Now that the California Courts have ruled that ETFs are illegal, does Consumerist have any advice for consumers, like me, who have an outstanding ETF debt with a non-Sprint carrier?

I ask because I canceled my 2002 Cingular (at the time) service due to horrible coverage, terrible customer service, and that I had to routinely call every stinking month to have bogus text message spam charges removed. I switched services, and after doing so, Cingular stuck me with a $270 early termination fee, failed to inform me of the fee or that it was going into collections, and next thing I know, I'm in collections for $580. I didn't find out about this until recently, as I am about to purchase a new car and needed a copy of my credit report.

I initially refused to pay because my cancelling my service was completely justified on my part; the service and coverage I was told I would receive when I signed the contract was NOT at all what I actually did receive. I also refused because their raising of text message fees was a materially adverse change to the contract. Neither Cingular nor their collections drones care.

You can imagine my excitement to hear that ETFs are illegal. I would like to file a suit in small claims against the collections agency and ATT (as successor in interest to Cingular) to recover damages incurred as a result of their sending my account, erroneously, into collections over the ETF AND for attempting to force me to pay a fee which is now known as illegal.

Any advice or leads for advice would be greatly appreciated.

You should obviously talk to a lawyer for real legal advice, "Jurgis," but for now you might want to break your problem into two separate issues:

1. You have a collection on your account that you are disputing;
2. That collection is an ETF, which may end up being illegal banned/voided in your state.

Forget about the legality of the ETF for now; you should file disputes with all three major credit reporting agencies over the $580 collection. The original problem exists regardless of what happens in state or federal court, which is that the company didn't honor their side of the agreement, then failed to notify you that they were sending it to a collection agency.

As to last week's news that ETFs are "illegal" in California, Sprint Nextel will almost certainly file an appeal. Additionally, the ruling might not stand if the FCC moves ahead with its industry-backed plan to step in and say states can't regulate carrier fees. (And if they do, then that might be overturned if states take the FCC to court.) Update: according to outphase, this court's ruling isn't binding upon any other court, or even on itself.

Find a local lawyer to ask whether you can take advantage of the ETF ruling, but our guess is for your immediate needs it won't matter.

That doesn't mean you can't try small claims court anyway, though, if you want to claim that Cingular didn't honor its agreement and that their text rate increase meant you were given the opportunity to legally get out of contract. (Here's a story of a reader who took this route with a subcontractor and won.)

(Photo: Getty

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.

TmoNews says, "It sounds like these plans will be very similar, if not the same, to T-mobile’s current offerings of individual, or family time plans, with or without MyFaves." For new customers, this will mean that, if you buy from Tmobile, you will have to pay full retail price for your new cellphone. Unless there's some caveat against it, it would be smart though to buy your phone off eBay or convert pay-as-you-go Walmart-style phone to the month-to-month plan. There will also be an activation fee. But at least there will be no early termination fee.

Thumbs up to Tmobile on this one, even though it's probably just a placating gesture in advance of the FCC ruling on ETFs. Hopefully the other carriers will follow suit with similar placating gestures.

T-mobile Introduces Month to Month Contracts [TmoNews] (Thanks to Scott!)

"Sprint Loses Early Termination Fee Case, May Pay $73 Million" [CNN Money]
(Photo: Maulleigh)

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)

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)

• ETFs should be relative to the phone's cost; a $5 phone should have a lower fee than a $50
• ETFs should go down month by month
• Contract lengths should be "reasonable" (whatever that means)
• Extended a contract shouldn't refresh the ETF (no shit, they've already recouped the cost of the cellphone)
• People should be able to get their first bill and look it over before the ETF goes into effect

FCC chief lays out plan for cell phone fees [Washington Post]

Some people think the BBB doesn't work. They do, but only if the company cares about keeping a clean record. See when you look up a company in the BBB database it shows you how many complaints have been filed against the company, how many were answered, how many did the consumer report as being satisfactorily resolved, etc. So if you have a valid complaint, file it with the BBB, and the company cares about its BBB record, you have a decent chance of getting a solution. You might not believe it, but it turns out Sprint is one of those companies. Here's Kevin's story of how the BBB got his erroneous text message charges refunded and let him leave contract early without early termination fee...

Kevin writes:

I've filed two complaints with them so far in 2008. Here is the text of the one I filed in January...

"Double charged my debit card and refuses to credit the duplicate charge back to my account.
I called to make and a payment yesterday through Sprint/Nextel's automatic payment attendant. The pre-recorded service told me the payment "cannot be processed at this time, please hold for an operator." So a person gets on the phone and takes my payment manually. Then this morning when I checked my bank account online I saw that two payments had gone through. When I called to request the duplicate payment be reversed they refused. This comes after several battles with their customers service department over services ordered which were incorrectly authorized.

For instance, I have two phone lines and there have been 3 or 4 times now when I've had a service such as text messaging or insurance added to one of the lines. The customer service people have added the service to the wrong phone, thereby incurring extra charges and it takes forever to get a credit. These are small inconveniences and nothing I'd normally report to the BBB. But after refusing to issue a credit I've had enough with them. My contract with them is up in August after 3 years of being a customer. I've explained why I am unhappy with service and they will not let me out of a contract. I've talked with many acquaintances who've had similar issues and I feel it's time for someone to do something about this company. The problems with service began after the merger with Nextel."

After this I was contacted within 48 hours and the dispute was resolved where Sprint/Nextel issued me a credit for a free month of service.

Then in April I went over my text message limit. I beefed up the limit to 1,000 texts per month, but they added it to the 2nd line. This caused another huge bill in May. When I called to tell them they added the text plan to the wrong phone they refused to credit me or fix the problem.

