respectively, giving customers a chance to break free of their contract without early termination fee if they use the now-classic "materially adverse changes to contract" argument. Inside, how to deploy that tactic, as well as the text of the rate change notice.
1. You must specifically cite the text message rate change being a material adverse change of contract as the reason for cancellation.
2. You must not pay your bill that reflects the new rates until AFTER requesting cancellation
3. You must refuse any offer of reduced text rates or free text messages to your plan.
4. 4If the rep is poorly trained and wants to hot-potato you to a supervisor rather than transfer you to account services, you must insist that you want to cancel service despite any potential fees so the rep gets you to the group that actually knows the correct procedures.
5. Remain firm, polite, and insistent. You will have to go several rounds with them as they try to wear down your resolve and throw all sorts of tricks at you.
Negotiating out of your cellphone contract can be daunting. Here's some other people's success stories to help get you psyched:
AT&T rate change notice:
Messaging Pay Per Use Rate Change Notification
Effective 3/30/08, AT&T will charge 20¢ for text/instant messages & 30¢ for picture/video messages sent or received on a pay-per-use basis. If you already subscribe to a Messaging Package or Media Bundle, there is no change to your rate. By purchasing a Messaging Package, you can send and receive messages for as little as a 1¢ per message. Sign up and save at att.com/getmedia.AT&T will increase the price on the Messaging (Text/IM & Picture/Video) Pay Per Use (PPU) features for new and existing customers on March 30, 2008. While the price increase impacts the Pay Per Use customers who tend to be light messaging users, our customers who have purchased messaging packages or MEdia Bundles will not be impacted. All of our customers will continue to be provided our best-in-class products, services, and support. Customers will be notified in advance of the price increase.
Critical Information:
The following pricing change will be effective in the billing systems on March 30, 2008:Text/Instant Messaging PPU Price:
Picture/Video Messaging PPU Price:Current price: $0.15/message
New price: $0.20/messageCurrent price: $0.25/message
New price: $0.30/messageMessaging PPU prices will increase on March 30, 2008. Any message sent or received on or after March 30, 2008 will be charged $.20 for text/instant messages and $.30 for picture/video messages.
Customer Notification:
Existing customers will be notified via a bill message beginning with bill cycles closing on January 16.Note: Customers will receive invoices beginning the week of January 21.
Relevant contract text:
IF WE INCREASE THE PRICE OF ANY OF THE SERVICES TO WHICH YOU SUBSCRIBE, BEYOND THE LIMITS SET FORTH IN YOUR RATE PLAN BROCHURE, OR IF WE MATERIALLY DECREASE THE GEOGRAPHICAL AREA IN WHICH YOUR AIRTIME RATE APPLIES (OTHER THAN A TEMPORARY DECREASE FOR REPAIRS OR MAINTENANCE), WE WILL DISCLOSE THE CHANGE AT LEAST ONE BILLING CYCLE IN ADVANCE (EITHER THROUGH A NOTICE WITH YOUR BILL, A TEXT MESSAGE TO YOUR EQUIPMENT, OR OTHERWISE) AND YOU MAY TERMINATE THIS AGREEMENT WITHOUT PAYING AN EARLY TERMINATION FEE OR RETURNING OR PAYING FOR ANY PROMOTIONAL ITEMS, PROVIDED YOUR NOTICE OF TERMINATION IS DELIVERED TO US WITHIN THIRTY (30) DAYS AFTER THE FIRST BILL REFLECTING THE CHANGE.
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Comments:
I have an iphone contract with 200 included messages and 15 cents over and above that, which I do occasionally. Does that mean my overages are at 20 cents now or will continue at 15 cents?
Basically, just because you have a text plan doesn't mean you never go over it and get hit with the changed frees I'm guessing. If so, it should still apply.
(Sigh, guess I need to go to 1000 a month plan, which I'm sure is their intent. It's just way too easy to text on the jesus phone...)
@TinkishDelight: Thanks, but I can't walk away from the jesus phone. Will have to buy a bucket plan. Sigh....
