AT&T Employee Misleads Customer, And Now He's Trapped In A 2-Year Contract
A little over a month ago, Mark gave up on his GoPhone SIM, went into an AT&T store with his iPhone 2G in hand, and signed up for a new two year, post-paid plan. The sales rep promised Mark that his corporate discount would apply, and instead of a contract presented just a receipt. Now AT&T is saying there's no corporate discount on an iPhone purchase—even though he didn't buy an iPhone, just the service plan—and that he can't cancel now without paying an ETF because it's past the 30 day mark.
In early January I found out that I could receive a corporate discount from AT&T. I'd had an iPhone since 2007, but used it with a GoPhone SIM, because I found the $60/month charges a bit outrageous for someone who never talks on the phone. They used to have an Unlimited Medianet plan for GoPhone for $20/month, and I rarely paid more than $30/month on service. When they yanked away that plan in November, I found myself jonesing for data, and fell right into their hands.
I went into the AT&T store on January 2, aware that I'd have to sign a 2-year contract if I signed up for a post-paid plan. I asked the man at the counter twice to please verify my corporate discount, and he twice assured me it would be 19%. He definitely saw that it was an iPhone 2G.
Instead of showing me a contract, as I expected, he simply printed a short receipt that indicated he had activated service and applied my GoPhone balance to the account. As far as I remember, nothing was signed.
This week, I finally received my first full bill; no corporate discount. I emailed customer support, and was shown a line in the contract stating that "There are no equipment or monthly service discounts available with the purchase of an iPhone." [See the contract terms here.] I wrote back asking if my early termination fee could be waived, since I was given false information at the store. I was told no, but that I could upgrade to the iPhone 3G to receive the discount.
I replied that I was flummoxed that there are no repercussions for an AT&T representative using false information to lock in a sale, and that I'd write Consumerist to see if I'm being way off-base in expecting some sort of good faith offer to make up for what, at best, was miscommunication, and, at worst, consciously reeling in an unsuspecting sucker.
Mark adds, "This is one of those situations where I'm not sure what I expect from the company, and whether or not it's completely my fault for being a less than astute customer." It's a valid question—how much should the company try to resolve a problem that's at least partially the customer's fault? In this case, however, we don't think it's your fault at all.
When you're at the AT&T store, you're relying on their representative to take care of the activation side of things. You expect them to give you accurate information. In fact, you have to do this—you don't have access to their system or customer account records during the transaction, and if all they provide is a receipt, some verbal promises, and a "you're good to go" message, it's hard to see how you would have been able to identify and protect yourself from this issue.
What's more interesting to us, though, is that you didn't purchase an iPhone at the time you activated the service. We therefore don't see how their fine print applies, which specifically states there's no discount with the purchase of an iPhone.
Try calling their executive line to explain your case. Even if they refuse to approve a corporate discount, we would hope they understand that the confusion wasn't your fault and that the ETF should be waived.
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Comments:
People who think they can afford an iPhone are not wise shoppers and it is entirely appropriate for AT&T to take as much of their money as possible.
So does this guy work for AT&T? I'm confused as to why he thinks he's entitled to the 19% discount.
Also, I don't think I've ever signed up with a carrier without signing something. For them to just sign you up without having your written authorization (signature) seems to me that joeschmo at AT&T or whatever carrier can just bill you for services, and you don't have proof. Or if you DO have proof, it means nothing to them because they think they're authorized to sign you up without your signature?
When I signed up with Verizon, they printed a receipt with all the services documented on it, and I had to sign it. I noticed something wasn't changed on the services (they had put a more expensive text plan on the receipt) and I had them change it, and I wouldn't sign the receipt until they went back through all the services tacked onto my voice service and made sure it was exactly what I had asked for. If I hadn't checked every item on that receipt, they would've started charging me $15 for text, and I would've had to chase them down for the refund.
@psionix: The company you work for may sign up for a Corporate Account with AT&T allowing you to get a discount on a phone and rate plan. That's what he's referring to.
That's odd. The clerk at the AT&T store made it a point to tell me that he was transferring my employee discount to my iPhone plan. It's shown up there on my bill every month.
I'd say call up with your employee credentials and get the discount added.
