Calling Out T-Mobile report published by groups that allege false advertising, unfair debt collection methods

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Earlier this week, we learned that several consumer advocacy groups were planning to attack T-Mobile for alleged false advertising. Now a website dedicated to this cause has launched.

Calling Out T-Mobile is a site that’s largely backed by Change to Win, which identifies itself as a labor group that “seeks to strengthen consumer protections and workers’ rights as part of our efforts to rebuild the middle class.” The website lists a few “issues” with Magenta, like a deceptive marketing claim alleges that T-Mo’s equipment installment plan (EIP) is like a two-year contract in that if a customer wants to leave, they must then pay a lump sum that covers the remaining cost of the phone, even though T-Mobile advertises itself as offering “no annual contracts.” CtW also says that “customers may have to break their contract due to coverage problems, which can lead to significant financial penalty if the customer has an EIP.”

Change to Win goes on to call out T-Mobile’s early termination fee payments. T-Mobile says that it’ll pay ETFs and EIPs of consumers that switch, but CtW doesn’t like that customers must pay their switcher fees themselves and then get reimbursed with a prepaid Visa card. CtW says that it analyzed claims of T-Mo’s payments of ETFs and that it found those payments can take “significantly longer than the eight weeks the company claims in its fine print.”

Another complaint that CtW has with T-Mobile are its debt collection practices, arguing that they are “unfair” and that T-Mo will sometimes sends bills to collections with little to no notice, and often with incorrect info, too. Finally, CtW says that T-Mobile puts its customer care reps under “intense pressure” to meet metrics for things like average call duration and percentage of customer issues resolved. One T-Mobile call center employee is said to have told CtW “T-Mobile is the only place I have felt like a failure, the metrics are so unreachable. It is the only place where it feels like you have to bend the rules to make it.”

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As for why CtW is targeting T-Mobile, the group says that Magenta “has a higher total number of consumer complaints lodged with the Better Business Bureau than its larger competitors AT&T and Verizon. It also had a higher number of debt collection related complaints than its two larger competitors when adjusted for market share.” CtW research director Nell Geiser also said that her group is targeting T-Mobile because it has led the trend of no-contract services.

As I mentioned earlier this week, there are some things that T-Mobile could do to combat these claims, like make it more clear that consumers will have to pay a lump sum if they end service while on an EIP. However, there may also be some murky motives behind this Calling Out T-Mobile campaign. As PCMag’s Sascha Segan notes, Change to Win is aligned with Communications Workers of America, a group that’s working to help organize a worker union at T-Mobile US. Additionally, groups like the League of United Latin American Citizens and the Asian Pacific American Advocates, count AT&T and Verizon as corporate partners. Those are two of the six groups that’ve signed a letter to the Consumer Financial Protection Bureau in support of Change to Win’s Calling Out T-Mobile campaign.

T-Mobile hasn’t yet issued an official comment on Change to Win’s claims, and so far it doesn’t appear as though the Consumer Financial Protection Bureau has weighed in on the campaign. Additionally, New York Attorney General Eric Schneiderman hasn’t yet made any official statements on T-Mobile, despite recent claims that his office is investigating T-Mobile for running misleading advertising.

One person that has commented on this whole false advertising campaign is, unsurprisingly, John Legere. The T-Mo CEO sent out some Tweets in response to a recent USA Today story regarding the complaint being sent to the CFPB and Schneiderman’s potential investigation, calling the report “false and misleading” and saying that T-Mobile stands by its ads.

Source: Calling Out T-Mobile

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  • maximus1901

    My “favorite” argument by lefties: TMO’s debt collection (or whatever) policies disproportionately affect minorities so TMO is racist.

    By that logic apple is racist because its phone prices effectively discriminate against minorities.

    Of course if TMO makes a large enough contribution to the Rainbow Coalition… racism goes away.
    It’s like paying the Vatican to absolve you of your sins. Aka a racket.

