Tmobile Raising Overage Rates 9/01 - Cancel Without Fee
Tmobile will be raising overage rates September 1st, and customers can use it to cancel without early termination fee.
For single line plans under $59.99 and pooling plans under $89.99, overage rates increase to $.45. All other single and pooling plans increase to $.40. The rate increase amounts to what is known as a "materially adverse change of contract," which, under standard contract law, voids the original agreement, making it so customers can leave their cellphone contract without the usual early termination penalty.
Our source referred to some customers receiving a letter on July 27th and being able to cancel without ETF. It wasn't clear whether this meant anyone could cancel, or just those who got the letter.
When arguing with the customer service rep, and yes, you will have to argue, they may say things to you like you have to have had overage charges recently for the change to affect you. Or that based on your plan history, the change won't effect you. That's now how materially adverse changes work. It's if it could effect you.
If you need it, here is the relevant paragraph from the Tmobile contract to read:
Changes to the Agreement or Charges. EXCEPT TO THE EXTENT PROHIBITED BY LAW, IF WE: (A) INCREASE THE CHARGES INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN, OR (B) MODIFY A MATERIAL TERM OF OUR AGREEMENT WITH YOU AND THE MODIFICATION WOULD BE MATERIALLY ADVERSE TO YOU, WE WILL NOTIFY YOU OF THE INCREASE OR MODIFICATION AND YOU CAN CANCEL THAT SERVICE WITHOUT PAYING A CANCELLATION FEE (WHICH IS YOUR ONLY REMEDY) BY FOLLOWING THE CANCELLATION INSTRUCTIONS IN THE NOTICE. IF YOU DO NOT CANCEL YOUR SERVICE BY FOLLOWING THOSE INSTRUCTIONS, OR YOU OTHERWISE ACCEPT THE CHANGE, THEN YOU AGREE TO THE INCREASE OR MODIFICATION, EVEN IF YOU PAID FOR SERVICE IN ADVANCE. IF THE NOTICE DOES NOT SAY HOW LONG YOU HAVE TO CANCEL, THEN IT IS WITHIN 14 DAYS AFTER THE DATE OF THE NOTICE, UNLESS A LONGER PERIOD IS REQUIRED BY LAW. EXCEPT TO THE EXTENT PROHIBITED BY LAW, CHARGES FOR PRODUCTS, SERVICES, OPTIONAL SERVICES, OR ANY OTHER CHARGES THAT ARE NOT INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN (SUCH AS DIRECTORY ASSISTANCE, ROAMING, DOWNLOADS, AND THIRD-PARTY CONTENT) ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE, AND IF YOU CONTINUE TO USE THOSE SERVICES, OR YOU OTHERWISE AGREE TO THE CHANGES, THEN YOU AGREE TO THE NEW CHARGES. VISIT OUR WEB SITE, RETAIL LOCATIONS, OR CALL CUSTOMER CARE FOR CURRENT CHARGES.
Give it a shot and let us know how it works out!
(Photo: DCvision2006)
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Comments:
I'm one of the people that sent this into Consumerist. I tried to escape my plan, but when I talked to two cancellation CSRs, they said I couldn't cancel because I haven't had any overage charges in the last 3 months. They said the lack of overage charges means the change would not be "materially adverse" to me. Does anyone know if this is actually true?
@Red: The odds are pretty much against you here. You would have to try to cancel the rate plan because of this rate increase within the next 30 days (this billing cycle), however because you get 30 days to return the phone and cancel the policy, they would force you to go that route.
@Red: I think it may be with the old rates. However, if you cancel today, T-Mobile may have an embargo in place to prevent customers who want promo rates from re-applying within a certain number of months. You should definitely verify that you would be able to sign up again right away - most, if not all, carriers impose an embargo on customers who recently canceled so they won't turn around and get promo rates.
@AbsoluteIrrelevance: No matter what, the rate increase is still a change in the original contract. Push a little harder and keep calling back.
No matter if you have gone over or not in the past, there is nothing to protect you from going over and having to pay these higher fees which isn't what you agreed upon when signing the 2 year contract.
