Basically, the language was just an add-on to a section that said that if there is some kind of error or dispute about a debit, and AMEX gives you the credit temporarily back to your bank account, and it turns out the debit was okay in the first place, then they will take it back. Nothing about that is changing, just now you explicitly agree that that's okay.

Here's the old clause:

If we determine that there was no error, we will send you a written explanation within three business days after we finish our investigation. Upon your request we will provide you with copies of the documents that we used in our investigation. If we have provisionally recredited your Bank Account during the investigation and determine that there was no error, we will notify you of the date on which we will redebit your Bank Account, and the amount to be redebited.

Just add, "You authorize us or an agent to debit your Bank Account for this amount." to the end.

The rest of the new terms of service changes, with some of the increased APRs and fees may still be cause of concern for some customers.

American Express: "We Can Yank From Your Bank Automatically" Clause? Not Quite [CreditMattersBlog] (Photo: pnoeric)

AMEX just sent out some new changes to terms of service for some customers, and one of them has us scratching our heads in particular. There's various increases in APRs and fees, but then under "In Case of Errors or Questions About Your Transactions" they're now adding "You authorize us or an agent to debit your Bank Account for this amount." What scenarios would qualify under "errors" or "questions"? Don't like the sound of agreeing to let anyone make withdrawals on my bank account without myself pulling the lever. The notice of TOS changes, inside...

Notice of Changes to Your Account

The terms of your Account are subject to change in accordance with the American Express Cardmember Agreement ("Agreement") governing your Account (including increasing rates and fees, changing fixed rates to variable rates, and adding new terms). Any language in your Agreement contrary to or conflicting with terms amended herein is replaced fully and completely. All terms of the Agreement not amended herein remain in full force and effect. These changes apply to existing balances and future balances on your Account. We urge you and any Additional Cardmembers on your Account to read this notice carefully and file it along with your Agreement in a safe place for future reference.

APR for Flexible Payment Features
For billing periods that begin on or after December 2, 2008, we are replacing the third sentence of subsection B of the Finance Charges section of your Agreement with the following:
- "Except as provided below, the APR is the Prime Rate plus 11.99%."
This is a variable rate. As of October 13, 2008, the Prime Rate plus 11.99% is an APR of 16.49% and a DPR of 0.0452%.

APR for Default
For billing periods that begin on or after December 2, 2008, the last sentence of subsection D of the Finance Charges section of your Agreement is replaced with the following:
- "The Default Rate is a DPR which corresponds to an APR equal to the Prime Rate plus 23.99%."
This is a variable rate. As of October 13, 2008, the Prime Rate plus 23.99% is an APR of 28.49% and a DPR 0.0781%.

Late Fees
We are changing the day upon which late fees may first be assessed as a result of late payment. If you have not paid the Amount Due on this statement before the 10th day after the Closing Date of your next statement, you will be assessed a $35 late fee (Iowa $15). For billing periods that begin on or after December 2, 2008, we are replacing the Late Fees section of your Agreement with the following:
- "If any portion of the Amount Due on a billing statement is not credited to your Account before the 10th day after the next Closing Date, we may assess a fee of $35 (Iowa $15). In addition, if any portion of that Amount Due is not credited by the following Closing Date, we may assess an additional fee in that same billing period of the greater of $35 or 2.99% of any amount past due (Iowa $15). If any amount past due is not credited to your Account by successive Closing Dates, we may assess a fee equal to the greater of $35 or 2.99% of any amount past due (Iowa $15)."

Transactions Made in Foreign Currencies
Effective January 11, 2009, the bolded clause in the Transactions Made in Foreign Currencies section of your Agreement is replaced with the following:
- "in each instance increased by 2.7%."

Electronic Funds Transfer (EFT) Agreement
Effective December 2, 2008, we are adding a sentence to the last paragraph of the "In Case of Errors or Questions About Your Transactions" section of your EFT Agreement. The following is added after the third sentence:
- "You authorize us or an agent to debit your Bank Account for this amount."

(Photo: TheTruthAbout...)

Jordache Thank you for contacting Sprint. My name is Jordache. How may I assist you today?

4:19:34 PM Ken I want to cancel my account.

4:19:48 PM Ken I was being transferred to someone but it took too long, so I decided to restart the chat.

4:20:02 PM Ken I'm hoping it will be quicker this time around.

4:20:13 PM Jordache May I ask the reason for canceling, Ken?

4:20:19 PM Ken It's complicated.

4:20:33 PM Jordache One moment please.

4:20:35 PM Ken Okay.

4:21:38 PM System You are being transferred to another queue. Please stand by...

4:21:38 PM System Jordache has left this session!

4:21:53 PM System Jermaine B has joined this session!

4:21:53 PM System Connected with Jermaine B

4:21:53 PM Jermaine B Thank you for contacting sprint account service department. My name is Jermaine. How may I assist you today?

4:21:58 PM Ken I want to cancel my account.

4:22:23 PM Jermaine B All right, one moment please.

4:22:46 PM Ken Okay

4:23:11 PM Jermaine B Thank you, for account verification, may I please have the 6-10 digit pin number on the account or could you please answer your security question for me?

4:23:22 PM Ken Answer to the security question is XXXXXXXXX

4:23:38 PM Jermaine B Thank you for that information.

4:24:08 PM Ken Mhm

4:25:28 PM Jermaine B Do you wish to cancel one line on your account, or both lines?

4:25:33 PM Ken Both lines.

4:26:43 PM Jermaine B Are you aware you are able to place the account on hold by placing the seasonal standby plan on that line instead of canceling, the standby plan is $5.95 per month?

4:26:46 PM Ken No.

4:26:53 PM Ken And I don't know of anyone who wants to take over the lines, either.

4:27:53 PM Ken I was told earlier that my ETF would be waived, because of the Admin Charge clause: "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"

4:28:23 PM Jermaine B One moment, while I research that information for you.

4:28:37 PM Ken And that I could cancel my account today with that in affect, granted I pay my most recent bill on or by December 1st.