At that point I filed the 2nd complaint with the BBB briefly describing what happened. It basically stated what I just did and less than 24 hours this time a Sprint/Nextel representative called me to resolve the issue...apologizing for the treatment I received and they resolved the issue VERY generously and told me they realize their customer service is lacking and they're "taking steps to rectify the situation." In addition to free unlimited text messaging they've offer to wave the penalty for severing my contract early. That says a lot and the fact that they acknowledged their customer service dept sucks.

To my satisfaction, I was told I can dissolve my contract with them before it's up in August without any additional penalties. I got a follow up email from the BBB today asking if I am satisfied.

Kevin is now a happy Verizon customer. Here's where to go to get started filing a BBB complaint online.

(Photo: mod_complex)

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

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

I have been reading your site almost daily for a few months, and have seen where "insiders" give useful info to help get problems solved - and I have also noted where your site has advised readers having problems with their cell phone provider to contact the retention department...having been in the retention department for a small regional cell phone company for the past year, I wanted to share with your readers some tips to help them get what they are looking for. (I tend to get long winded, so feel free to edit out unneccesary content)

Basically, there are two reasons that people call retention, they either A) actually want to cancel, or B) want something, and feel that we will give it to them.

If you're in group A, a few things to make the transition go easier...

1 - Please be aware that the annoying questions that I'm asking about why you're canceling, and what carrier you're going to are obviously not for my good health. You are not required to answer the questions, but if I want to keep my job, I am required to ask them. If you don't want to be asked the questions, it would be best to port your number to your new carrier, in which case you don't even need to speak to the carrier you're porting from, just bring your account number, and password on the account if there one, to the new carrier, and we'll be done. Anybody else - this is your opportunity to air any greivences you have, and have them heard by the higher ups...however, if you are leaving, don't expect any courtesy credits for past inconveniences, etc.

2 - If you're wanting the ETF waived, please be advised that we are well trained and versed on the contract, so if you're arguing breach of contract, please have the copy of the contract with you, and be specific as to what you're fighting. As a rep, I'm required to basically argue the contract with you until you ask for a supervisor. So, if you don't like the answer, you can either ask to speak with the supervisor, or ask the rep if they can ask the supervisor on your behalf. Depending on your situation, either method has the possibility to get the fee either waived or prorated - note, though, if you want to talk to a supervisor, your best course of action is to call between normal business hours, b/c the appropriate supervisor may not be available otherwise.

(Ed. If you are trying to avoid the ETF, read our scripts for using materially adverse changes to escape your contract.)

3 - Even if you're not trying to fight the contract, you may want to take a look at it before you cancel - I know our company has a statement very visibly in the contract stating all cancellations occur at the end of your bill cycle. My advice would be to check on these things before you call to cancel, or port your number out so there are not unexpected bumps in the road.

Now, if you are calling because you want something, a few things to keep in mind.

4 - Your actual situation has little effect on the decision made. We look at multiple things, but I would say that the equation is a little like this: 40% account history/ARPU (average revenue per unit), 40% the actual request and 20% would be your situation and/or demeanor/attitude. Now, I know from reading this site, that most consumers feel like their attitude/deamenor, and the way they treat the rep should not have an effect on the outcome. In a perfect world, my friends, it wouldn't, but as much as reps may seem like robots, they're not. They, like you, do not react well when somebody is swearing and screaming at them or telling them what they will do. Be straight to the point - a long drawn out story about how the phone got busted is not really helpful, although saying "I broke my phone, and don't have insurance, and buying a new phone is more costly than the cancellation fee" will probably get you far since it is honest, and makes sense not only in terms of the business, but for you as well.

5 - Call retention only when you really need to. We're happy to help you, however, we do keep good notes of when you call, and what we did for you. Calling retention consistently when you want something or when something goes wrong will get you branded a frequent flier, and our management may note the account that no more retention efforts can be made on your account. That being said, there are other options out there.

For legitamit billing issues, try the general customer care staff, or your local retail store first. Escalate if need be, but honestly, there are of course times that people make mistakes, and these need to be fixed. Please try with the responsible party first, then, if there's no resolution, even after escalation, then retention is the place to go. But don't jump there first.

For upgrade fees/rebates, try asking your salesperson when you go to purchase the phone. Yes, we know the upgrade fees suck, however, if one company does it, and is making money off of its customers with it, then other carriers have to follow in order try to stay competative, so please don't ask why would we charge you the fee - it's nothing personal, we're just trying to stay in the game. Ask your sales rep about waiving the upgrade fee. This, like other things will come down to account history, and ARPU. If the sales rep declines, tell them that you'd like to cancel, so you can bring your service to another carrier, since most carriers waive the inital activation fees to attract new customers. At this point, they can put you in contact with retention - expect a little bit of a fight from the rep, though, since these fees are industry standard, though ultimately, it should not take much to get done. This may not work every time, and is most effective when the account is in good standing.

If your carrier has a payment services department, or a branch of billing allows you to make payment arrangements or get extensions on your bills, they may be able to get you onto a plan that's no longer offered to new customers. Just tell them that you're having a hard time paying your bill, and you were wondering if they had any older plans that might fit them better, or be less costly. They may, or they may not. This also works if you're paying for text/pictures or data access, but don't need the unlimited packages that most carriers are switching to, but still don't want to pay per use.

6 - Do your homework. We understand that there are people who call who are really not interested in canceling, but want to get something out of the carrier. Just do us a favor, and be direct. There's nothing worse than somebody calling in saying "what can you do to keep me as a customer?" The reason that's so highly offensive, is mostly because it is a time waster. You're wasting your time, and mine...because if you say that, I'm left guessing at what you really want. Do you want a phone for cheaper? Do you want your bill lower? Do you want a different phone, but don't qualify for an upgrade yet? If I don't know what you want, I'm left offering you things you don't really want. Please do us a favor. Indulge us. Be direct. If you want the phone for cheaper than what it's offered at, you could say something like "I really like the razr (or whatever), but can't see myself paying the ______ for it" Please don't say that it is free with Carrier X, especially if it isn't. If it is, we will usually try to get on their site, and explain how free once can cost you over the course of the contract - this isn't what you wanted to acheive, you want the phone for free, regardless of whether or not you'd pay more monthly with Carrier X. If you want the bill lowered, and find a better deal, and want us to match, let us know, if you want the bill lowered, but have done your homework and the plan you're on is at or lower than other carriers, don't make up a deal that's too good to be true. It's better to just say that it's too much monthly or something to that extent.