    You lefties amuse me. A lot.

    • Shawn Philpot

      Please dont turn this into a political argument. I worked for T-Mobile and I will tell you that there are people on both sides who are dumb as s**t.
      And don’t use this as a forum to attack minorities.

      • maximus1901

        It’s the callingouttmo cried who made this political. I’m explaining what they’re doing.

        Where’s the attack on minorities?

      • maximus1901

        they involved minorities when they said “minorities are disproportionately affected”.
        idiot.

        • Shawn Philpot

          No one is feeling you. Go. Away.

        • maximus1901

          i hope no one is feeling me otherwise i’d call the police.

          anyway, go and complain to the instigators of this bs lawsuits for involving minorities and turning it political.

          are you feeling me? hope not.

        • maximus1901

          i hope no one is feeling me. otherwise i’d call the police.
          take your complaints to the people who involved minorities IN THE FIRST PLACE.

  • I find the whole of the claims a bunch of bunk. If people would READ the paperwork they sign when they sign up for the EIP it very clearly states if you cancel your service you have to pay the remaining balance on the equipment. It’s not TMOS fault if people don’t take the time to read before they sign or at the very least ask what would happen if they cancel service.

    All debt collection is unfair to those owing money. Here’s a tip, if you can’t afford it don’t sign up for it.

    You’re breaking a contract with another company and your complaint is TMO isn’t paying your ETF fast enough? Really? People are complaining about FREE money.. seriously? Give me a break.

    Of course this complaint is murky, only an idiot can’t see that AT&T and Verizon are mud slinging.. they just figured out a new way to do it.

  • Matthew M

    1) EIP

    The statement is bogus and stated in a way which makes average “Joe” think he or she is REALLY ripped of when cancelling the service. One might think that the huge sum of money one needs to pay as a payoff is a rip off – but it’s not!

    When an individual decides and agrees to buy a phone for $750 he or she should immediately pay upon checkout for the item. It’s beyond the scope to discuss the real value of the device/model/specs etc. It is a product, that Tmobile is stocking, available to buy at $750, period. Assuming the customer is unable to pay up front for the product, like it should be, Tmobile is kind enough to offer financing to most customers. No only the financing is INSTANT, available ANYTIME, with ZERO interest rate AND usually ZERO down payment (or first month only) to ALL devices! This is unbelievable deal to me! Just try to find a credit card or a bank giving you a loan, for 24 months, free of interest, with few questions asked, for most its customers in the amount close to a thousand dollars! No one will take that high risk. We MUST be grateful and thankful for such option. They will even ship the phone national-wide to your home free of charge! Not only the device depreciates on value every day, not only tmobile is taking a huge business risk (people die, don’t pay off, move out out of a country, don’t care, don’t pay etc and thousand different reasons)… and collection agencies are only willing to buy debt from Tmobile for pennies on a dollar. Meaning that if someone has a bill for $625 non paid Iincluding device EIP), Tmobile is likely to sell that for $200-215, meaning HUGE losses on a device, if that what was finances. This is unbelievable business practice and hopefully it will continue.

    Despite all the good EIP plan is offering, customers are still unaware that Tmobile is really giving them a good deal on financing. I can’t believe someone thinks that the payoff amount on their bill (final bill when cancelled ) is the eartly termination fee and tries to argue, complain and do harm to a carrier. One must be an idiot to think this way.

    Of course there are A LOT of details. Tmobile does make money on you when you pay your bill and remain customer. They do occasionally charge fees or restocking fee etc. They do offer expensive phones, but it’s customers choice to buy at their store or buy used from ebay and pay fraction of a price. Free market, free choices.

    Some people are idiots, arrogant and have too much free time!

    What do you think about EIP, financing and whether it’s right to call EIP payoff a scam and a penalty for cancelling service?

    Thanks

    • John Doe

      “Assuming the customer is unable to pay up front for the product, like it should be, Tmobile is kind enough to offer financing to most customers.”