4:30:34 PM Ken I'm hoping your research won't take long because I have an obligation in half an hour.

4:32:09 PM Jermaine B I appreciate your patience. I am still researching that information for you.

4:32:44 PM Ken Okay. I don't mean to rush you either, but again, I'm on a time restraint.

4:35:09 PM Jermaine B This cancellation will take effect on 12/7/2008. This is the end of your current billing cycle. You will not be charged on the next bill for these lines because Sprint bills a month in advance. The early termination fee's has been waived.

4:35:33 PM Ken Okay, great. Thank you.

4:35:39 PM Jermaine B Your welcome, do you have any further issues I can assist you with today?

4:35:45 PM Ken If I could get that confirmed in an e-mail to me, that would be great (XXXXXXXX)

4:36:09 PM Jermaine B Yes, you will receive a email to your email address of this chat session.

4:36:19 PM Ken Ok, great.

4:36:30 PM Ken So all I have to pay is the December bill, right?

4:36:40 PM Ken the $170 something due Dec 1st?

4:36:59 PM Jermaine B Correct, $170.34 then your all set.

Easy as pie. For more information about this admin fee increase and how it affects your contract with Sprint, check out this post.

(Photo: balmes )

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.

Administrative Charge Increasing Jan 1... [Howard Forums] (Photo: your_favorite_mart ian)

(Photo: Getty)

AT&T customer caught in 'spam-22' [Red Tape Chronicles] (Photo: afagen)

A spokesperson did confirm, however, the monthly members will pay the same rate as contract customers. If you're already a Verizon customer, you can switch to the monthly plan after your current contract is up.

From Bloomberg:

Verizon, which made about half of its $24.1 billion in revenue last quarter from wireless service, agreed in July to resolve a consumer lawsuit over early cancellation fees by paying a $21 million settlement. The agreement covered contracts that had a flat-rate cancellation fee and were issued before Verizon Wireless introduced a declining-fee structure in 2006.

Verizon's termination fees start at $175 and decline $5 for every month a user stays with the contract after 30 days. Customers can cancel for free in the first 30 days, Raney said.

Verizon Offers Monthly Plan With No Termination Fees (Update2) [Bloomberg]

"Verizon Wireless Going Contract-Free?" [Boy Genius Report via IntoMobile]

This summer, I joined Bally in what I was told was a month-to-month membership. I let the membership run out, and just discovered that not only have they been automatically renewing my membership, they put me in a 36-month contract that can't be cancelled. I felt incredibly stupid - had I not read the contract carefully enough? Etc. etc.

The copy of the contract that they gave me does indeed say that it is for 36 months, but this contract is not the same as the one I signed, and it is blank.

One of the places I would have signed, had this been the same contract, is immediately preceded by "The length of the term of this contract is 36 months...by signing below, you acknowledge [this]" in a large bold font. Even if I hadn't read the contract at all, I would have noticed that. But because memory can always fail, and I am astounded by the stupid things I do sometimes, I checked online, and apparently this is standard business practice for them.

Bally sucks. I'm pissed. In true college-student style, I've handed it off to my father, who will hopefully get this mess fixed, because if not, I, along with many other people who apparently have been similarly scammed, will be out a few thousand bucks.

Chanda, if they can't provide the contract you signed, they won't be able to hold you to that 36-month agreement. It will be awesome if your father can resolve this for you, but it will be awesomer if you handle it yourself, because you'll help teach this Bally Total Fitness to not assume college students are easy marks. You might want to try cheryls50's suggestions on this Bally post from April—she recommends you send a certified letter to Bally's corporate office and copy your state's Attorney General on it as well. Bringing the AG into the situation should help put some weight behind your demands that Bally cancel this fraudulent 36 month membership. Be sure you make it clear that Bally must agree in writing to not report anything negative on your credit history, too.

Here's some contact info we were able to find for mailing a letter. If you need help drafting a good letter to these guys, check out our tips on this post. (It's for email letters, but will work for snail mail too.)

Bally Total Fitness
Don R. Kornstein, Interim Chairman
John H. Wildman, SVP Sales and Interim Chief Marketing Officer
8700 W. Bryn Mawr Ave.
Chicago, IL 60631
773-380-3000 (Phone)
773-693-2982 (Fax)

And remember to always make a copy of any contract you sign, so that in the future you can put an end to this sort of con as soon as someone tries to pull it on you.

Witteman said a key problem with AT&T's service agreement is that the company doesn't list all the terms and conditions that apply to customers. Rather, AT&T says customers must review a separate "guidebook."

That guidebook is available only online, Witteman said, and runs about 2,500 pages. "What consumer is going to slog through that?" he asked.

Moreover, the service agreement says AT&T will "generally" provide written notice of price increases at least 30 days in advance, except when such notice isn't "commercially reasonable."

Witteman said the online guidebook and ambiguous notification policy appear to violate a California statute requiring that consumers "be given sufficient information to make informed choices."

AT&T's service agreement is written in dense legalese and essentially gives the company as much latitude as possible — while limiting customers' ability to seek redress.

[..]

An analysis of the agreement prepared for PUC staffers found fault with a variety of AT&T's provisions, including this one: "You also agree to pay for all charges for services provided under this agreement even if such calls were not authorized by you."

The analysis said this "is in direct violation to cramming laws," which protect consumers from having unauthorized charges placed on their bills.

Under the provision, the analysis concluded, "AT&T, or any other billing agents, could impose unauthorized phone calls on a consumer's bill." It said consumers would have "little chance in both avoiding and fighting against this type of fraud."

Unlike mandatory binding arbitration agreements—which are included in the guidebook—you can't simply opt-out of these new terms. "If you do not agree with the provisions of this agreement, your sole option is to cancel your services . . . within 30 days after receipt of this agreement."

Go free market, go!

