Escape Sprint ETF-Free Over Administrative Fee Increase
Want to break your Sprint cellphone contract without paying an early termination fee? On January 1, 2009, Sprint will increase the Administrative fee to $.99 per line. Because this is what is known as a "materially adverse change of contract," and because of the basic contractual principle that you can't change someone's contract without their explicit permission (not the tacit, "opt-out" kind), you can use it to argue that the fee renders your contract void and you can end service without a termination fee. You do have to be willing to argue without giving up with a number of different Sprint employees first, like Matt did...
Here's the fee notice:
Administrative Charge
Effective Jan. 1, 2009, the Administrative
Charge will increase to $0.99 per line. For
details on surcharges, please see Sprint Terms
& Conditions or visit sprint.com/taxesandfees
And Matt's story:
I called sprint with the bill (with the exact wording) open, and their taxes and fees site (sprint.com/taxesandfees). First I got a normal CS rep, asked about getting an ETF waiver because of this "materially adverse" change, she said no, but that she would transfer me to an "account specialist" (retentions).Was transferred to retentions, got a woman who also said no. We debated a little bit, me asking why it wasn't materially adverse, her saying because its a fee, etc etc. Once I realized I was going no where with her I asked to speak to somebody else. Apparently I got to talk to the King of Retentions, or something.
I remember this part the best, because he picks up the phone and says "Hello! I heard you had a question about one of our government mandate fees?" This really set me off. I had been saying the whole time it was their administrative fee and picture message increase. Anyways, we debated, a lot. Basically the only key was to never stop. He kept saying they could change their fees at any time, it even says so in their T&Cs. I pointed out how that was not valid, and how it was the whole point of a contract that both parties agree to the terms as presented, and how could you agree to terms in advance? After about 10 minutes of this I said "is there anybody else I can talk to" and he said "no, I'm the end of the line before you cancel", and then he said "Do you want the number to legal" and I said "yes!".
I was put on hold for about 10 minutes, when he came back he was much much nicer. He said they couldn't ETF free it now because it hadn't affected the account. I told him the reason I called now is because I wasn't to make sure paying the Nov bill is "agreeing" with the change (I'm sure if I called back in Jan there would have been nothing that could have been done). I said ETF free in Jan was reasonable, and asked him to put the note on the account to let me cancel ETF free in January if the account was affected by the change, he obliged.
Called back the next day, and the note was there.
Yes, the account is still not canceled. Yes, that note could mysteriously disappear. But Matt was able to go most of the way towards getting it ready to be cancelled once that new fee starts hitting the account. He just needs to go the next step. He needs to argue with them that it doesn't matter if it hasn't hit the account yet, the terms of the contract have changed. That alone gives him sufficient reason. If they respond by waiving the surcharge, he should insist that the contract has still been changed.
Just because it's in the terms and conditions that they can change the contract doesn't make it so. Ski lodges can make you sign death waivers but if you really do bust your leg up, the lawyers know you still can sue and probably will win. If
contracts could really be changed like this mid-term, then car dealerships could decide 6 months into your lease that you need to start paying a $300/month administrative fee.
Whether or not they obviate the effects of the contract change, the contract was still changed without his consent. If you stab someone, and then put all the blood back in the wound and put a band-aid over it, you've still stabbed them.
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Comments:
I hate when this happens... makes me wish I didnt like my Sprint service so I could cancel it :P But honestly, anyone with a SERO account will attest that theres no better plan out there in the world.
Does this sort of thing work in canada, or is "materially adverse" something spesific to US law?
Yum, armpit shot right before lunch.
hmmm im gonna have to show this to my girlfriend. She is fed up with sprint, and is gonna terminate her contract with sprint tomorrow and go with Tmobile and get that new G1 phone.
I used the last "materially adverse change" to my account to upgrade to a $50 Palm Centro and a SERO like account. I was ready to cancel if necessary.
@Davan: 1000 anytime minutes/mo unlimited nights and weekends unlimited text and data nights and weekends starting at 7 26% corporate discount.... On 2 lines
$77/mo
Yeah, SERO Rocks!
Does anybody know if there is currently any way to cancel my Alltel account without an ETF, now that the merger with Verizon has gone through?
Or even if it would be possible to upgrade my phone to just a Verizon phone, without having to pay an ETF through Alltel, since I want a new Storm, but don't want to have to wait until next May when my contract expires?
@ajresch: If your contract expires in May, you should be eligible for an upgrade in February if that makes you feel any better.