7 - If you don't want to sign a contract, your options on equipment are much more limited. You have a couple options from this point, though: You can go on a prepaid service, no contract, and often with carriers that do postpay services as well, the monthly rates are close to the same, you could see if we can give you the two year pricing on a one year contract, if you're okay with a shorter contract term, you could also see if they'd be willing to credit you a portion of the phone, (but don't expect it free without a commitment to stay with the company) or, you could ask the rep if they can find how much the company pays for the phone, and offer to pay that amount. Contracts are basically how ensure that we make up the discount given on the price of the phone and a given line (especially a shared line) doesn't become profitable until we've made that subsidy back - which can sometimes be over a year into a two year contract. If you're offering to pay what we pay, even if you stay only 3 months, it is essentially pure profit, and a pretty good business deal. You can also ask about refurbished phones, but we usually have to buy those, too, and for more than you think, so a lot of times, those won't be done if you're out of contract since we can't be sure we're not losing big sending it to you.

8 - Be reasonable - and be willing to negotiate. We are a for profit business (duh). To that end, we will try to find a course of action that fits both the customer and the company, but if you're not profitable, asking for something that's over the top, or have a history of escalating/calling retention to get what you want, then expect that your options may not match what you want to acheive - but we might be able to work something out with you. Also - with this one, admit fault when you're at fault - what I mean is, if you or your kid sent and received 3,000 text messages, but you didn't have a plan to cover it, it will go a lot further to say, we did this, we did not realize it was not covered, I can't keep the service if I have to pay for that - rather than trying to say it was a problem with the phone, or that the texts were not sent or received - those types of answers will only be met with resistance and the rep trying to explain to you how it happened - same goes for roaming charges, minute overages, or anything else that typically is unable to be credited as it is presumed to be in the control of the customer.

9 - Be aware of the return period. If you don't like the phone within the first 14 days, return it and find one you like, if you don't, please don't call us 8 months down the road saying this phone is a piece of junk it doesn't do anything, etc...you chose the phone. If it's broken, lost or stolen, or if you are at least a year through the contract, we may be able to help you with a replacement, but we don't often upgrade early in the contract because you don't like the features of the phone you chose. Also, please be aware if the phone is lost/stolen/damaged, that we are under no obligation to replace equipment, so if you're hard on phones, as much as it might be a ripoff, insurance might make things easier on you.

I'm sorry if this is too long winded, but hopefully, some of the information might assist your readers.

"Carrier ETF plans targeted" [RCRWireless News]
(Photo: Getty)

Verizon Wireless faces class action over ETFs [RCRWirelessNews] (Thanks to Steve!)

My son recently was deployed to Iraq. His cell phone carrier is Alltel. Prior to leaving for Irag, he cancelled his cell phone coverage before the completion of his 2 year contract commitment. As his father, I telephoned Alltell, explained the situation and asked Alltel to have the $200 early termination fee waived. Alltel explained they only waive the $200 early termination fee if the party is DECEASED.

Mark, check out this post about Alltel's policy for those serving in the military. Even if they refuse to budge on the ETF, they should be able to hold the account in limbo for 18 months without charging any fees.

(Thanks to Mark!)

RELATED
"A Document Alltel Looks At When You Want To Cancel Cellphone Service"

Jeff writes: "I called Sprint and spoke with a customer care rep. I was advise that the increase in fee's was government regulated event hough it states on the post card I got that "these charges are not taxes and are not amounts we are required to collect from you..."

."..well the customer care rep thought other wise. He put me on hold for awhile to check with another department. The other department stated there is nothing they can do until it bills to my account. I asked why. The lady stated because it is not going to be charged to all customers but everyone got the post card just in case. I was dumbfounded...

I then called retentions the next day and was advise that the charges are coming but I can't disconnect till January 1st because the system won't let them waive the ETF because it has not started to bill yet. I thought BS.

Today I called Executive Customer Care, someone answered on the 2nd ring. When I mentioned the post card she knew exactly what I was talking about. I then asked about having the early term fee waived because of the fee change and she stated sure. She asked when I was looking to do it, I told her today and she placed me on hold. In about 5 minutes she came back and stated okay here is your case number, her name and direct line and to call her once I got the service ported.

So I went in and ported my number. I called the lady at executive customer care back and she took care of the problem in 2 minutes. She stated that the fee has been waived.

I just got what seems like my final ebill and it shows a lower bill then my original bill. So executive customer care works wonders. The people on that line are more knowledgeable and friendlier to talk to.

Once again another success story just by reading Consumerist.com and following the advise given.

Thanks
Jeff

One Sprintusers.com forum member posted that a Sprint CSR read the following to him:

Sprints current policy as read by account services: "On Jan. 1st 2008 Sprint customers who have been affected by the fees, [consumer and IL customers], will have their ETF waived if they wish to terminate their contract. There will be no post-dating of cancellation where the ETF will be waived as only customers affected by the new surcharges will be eligible."

(Click image for larger version.)

This writer has a special hatred of Sprint from several years ago, when they debited over $1500 from my checking account (for a $120 bill) and then tried to insist it would take over two weeks to replace the stolen money. Sprint, may you rot in hell.


(Thanks to Harry and Ryan!)

RELATED
"Sprint Changing Terms And Conditions Of Service" [sprintusers.com]

From their press release:

Beginning Monday, Nov. 12, as part of the company's pledge to enhance the overall customer experience, customers will have even more flexibility by being able to change their rate plans without having to renew their contracts.