AT&T buries customer rights in 2,500-page 'guidebook' [The Los Angeles Times]
(Photo: jetsetpress)

VerizonETFSettlement [Official Site] (Photo: Ben Vershbow)

Anthony writes:

My name is Anthony [redacted], and I was just robbed at knifepoint in Queens, NY, for my iPhone. I was walking home fairly late at night and a man walked up to me wielding a 10-inch or so blade and demanded my money and my iPhone.

I am writing you because after reporting the robbery to the police, I called AT&T – my service provider for 3 years – and asked if they could possibly work with the NYPD to track down my phone via the iPhone 3G's GPS. They said it was not possible to track any closer than the closest cell tower if the iPhone's functions were used, which kind of defeats the purpose of GPS in many ways. Given the Patriot Act and everything, I figured they can track down where we're taking a piss at this point.

But the big problem came when we started talking about replacing my iPhone 3G. Now I was an early adopter of the original 8GB iPhone and I just purchased the iPhone 3G in July. So when I asked if there would be a free replacement or a discount of sorts, the woman at customer service responded that since I just purchased the iPhone 3G that I would have not qualify for the discounted $199 iPhone 3G and I would have to purchase the phone at the higher price point of $399.

So after being such a long time AT&T customer and supporter of Apple's marquee product of the moment, I have been told that despite the fact that I was robbed by someone brandishing what was essentially a mini-machete I am now being robbed by AT&T.

I feel insulted as a customer, and appalled by the customer service at AT&T. This is beyond poor customer service; this is a lack of basic human compassion.

It's a shame that you're stuck in a 2-year contract because of a phone that you now no longer have. Ugh! AT&T is probably a dead end, but if you bought the phone with a credit card, you might want to call your credit card company. Many credit cards have 90-day "purchase assurance" or "purchase protection" programs that protect your recent purchases from loss, damage or theft.

Most people don't think to call their credit card company when something like this happens, which is a shame because they can be very helpful, and certainly more pleasant to deal with than your cellphone company. Don't delay, however, once the 90-days is over, so is the coverage.

(Photo: jetsetpress )

He writes:

OK, so here we go! On or about July 25th, I called Sprint to complete a simple ESN swap. And for those who might not be of the gifted mind to understand what that is, it's simply a Phone Swap...going from one phone to the other. Now keep in mind that I already own both phones.
A Motorola Razr-2 and a SANYO 8400.
That means that I previously purchased them, and have decided to swap between one and the other.

Now I am already expired as of May 1st, 2008.

So after deciding that the RAZR-2 was utter garbage that I could not stomach any longer, I called Sprint's NO Customer Service, and informed that rep that I'd like to perform an ESN swap. Now keep in mind that this unintelligent rep never asked if it was a new or already owned phone. Just said ok....and proceeded to ask for the information.

So...needless to say... I went from the Motorola RAZR-2 TO the Sanyo 8400, which Sprint no longer sells, so it's not a NEW phone!

Lo and behold, just a few days ago, I received a letter from Sprint in the mail that says: "Keeping you in the know"...you've recently made some changes...etc..yadda yadda yadda. And along with that, on the right side of the letter , I notice that My CONTRACT has been extended.

Now keep in mind, I am ALREADY EXPIRED AS OF: MAY 1, 2008! So, what this excellent, educated and "well-trained" Sprint rep did was, RENEW my agreement, without telling me, without asking pertinenet information to make a decision as to renew or NOT renew. Just went ahead and got themselves a nice fat commission that I'm sure Sprint won't do anything to reprimand her for!

Just keep them exployed and working tirelessly, renewing unknowing customers all the time to get themselves false commissions!

I've stuck with Sprint since 20000, defended them against all kinds of craziness and even gone thru it previously with their "well-trained"reps, and I still stayed, but this is the last and I MEAN THE LAST GAWD DAMN STRAW!

My Account Number is: XXXXXXX
My Phone Number is: XXX-XXX-XXXX

I have already been assigned a few different case numbers, of which I have yet to have ANY of them resolved. I am tired of waiting to speak with someone. As quick as it took to extend my contract is as quick as it should have taken for it to be rolled back, but of couse they never help, or the reps never know what the hell they are doing, except for: giving mis-information and extending contracts falsely!

I want this issue resolved and I want BOTH lines on my account to be without contract for this hassle. I want some type of compensation that clearly and truely says I am sorry, and not from someones mouth.

If not, then let me out without obligation, financial or otherwise and I'll take the business to a more Realiable CORPORATION who knows how to run a business, called Verizon, T-Mobile or AT&T!

And to think I canceled my AT&T line to bring that over to my Sprint account, just to take advantage of the old SERO offer.

The only problems with at&t WAS THAT THEIR PRICES WERE HIGH AS HELL. Other than that, they beat Sprint in terms of Customer Satisfaction every step of the way. TIP TO SPRINT: Get these ghetto, non-educated, can't read, add, or subtract, low life people out of your company!

Sprint shouldn't hesitate to dissolve the unilateral contract extension if you call the special hotline they created for Consumerist readers at: (703) 433-4401.

(Photo: The Consumerist)

When the city-wide Wi-Fi was shut down in Philadelphia (thanks again, Earthlink), I reluctantly switched to Verizon DSL. I had already had a bad experience with them before, which resulted in a cancelled landline. Amazingly, my DSL experience was good: the installation was simple, the service consistent, and the price reasonable.

However, this past week, I contacted Verizon about joining the One-Bill program. Initially, I did not ask to sign up, I merely asked if I was eligible, having only DSL and Verizon Wireless service. I was told yes, and, based on that answer, enrolled. That evening, I received an e-mail confirmation informing me there had been a change to my DSL service. I was now signed up for a faster, more expensive package. Note, at no point in my conversation was I informed that my DSL service was changed, nor did I ever give permission to change it.

Yesterday morning, I spent nearly two hears on the phone speaking to at least 8 eight different representatives of Verizon. Apparently, because my slower DSL service was not eligible for One-Bill, I was upgraded to a more expensive package without my knowledge. When I requested to be removed from One-Bill and to have my slower, less-expensive service restored, I was told that it may not be available any longer. When I informed the representative that this violated my one-year agreement, I was disconnected.