      The problem is that T-mobile uses EIP to lock you in as a costumer for a set period of time which is 2 years just like a CONTRACT. They use the fact that you can’t afford to buy the $750 smartphone to keep you for 2 years and you can’t leave or else you have to pay the rest immediately like a ballon payment for a mortgage (except in this case your phone’s value most definitely decreases overtime unlike real-estate)

      T-Mobile DOES NOT give customers who want to leave the option of canceling their service but still keep paying their EIP (they could even add interest if you cancel your service) instead they ask you to pay immediately and if you don’t they sell it to a debt collector.

      T-mobile needs to separate EIPs from their Service plans. And they can do that because they are already a bank, its called Mobile Money.

      • JMccovery

        If someone left, and the EIP was still intact, what incentive is there for them to pay it off?

        People still have the old “free phone for a 2-year contract” mentality, yet they apply for financing on something they can’t afford.

        A lot of people complaining do not want to be forced to pay off something they agreed to.

        • John Doe

          They get sent to a debt collector if they dont keep paying the EIP.

        • JMccovery

          And it’s still a ding on your credit, which is one of the complaints…

        • John Doe

          No the complaint is that they get sent to a debt collector immediately if they don’t pay the full remaing blance but if T-Mobile gave them the option to just pay the EIP and they pay they wouldn’t be sent to a debt collector

      • XTMO EMPLOYEE

        The reason why they cannot charge interest or keep the payments available on a cancelled account is because they would then be considered a financial institution and would be required to follow all of the banking laws/rules and eip would get a very cumbersome.

        The two year contracts are what people are used to, if you give people too much change then they get freaked out, two years of payments just make sense. Not enough people pay more upfront or pay off a device early because why would they pay for it all now when they could pay for a little later. Just like our problems with credit cards in this country.

        The one thing I will say against Tmo in this case is that the claim is that they don’t make anyoney on the devices and you are paying the cost to build, and the reason they can offer such low rates is because they are no longer offering extremely deep discounts to lock people into contracts. The phone prices at full retail price have become bloated and way above what the technology is worth. I used to work for Tmo and was able to see the actual cost of devices and they are significantly less than the advertised full retail price.

        We need to bring the coat of phones down to real world pricing and stop letting technology companies widen the poverty gap.

        • John Doe

          T-Mobile is already a bank they have Mobile money. And they signed up themselves to be a financial institution when they started offering EIP.

        • MastarPete

          Of course there’s a big difference in MSRP vs what T-Mobile actually pays per device and its not just a price discrepancy with phones, _ALL_ of retail is like that. That’s why warehouse stores exist, they buy in bulk and rely on volume to make their money back because they don’t charge full MSRP.

          Cellphone prices wont ever come down so long as the carriers remain the only source for carrier-branded devices. It also does not help that the iphone is commanding such an over-inflated price that was only really possible when 2-year contracts were the norm which hid the real cost of phones. Android flagships at $500 and more exist in-part because of that. The technology used between any given phone lately is so homogenized that the manufacturers are relying on alternate materials to try and keep prices inflated. Metal unibody design, on a cellphone? Fuck that, stick with plastic and me better battery capacity instead.

          I liked when EIP was first introduced, you could actually see a cost benefit in not upgrading your phone every 2 years or by simply buying your phone outright or through a third-party vendor at a discount.

          ATT and VZW’s answer to EIP was an over-the-top payment. So not only were you still on a plan that included a subsidy, you end up paying more for the privilege, for little benefit at all and still not much cheaper than MSRP.

          If you really want to see phones prices drop, urge everyone you know to buy un-branded non-apple devices, from third party stores that sell them carrier unlocked.
          When enough people start buying what they can actually afford prices will come down.