Although I do have a 3G iPhone. I vaguely remember there being a block on employee discounts on the 2G one.
(disclosure: not an AT&T or Apple employee, just an employee of a company that offers a national account discount thru AT&T)
@psionix: Many companies have agreements with other companies to offer discounts. Where I work, we've got agreements with a number of wireless providers. If I didn't get a work phone (with data), I'd have taken advantage of it.
@Caveat: Ummm, what? He could afford the iPhone as long as he got the corporate discount, which AT&T lied to him about his being qualified for.
They have jacked people over for smart phones for a while now. The iPhone is just another marketing platform where they can charge specialized fees.
I had a regular phone with ATT with a reasonable text message plan. When I got my smart phone, suddenly, I was not able to keep the same plan and I *had* to get a different plan that did the same thing that cost more. Hardly a deal. I chose the lowest data plan which means I get like a few MBs free, but charges for use otherwise. It was for my own "protection" the lady said. Horse poop.
@psionix: Some corporations who do their business wireless through AT&T qualify for corporate discounts for their employees who purchase personal wireless accounts through AT&T. The OP evidently works for such a company. All the major wireless companies do this, you might even qualify for one.
@Caveat: Er, folks, he already HAD the iPhone. He was buying the service plan with the discount. Come on, the devil is in the details, I know, but let's go, folks. Get on the reading comprehension train - there are snacks.
"Hi, I was wondering when I could pick up that iPhone you said I purchased?"
And just like that, you have a $300 discounted ($600 retail) device held up against their ETF fee. Surely they're willing to make an even exchange. If not, then demand the iPhone you purchased, eat the ETF fee, and ebay the phone. Problem solved.
@psionix: Some companies partner with other companies to offer each other's employees discounts on services. Strange but true!
For example, I get a discount on T-Mobile service through my employer.
He needs to check the terms of his company's discount with AT&T. With my company 2g iphones are not eligible for even service discounts, while with 3g iphones you can't get an equipment discount but can get a service discount.
On the other hand, if switches over to a different phone he can get the discount on his current line. Though he probably needs to call AT&T to get the iphone taken off so that doesn't block the discount.
@parliboy: Hardly. Ever try to sell an Iphone on ebay, unless you love dealing with Nigerians, you'll be SOL.
I battled with AT&T about this same thing and won!
First of all, you can just use this website to get your corporate/educational discount:
[www.wireless.att.com]
Here's my story:
I went to the AT&T store with my Slvr to sign up for just normal service (switching from t-mobile). The sales representative never once mentioned anything about a contract. He did not say that it would be a 1 or 2 year contract or if there was even a contract at all. I was not presented with a contract in hard-paper form either.
I was asked to sign something electronically. It looked more like a short Terms of Service Agreement; not a contract. The representative did not refer to it as a contract either. I left the store with just a small receipt.
A few months later, my service is going great and I decide that I want to get an iPhone. I look through the website to make the purchase and it says I do not qualify for an upgrade (cheaper price) because I have a two year contract.
I call AT&T and after being transferred to three different people, one woman finally tells me that it is required to sign a contract when you sign up for service but if no device was purchased with the contract, then it should only be a 1 year contract. I told her that not only was I never informed of this, but it was also AT&T's error then for having me listed as being in a 2 year contract when, technically, I should only be in one.
Since all I wanted to do was not have to pay $500 for an iPhone (the 'already-in-a-contract' price), I tried to compromise with the woman and asked if I could at least get the phone for the cheaper price and would still agree to stay in the two-year contract.
She responded, "I can fill out a form to give to my supervisor requesting a change to be made to your contract but it's not likely that it will be approved. You can call back for the status in several days."
I was not satisfied with this and asked to speak with her supervisor directly. At this, she put me on hold.
When she came back she said, "I spoke with my supervisor and we will be making the changes to your contract so that you can purchase the iPhone for the upgrade price and your contract will not be affected by this purchase. Someone will be in touch with you in two days to confirm that the change has been made."
Two days later I got a call that the change was successful!
@copious28: if you want protection, then ask for a "WIX BLOCK" on your smartphone... no data OR MMS(pix messaging) on your phone(send or receive)....
thats what i have for my Blackjack II... a 250/month txt plan, family plan, NO DATA...