@Red:
Most likely it won't apply because your 30day return period, you wouldn't be able to cancel the contract, just return the phone and turn it off.
@Red: If you cancel your plan within 14 days (30 days in california) you have to return your phone. The only way to cancel with in 14/30 days is to return to the store you purchased the phone at and have them call and cancel for you. If you try calling up they will contact the store you purchased the phone at and ask if you returned your equipment. Sorry you can't cheat the system.
@Red: Wouldn't that be about the same as stealing? Just because wireless companies are jackasses doesn't mean we need to be also.
I agree. Someone has misinformed the CRSs as to what "materially adverse" means. This is kinda scary, but you do need to push back hard.
Keep us posted.
Technically this does change your contract but there is a catch (there always is). You have to have had overage charges in the past few months. If not then you can't get out of your contract as this price change does not effect you. The same thing happened a few months ago when the price of SMS went up by $0.05. If you had a SMS bundle plan you were not able to get out of your contract. If you did not have a SMS bundle then you were able to get out of your contract.
So basically if it can effect your monthly bill, with normal use, then you can get out of your contract.
Use the hypotheticals. Even if you have never had an overage charge, you signed a contract with that said overage rate, knowing that if you ever had an overage you would be charged said rate, and you could compare that rate to their competitors to find the best deal. Now that they are changing that rate, they are changing that competitive equation, so that IF you had to have overages, you now had to pay more. WHAT IF an emergency occurred that resulted in overages. WHAT IF you left your phone called in to the movieline on the charger all day. WHAT IF whatever, they're changing the contract, and by the terms of said contract you are allowed to cancel it if said changes are acceptable to you. The tier 1 csrs will fight, escalate until you find someone who understands that you have some grasp of contract law. If they fight you, state the clause of the contract you are referring to:
Changes to the Agreement or Charges. EXCEPT TO THE EXTENT PROHIBITED BY LAW, IF WE: (A) INCREASE THE CHARGES INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN, OR (B) MODIFY A MATERIAL TERM OF OUR AGREEMENT WITH YOU AND THE MODIFICATION WOULD BE MATERIALLY ADVERSE TO YOU, WE WILL NOTIFY YOU OF THE INCREASE OR MODIFICATION AND YOU CAN CANCEL THAT SERVICE WITHOUT PAYING A CANCELLATION FEE (WHICH IS YOUR ONLY REMEDY) BY FOLLOWING THE CANCELLATION INSTRUCTIONS IN THE NOTICE. IF YOU DO NOT CANCEL YOUR SERVICE BY FOLLOWING THOSE INSTRUCTIONS, OR YOU OTHERWISE ACCEPT THE CHANGE, THEN YOU AGREE TO THE INCREASE OR MODIFICATION, EVEN IF YOU PAID FOR SERVICE IN ADVANCE. IF THE NOTICE DOES NOT SAY HOW LONG YOU HAVE TO CANCEL, THEN IT IS WITHIN 14 DAYS AFTER THE DATE OF THE NOTICE, UNLESS A LONGER PERIOD IS REQUIRED BY LAW. EXCEPT TO THE EXTENT PROHIBITED BY LAW, CHARGES FOR PRODUCTS, SERVICES, OPTIONAL SERVICES, OR ANY OTHER CHARGES THAT ARE NOT INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN (SUCH AS DIRECTORY ASSISTANCE, ROAMING, DOWNLOADS, AND THIRD-PARTY CONTENT) ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE, AND IF YOU CONTINUE TO USE THOSE SERVICES, OR YOU OTHERWISE AGREE TO THE CHANGES, THEN YOU AGREE TO THE NEW CHARGES. VISIT OUR WEB SITE, RETAIL LOCATIONS, OR CALL CUSTOMER CARE FOR CURRENT CHARGES.
You sure about the cheapest plan offered by any carrier in the last 5 years? i pay $23 for 500min, unlimited internet and texting from Sprint. I doubt your plan can beat that. Not that you should cancel your plan now since my plan, TRULY the cheapest plan offered by any carrier in the last 5 years, is no longer available.