    • Ascertion

      Yes, they are idiots. They trust the salesperson too much. The sales guy is going to say “Oh, by the way this stuff is no contract so there’s no ETF if you leave!” But they fail to mention the buyout price of the phone becomes due when cancelling service. Not to mention every billboard also states it. The problem would be remedied if T-Mobile just let customers continue paying off the phone after cancelling service. Having the total due during cancellation screams contract.

  • Johnnola504

    You have to be stupid to think that T Mobile is trying to pull a fast one. I’ve been treated like s@ht from both Sprint and Verizon. Sure there a big company, sure they’re in this business to make money, but I can’t see how you don’t understand what you’re getting into when you lease/rent a phone from T-Mobile.

  • gmo8492

    At&t and Verizon are behind it, I knew it.

    • Jose Mendoza

      Me too. I think that at&T, Verizon or both are also behind those data breaches that happened at Experian and for metropcs.

  • JMccovery

    “…customers may have to break their contract due to coverage problems, which can lead to significant financial penalty if the customer has an EIP.”

    That right there (along with the EIP complaints) goes to show that people do not read anything before signing up, nor do they do the necessary research before establishing service.

    Any and all groups/attorneys that basically make excuses for people being lazy, stupid or just looking to abuse the legal system should be ashamed of themselves.

    Why is this country devolving into a cesspool full of sorry people that don’t want to take responsibility for their actions?

    • John Doe

      Those are the SAME exact causes John Legere used to explain how the other carriers get you with contracts. “…people do not read anything before signing up, nor do they do the necessary research before establishing service.” then bam they are stuck with a 2 year contract or in this case a 2 year EIP and possibly a service that don’t not work.

  • J.J.

    as others have said. when leaving, how the f is paying off the rest of your phone, that you agreed to purchase, that was given to you with 0 interest a “financial penalty”. its sad that people/companies try to claim discrimination/bad practices and start a “movement” based on weak claims when all the while secretly trying to push their own bs agenda! then get a bunch of simpletons to follow. this country is in serious trouble.

  • vinnyjr

    I find it amazing that some people just want everything for nothing! You get the opportunity to buy a very expensive device at zero interest and if you leave it is a shock that beautiful device must be paid for. If you can’t afford to own it don’t buy it. I’ve never had any issues with T-Mobile, if you ask questions you get the answers. Thank You T-Mobile, Thank You John Legere.

    • Richard Roma

      Under the 2 year contract system. I could purchase a smartphone on a promotion for lets say $199. If I disconnected a month later, I paid a $200 fee. So all up. $400 out of pocket + tax.

      Under EIP, the same handset is charged MSRP. So to leave T-Mobile, I’ll have to pay $650 and up + tax.

      Who do you guys think this new EIP situation benefits? It basically passes the risk of handset purchases onto the customer instead of the carrier. How many people can afford to just pay $650 out of pocket to leave a carrier? Therefore, this effectively is a form of a contract.

      Just because these new plans benefit those who BYOD or buy a phone outright, doesn’t make this a better deal for the majority, who purchase a new handset every 2 years.

      Why is it a bad thing to receive some sort of perk if you commit to a carrier for a period of time? This is a farce that no other division of T-Mobile uses. Europe practically invented Sim-only plans, but still also offer subsidized handset plans and even better rates for 12 months Sim-Only plan in return for committing to a carrier for x period.

      • MastarPete

        I agree, T-Mobile’s phone pricing is terrible, no price breaks until phones are just about EOL, only zero down EIP offers. However your ETF example just makes it sound like you’re out to commit fraud and largely ignores the phone subsidy that is rolled into the monthly cost of service regardless of the phone you get. That subsidy takes the full 2 years of service into account, which is why only older accounts in good standing were allowed early upgrades, they want to have some idea that they’ll be able to recover the device subsidy.