Plus during 2008, Sprint plans to implement a new prorated early termination fee (ETF) policy. More specific launch information and details of that policy will be announced next year.

Sprint Announces New Programs to Deliver Better Customer Experience (Press Release) [Sprint]
(Photo:Alan Light)

They're testing a new "coinless" parking meter system that would erase (not refund) any extra time left on a parking meter so the next person couldn't "piggyback."

The city sees this as "lost revenue."

"We call it 'piggybacking at the meter,'" said Bea Reyna-Hickey, the city's revenue director, referring to drivers who benefit from the leftover parking time purchased by the motorists who used the spaces before them.

"Think of the countless thousands of dollars lost" every year at the city's approximately 33,000 parking meters, she said.

ParkMagic? Not so much [Chicago Tribune via Wise Bread]
(Photo:josephp)

The Cell Phone Empowerment Act of 2007 would improve the lives of cellphone users by attacking a smorgasbord of the industry's most eggregious practices:

• Early Termination Fees: FCC regulations would require companies to prorate ETFs, with the penalty for escaping a 2-year contract cut in half at the end of the first year.
• Service Maps: Cellphone companies would be required to provide detailed maps showing call quality down to the street level. The maps would be augmented by data on dropped calls and coverage gaps collected and publicized by the FCC.
• Fee Disclosure: Overage charges would be displayed separately from taxes, and companies would be prohibited from levying any fees, apart from the basic service charge, not expressly authorized by federal, state, or local regulation.
• Contract Disclosure: Depriving us of a source of many posts, companies would be prohibited from extending contracts without "point-of-sale notification," and customers would have 30 days to cancel any contract, new or extended. Any contract changes would need to be sent to consumers in writing, and could not take affect for 30 days.
• Unlocked Phones: The bill would give the FCC a homework assignment: a single-spaced report to Congress on the harmful and anti-competitive practice of locking handsets.
• Military Exemptions: Companies would be required to release military members awaiting deployment from their contracts.
• This bill is amazing. Seriously, we like this bill so much, were it not for those pesky Capitol police irradiating everything, we would send the Senators a fruit basket.

  Both Senators are members of the powerful Senate Commerce Committee. They have asked Chairman Inouye (D-HI) to schedule a hearing on the bill, which he should do without delay.

  Klobuchar and Rockefeller Announce Cell Phone Consumer Empowerment Act of 2007 (Press Release) [Senator Amy Klobuchar]
  Write Your Senator
  Write Your Representative
  (AP Photo/Ann Heisenfelt)
  

1. Sell your cellphone contract.

2. Complain that service isn't up to par, file complaints with PUC, FTC, BBB, AG and cc them to the company.

3. Wait for the company to change its rates (like text-messaging), then call to cancel based on the material change of contract. These are usually for the default rates and you won't be able to cancel if you have a package that takes care of it... hint: so get rid of the package and call back.... Here's some recent rate changes and cancellation success stories:
Sprint
AT&T/Cingular
Verizon
T-Mobile
US Cellular

4. Move to an area outside the plan's coverage area.

5. Join the armed forces - you'll need to fax in a copy of your orders.

6. Die - someone will need to fax in your death certificate on your behalf. You'll be dead, but at least you're in heaven. iPhone heaven.

For more tips and war stories, check out our cellphones/cancellations tag.

1. Your plan must not include roaming.
2. You must call within 30 days of the rate change.
3. You must specifically cite the roaming rate change being a material adverse change of contract as the reason for cancellation.
4. You must not pay your bill that reflects the new rates until AFTER requesting cancellation
5. If they offer you a grandfathered roaming rate or free roaming attached to your plan, you must refuse.
6. If the rep is poorly trained and wants to hot-potato you to a supervsor rather than transfer you to account services, you must insist that you want to cancel service despite any potential fees so the rep gets you to the group that actually knows the correct procedures.

If arguing isn't your thing, you could always figure out a way to spend 50%+ of your minutes while roaming...

We have vetted this information with a well-placed Sprint insider. — BEN POPKEN

(Thanks to Ben!)

While some fees are decreasing, others are increasing. Sending a text message from US to Canada goes up 5 cents to 15, as will the charge for receiving one while roaming internationally.

These constitute what are known as material changes to contract, which void the contract for both parties and make it so they can't charge you the usual $175 fee if you try to cancel service.

Read this for how to go about it, and here's how to keep your same number. — BEN POPKEN

PREVIOUSLY:
T-Mobile Confirms You Can Cancel Without Fee Over Texting Price Increase
Materially Adverse Clauses For All Major Cellphones - So You Can Escape Contract Without Termination Fee

Important information about new messaging rate [T-Mobile]
(Photo: FastFords)

He turboed up to executive customer service rep Nathanial Camper, who currently denies William's request based on a supposed difference between the words "Revised" and "Modified."

Cingular's January bill says, "We are pleased to advise you that Cingular has revised the ARBITRATION CLAUSE"

The CTIA Cingular subscribes to says, "Carriers will not modify the material terms of their subscribers' contracts in a manner that is materially adverse to subscribers."

Based on this, Nathaniel Camper feels that the CTIA doesn't apply, as the change is a "revision" and not a "modification."

It doesn't matter what word you use, it's a material change to contract and the terms are materially adverse. Therefore, by the legal terms of the agreement that Cingular itself drafted, customers can end the contract without penalty. End. Of. Story.

Our advice to William is to call back again and try hammering at other reps. Maybe you'll get a weaker one, or one that doesn't think he's a professional semanticist.

Or, go for the gusto and sue Cingular. That's what they're basically asking for with this coyness anyway. Take inspiration from this man, who sued Dell by serving the papers to a Dell mall kiosk . When they didn't show up to court, he won by default. — BEN POPKEN

William's letter:

After spending sometime researching an issue authored by the Consumerist, it seems as Cingular is unilaterally changing material contract terms and pricing in violation of their policies in material changes to the wording of the contract. In addition is is changing the pricing structure for text messaging from $.10 to $.15 changing the pricing of the service.