On the next call, I was informed that I could have my slower service back. However, I would have to pay the cancellation fee on the faster service and the activation fee on the slower service in order to do so. At this point, I asked to speak to a supervisor. The "floor supervisor" informed me that what her employee told me was incorrect (really!?), and that I could have my service restored. However, she needed to complete a request for the "Verizon Online" department. I was then placed on hold. While I was on hold, I contacted the CEO of the DSL division at Verizon, Dennis F. Strigl (after reading a post on Consumerist). The floor supervisor did speak with me again, but she informed me that the other department was not answering. She asked for a call-back number and pledged to call me back. She did call me back several hours later, but with no new information, merely stating that she was still waiting to speak with the DSL division. I did not hear from her the rest of the day, nor have I heard from her this morning.

An executive from Verizon, did contact me and asked me for more information regarding my situation. I have yet to hear of any resolution to my issue. Who knew a company could alter a contract and then charge you to reinstate it?

We think launching an EECB was a good idea in this case. A little TLC from someone who has some authority should take care of this situation for you, and they appear to be on the case, even if it's taking them awhile to sort it out.

For more information about launching your own EECB, click here.

Ely used the material from our posts and used it to break his ETF without fee. Now he gathers together all that information into easily-digested video format (he's also blogged it (posts 1, 2, 3).

This video talks about Verizon, but most of the tactics can be applied to every national cellphone carrier. Just lookup the relevant verbiage in your contract and replace it with what Ely quotes.

Video Tutorial: How to Get Out of Your Verizon Contract Without an Early Termination Fee [Crastinate]

He negotiated with the CSR and said he would switch to a pay-as-you-go plan and not switch to MCI if they waived his ETF. She down to sell him a smaller package. He remained silent. She tried the reduced package again. He repeated that he would switch if charged. Then she offered 50% off. He restated his position once more and stayed silent. She tried the smaller plan again. He said no. Then she offered him 75% off. So now he's free of annual contract and can switch to any other provider whenever he feels like.

Not a tactic that will make financial sense for everyone, but it might come in handy for some.

We are devastated with our discovery this morning of a swarm of Africanized killer bees in the 2007 Sandpiper 325RG 5th wheel that you have a deposit on. We have used multiple poisons in an attempt eradicate them. We have vacuumed up the bees that covered the floors, cabinets, and furniture. We tried to clean the traces of honey on the countertops and cabinet tops as completely as possible. This is one of the terrible acts of Mother Nature we have in Arizona. As best we can determine, the bees entered from the door that had been left opened yesterday morning. The interior of this trailer does have a strong chemical odor from the poison and is TOXIC. Our insurance regulations prohibit us from selling this 5th wheel at this time.

Due to these circumstances beyond our control, we are unable to proceed with the sale of this 2007 Sandpiper 325RG 5th wheel. This vehicle is unsafe for occupancy or use. We are therefore refunding your deposit at this time. We have attached several photos. Watch EBay for other close-outs we will be posting soon.

Pat examined the photos, but they are very small (we're posting them exactly as he sent them to us) so it's kind of hard to tell if they've been manipulated.

Pat writes,

The two cans of “TOXIC” chemicals pictured in the second picture are indoor household foggers manufactured by Hot Shot and Ortho. Both were designed to be used, and are safe, for indoor use.

Within a few minutes of receiving the e-mail, I received another from PayPal indicating that my deposit had been refunded by Nelson RV.

My attorney advised me that he felt all the elements were in place for a contract and that even if their story were true, it should be my decision as to whether I wanted to accept the trailer in that condition. If a product that has been offered for sale does not turn out to be as advertised, then the buyer can decide to not go through with the sale. He told me that if I wanted it, I should send them an E-mail explaining my position and see how they respond.

So Pat resubmitted his $250 deposit and sent Nelson RV the following email:

After discussions with my attorney today and reviewing material safety data sheets of both the Ortho and Hot Shot brand indoor foggers that you used, I have decided that I will still take the 5th wheel. Thank you for disclosing the unfortunate event.

I would like to send a local representative to your dealership to inspect the unit as my agent. I would also like to resubmit the necessary deposit as required in our contract.

Please call me to arrange a time for closing as I intend on traveling to Arizona to pick up the Sandpiper within the next week.

This seemed to push Nelson RV to the breaking point, because they dropped the killer bees story and have turned to a new tactic, saying Pat was mistaken and never bought a trailer from them, and in fact there is no trailer anymore, so quit bothering them.

I received a call from Jim Nelson. Jim said that he understood that I “think” I have bought a trailer from Nelson RV and that it was just EBay and Bee’s nonsense that I was talking to James Nelson about.[Editor: What?] But that he had the owner there, Angelita Nelson, and that he was going to put her on the phone.

Angelita got on the phone and said “You did not buy a trailer from us and to quit calling and e-mailing us.” I Responded that the trailer was offered to the highest bidder in an auction, and that I was the highest bidder. Therefore I believe we have a contract for the sale. Angelina replied forcefully, “There is no contract! And we don’t even have the trailer anymore.” I responded by saying, that is not what the e-mails I have from you say, and I hope you still have the trailer because we have a deal. She then said in a very angry tone, “We do not have a deal! And we will not allow you to swindle us out of $15,000.” At which point the phone went dead.

Pat sent one more email to the Nelsons—Jim, James, and Angelina—in which he tried to educate them on how eBay works, and urged them to seek legal counsel so that they'd understand their obligation to fulfill the contract. As of Thursday July 24th, they haven't responded and Pat hasn't received a refund on his second deposit.

The Nelsons have indicated to him that someone will get back to him today, July 25th. Unless, of course, Africanized killer bees infest their computer and render it unusable. Once killer honey gets all up in your motherboard, you can forget about it.

(Photos: Bee, aussiegall; RV, Beige Alert; Honey Bears, buskuit)

1. Can't have unlimited messaging bundle on your account within the past 3 months
2. Has to have been charged for text messages during the past 3 months

A materially adverse change of contract nullifies a contract. I don't see how you can enforce restrictions on a null contract.