I have an iphone 3G and my corporate discount applies to all the months charges with it.
@dragonfire81: But he said he'll send me bank certified check for US1,200,000USdollar for it, I just have to send him US$100,000dollar to prove I am serious for transaction!
@lintacious: They CALLED YOU BACK?!? Did you notify Guinness World Records? That only happens once a millennium, you know.
You can have a corporate discount on your plan, but you won't get any money off of your iPhone 2G plan. This was my case for the whole time I had the 2G. From what I was told, it is their billing system that doesn't do the discounting on 2G plans. This has consistently been the case - I don't know of a 2G corporate discount that works on a personal plan.
When I bought the 3G, my discount suddenly started working. Now the 3G plan is actually cheaper for me than the 2G one was because of my 22% discount.
I'd suggest calling customer support (instead of emailing or whatever) or visiting the store to cancel.
@Caveat: Because asking for a discount you're entitled to on a plan that has little to nothing to do with buying an iPhone -does- make you an evil idiot.
Somebody lied to him. Poor guy.
You can't have your corporate discount with your 2G iPhone - whether you purchased it from them or not. I've had mine since the day of the release (12 hours in line FTW) and it sucks, but I guess I'll live.
@psionix:
Through my company I get an 18% discount on my ATT service.
You can check if you are eligible by entering your work email address here:
When I applied the corporate discount to my already active AT&T plan with iPhone, the AT&T rep explained that the discount only applied to the monthly service, and NOT the iPhone plan. This is how it has been since.
I think the AT&T guy didn't understand the policy on that.
I had a corporate discount on my service on my first gen iphone as well as the current 3G. The problem at the 3G launch was you could not activate the new plan if you had the discount and tried to buy the phone at the apple store. The way around it was to call customer service, ask them you remove the FAN# (foundation account number) from your account, then you could activate in store. Then, when you got home, you could call back up customer service and have the discount added back. The other way to do it is to sign up via this link [www.wireless.att.com] . Basically you put your work/school email address to verify that you actually work for the company, then they send you a link to register where you put in your phone number. The discount shows up in your next billing cycle. Personally, i am saving over 30 dollars a month with 2 iphones on my account.
@Underpants Gnome: Technically they're not supposed to offer an employee discount in iPhones. it is possible for it to happen, but they're really not supposed to.
I know when the iPhone launched, we (AT&T business service reps) were not under any circumstances permitted to attach a FAN to allow a discount to an iphone line. it was one of the terms Apple forced AT&T into in order to offer the service. I'm sure AT&T didn't mind, but iphone 2G by the book is *not* supposed to have any sort of corporate dscount and not supposed to be attached to a corporate account.
That rep wasn't familiar with the business end of the phone service pricing and was full of crap.
AT&T and their customer service is really clueless in my opinion... My story, however, is a positive one... AT&T screwed themselves in my case.
Back in March 2008, I noticed I was eligible for a upgrade... Knowing full well that a iPhone 3g was on the horizon that summer, and that AT&T didn't have any subsidies for the iPhone, I upgraded to a Pantech DUO for the low price of about $100-150. My intentions were to sell the phone on ebay for full retail value. I did... I sold this phone for over $300. Granted, my contract was supposedly renewed in march as per the terms of my upgrade, I wanted to extra money to save up for the iphone. So when I heard of the pricing and subsidies in June 2008, I began inquiring if I'd get a upgrade price instead of paying full price... This is where things got pleasantly shocking. Over the course of the next month, I spoke to at least 3 AT&T CSRs and everyone of them told me my contract expired on the day that I actually purchased my Pantech duo under the upgrade price. When I went to a store to inquire, they said the same thing but in their system they showed that I had upgraded... So with that said, I decided to cancel my service, waited a few months using a pre paid phone, and had a relative sign me back up when the iphone came out for the subsidy price... so I basically got a new customer upgrade price without ever getting locked into a contract AND i got the new customer price for my iphone... chalk one up for the "good guys"
I got burned with AT&T store reps misleading me way back - 2003, back when there were roaming charges and all that. Long story short, I thought when I signed a contract stating that my home area was 'New York, New Jersey, and Pennsylvania" I was covered in the whole state of NY. After using the phone during a long weekend trip to Syracuse, I found out that NY = NYC and I had over $300 of calls.