Mission accomplished AT&T and Steve.
@TinkishDelight: That'a a good point, I didn't think of that.
I guess now i need to decide if I want to stay with AT&T and be able to use unlocked phones, or move to Sprint with their locked phones...
@weave:
haha same here. I got so excited when I saw the headline but then quickly remembered my touchscreenyness. Isn't Steve said to be fighting with AT&T? Maybe he'll spare us all and "accidently" create a loophole to move to other networks.
@mvoltin:
You can always have the number ported later. I'd say open a new account first with whatever number they give you and have the number ported after you talk to ATT and cancel. This worked for my TMobile to ATT switch. I feel like if you do it the other way around we'll be reading about your ATT runaround in a Consumerist post next month.
@weave:
Going over your messages when you're on a messaging plan doesn't charge you the ppu rate, it charges you the overage rate, which would be either $0.05 or $0.10 depending on your package.
Sounds like a good item to get a detailed consumerist writeup - how to jump ship AND keep your existing phone number!
I'm trying to do an AT&T -> Verizon one myself (related to poor coverage at my house), but am baffled by how to keep the number I've had the past 6 years or so...
Regarding... PROVIDED YOUR NOTICE OF TERMINATION IS DELIVERED TO US WITHIN THIRTY (30) DAYS AFTER THE FIRST BILL REFLECTING THE CHANGE.
Does this mean within 30 days of you receiving the notice that it will go up 3/30/08, OR within 30 days of your first bill after 3/30/08?
In other words, can you cancel it now, or do you have to wait until 3/30. And, if you DO wait until March, are you within the grace period where you can theoretically get out?
Also, so far this is a nice theory, but NOBODY has actually reported being successful...
I recently cancelled my messaging rate plan, so if it's only been a few days since this change does anyone know if I'm eligable to cancel my contract? I would think since now the rate hike applies to me I could get out scott-free. I would also like to know what page on the contract that info is on, just to be prepared. I'm going to try tonight and tomorrow night and keep checking back to see if anyone was successful.
Here is what I am doing:
1. SENDING A LETTER OF CANCELLATION IMMEDIATELY.
2. CCing my state corporation commission and all three credit reporting agencies.
3. Porting my lines over to my new carrier BEFORE they get the letter.
4. Pay them what I owe them for service I have used.
5. When they call me, I will tell them ONCE to please sue me for the early termination fee, and also notify them on the same call that we no longer have a business relationship, and they will be in violation of the Telecommunications Act of 1996 if they EVER call again. And I will throw their letters and bills in the trash without even opening them up.
@earlwatusi: Get Out Of AT&T Without ETF Thanks To Text Message Rate Increase You wrote :
* Here is what I am doing:
1. SENDING A LETTER OF CANCELLATION IMMEDIATELY.
2. CCing my state corporation commission and all three credit reporting
agencies.
3. Porting my lines over to my new carrier BEFORE they get the letter.
4. Pay them what I owe them for service I have used.
5. When they call me, I will tell them ONCE to please sue me for the early
termination fee, and also notify them on the same call that we no longer
have a business relationship, and they will be in violation of the
Telecommunications Act of 1996 if they EVER call again. And I will throw
their letters and bills in the trash without even opening them up.
Can you tell me if this worked?
I just found this article today, so I may be too late. I have a text plan,
but couldn't I just call and cancel it and then use this argument? Also,
there are 5 lines on my plan, does every person have to call in, or since I
am the main line, can I do it for everyone?
Thanks!
Rich
So...now it's October 2008 and I really want to switch to T-mobile to get an Android phone. This whole time I have had a messaging bundle, and was hoping I could still get out using this same tactic by dropping the bundle and saying that only now has the contract change affected me.
Have I just completely missed the boat on this, or is it still possible?















But this will only work if you don't have a messaging plan and pay per use. If you've got one of the Media plans, with x number of texts per month this change doesn't effect you, and there is no change in your contract.