@Davan: SERO was the #1 reason to stick with Sprint's crappy customer support (mainly because once you have SERO you rarely need to deal with them). Unfortunately, SERO's no longer offered except to employees they "let go." It's been replaced with a plan that costs twice as much, has some additional stuff added that few people who have SERO would ever want, and removal of a few things they did want.
R.I.P. Sprint.
@segamanxero: tell your gf to have fun... it's only a matter of time before she comes running back to Sprint... I had TMo for two years and a few of my friends have it... worst service EVER... no signal anywhere except while hoppin on one leg with tin foil wrapped around your head and A BUNCH of dropped calls.. i love Sprint :)
Your Sprint contract says the following:
"The following, without limitation, will generally not be considered changes to the Agreement as contemplated in this provision and will not result in the waiver of applicable Early Termination Fees: (a) changes to our Policies; (b) changes to rates or charges that are not a core part of the rate plan package for which you contracted - for example, incidental, occasional or casual use charges and other options that do not require a Term Commitment; (b) changes to Taxes & Government Fees; or (c) changes to Surcharges, including assessing new Surcharges."
These stories are nice except that it's not a change under the contract which you can use to get out of it.
However, if you call and talk to the Sprint Consumerist Hotline, they might prorate or eliminate your ETF as a courtesy, if you're really nice.
@bastion72: Just wait until Sprint decides your "SERO like account" has "excessive credits" and begins changing the price and terms of the agreement unilaterally (while maintaining that you would owe them an ETF if YOU don't like it).
I think that new Sprint CEO Hesse is going to drive that company into the ground. They want to charge like Verizon while still screwing and lying to their customers worse than "Best" Buy.
I stick with Sprint because my plan is somewhat reasonably priced and I've already invested over 40 hours in a year and a half to keep my plan *close* to what I was promised. But I've stopped working on getting even more friends and family over to their "service" as the mobile-to-mobile credits aren't worth the loss of sanity dealing with the idiotic "system" that prevents Sprint from honoring anything they promise (other than to collect an ETF if you leave them).
BTW - your account note *WILL* "disappear." I have had representatives swear to me they put a note on my account to clarify what was promised, and what they had done. Not long after - the note ALWAYS becomes non-existent, and the Sprint representative usually uses that as evidence that you are lying and making things up. RECORD the conversations if they have given you notice that the conversation may be recorded - then YOU have evidence and don't drive yourself mad.
@CMU_Bueller:
Oh yeah, I just checked, and my upgrade date would be Feb. 10, which is less than 3 months away, which isn't too bad.
I'm just hoping by then the merger is worked out, because I like Alltel's coverage, but Verizon has far superior phones.
@tedyc03: I still have no clue as to how a contract like this can legally be enforced. Oh yeah, "binding arbitration" clause - in other words you get to argue it out not in front of a judge but an "arbitrator" that just happens to benefit financially from Sprint's business. No possible bias there...
I commit to paying an ETF even if Sprint decides to jump their "administrative fee" $100.00/month per line? Whether it's 25cents or $300.00, it's still a material change to the contract. If money isn't "material" to Sprint - just try paying them $0.00 for a few months and see how "immaterial" it will be to their provided phone service.
Discussions of getting out of ETFs always interest me because many people seem to be looking for ways out of these contracts.
I'm curious: Is it because the service isn't as you expected, or because you're just tired of it?
Also, where do you cross the line into unethical ways out of a contract? Granted most companies will screw you eight ways to Sunday if it is in their financial interest, but to what lengths will you go to screw them? Will you lie?
What is a SERO account?
@Confuzius: I've been wondering the same thing every time I see one of these articles. Especially when it comes to Rogers.
Halp Canadian Lawyerz!
@dweebster: I didn't mind Sprint when I lived in actual civilization. However, Sprint = useless where there's no coverage.
From the OP:
"He kept saying they could change their fees at any time, it even says so in their T&Cs. I pointed out how that was not valid,..."
You had a minor semantic failure in disputing this. Here's a great way of making the situation clear:
They do put in the contract that they have the right to change anything at any time for any or no reason. This is their right and it's perfectly valid (under the crazy funhouse laws we have). YOU however can also exercise YOUR choice under the contract which is basically a simple "take it or leave it" choice. If you don't like their changes, your one and only recourse is to cancel, and yes, they can't legally charge you an ETF in that case.
Another angle you can point out is that if you signed a contract at $30 a month, and the second month they exercised their right to raise your rate to $530 a month, then obviously you would not be forced to pay that rate for 2 years. And it would be their fault you couldn't pay, because they raised the rate so the ETF is completely unwarranted.