@TehQ: There is a good post above the contradicts what you are saying -- and I tend to agree with that poster.
Just like investing, past performance does not predict future behavior.
A users behavior "in the past few months" isn't the defining period -- what defines the relevant period is the start date and length of the current contract.
Oh Thank God - I've been hoping something like this would happen so I can get out of my T-Mobile contract (I had a TERRIBLE experience with them this summer, and am ready to move on with my cellular life). Does anyone know, though, if I would be able to keep my same phone number if I were to cancel this contract and sign with a new carrier? How does that work?
Thanks!
@gretch9er: Yes, you will be able to port your phone number to another carrier. Go to the carrier's website - there should be a link somewhere fairly obvious that will give you information about porting, as well as a spot to enter your phone number to make sure it can port.
Write a registered letter, preferably to their legal department, asking them to send you an offer to cancel due to this, or, if they choose to refuse, a written statement that they refuse to do so so that you may enter that statement into your small claims suit against them.
Their lawyers know this isn't worth the trouble, and even if there's some chance they'll win, in a case like this they're plenty of chance they'll lose.
@AbsoluteIrrelevance: Tell the CSR that you anticipate going over your limit on the next billing cycle, so you will be adversely affected.
@milkcake: No need to be condescending. You specifically say that your plan is no longer available. Ponycyndi's plan obviously is more current as it ran out last year. Obviously since $23 unlimited plans aren't available anymore, ponycyndi's plan is possibly indeed the cheapest plan currently offered by any carrier. Really, there's no need to be rude and condescending.
"For single line plans under $59.99 and pooling plans under $89.99"
It's worth noting that t-mobile still offers the customer loyalty unlimited plan to those who have been with t-mobile 22-months+ and haven't had late payments. It's unlimited calling only but not a bad deal if you enjoy t-mobile
$49.99 for a single line
$89.99 for family (first two lines)
@milkcake: You didn't qualify your statement with "in the United States" and that would never hold up internationally.
Because your statement may be an exaggerated generalization, you are truly the worst person in the entire universe. Your plan sucks so you suck too.
@ogremustcrush: actually, if your contract was signed or renewed after June 28, 2008, this is in their T&C:
5. Our Rights to Make Changes. Your Service is subject to our business policies, practices, and procedures, which we can change without notice. UNLESS EXPRESSLY PROHIBITED BY LAW, WE CAN CHANGE PRICES, CHARGES AND ANY TERMS IN THE AGREEMENT AT ANY TIME. IF WE MATERIALLY MODIFY THESE T&Cs IN A WAY THAT IS MATERIALLY ADVERSE TO YOU, OR IF A CHANGE INCREASES YOUR SET MONTHLY RECURRING CHARGE(S) (the set amount - which does not include overage, features, optional services, taxes and fees - you agreed to pay each month for at least a one-year Term), WE WILL PROVIDE YOU WITH AT LEAST 30 DAYS NOTICE AND YOU MAY TERMINATE YOUR SERVICE WITHOUT AN EARLY TERMINATION FEE (WHICH IS YOUR ONLY REMEDY) BY NOTIFYING US WITHIN 30 DAYS AFTER YOU RECEIVE THE NOTICE. IF YOU FAIL TO TERMINATE WITHIN THOSE 30 DAYS, YOU ACCEPT THE CHANGES.
According to them, overages aren't materially adverse enough, except to the extent prohibited by law.
@Cwicseolfor:
The @home is unlimited calling. This change should not apply to it. but it will apply to your "Mobile" Lines
@PLATTWORX and @oblivious87: I kept telling the CSRs that 1) It's still a change of contract 2) There is no reason that I won't go over in the future - but they won't listen. I was on the phone with the two CSRs for a combined 1.5 hours! It's so frustrating.
I might try sending a registered letter, but today is the last day to do so, so I think they'll just ignore it when they actually read it two weeks from now.
It's really upsetting. Neither of the CSRs would let me speak to a supervisor either.
Don't forget to inform them in the letter that due to Tmobile's lack of diligence in answering your issue satisfactorily on the phone, Tmobile has forced the issue past the due date. You'll also want to reference your calls to them and explain what was/wasn't said during them.