Executive Customer Service, Nathaniel Camper, from Cingular refuses to acknowledge a break in contract by Cingular in modifying material changes in the text of Dispute Resolution and Arbitration without the required fourteen days of notification.

Nathaniel Camper's argument yesterday evening hinged arguing that it is a "revision" and not a "modification" (see below).

In regards to the change in price of text messaging, Nathaniel Camper's argument yesterday is using the terminology that it is changing the price of a "feature" not a "service". Last I checked Text Messaging as setup as part of the account and incoming messages are charged to the account regardless if it is from a person I know or do not know.

As I have exhausted all logical means of this addressing this issue with Cingular short of Arbitration itself as in Dispute Resolution proceedings the cost of arbitration is most likely on the consumer and selection of the arbitrator is most likely by Cingular. This would seem to indicate a process that is not exactly an impartial. Cingular seems to be attempting changing contract terms in violation of its own policies and refuses to acknowledge such when clear and logical evidence is presented of them doing so.

What would you recommend?

Notice in January Bill from Cingular:

CTIA Section 7

Previously:
Cingular Arbitration Escape Script Addendum
Script For Escaping Cingular Contracts Without Fee, Based On New Arbitration Clause

After going through the worst cellphone experience we've ever heard, Chris got his cellphone canceled.

He did it by contacting Sprint Executive Customer Service, just like we've been telling you people over and over again. Chris writes:

"It's all in wearing them down before they wear you down. I had to state repeatedly that, "Due to the level of customer service I expected as a basic part of the contract, and the profound lack of customer service that has been demonstrated by your company, I respectfully request to be released of this contract with no penalty."

Evidently it's like saying "beetlejuice" 3 times, because after I said it enough times, I was greeted with the option of repairing the bills and being assured of a great future with Sprint, or stating that I had completely lost faith in the company as a whole, and there was no way my future with Sprint could bring anything beyond more frustration and phone calls to Customer Service. She agreed to present my case to her peer group of analysts and call me back within 24 hours with an answer.

Within an hour, I received a phone call back stating that my account was being closed on a given date, and that it would be done so without penalty."

You too can do it by calling 1-877-875-7505 and asking to speak with Gary Forsee, CEO and Director of Sprint. You won't get to talk to him, but you will get to talk to someone who hast the power to say YES.

Read Chris's horror story, inside...

Chris writes:

You would think that value-driven choices, such as cheaper or more reliable network would lead the pack. Instead, it looks like people hate cellphone companies so much that, "to punish current provider" takes the lead.

This is a wakeup call, cellphone companies. Your customers hate you. — BEN POPKEN

Gawker Media polls require Javascript; if you're viewing this in an RSS reader, click through to view in your Javascript-enabled web browser.

— BEN POPKEN

After trying our method, Jut said:

"Finally on each call they gave me some type of hurdle that I couldn't bypass, like the need to have my original signed contract in hand, or that I needed to go into a brick-and-mortar store, or claiming the computers weren't working to pull up information they needed."

We've got your handy rebuttal right here.

Calm down, take a few breaths, request not to be interrupted, and read the following in your blandest tone...

"I have a few question and you will be provided with an opportunity to answer after I have stated my full thought" "You claim I entered into this contract orally over the phone. I wish to use the same method of contact for this cancellation. Forcing me to mail, fax, or come into the store with documentation or come in person seems to be a purposeful attempt to block my cancellation request. I expect you to honor my preferred method of contact in completing this cancellation. Will you accept my preferred method of contact and assist me?"

They are unlikely to say no. If they do, reference CTIA policy section 8:

"Provide ready access to customer service. — Customers will be provided a toll-free telephone number to access a carrier's customer service during normal business hours." "Additionally, your website provide a variety of contact methods. It says I can contact you directly via chat, email, phone or in person. I choose to use the this phone conversation to complete my cancellation request, will you assist me?" (Link is http://www.cingular.com/about/contact-us/contact-us.jsp)

Several people on Digg reported success using the original method. Some did it in one call lasting around 35 minutes. It is possible. — BEN POPKEN

Previously: Script For Escaping Cingular Contracts Without Fee, Based On New Arbitration Clause

Early termination fees suck. Here's step by step script for escaping your Cingular contract over the new arbitration clause, without paying a fee.

We've got :
• Script of step by step points to argue
• CEO's phone number
• Source documents for your reference
• A slew of Cingular corporate contacts
• A big picture of the Cingular "Jack" with a screw in his butt.

We're not sure if it will work but this information comes to us courtesy of a very disgruntled customer who says he used it to cancel his contract after 8 years of service. He writes...

[Photo: crmudgen23]

Note: You can also use this method to get out of your yearly contract and switch to a month-to-month.

STEPS

1. Go to the top/bottom/middle of your January bill. Note this section.

"NOTICE OF DISPUTE RESOLUTION AGREEMENT IN CONTRACT. We are pleased to advise you that Cingular has revised the ARBITRATION CLAUSE in our standard Wireless Service Agreement to make it even better for consumers. The revised arbitration clause can be found at www.cingular.com/disputeresolution. This revision is effective immediately."

2. Call Cingular customer service. 1-888-CINGULAR.

3. Say to the rep, "Can I ask you a question?"

4. They say, "Yes."

5. Refer to the text below. Ask, "Does this arbitration clause applies to me?"

"DISPUTE RESOLUTION BY BINDING ARBITRATION, Please read this carefully. It affects your rights."..."Any arbitration under this Agreement will take place on an individual basis; class arbitrations and class actions are not permitted."

6. Cingular will say yes.

7. Say, "I was also reading this section 7 in the CTIA policy found on your website."

8. Read this aloud:

"Provide customers the right to terminate service for changes to contract terms. Carriers will not modify the material terms of their subscribers' contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee."