Once you have their agreement that a $500 a month increase in costs would be grounds to cancel, then ask them, what about $100 a month? What about $50 a month? What about $20 a month? $5? And finally, in your case, $1 a month. Who are they to tell you what an adverse change is? Any increase in prices at all is enough to cancel over.
Good job to the OP for playing hardball and good luck to all who read this in getting out of cellphone contracts.
I doubt it's possible or this wouldn't exist.
However, watch the decision in that case carefully, it will probably be the answer to your question. :-)
@dewsipper: Not true! Assuming there is ANY coverage there, SERO gives unlimited free roaming! Another beautiful thing. So no bars with Sprint? Just hit roaming and switch over to Verizon or AT&T towers. No extra charges. Its wonderful. I feel bad for anyone that DOESNT have my plan.
"If you stab someone, and then put all the blood back in the wound and put a band-aid over it, you've still stabbed them."
Yes. But if you give them a disclaimer like "I reserve the right to stab you at any time", it is okay. Right? :-)
Damn, I got excited when I read this as I really want to switch off of sprint to a family plan with my fiancee over at AT&T (and get the Iphone)... Jan 1 2009 huh? My Sprint plan ends Jan 28th 2009. Ah well =)
@shepd: That is allowed because the text message rates where not in the contract. there is nothing to prevent them from charging anything they want for text messages.
@ajresch: Alltel and Verizon haven't merged yet. They just got approval to merge from the FCC. They still have a long way to go before they are "merged". I think when Sprint and Nextel merged, it took about 3 years from the time that their intent to merge was made public. Plus, you're probably better off waiting a little bit on the Storm. It sounds like it's going to be a great phone, but there are always glitches in new phones, especially when it's a new technology for a company. Let somone else find all the bugs for you, then get the phone after all the bugs have been worked out.
@dweebster: Ain't the truth about SERO! I'm not going anywhere anytime soon, but then again I have great service and believe it or not the customer service *has* been better than the past.
I can see folks with regular, non discount Sprint accounts using this as a 'Get out of jail free' card but SERO folks will probably accept the $.24 increase without pause.
Price is always material. Even a small price change is material, because it goes to the basis of the bargain.
I got my girlfriend out of her contact with Verizon through this process. I had to write a letter to do it--they wouldn't accept the argument over the phone.
@dweebster: It hasn't changed in a year, but I'll keep an eye on it. Thanks for the heads up. I also agree with a lot of your opinions. Sprint is not good at keeping records. One month after I sealed the last deal I got a call from "Mary" asking, in an indian accent, if I wanted to upgrade my phone.
Appropriate picture regarding Sprint.
@West Coast Secessionist: Well, maybe it can be played the other way. Just write Sprint a letter telling them that YOU are changing the administration fee to negative $150.00 per month. If THEY can change such "immaterial" terms - why not you! In fact, set it so that Sprint has to mail YOU a check each month. When they balk, they can close your account and pay YOU the ETF!
@bastion72: Ah, yes - the multiple "free phone" solicitations have begun. Good times. I was getting 4-5 a day, even after telling Sprint to give them a rest for a while.
One trick (some) Sprint people will do is tell you their logon ID and tell you that you can call "any" representative and they'll email that original rep and they'll call you back. What REALLY happens is that you still have the problem so you do what that rep said - BUT the representative you reach will refuse to email that other rep and instead force you to deal with THEM - someone entirely unfamiliar with the situation you have spent a couple hours with the other rep trying to fix.
Sprint is hell on earth, and now they are increasing the price of heat!
@tande04: Yup, originally only something to be referred by Sprint employees, Sprint officially opened it up to all comers. $30 for 500 minutes, included unlimited text and data. Damn good plan, even made it worth dealing with the Sprint stupidity juggernaut.
It's gone to the "Everything Plus Referral" plan, twice the charges with all the negatives of dealing with Sprint. If you don't mind being screwed with for years and years, go ahead and sign up with Sprint to save a few bucks:
@es ay eL from en jae: Have to agree, Tmobile seems to have nicer customer service but lousier (tier 3) service in the US. Dead zones in the middle of major cities. Only useful if you do a lot of travel to the UK or other places where they are tier one.
If Sprint would stop working so damn hard screwing their customers they'd be a very good company. Their coverage has come a whole way closer to excellent the past few years.
But what they gain in coverage they lose by doing all they can to piss off their paying customers. This article is simply a small example of their evil ways, their customer "support" is their darker art.
