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AT&T Introduces Pro-Rated Termination Fees

con_attlogo.jpg It's finally official: as of May 25th, AT&T will join the ranks of the pro-rating carrier crowd (which so far just includes Verizon) and start reducing their early termination fees (ETFs) by $5 per month on both one and two-year contracts. This only applies to new customers and those renewing contracts on or after May 25th, so if you can, try to hold off on entering into a contract with AT&T for the next two months. What up, Sprint and T-Mobile? Why is it taking so long for you to pro-rate your ETFs? We guess you're too busy going out of business and suing creation, respectively.

"AT&T to pro-rate early termination fee" [Seattle PI]

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8:51 AM on Tue Apr 1 2008
By Chris Walters
2,757 views
19 comments

Comments

  • April fools?

  • I can assure you that Sprint isn't going out of business anytime soon.

  • Image of Bladefist Bladefist at 09:25 AM on 04/01/08 *

    Sprint in in other markets, so no matter how badly their wireless does, the money from the other markets can sustain them.

  • @Bladefist-안녕:

    Not any more - the other businesses were spun off into Embarq. Sprint=wireless.

  • I see why they're not adjusting current contracts - it'd give people a get-out-of-contract-free card, even though the chance is beneficial. And, of course, typical corporate greediness.

  • Do yourself a favor. Drop AT&T as soon as possible.

  • Can I vote for them for worst company?

  • This is gong to be great for the CSRs who are already math challenged. Hopefully their billing system, Telegence, will pro rate for them. Otherwise, good luck with that.

  • Image of Bladefist Bladefist at 10:08 AM on 04/01/08 *

    @JustAGuy2: a quick google search confirms what you just said. Dang. Maybe sprint should be worried. Although I do know a lot of businesses use sprint. They make a lot of deals and relationships, whereas I would guess the other vendors have more non-commercial customers. Just a guess.

  • Verizon tried to put the screws on me last week.

    I have had a cell phone contract (2 year) from 2005 - 2007. I went on a month-to-month billing cycle. I called in to cancel one of the two lines on the phone after I was off contract in 2007. I specifically told the guy I wasn't interested in an upgrade to my phone, that I just didn't use the second line and wanted to cancel.

    He told me (and I double-checked) that I would continue on month-to-month billing. (This was June 2007).

    Flash-forward to last Friday, I called in to cancel the remaining phone. I was told that a $135 ETF would apply because I had accepted an 'upgrade' to my account in 2007.

    I told the CSR that I had no intention of paying, that I had been with them since 2005, rarely used the phone, and had never been late in nearly 3 years on any bill. I also told her that I had specifically requested not to continue on contract the previous time I'd called in, and was told that I would continue on month-to-month billing since I wasn't upgrading my phone. She didn't put up too much of a fight, and told me that "the system had done it automatically and I can take that off for you." and that my final bill will be this month.

    So stand by for my story if they somehow 'forgot'. I followed up with their online chat CSR and took screen shots to verify that I was told what I was told.

    I still think it is bullshit that a company can arbitrarily enter you into a contract without your approval. Even if it was in my original contract or in fine-print on a bill - I had explicitly asked and was told no.

  • Maybe I'm missing something (sorryif I am), but I'm not sure if I'd call this a "pro-rate" as the balance never gets as low as it should.

    i.e. Termination fee on 24 month contract is $175... if you cancel on month #23, assuming it has been pro-rated by $5/month, my math says the termination fee would be $60 (less the $115 of 23 $5/month).

  • @Bodgy: Hey, at least they're not as bad as the Verizon CSRs!

  • @JustaConsumer: I'd love to drop them, since their coverage is less than great (compared to T-Mobile which I used to have), but being an iPhone developer that uses the iPhone SDK, I need AT&T now, otherwise the tools will bitch. And I also want the 3G iPhone, whenever it comes out. I'm a fanboy :D

  • @iEddie: The first step is admitting you have a problem.

  • so as a current customer under contract, I'm stuck without a pro-rata ETF? Yet another reason for me to jump ship as soon as I can... and vote for AT&T as the Worst Company EVAR.

  • @Anks329: Yea that makes sense, go to a carrier that hasn't even announced when it will prorate cancellation fees... If you want ot switch to another carrier, you really don't have to whine about anything, just do it.

  • I was already -- months ago -- informed by At&T that my termination fee was pro-rated, I had a tendency to ask just to check when I was particularly irritated with the company.

    However, yesterday I was informed by a customer service agent that At&T will be charging to make payments via a customer service agent by phone, or in person at the store.

  • @Bodgy: We have two. CARE and Telegence. And yes, it's auto proration. Sucks that people in EXISTING contracts are not affected by this.

  • AS a former Sprint employee, I'm glad I got out of there before proration came in.

    The day the program is announced, people with a year or less left are going to be banging the doors to get out. I'm guessing Sprint is trying to delay the flood as long as possible.

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