9. Say to the rep:

"Losing my ability to be part of a class action lawsuit removes a legal right. Therefore, preventing me from being part of a class is an adverse effect. My bill says *This revision is effective immediately*. I was not provided a 14 day or greater period of time before this modification goes into effect. Therefore, the CTIA policy permits me to terminate service without an ETF due to the implementation of these changes."

10. If the rep argues that the arbitration change is not materially adverse, cite this:

"In Cunningham vs. Fleetwood Homes of Georgia, reported at page 611 of the third Federal Reporter, volume 253, the Eleventh Circuit Court of Appeals ruled that arbitration clauses are material terms to a contract.

(Cunningham v. Fleetwood Homes of Georgia, Inc., 253 F.3d, 611 (11th Cir. 2001))

(The case is available here
For extra reading material, see below:

[13]Magnuson-Moss's treatment of informal dispute resolution mechanism clauses in warranties is consistent with general contract law, in that arbitration clauses, like other kinds of forum selection clauses, are generally considered material terms under state law variants of the Uniform Commercial Code. See Coastal Indus., Inc. v. Automatic Steam Prods. Corp., 654 F.2d 375 (5th Cir.1981) (finding unilateral insertion of arbitration clause per se alteration of the contract under state law); General Instrument Corp. v. Tie Mfg., Inc., 517 F.Supp. 1231, 1234 (S.D.N.Y.1981) (finding forum selection clause materially alters contract for Connecticut corporation); Lorbrook Corp. v. G&T Industries, Inc., 162 A.D.2d 69, 562 N.Y.S.2d 978, 980 (1990) (discussing addition of forum selection term as material alteration to prior agreement); see also Michael A. Stiegal & Debra J. Williams, The Battle of the Forms: UCC Section 2-207, in PLI Commercial Law & Practice Course Handbook Series Order No. A4-4297 at 6 (1990) (stating that "[i]t is generally recognized that a 'forum selection' clause 'materially alters' a contract within the meaning of U.C.C. 2-207").

(To understand what a forum is go to http://en.wikipedia.org/wiki/Arbitration_clause)

"An arbitration clause is a commonly used clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside of the courts, and is therefore considered a kind of forum selection clause.")

10: Revel in your canceled contract.

11. Be sure to ask them to "note the account" for the cancellation, and secure some kind of confirmation/cancellation number. Wouldn't to go through all that work only to find a rep lied to you just to get you off the line.

12. If you're not quitting entirely, just switching from yearly to month-to-month, you can also ask for these codes to be added to your account:
Request transition to rate codes
• "NAG4" - "/NAT P 1000R UM2M" - It's 1000 rollover anytime minutes for $39.99. It does NOT include night/weekends, but for just $8.99 you can add them on 7pm-7am. You must add the feature from the web account, don't ask them to do it.
• "/200BONUSMINUTES" - If you've had a really nasty experience the system allows adding on as part of your (compensation) plan, 200 extra rollover mins every month.
• Ask to be added to a FAN (Foundation Account Number), tell them to find you one, hit the Fortune 500 list of companies if you need some suggestions. Percents off monthly bills are generally 10%-15%. If you get a FAN added to your account, you can get 10-30% off new equipment / accessories through business customer care. They have to ship it to you (stores are clueless/problematic).

13. Getting the run around to get paperwork, mail copies, or come to the store?

Calm down, take a few breaths and read this in a bland tone and request not to be interrupted:

"I have a few question and you will be provided with an opportunity to answer after I have stated my full thought" "You claim I entered into this contract orally over the phone. I wish to use the same method of contact for this cancellation. Forcing me to mail, fax, or come into the store with documentation or come in person seems to be a purposeful attempt to block my cancellation request. I expect you to honor my preferred method of contact in completing this cancellation. Will you accept my preferred method of contact and assist me?"

They are unlikely to say no. If they do, reference CTIA policy section 8:

"Provide ready access to customer service. — Customers will be provided a toll-free telephone number to access a carrier's customer service during normal business hours." "Additionally, your website provide a variety of contact methods. It says I can contact you directly via chat, email, phone or in person. I choose to use the this phone conversation to complete my cancellation request, will you assist me?" (Link is http://www.cingular.com/about/contact-us/contact-us.jsp)

LAST WORDS

* If they won't cancel the contract, escalate to a supervisor.
* If they say, "He/She's busy, can they call you back?" Ask to be put on hold, as they will probably never call you back.
* If the above doesn't get you anywhere, try pitching your case to the executive customer service team attached to CEO Stanley Sigman's office at 1-866-220-8446. Read this post to find out how executive customer service works.

Stanley T. Sigman - President, Chief Executive Officer
3051 Bienville Blvd
Ocean Springs, MS 39564
1-866-220-8446 - President's Office

* You could also try the corporate contacts listed in section D below. You'd be surprised what people will do to get a phone to stop ringing on their desk.
* Put on your warrior gaze. They don't let pussies escape their contract without paying an early termination fee, you gotta fight for it.
* If the rep tries to steer you away and point how awesome the new arbitration agreement is because they pay for your legal fees, or in anyway tries to reroute the conversation, just keep insisting on step 5. As many times as necessary.
* If one rep won't let you cancel, hang up and try again. You may get someone nice... or weaker.
* It took our original tipster 7 tries with calls lasting 45-60 minutes each before he successfully canceled without termination fee.

Good luck!