You'll be able to get the address for their legal department through the CSRs. Don't tell them you intend to sue (they're programmed to just hangup at that point), just tell them you want what the CSRs have said in writing from their legal department so you have a final opinion on the matter before considering other options.
Full disclosure: I work for tmo.
This only applies if your contract was initiated on jun 27 08 or before. The terms for june 28 and after define materially adverse as an increase in your monthly recurring rate plan charges only. Overage, features and other add ons can increase without it being materially adverse.
@tangojoker: Damn damn damn. I barely use that line and I was so happy at the possibility of getting rid of it without some sort of extra surcharge convenience fee. I'm still going to try tonight when I get home from work anyway. What do I have to lose?
@pecan 3.14159265: Try a pay-as-you-go plan. I pay $0.10/minute and use Skype for my longer calls to reduce costs.
Annual bill: about $140 (1000 minutes + $40 for annual SkypeOut plan).
Up front costs: $120 ($40 cell phone + $80 VOIP phone).
@Psqunq: Can you put me in contact with someone who actually knows what "materially adverse" means and will let me cancel my contract. I signed well before June 08
@AbsoluteIrrelevance: They also broke their agreement with AT&T on sharing GSM towers. So if you get less coverage than before, you can break that way. That has happened in the past 2 weeks. I went from 5 bars in house to no coverage overnight.
C-C-C-C-Contract Breaker!
I've had Tmobile for 4-5 years off and on. I was really happy with their coverage and service until I moved this past spring. My new apartment and the parking lot are dead zones, with anywhere from 3-0 bars of coverage and dropped calls galore. They tried to reprogram our phones,
I called and was on the phone with Customer "Care" for 40 minutes. The first girl I talked with stated that I fit the criteria, but she alleged that she couldn't cancel contracts.
The rep in the cancellation department stated that I didn't qualify b/c I didn't have any overages; I countered with it being materially adverse in the future. She admitted that it would be materially adverse, but said that I "didn't qualify". I asked for a supervisor, but she alleged that they were all just going into a meeting and that I would get a callback within 1-2 hours.
@pecan 3.14159265: yes, but sometimes it's a hassle/wait to keep the same number.
or - sign up to googlevoice, link your cell phone to it. The google number remains the same, but the linked phone numbers can change.
I dunno what peoples problems are. I got the Tmobile G1, 2 year contract, im almost through 1 year, and I love the phone. I havent had any problems at all. Flagstaff, AZ doesnt have 3g yet, but even still the phone work, some of the data didnt. I moved to chicago now and I have 3g all over. Everything works fine, and I still love the phone. Greener Pastures dont exist people. Each cellphone company has its quirks. My friend on Verizon was on Extended Network for most of the trip from Flagstaff to Chicago and her phone was very quirky. My phone was on tmobile most of the trip except through nowhere new mexico and texas on I-40. 2 year contracts arent a problem if you can be happy with a phone and be patient.
@chris_d: If you are happy with your carrier and know you will be with them a long time, why not sign an contract and get a discount on a new phone? You are continuing to pay a subsidy on a phone you haven't received, unless I am wrong and you somehow get a lower monthly rate not getting a new phone.
Heck, with my iPhone the resale value is higher than the original costs plus an ETF, so what do I care?
I was able to cancel 2 lines. It took 30 mins & 3 calls. I never went over and I signed up outside of their given range. The way to do it is to not play their game and try to expain yourself. They gave me same excuses the other posters got. I just repeated "I reject the new terms. Either keep the fees the same or cancel my contract with no ETF." If they run in circles for more than 10 mins, hangup and try someone new. It will work. I type this post happily from my new iPhone 3gs :)
good luck!
@pecan 3.14159265: me and my husband have a family plan and the lowest one they have at that with 700 minutes. With unlimited text it's kind of pricey. We barely use 200 minutes some months between the two of us. But we can't get any lower.














Interesting. I haven't heard anything from tmobile about it, but I rarely even get near my 1000 minute ceiling even during the busiest of months.