If you want to cancel Tmobile without ETF, here's how. Read the comments on that story to learn tips from many readers who've successfully used our advice. And remember, victory goes to the tenacious.

(Photo: Getty)

One way to escape your contract is to call up your carrier and argue that they have made a materially adverse change to your service agreement. Most cellphone contracts contain a clause allowing customers to escape their contracts if a materially adverse change is made, usually in the form of a rate increase. Here's an example clause from a Verizon contract:

Your service is subject to our business policies, practices, and procedures, which we can change without notice. UNLESS OTHERWISE PROHIBITED BY LAW, WE CAN ALSO CHANGE PRICES AND ANY OTHER CONDITIONS IN THIS AGREEMENT AT ANY TIME BY SENDING YOU WRITTEN NOTICE PRIOR TO THE BILLING PERIOD IN WHICH THE CHANGES WOULD GO INTO EFFECT. IF YOU CHOOSE TO USE YOUR SERVICE AFTER THAT POINT, YOU'RE ACCEPTING THE CHANGES. IF THE CHANGES HAVE A MATERIAL ADVERSE EFFECT ON YOU, HOWEVER, YOU CAN END THE AFFECTED SERVICE, WITHOUT ANY EARLY TERMINATION FEE, JUST BY CALLING US WITHIN 60 DAYS AFTER WE SEND NOTICE OF THE CHANGE.

Below are some recent rate increases by the major providers. Some of these might have occurred far enough back that they are outside the window to call and complain, but we've also heard from readers who didn't get any notice, or who got late notice, thus keeping them within the required period to contest the change.
T-Mobile
We posted about this a couple weeks ago, but just to reiterate: T-Mobile is raising its text message rates on August 29th. That's a materially adverse change to your contract. Run while you can.
Verizon
Although Verizon likes to play dumb about what constitutes a materially adverse change to your contract, a Verizon fee increase was the impetus for this article: A reader writes in that he used Verizon's recent Federal Universal Service Charge increase to escape without an ETF. Here is Verizon's increase notification:

The Federal Universal Service Charge (FUSC) is a Verizon Wireless charge that is subject to change each calendar quarter based on contribution rates prescribed by the FCC. On July 1, the FUSC changed to 2.42 percent of assessable wireless charges, other than separately billed interstate and international long distance charges. The FUSC on these charges changed to 11.4 percent.

Sprint Nextel
There are conflicting reports that, as of July 13, Sprint will be eliminating its SERO plan altogether, or making existing customers switch to unlimited data "everything" plans, or just forcing that on new PDA customers. Barring that, a text message increase probably isn't too far away.
Other Techniques
We offered advice on escaping your contract last year when the iPhone first came out. Besides complaining about materially adverse changes, you can sell your contract, complain that service is substandard, move to an area out of your network, join the military, or die.

PREVIOUSLY: 6 Ways to Cancel Any Cellphone So You Can Get an iPhone
"Material Adverse" Clauses in Cell Phone Contracts [United Consumer Action Network]
(Photo: Getty)

As far as the other policies go: AT&T and Verizon have similar pro-rating plans, (for each month that goes by they deduct $5 from the ETF) but Verizon starts discounting earlier than AT&T, according to Consumer Reports.

When you look at 1 year contracts, T-Mobile's plan looks a lot better. Their discounts beat both AT&T and Verizon after 6 months. Also, if you cancel T-Mobile in the final month of either a 2 year or a 1 year contract, you'll have to pay either $50 or your monthly fee — whichever is less.

Something to watch out for: T-Mobile's trial period is only 20 days, while AT&T and Verizon both give you 30 days.

T-Mobile announces pro-rating of termination fees [Consumer Reports]

Days left | fee

180: $200
180-91: $100
90-30: $50
29-1: $50 or monthly rate, whichever is less.

Glad to see another carrier joining in with declining ETFs. It's that much closer to doing away with them entirely. No word yet on whether this will only apply to new customers.

Here's the text of Tmobile's email announcement.

Beginning on June 28, 2008, the ETF for customers who choose a one-year or two-year service agreement with T-Mobile will decline during the course their contract. The ETF decreases from $200 to $100 if customers terminate service with 91 to 180 days remaining on their agreement; and decreases again to $50 with fewer than 91 days remaining. If customers terminate in the last 30 days of their term, the ETF is $50 or their standard monthly charge, whichever is less.

T-Mobile Eases Early Termination Fees [Washington Post]

(Thanks to Spencer!)

(Photo: shlomp-a-plompa)

Although there aren't any revelations in the article, it's still nice to see a story critical of arbitration run in a business publication. The volume of the article—BusinessWeek interviews numerous former arbitrators who became disillusioned with the process—makes a pretty compelling case that arbitration is broken, although it doesn't mention any solutions, like passing the Arbitration Fairness Act.

Banks Vs. Consumers (Guess Who Wins) [BusinessWeek]
(Photo: Getty)

AT&T Launches Pro-Rated ETF System [Broadband Reports]
(Photo: mrbill)

Nicholas writes:

My wife and I have been Cingular/ AT&T customers for many years now. I am in the Marine Corps and therefore travel is normal. Back around 2005, my wife and I purchased Motorola Razors while I was stationed in Florida. Great phones at the time, but with time they break. In 2006, I moved to Camp Lejeune, N.C. and was told I was deploying for Iraq in March of 2007 for 7 months. I called customer service and told them of my orders to Iraq and that I wanted to suspend my account until I return to the U.S.

They required me to fax a copy of my orders to complete the process, which I did, and confirmed by a phone representative that everything was good and that when I returned from Iraq that my number will be intact and ready for use once I called and reactivated it. Around my 6 month mark in Iraq; my wife mailed my cell phone to me so I could use it to call her and my family once I arrived on U.S. soil to catch up on much lost time. In October 2007, I redeployed back to the U.S. and once I had the chance, I turned my phone on and AT&T attempted to contact my wife to let her know that I was very close to being able to finally hug her and meet my new daughter.