The store rep had handwritten the 'home area' in a spot on the contract a year before, when I signed it. When I disputed the charge, I didn't have the person's name, store address, anything. Being young and giving up easily, I ended up paying it and vowing to boycott AT&T forever. This despite the fact that family members worked with them for decades, back when they were big bell.
@Ratty: The way I understood it, discounts do not apply to the device purchase but do still apply to the monthly bills. That's what i'm seeing.
I signed up for Verizon online. It was all paperless, so I couldn't have signed anything. I probably had to check a box saying I'd abide by their terms and pay for it, etc. of course.
I wonder how that "contract" would stand up in court though.
@parliboy:
Even if they would give him the phone, they don't care about its value vs. the ETF.
I was trying to cancel with ATT before my contract was up, but after I was eligible to get a new free (or subsidized) phone. I asked the CSR, "So you won't waive or reduce the ETF, but I could just get a free phone right now from you with a contract renewal, then pay the very same ETF and you're SOL on that extra phone?"
She said, "Yup."
They are so stupid with that kind of thing.
@Underpants Gnome:
That's how the 3g iPhone works. No discount on the phone, but monthly discount on the service.
The 2g iPhone, which is what this guy had isn't supposed to have a discount on the monthly bills at all.
I have to say that the line quoted is correct: There is no corporate discount for an iPhone. Purchase. However, with the release of the 3G, AT&T did begin allowing corporate discounts on the plan fees, which they did not offer when the iPhone was first released. I get the corporate discount on my bill every month. I wonder if I should be annoyed at out HR department now because our discount is "only" 15%.
@Bramble73: And if the att rep would have told him the 2g cannot get a discount he would have said forget it then.
Demand that they fax you a copy of your signed contract.
AT&T tried to charge us an ETF when we turned off our second line 18 months into what turned out to be a two year contract for that phone, saying we signed a contract. We told them that we had not been told there was a contract on that phone, and went round and round with them on it.
After about three hours, I told them they could fax me a copy of the contract with my signature, as I had signed up for the service in a store. They put me on hold, and ten minutes later came back and said, "sorry for the confusion, we will be more than happy to cancel that line at no charge."
@parliboy:
"Please show me the contract I signed for a 2 year extension."
If they just handed him a receipt, there's no contract, ergo he doesn't have to pay anything.
looks like perhaps the sales associate could have also pulled a fast one on him. signed him up for the iphone service plane but used that to buy the iphone himself. saves him from opening another line to get an iphone for the $199 price. or buying it contract free for like $500 or whatever. this is also a possiblity no?
This exact same thing happened to me. I switched my bf's 2g iphone plan to my name specifically so I could apply my corporate discount to it, the transfer fee was like $19 or something, maybe $29, can't remember. I told the person at the ATT store that this was the specific reason I was transferring the line, and then asked her to apply my corporate discount.
Of course, later on when I called them to ask why it'd been 4 months and my discount hadn't shown up, they tell me that no discounts of any kind are allowed on 2g iphone service plans. The person at the ATT store should have known this, as it seems to be a pretty straightforward and general rule. Their solution? I could buy a new 3g iphone and pay more for the service plan if I really wanted my corporate discount - at which point I'd be paying more in the end anyway.
Boo ATT.
at&t does not require a 2 year contract if you own the phone. Just call the 800 number, ask them to reverse the contract because you signed up without buying a phone. As your reasoning, tell them you would like to be able to get a phone for the 2 year price later, if the one you have breaks. Then, no contract, no commitment.
To get your AT&T corporate discount, google for at&t premiere and go to their site. Type in your company email address and they'll send you a link. From there you can get to the special web site for your company with discounted service plans. There is no premiere discount on iPhone hardware but there is a discount on service, depending on your employer.
The iPhone just recently became eligible for corporate discounts, but you have to sign up for it online and many of the in-store employees are not aware that the iPhone is now eligible for corp. discounts because it was just changed without much notice given a month or so ago.