        You’re exactly right in that EIPs benefit is mostly for T-Mobile if you’re not BYOD but at the same time it’s not like T-Mobile is taking back the phone that you bought AND charging you the remaining full price. That phone is still yours to do with as you please and if it’s new enough you should be able to easily sell it and make back some of the cost you paid to buy it, especially if you get it carrier unlocked. Or, thanks to the US carriers having deployed LTE you can simply switch carriers and keep using the same phone. The only downside to keeping the phone is that no other carrier offers discounted rates if you BYOD so if you don’t get a new device you’d be paying a subsidy for a device you never claim.

        If you look at the cellphone industry as a whole It’s largely a closed market where the cost of the phone is hidden because it’s the carriers putting up the money to buy them. Carriers are the primary source to get a new phone if you you want full network compatibility. Carriers primarily compete on service and hardly compete when it comes to phone pricing. So you can thank the carriers for the $500+ flagship phones we have today that only exist because cost isn’t directly dictated by consumers.

        If you’ve never looked at unlocked phones over the years, even back when
        they were just feature-phones, they were still expensive. I bought a
        Motorola V635 (flip feature-phone) back in like 2005, the thing was $235
        carrier unlocked. Had T-Mobile actually offered that model it might have
        only been $50 with a 2 year contract but they didn’t so I had to pay
        full MSRP to an importer.

        So yeah, no one is telling you to buy your new, 100% T-Mobile network compatible phone, directly from T-Mobile but it’s pretty expensive not to.
        There really isn’t much you can do to get around the fact that new flagship phones have $600+ price tags.

  • besweeet

    All seemingly valid points. However, like others have mentioned, everything (I think) was disclosed before anything was signed.

    • John Doe

      But that is the same with contracts: “everything (I think) was disclosed before anything was signed.” Does that make contracts okay? Should T-mobile bring them back?

      • besweeet

        I don’t see why they wouldn’t be okay. Agree to the terms, or go elsewhere.

  • Bradley Karas

    There’s no penalty you have TO PAY FOR THE PHONE THE PHONE IS NOT FREE. Is common sense dead?????

    • John Doe

      You signed up for an installment plan. You expect to keep on paying that installment plan like any other financial institution.

      Imagine you signed up for a 2 year loan at chase and signed up for their checking account then canceled it after a year and they asked you to pay the rest of the loan immediately because you canceled your checking account.

      • John doe2

        So if you stop paying on a car and they come and repo it you think they will allow you to continue to make your payments. NO they won’t the bank will auction it for less than what you owe then send you a large bill you owe right then . So your theory about “all finicial institutions ” is plain wrong .this is all how the real world works

        • John Doe

          Your analogy does not make sense. In my analogy you are still paying for the loan you just canceled the checking account.

          In T-Mobiles case you are still paying for the phone you just don’t want the service anymore.

        • Bradley Karas

          Look at his spelling and grammar! Tells the whole story LOL

        • Bradley Karas

          This is the type of idiocy I am talking about!!!

      • JJCommonSense

        Tmobile is not a financial institution, number one. They are offering the payment plans as a convenience to their customers. ITS IN THE AGREEMENT THAT YOU SIGN, that, in order for you to enjoy this convenience you must maintain service with them. If you cancel your service, you cancel the benefit of free financing and owe the balance. It’s not that hard to understand. Do you expect to be able yo use a Chase ATM for free after you close your account with them? NO! So your point is moot.

        • John Doe

          T-Mobile is a financial institution they offer debt cards and financing like any bank out there. And second contracts are ALSO an agreement that you sign but they are bad and EIP that lock you in for 2 years and if you leave you have to pay the full balance right away is not bad? The remaining balance can even be higher than termination fees for contracts.

          That chase analogy makes NO sense.

          You are not getting a free phone you will still pay for the phone just not the service instead of being referred to a debt collector right away if you don’t pay the full balance.