— BEN POPKEN

APPENDIX:
A: Notice of dispute resolution by binding arbitration
B: Sample bill
C: CTIA Code
D: Slew of Cingular Corporate Contacts

A: NOTICE OF DISPUTE RESOLUTION BY BINDING ARBITRATION

B: Sample Bill

C: SLEW OF CINGULAR CORPORATE CONTACTS

Need some extra numbers to call after trying customer service or 611 ??
About 35 direct numbers to people's desk and cellphones in the corporate offices. For an up-to-date list, go to
http://cingular.mediaroom.com/index.php?s=contacts

Letters to Cingular can be addressed to:

Cingular Wireless
5565 Glenridge Connector
Atlanta, GA 30342
Main phone number: 404-236-6000

Media Relations Contacts
National Contacts

Media relations planning and strategy, principal company spokesperson
Mark Siegel
Executive Director Media Relations
404-236-6312 (office)
404-374-2799 (wireless)
Email: mark.a.siegel@cingular.com

Corporate initiatives, marketing, sports-oriented sponsorships
(To apply for sponsorships, please go to www.cingular.com/sponsorship. Please do not email or call about applying for sponsorships as funding decisions are not made by public relations)
Clay Owen
Senior Director Media Relations
404.236.6153 (office)
404.538.0124 (wireless)
Email: clay.owen@cingular.com

Public policy initiatives, regulatory and legislative issues
Rochelle Cohen
Senior Director Media Relations
202-419-3007 (office)
202-341-5967 (wireless)
Email: rochelle.cohen@cingular.com

Consumer offers, handset/product initiatives, youth programs,
sponsorships (non-sports related)
Jennifer Bowcock
Director Media Relations
404-236-6319 (office)
404-213-1204 (wireless)
Email: jennifer.bowcock@cingular.com

or

Kelleigh Scott Beal
Manager, Media Relations
404-236-6321 (office)
404-285-0172 (wireless)
Email: kelleigh.scott@cingular.com

Business-to-business initiatives, industry analyst program
John Kampfe
Director Media Relations
973-637-9387 (office)
908-432-3473 (wireless)
Email: john.kampfe@cingular.com

Technology and network initiatives, industry analyst program
Ritch Blasi
Director Media Relations
973-637-9449 (office)
908-512-1760 (wireless)
Email: ritch.blasi@cingular.com

Hispanic and Diversity Public Relations
Maria Schnabel
Director, Hispanic Public Relations
404-236-6432 (office)
404-401-7477 (wireless)
Email: maria.schnabel@cingular.com

Regional Contacts
Please refer to specific states

Northeast Media Contacts

Maryland, Virginia, West Virginia, Washington D.C.
Alexa Kaufman
Director Regional Public Relations
301-489-3610 (office)
301-742-0888 (wireless)
Email: alexa.kaufman@cingular.com

Delaware, Eastern Pennsylvania, New Jersey, and New York City
Ellen Webner
Director Regional Public Relations
973-637-9357 (office)
201-532-7292 (wireless)
Email: ellen.webner@cingular.com

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont and Upstate New York
Kate MacKinnon
Director Regional Public Relations
781-690-5057 (office)
508-498-5547 (wireless)
kate.mackinnon@cingular.com

Northeast Regional Backup
Susan Ramsey
Director Regional Public Relations
973-637-9467 (office)
203-722-1145 (wireless)
Email: susan.ramsey@cingular.com

Southeast Media Contacts

Alabama, Georgia, Louisiana, Mississippi
Dawn Benton
Director, Regional Public Relations
404-236-5305 (office)
404-202-6335 (wireless)
Email: dawn.benton@cingular.com

Florida
Kelly Starling
Director, Regional Public Relations
561-775-4259 (office)
561-301-1414 (wireless)
Email: kelly.starling@cingular.com

Tennessee, Kentucky, North Carolina and South Carolina
Laurie Parker
Director, Regional Public Relations
615-221-3690 (office)
615-202-3463 (wireless)
Email: laurie.parker@cingular.com

Southeast Regional Back-up
Caroline Crowe
Director Regional Public Relations
678-867-4330 (office)
404-808-8254 (wireless)
Email: caroline.crowe@cingular.com

Central Media Contacts

Illinois, Iowa, Minnesota, Nebraska,
North Dakota, South Dakota, Wisconsin
Chris Comes
Director Regional Public Relations
847-765-3602 (office)
312-282-0539 (wireless)
Email: chris.comes@cingular.com

Kansas, Ohio, Western Pennsylvania,
Indiana, Missouri, and Michigan
Tara Traycoff
Director, Regional Public Relations
314-543-6435 (phone)
314-809-6112 (wireless)
Email: tara.traycoff@cingular.com

Arkansas, Oklahoma and Texas
Frank Merriman
Director Regional Public Relations
469.229.7613 (office)
214-538-3496 (wireless)
Email: frank.merriman@cingular.com

Central Region Backup
Meg Frainey
Director Regional Public Relations
469-229-7784 (office)
214-497-6072 (wireless)
Email: meg.frainey@cingular.com

West Media Contacts

Arizona, New Mexico, Northern California, and Reno
Lauren Garner
Director Regional Public Relations
Phone: 925-819-5362 (wireless)
Email: lauren.garner@cingular.com

Colorado, Idaho, Montana, Oregon, Utah, Washington, and Wyoming
Mike Broom
Director Regional Public Relations
425-580-7710 (office)
206-390-5993 (wireless)
Email: michael.broom@cingular.com

Greater Los Angeles, Las Vegas, San Diego, and Hawaii
Art Navarro
Director Regional Public Relations
562-468-6520 (office)
949-300-1329 (wireless)
Email: art.navarro@cingular.com

West Regional Back-up
Mike Broom
Director Regional Public Relations
425-580-7710 (office)
206-390-5993 (wireless)
Email: michael.broom@cingular.com

D: CTIA Consumer Code for Wireless Service
"Knowledge is power. Use it wisely."

Cingular is proud to announce its newest commitment to customer service and wireless quality—the adoption of the Cellular Telecommunications & Internet Association (CTIA) Consumer Code for Wireless Service. We are equally proud that Cingular was the first nationwide carrier that CTIA awarded the right to use the "Seal of Wireless Quality" in our advertising, store collateral, etc., since we were deemed to be in compliance with the Code.