@Underpants Gnome: Same here. I received a 18% discount on all services. I actually was able to keep my old family plan for voice which was phased out years ago. I get fewer minutes than the current lowest plan, but as we usually obtain over 100 rollover minutes every month, I didn't care as I was saving $15/month.
@howie_in_az: He needs to be careful though. When I purchased my iPhone I signed an electronic signature pad like you use for credit cards. The rep reviewed the contract with me, and asked me to sign the signature pad as acknowledgement I understood the terms. That signature was inserted onto a second copy of the contract. If the ATT rep was dishonest and asked him to sign the sig pad it is possible that he was signing the contract and the ATT rep simply did not hand him the contract.
hmmmm.... that's strange. I have an iphone and currently get a 19% corp discount. Initially AT&T was not giving any discounts on equipment or monthly fees. That policy changed a few months aftert the 3G rollout. Once can still not receive a discount on the actual equipment, but it should definitely apply to the monthly fees.
Okay... there are a couple of weird things going on here. First, I have a 2G iPhone, and I'm on a family plan that benefits from a corporate discount. As it was explained to me in the store, while there is no discount on the iPhone data plan, there is a discount on the rest of the service (namely, voice and texting). I suppose that could have been an instance of similar lies, but I suspect that the person paying the bill would have noticed long before now if that were the case.
Secondly, if you're not getting a free or otherwise subsidized phone, I'm not sure there actually is a requirement to sign a contract. I actually sell cell phones for my job (not at a corporate carrier store- please don't lynch me), and I know for sure that Verizon has a month-to-month, no-contract option that's still a postpaid service. I've signed people up for it, in fact; as long as you're willing to supply your own phone, either by buying one outright or by using an older, compatible phone, you don't have to sign a contract. I want to say that AT&T has some kind of a similar deal, but not having their system in front of me, it's hard to say. I'll look into it when I'm next at work, though.
Thirdly, if you signed a contract, you're entitled to a subsidized phone. If you didn't get one, you should start raising hell to get that changed- if they're going to insist on roping you into a two-year contract, then you should get a free or subsidized phone. Better yet, as Cary R Kirk suggested, use this lack of a phone as evidence that you never signed a contract, bringing me to the final point.
Did you actually *sign* anything? If not, you have AT&T over a barrel. No signature means no contract, nothing binding. Go into the store where you got your plan. Ask to reverse the contract. If they refuse, demand to see the contract that you signed. Assuming that you didn't actually sign any kind of service agreement, they won't be able to produce it. They'll have no choice but to let you go- they might fight you on it a bit, but threaten to take them to arbitration (call customer care if you feel you're not getting anywhere with the store), and they'll probably cave.
I know some of this has already been said, but as someone who deals with cell phone companies daily, this should solve your problem. And if you remember the name of the guy who sold you the plan, let his manager know what went on- that shit's not kosher.
Oh! Also, my understanding of AT&T's fine print is that corporate discounts on "equipment" does not apply to the purchase of the iPhone. That is, you couldn't waltz into AT&T or the Apple Store, show your corporate ID and magically get some 50% discount on "phones and equipment" that some of the corporate plans promise. AT&T also won't discount the actual iPhone data plan (as far as I know). Corporate discounts should apply, though, to the voice and texting plans themselves. Sounds like AT&T is trying to take advantage of you in the hopes that you haven't done your research (which you sort of didn't, in that you assumed that service always requires a two-year contract, but this stuff is confusing at the best of times, and the salesperson should have been honest with you instead of looking out for his commission).
My company offers two types of discounts through AT&T, one on the primary service plan (data and messaging aren't included) and another on the device itself. Whenever I buy a phone I get 33% off the equipment. The iPhone is excluded from that discount.
However, my cellular minutes get an 18% discount, and for what it's worth it took two billing cycles to show up. A quick call to Premiere Services (the business line you should be calling if you are on a company discount) quickly credited my two missed discounts.
Here are the relevant numbers:
Problem with Your Order
For questions regarding your recently placed Premier order, call 1 (866) 499-8008, Monday - Friday from 8:00am to 9:00pm and Saturday from 11:00am to 8:00pm Eastern Time.
Help with Your Phone/Device or Service
Dial 611 from your AT&T wireless phone or call 1-800-331-0500.
Probably the worst thing is that he actually believed anything ATT says..