Unfortunately this wasn't possible since I had no service. After much troubleshooting, I finally borrowed a friends phone and called my wife and got to finally talk to her and let her know that I was coming home really soon at someone else’s expense since I was borrowing their phone. My wife informed me that she attempted to reactivate my phone but that AT&T/Cingular dropped my line and it was no longer in use. I told her not to worry about it and that I would take care of it once I got to our home. Once I arrived home and got finished catching up with my wife and meeting my new daughter, I finally had a few moments to find out what happen to my number.

I talked to a phone rep and personally went to the AT&T/Cingular store to discuss the matter and got the same response from both: They dropped my line and the number was in recycling and that there was no way possible for me to ever get the number back. Everyone knows that this is a big pain in the butt since I had that number for many years and all my family, friends and other acquaintances’ knew that number. So I begged and begged but it got me nothing. I finally agreed to a new phone number. I had to renew to a new 2yr contact on our family plan. Note that I only got a phone number and not a phone upgrade, therefore the Motorola Razor I have is still from 2005.

Around 2 weeks ago my phone started acting up badly. Now it has acted up in the past but only for moments here and there. But this time it was not functional. Every time I attempted to place a call, send a message or answer a call, the numbers 3 and 4 automatically dialed and dialed and dialed and dialed and dialed. I couldn't make or answer any calls. I figured I had the phone for a long time, and it was about time for an upgrade. A buddy told me about AT&T premier and that the military gets discounts on phones. So I looked into the deal and found it was true. I searched for my new upgrade and found a beautiful refurbished Samsung Blackjack II for only $49.99. Wow! What a deal, right??? I was truly excited just like everyone gets with a new purchase of anything. I couldn't wait to get my hands on the phone and start playing with the new features and upgrades. So I stared to process my order, but it was denied and said I was available for a upgrade until June 2009.

I knew this was a sure mistake since I had the phone since 2005. So I called the customer support and began one heck of a journey with no outcome. Before I go any farther, I must say that all the representatives I talked to remained very professional and never lost their patience with me even though I really did towards the end except one representative whom you will here about. Ok, so I call about two weeks ago and explain the whole above situation. The lady on the phone seems very understanding and attempts to do something while I sit on hold. After minutes the only thing she can do is put a ticket in and have the upgrade reversed so it would state I was available for an upgrade and that she would call in 48 to 72 hrs to update me on the situation. I agree. About a week later I get a call saying that nothing has happened yet and the ticket is still processing. A few more days go by and nothing. So I become very impatient and call customer service and explain everything again for a second time.

After about 1:15 minutes on the phone, the only resolution I get is a force upgrade but I had to purchase the phone right there over the phone. So for the phone I wanted it would've cost me roughly over $200 vice $49.99 on the AT&T premier website. I told the rep that this is unsatisfactory and that I want the deal that I deserve to get. I explained that it was AT&T that screwed everything up by removing my original phone number and that they are accountable and responsible to fix the solution so I can get the same options as any other customer. The rep told me he couldn't do anything else. So I asked for a manager or supervisor. Finally I got on the phone with "Don."

I explained my story for a third time and got the same result. Nothing!!! About this time, I had run out of patience and niceness. So I let this supervisor know my frustrations and that I wanted this issue resolved like yesterday. After much debate, he committed to call me today at 1:00pm central time. I gave him my work phone number since I don't have a functional cell phone to answer. I let him know that I will be waiting at the time he gave me and that I couldn't wait around longer than a 1/2 hour since I was working. Well 1:00 rolled around and the phone hadn't rang. 1:30 rolled around and nothing. I left and did some things to finish up for the day. I got back to my office around 2:10 and no messages from this gentleman. So I called customer service again and gave my story for the fourth time. The lady I spoke with was very helpful and very nice as she tried to rectify my situation. But she couldn't do nothing but submit another ticket which would take more unwanted time. She said I would get a call around May 13th with an update.

I told her that this was unsatisfactory, bad service and bad business. She went on to apologize for some other reps mistakes. At the same time I was speaking with this lady, Don called me on my other work number. I told the lady that the rep finally had called me and we ended our call. Don went on to apologize for his tardiness and that he had to take care of another customer that had called after me the night before and it was urgent. URGENT??? So what is my situation, I'm thinking now. This guy or company couldn't give a care about me or my loyal services. For the past at least 7 years I have paid every bill on time and advertised too many friends and family on how great their service was. Anyway, he proceeded to tell me that there was nothing he could do but to let the trouble ticket run its course and that by Monday I should hear something better.

I explained once again that this treatment was unsatisfactory and very rude and that I couldn't believe that AT&T couldn't rectify my situation in a timely manner. I explained that I couldn't even believe that AT&T wouldn't just give me the upgrade over the phone with the AT&T premier price or even lower for all the unnecessary bull had to deal with. He said he was sorry and asked if there was anything else he could do for me. I laughed at him and told him that he didn't do anything in the first place and that I wanted out of my contract from AT&T due to their negligence. But he told me I couldn't get out of the contract. So that brings me to now and writing this thread. I ask for help from the community on my situation and how do I get this issue fixed and my contract ended so I can get with a provider that is for the customer and the needs of the customer.
The supposed ticket that AT&T customer service submitted originally was supposed to be processed by 10:00 on Saturday 10 May. Well Saturday rolled around, then Sunday and now Monday. And nothing has come from the situation. It still remains unanswered and without resolution. And I still sit here with a non-functional phone while I pay for the service and the inability to call or take calls from people. Thanks AT&T.

AT&T shouldn't have forced to you to sign a new 2 year contract in order to correct their mistake, but you already know that. Unfortunately, you are probably stuck with the contract unless you're willing to pay the ETF to get out of it.

We suggest that the best thing to do would be to launch an EECB (executive email carpet bomb) at AT&T in the hopes of catching the attention of someone at AT&T who has the power to get you the upgrade you deserve. Here's come contact information for you. Go get 'em. For more information about launching an EECB, click here.