On Sept. 9, 2003, Cingular joined forces with the CTIA and other wireless industry leaders to declare its support and implementation of the Consumer Code as a new voluntary standard for customer fulfillment. The Consumer Code defines 10 customer policies that are founded on three principles: (1) Provide consumers with information to help them make informed choices in selecting wireless service; (2) Help ensure that consumers understand their wireless service and rate plans; and (3) Continue to offer wireless services that meet consumers' needs. As part of the adoption of the Consumer Code, Cingular and each signatory of the Consumer Code will be able to display a new CTIA Seal of Wireless Quality Service.

"The Consumer Code for Wireless Service formalizes much of what Cingular has been doing for some time now, and we are pleased to announce that we already meet and, in some cases, exceed all principles of the code," says Cingular Chief Executive Officer Stan Sigman. "We will continue to improve customer communications efforts to ensure our customers are always well-informed, and to make certain we continue to provide wireless service that is the best fit for each of our customers."

To provide consumers with information to help them make informed choices when selecting wireless service, to help ensure that consumers understand their wireless service and rate plans, and to continue to provide wireless service that meets consumers' needs, the CTIA and the wireless carriers that are signatories below have developed the following Consumer Code. The carriers that are signatories to this Code have voluntarily adopted the principles, disclosures, and practices here for wireless service provided to individual consumers.
The wireless carriers that are signatories to this Code will:

1. Disclose rates and terms of service to consumers.
For each rate plan offered to new consumers, wireless carriers will make available to consumers in collateral or other disclosures at point of sale and on their Web sites, at least the following information, as applicable: (a) the calling area for the plan; (b) the monthly access fee or base charge; (c) the number of airtime minutes included in the plan; (d) any nights and weekend minutes included in the plan or other differing charges for different time periods and the time periods when nights and weekend minutes or other charges apply; (e) the charges for excess or additional minutes; (f) per-minute long distance charges or whether long distance is included in other rates; (g) per-minute roaming or off-network charges; (h) whether any additional taxes, fees or surcharges apply; (i) the amount or range of any such fees or surcharges that are collected and retained by the carrier; (j) whether a fixed-term contract is required and its duration; (k) any activation or initiation fee; and (l) any early termination fee that applies and the trial period during which no early termination fee will apply.

2. Make available maps showing where service is generally available.
Wireless carriers will make available at point of sale and on their Web sites maps depicting approximate voice service coverage applicable to each of their rate plans currently offered to consumers. To enable consumers to make comparisons among carriers, these maps will be generated using generally accepted methodologies and standards to depict the carrier's outdoor coverage. All such maps will contain an appropriate legend concerning limitations and/or variations in wireless coverage and map usage, including any geographic limitations on the availability of any services included in the rate plan. Wireless carriers will periodically update such maps as necessary to keep them reasonably current. If necessary to show the extent of service coverage available to customers from carriers' roaming partners, carriers will request and incorporate coverage maps from roaming partners that are generated using similar industry-accepted criteria, or if such information is not available, incorporate publicly available information regarding roaming partners' coverage areas.

3. Provide contract terms to customers and confirm changes in service.
When a customer initiates service with a wireless carrier or agrees to a change in service whereby the customer is bound to a contract extension, the carrier will provide or confirm the material terms and conditions of service with the subscriber.

4. Allow a trial period for new service.
When a customer initiates service with a wireless carrier, the customer will be informed of and given a period of not less than 14 days to try out the service. The carrier will not impose an early termination fee if the customer cancels service within this period, provided that the customer complies with applicable return and/or exchange policies. Other charges, including airtime usage, may still apply.

5. Provide specific disclosures in advertising.
In advertising of prices for wireless service or devices, wireless carriers will disclose material charges and conditions related to the advertised prices, including if applicable and to the extent the advertising medium reasonably allows: (a) activation or initiation fees; (b) monthly access fees or base charges; (c) any required contract term; (d) early termination fees; (e) the terms and conditions related to receiving a product or service for "free";(f) the times of any peak and off-peak calling periods; (g) whether different or additional charges apply for calls outside of the carrier's network or outside of designated calling areas; (h) for any rate plan advertised as "nationwide," (or using similar terms), the carrier will have available substantiation for this claim; (i) whether prices or benefits apply only for a limited time or promotional period and, if so, any different fees or charges to be paid for the remainder of the contract term; (ij) whether any additional taxes, fees or surcharges apply; and (j) the amount or range of any such fees or surcharges collected and retained by the carrier.

6. Separately identify carrier charges from taxes on billing statements.
On customers' bills, carriers will distinguish: (a) monthly charges for service and features, and other charges collected and retained by the carrier, from (b) taxes, fees and other charges collected by the carrier and remitted to federal state or local governments. Carriers will not label cost recovery fees or charges as taxes.

*** 7. Provide customers the right to terminate service for changes to contract terms.
Carriers will not modify the material terms of their subscribers' contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee.

8. Provide ready access to customer service.
Customers will be provided a toll-free telephone number to access a carrier's customer service during normal business hours. Customer service contact information will be provided to customers online and on billing statements. Each wireless carrier will provide information about how customers can contact the carrier in writing, by toll-free telephone number, via the Internet or otherwise with any inquiries or complaints, and this information will be included, at a minimum, on all billing statements, in written responses to customer inquiries and on carriers' Web sites. Each carrier will also make such contact information available, upon request, to any customer calling the carrier's customer service departments.

9. Promptly respond to consumer inquiries and complaints received from government agencies.
Wireless carriers will respond in writing to state or federal administrative agencies within 30 days of receiving written consumer complaints from any such agency.

10. Abide by policies for protection of customer privacy.
Each wireless carrier will abide by a policy regarding the privacy of customer information in accordance with applicable federal and state laws, and will make available to the public its privacy policy concerning information collected online