Honestly, your statement of the law here is most likely wrong. But if you irritate them enough they might let you cancel anyways.
The ski lodge example is totally off; limitations on the ability to waive liability for personal injury are often void as a matter of public policy. That has nothing to do with a fee increase. I doubt Sprint could include a term in the T&C that says it can increase fees, and then increase the fee to something extremely high. But if it's in the T&C, and the increase is reasonable, I doubt it breaches the contract.
But like I said, if you whine enough about it, they'll probably let you out. You don't always need a good reason.
My mother has Sprint and she is so happy with them. My husband and I are with Verizon and there are days I wish I could tell them to shove it, but we don't pay the Verizon bill (his work does).
My mom's best friend lives in Florida, on the edge of Everglade City, where Verizon, Alltel, etc., don't work (but Sprint does!). This lady is very ill and is being screwed around by the wonderful government of Florida to get her disability. Anywho, when the hurricanes went through this summer, my mom lost contact with her. My mom contacted the Everglades City police chief and asked him if she mailed him a cell phone, would he get it to her (she's so far out that all she had was a PO Box)? He had no problem with that. We went to the Sprint store to set up an additional line on the spare phone my mom had after she upgraded. After telling our CSR why we were setting up the new line, he got his manager, and she told him the story. The manager decided to give her a brand new phone to send down to Florida. Then he had us write her a note to include with the phone, we popped it in the phone's box, and the manager used the Sprint shipping account to send the phone overnight (from Ohio to southern Florida), no charge to us. He also added unlimited roaming to my mom's account, free of charge, for the remainder of her contract, just in case the phone would roam in her area (but it doesn't). The next evening, my mom got a phone call from her friend - she was safe and so grateful.
See? Not all Sprint experiences are bad ones. Maybe just our store is awesome, I don't know. Maybe I just have too much faith. :)
@magstheaxe:
a really cheap plan...30 dollar 500 anytime min, unlimited everything else.
covers all phones but BB's and instinct. bb add on can be added so plan is 30 + 30BB add on for $60 total.
my plan with my BB curve on sero cost me
$60
-15
-6.50
-3.75
=$34.75 before taxes for 500 min with unlimited everything including BB service.
@West Coast Secessionist:
EXACTLY, that is how I got out of my dreadful plan with ATT a few years ago or Cingular or whatever name they want to call their company.
@k6richar: I assume your contract law is probably near the same as ours, maybe even closer to the UKs. Both derive from common law so I think it would be safe to assume that one party in a contract cannot change terms. When it comes down to it a contract is an enforceable promise, NOT an enforceable changeable promise or else you could change it to whatever you want and in turn change it to no promise, which is just dumb.
The real question here is... after you cancel your service and get out of the ETF, then what? You're going to sign another contract with another shady, horrible service phone company and be right back to square one? What's the point. They all suck. The grass is always greener.. yadda yadda yadda
I can tell you, Sprint is a beast to get out of ETF free. I did it successfully with about a year left on my contract because I wanted to go to ATT/ iPhone.
Anyhow, I was having many difficulties with going into roaming pretty much all over the city I lived in. They checked the towers, opened tickets, everything. I built up a case with them and finally called one day with another roaming complaint.
On the last call, the retentions woman came back at first with a pro-rated ETF, which I said no dice to. She put me on hold for another 15 minutes and came back with a free ETF. I was ported out within the day.
I did get a final bill for a couple hundred dollars, but due to an administrative issue it was reversed because I was promised zero ETF. Even had them send me an email stating so in case they came back saying I owed them money.
I did reference the contract back and forth with the Sprint folks and it worked. I'm sure in this case referencing the contract due to a fee increase would, too, work. My advice is this: keep detailed records of your conversations and have them note everything on your account. Call back to confirm the notations were added. You will get out free, but it takes persistence.
I found it a lot easier to get my ETF waived by T-Mobile by charging my last statement to AmEx and issuing a chargeback with a letter with the dates, names of CSRs, and specific problems/"solutions" that T-Mobile gave me. AmEx fought the problem for me, and in about 6 weeks, I saw my $200 get credited back to my AmEx. Might not work for everybody - I don't know if this'll work for the "materially adverse change" in service people, but it's worth a try if you're sick of dealing with CSR run-around through your provider.
@Davan: You should still call and hagel with their cancellation dept. I got a touch for nearly free last year.
Anyone know of a 'materially adverse' change to the AT&T terms and conditions? I would really love to get out of my contract there.
They can keep their fricking $18 'upgrade fee' and I'll take my business elsewhere...