Joseph would like to cancel his Verizon contract without early termination fee by arguing that the recent monthly administrative fee increase is materially adverse, but unfortunately for Joseph, Verizon's lawyers have filled their customer service reps brains with a bunch of hooey about what materially adverse means. In fact, when Joseph was reading the very clause in the Verizon contract that allows him to what he wants, the call center supervisor laughed at him. According to his account, when he criticized the poor customer service, she started screaming at him. The text of Joe's attempted EECB, inside...

Ladies and Gentlemen,

I would like to inform you of an issue I am having with your customer service department. Today, 5/7/08, I tried to contact customer service around 5 PM. Unfortunately, every time I was transferred to the department I requested, I received the message "We cannot process your call at this time. . ." and then was disconnected.

I finally reached customer retention nearly an hour later. Among my many calls, of note, I spoke with Stephanie (ext. 7476) and Trish (ext. 7129) at the Cranberry, PA call center. When I informed these CSR's that I wanted my ETF waived due to the increase in the monthly administration fee being materially adverse, I was put on hold between 5-10 minutes EACH call, presumably so that the CSR could find a way to reject my request. (Although I want to close my account, I want to port my number to another carrier, so I cannot have my account closed before the number is ported).

Both calls escalated to the floor supervisor (once at my request, the other to "confirm that [she] could complete my request." Both calls were escalated to Danielle (ext. 4075, also at Cranberry, PA). This "Danielle" denied my request to have my ETF waived. During the first call, she was relatively professional, granting my request for an escalation contact number/address. However, when I criticized the poor customer service, she began screaming at me. During the second call, she laughed at me when I read the following clause from the contract:

Our Rights to Make Changes

Your service is subject to our business policies, practices and procedures, which we can change without notice. UNLESS OTHERWISE PROHIBITED BY LAW, WE CAN ALSO CHANGE PRICES AND ANY OTHER CONDITIONS IN THIS AGREEMENT AT ANY TIME BY SENDING YOU WRITTEN NOTICE PRIOR TO THE BILLING PERIOD IN WHICH THE CHANGES WOULD GO INTO EFFECT. IF YOU CHOOSE TO USE YOUR SERVICE AFTER THAT POINT, YOU'RE ACCEPTING THE CHANGES. IF THE CHANGES HAVE A MATERIAL ADVERSE EFFECT ON YOU, HOWEVER, YOU CAN END THE AFFECTED SERVICE, WITHOUT ANY EARLY TERMINATION FEE, JUST BY CALLING US WITHIN 60 DAYS AFTER WE SEND NOTICE OF THE CHANGE.

She then said that the 15c per month charge wasn't materially adverse. I explained to her that the phrase "material(ly) adverse" has no quantifiable limit; one definition is: "of such a nature that knowledge of the item would affect a person's decision-making process." In the canon of law, (any) price is considered as having this nature.

I am hoping that one of you fine people may be able to assist me with this issue. My account information is:

Name: Joseph XXXXX
Phone#: XXXXXXXXXX
Account#: XXXXXXXXXXXXX

Please contact me to discuss this further. I would greatly welcome an effort to restore my opinion of your company. Thank you for your time in consideration in getting this matter resolved.

Sincerely,

Joseph C. Tkocs

If the EECB doesn't work out, Joe, you can also try some of these phone numbers.

From Delta's contract of carriage:

D. Amendments to Conditions of Carriage

1. Amendment by Delta

...Your travel will be governed by the rules that are in effect on the date your travel begins. In the event that we amend these Conditions of Carriage in a way that materially affects the terms and conditions of your ticket purchase after you have purchased your ticket but before your travel begins, and you do not agree to be bound by the rules as amended, you may request a full refund of your ticket price.

"Materially adverse" means the same thing to airlines that it means to cellphone companies. To receive a refund, you need to have booked your ticket before February 4, with travel commencing after May 5.

Unlike cellphone contracts, your goal isn't to break free without penalty so you can switch to another carrier. You most likely want the fee waived. Here's what you can try: call Delta, and explicitly state three things;

• 1. You are affected by the new baggage fee, which constitutes a material change to the contract;
• 2. You do not agree to pay the new fee;
• 3. As a result, Delta's contract of carriage entitles you to a full refund.

Mention that you may be willing to keep your scheduled booking if they are willing to waive the new baggage fees. Keep in mind that Delta is only required to refund your full fare, not waive the fee. Still, it's worth a shot. If you call, send an email to the tipline and let us know how it goes.

2nd Checked Bag Fee Roundup… [DansDeals]
PREVIOUSLY: Delta's New Baggage Fee Is Retroactive

I signed a contract with Sprint in 2004, things were going great. My husband and I decided to move in January 2007 and needed a phone service that reached our area...Sprint did not. Now, pay close attention to the dates..... I called Sprint in January of 2007 and told them that I would like to cancel my contract with them. They explained to me that my contract which I opened in 2004 was up to expire in three months, three months being March of 2007. I said fine, I will continue to pay the monthly bills until such time but DO NOT want to renew the contract because I had already secured another cell phone carrier, Verizon. They said, well can we offer you a free phone to keep you around? I said NO, just please DO NOT renew my contract. So three months go by and I sit down one day to pay my bills and what do you know.....there's a phone bill from Sprint. I started to make phone calls, but...every single time I entered in my account number to speak with a customer representative, DISCONNECTED. So I thought, let me try to write some emails...they can't hang up on emails...but they definitely IGNORED THEM! Now, let me explain that I work with an organization that closely monitors my credit report and cannot take the chance of ANYTHING being reported to a collections agency so month after month I paid a bill for a phone that I no longer used...HELL I couldn't even find the damn phone. So fast forward to February of 2008, I FINALLY got to speak with a customer service representative that had a ton of attitude. I explained to her that I have been trying to have this phone disconnected for over a year. She said well, I can disconnect the phone for you but it will cost $200 since your contract doesn't expire until 2009. I said no mam, that is incorrect, my contract should have expired in March of 2007. She said, No, it's 2009. I asked to speak with a supervisor, she said "HOLD" and nobody ever came back to the line. So today APRIL 10, 2008 I get a bill for $268.00. I call the Finance Department at Sprint. I ask why would I pay $268 for a disconnection fee if my contract ended in March of 2007. She stated that I would have had to of signed or verbally gave approval in 2006 to renew the contract but they don't keep records going back that far......EXCUSE ME??? What do you mean you don't keep records going back only 2 years??? I said, NO, I NEVER signed or gave a verbal approval of anything, infact, I tried to cancel this phone over a year ago and got the run around. She said well sorry mam, but you will either have to pay this or we will send it to collections. Again, SPRINT is not worth my job, so today APRIL 10, 2008 15 MONTHS LATER I am out a grand total of $988.00 for a phone that I HAVEN'T USED!!! Needless to say, I will NEVER use Sprint again and after speaking to family and friends about this situation who all use SPRINT...they will NOT be renewing their contracts and a couple will be calling to cancel. DON'T MESS WITH YOUR CUSTOMERS...cause in the end you will be the one losing! BASTARDS. Thanks for letting me rant.

Next, you may want to try to launch an eecb (Executive Email Carpet Bomb) on Sprint. You might want to remind them how angry the Minnesota Attorney General is about the 30,000 complaints she's received about Sprint extending contracts without customer consent. Sprint has a new commercial that invites you to email the CEO at dan@sprint.com. We suspect you'll get a canned response, but we'd love to be wrong about that.

Finally, if that doesn't work, why not file a lawsuit in small claims court? Bring all the evidence you can get from Sprint that shows you never used the phone. If you're lucky, they won't even show up and you'll get a default judgment.

Does anyone else have any advice for Kristin?

(Photo:Maulleigh)

"The network is asserting almost complete control of the users' ability to use their network as a gateway to the Internet," said Marvin Ammori, general counsel of Free Press, a Washington-based consumer advocacy group. "They become gatekeepers rather than gateways."

But the provisions are rarely enforced, except against obvious miscreants like spammers. Consumer outrage would have been the likely result if AT&T Inc. took advantage of its stated right to block any activity that causes the company "to be viewed unfavorably by others."

Jonathan Zittrain, professor of Internet governance and regulation at Oxford University, said this clause was a "piece of boilerplate that is passed around the corporate lawyers like a Christmas fruitcake.

"The idea that they would ever invoke it and point to it is nuts, especially since their terms of service already say they can cut you off for any reason and give you a refund for the balance of the month," Zittrain said.

AT&T removed the "unfavorably by others" wording in February after The Associated Press asked about the reason behind it. Subscribers, however, wouldn't know that it was gone unless they checked the contract word for word: The document still said it was last updated Oct. 8, 2007.

Most companies reserve the right to change the contracts at any time, without any notice except an update on the Web site. Verizon used to say it would notify subscribers of changes by e-mail, but the current contract just leaves that as an option for the company.

• Read Your Email: No warrant or court involvement required. They can read your email for any reason, at any time, without any oversight.
• Ban Websites: Any content deemed "inappropriate" can disappear behind an impromptu version of the Great Chinese Firewall.
• Boot You For Using The Service: You can be booted for excessively using your unlimited connection. Our tipsters tell us that Comcast's unpublished limit is around 200 GB per month.
• 
  

The online behavior of a small but growing number of computer users in the United States is monitored by their Internet service providers, who have access to every click and keystroke that comes down the line.

The companies harvest the stream of data for clues to a person's interests, making money from advertisers who use the information to target their online pitches.

[..]

The extent of the practice is difficult to gauge because some service providers involved have declined to discuss their practices. Many Web surfers, moreover, probably have little idea they are being monitored.

But at least 100,000 U.S. customers are tracked this way, and service providers have been testing it with as many as 10 percent of U.S. customers, according to tech companies involved in the data collection.

Although common tracking systems, known as cookies, have counted a consumer's visits to a network of sites, the new monitoring, known as "deep-packet inspection," enables a far wider view — every Web page visited, every e-mail sent and every search entered. Every bit of data is divided into packets — like electronic envelopes — that the system can access and analyze for content.

ISPs Hog Rights in Fine Print [AP]
Every Click You Make [Washington Post]
(Photo: Getty)

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

RELATED
"Carriers Promised Congress They'd Pro-Rate ETFs; Senator Asks Them, 'When?'"

He writes:

I've been a Sprint customer for around ten years, and in early February decided to upgrade to a new HTC Mogul smartphone under Sprint's "New For You" rebate program which gives existing customers the same price on new phones that new customers get, as long as the existing customers agree to extend their contracts. To get a $100 rebate, I agreed to extend for two years—not really a problem, as I have no plans to leave Sprint. I received the phone and mailed in the rebate form.

Much to my surprise (not really) when I checked SprintRebates.com today, my rebate had been rejected, apparently because it was mailed on the wrong day or somesuch. I called *2 talk and was routed to someone in the rebate fulfilment department, who informed me that the CSR I'd purchased the phone from last month had only extended my contract by *one* year instead of two, and so my rebate application was rejected. He offered to immediately extend the contract and approve the rebate and I agreed, and when I refreshed the SprintRebates.com page it now shows that my rebate has been approved and I should receive it in 30 days.

This may seem mundane, but it has a couple of "Success Story" elements. I was able to quickly reach the right person; the CSR immediately understood the problem and explained it in terms I could understand; he proposed an immediate solution; the problem was resolved in one call.

Keep up the great work on Consumerist!

When Normand and Kathy Girouard set out to buy a 2007 Toyota Prius hybrid last week, they had no idea they would end up with two.

They first went to Karl Malone Toyota, where they spotted a car they liked and signed what they thought was a preliminary "motor vehicle contract of sale," but did not yet take possession of the car, saying they wanted to set up their own financing through their credit union.

After they found a better deal at Brent Brown Toyota, they