        • JJCommonSense

          The problem with your response is the sense of entitlement.It is disclosed in the agreement WHAT YOU ARE AGREEING TO.. no one is forcing you to sign it. You can pay full price and never have to be worried about an EIP or EFT should you cancel your service. Now with regards to being INSTANTLY referred to a collections agency when you cancel, that would be a problem if it is found to be true. I havent been in the situation so i cant say for sure but im sure they send you a final bill and give u a due date for when payment needs to be received. It shouldnt be a surprise since you signed the agreement and they give you a copy of it. They dont OWE you to keep billing you, and incurring the servicing costs that it entails, after you voluntarily terminate their relationship with them. You are no longer a valued customer, so they dont owe you the same courtesy that they would give an active customer.

          As for the EFT… the problem, for the consumer, is that once youve fulfilled your 2 year agreement, and you keep your same service without upgrading your device, youre still paying for the cost of the device in your plan. The costs of these devices are what they are.. theres very little margin on iphones.. so if you get a “free” and cancel your service the next day, youre walking with having paid $350 for a device that costs the carrier much more. So i dont see why the other carriers are complaining about.

        • John Doe

          What other carriers are complaining? These are customers complaining.

          And thank you for proving that contracts are just as bad as EIPs especially if you also get T-Mobiles Jump program which T-Mobile has been found guilty of adding it to customers plans without asking them.

          The point is that T-Mobile needs to stop advertising it self as the hero that is saving you from contracts when you end up in the same shitty situation as with contracts.

        • JJCommonSense

          Just as bad.. for who? Again..YOU MAKE NO SENSE.. if you dont want to sign something pay the $800 for your device and walk out the store! Are they really consumer complaints? Because this is an organization that has ties to the competition…. if there are sales people that add jump to your device without your knowledge (even though you get a copy of what u sign when u walk out the door) thats a problem with the sales people…… tmobile has been doing this for years now and faced the same “complaints ” when they first started.. and resolved them at that time. This is nothing more than a smear campaign… what tmobile is doing with EIP is no different than what the other carriers are doing. So if it wasnt a bogus smear campaign they would be going after the industry as a whole and not one carrier.

        • guest

          I’m T-Mobile customer, I’m not complaining.
          Maybe you should try T-Mobile, unlock and bring your phone. No contracts, you can leave whenever you want.

      • JJCommonSense

        You sign up for an installment agreement that has conditions… you agree to the conditions when you sign the agreement. If you dont like the terms and conditions DONT SIGN THE AGREEMENT. If you want a loan for your phone that is free of service conditions, put it on a credit card and dont agree to the TERMS AND CONDITIONS of the installment agreement at the store! The other carriers do the exact same thing yet only Tmobile is targeted.

        • John Doe

          But that is what the complaints are about that the EIP are just like contracts.

          THEY ARE ALMOST THE SAME EXACT THING.

          Except in this case “termination fee” is replaced with “EIP balance”.

          Everything that you said in your comments can be said on contracts so what makes contracts any different from what T-Mobile is doing?

        • guest

          If you don’t want that pay for your phone in full or bring your own phone.

          That is not a service contract, that is for the phone you are getting.

          Hello!

        • John Doe

          No sorry it is not a service contract…it is a phone contract that is tied to your service.

        • guest

          When you want to get the phone. Right?

        • JJCommonSense

          Now this I agree with you 100%. An installment agreement is a purchase contract… Tmobile changed the structure of their agreements with the customer and the industry followed suit. That still doesnt make it shady because theyre requiring you to pay off your phone if you terminate your service. If they were required to keep billing you when u no longer have service with them they would lose money.. it costs to send statements, process payments, track your balance, maintain support staff.. and theyre not charging you any interest. Again.. if you dont want to be tied to a carrier buy your phone outright. If you want to make payments Put it on your credit card and pay the applicable interest. Dont be stuck on stupid and sign an agree to something you dont understand. No one is forcing you to do anything…

        • John Doe

          They could AT LEAST let you keep paying the EIP with interest so you wouldn’t be forced to pay it right away and T-Mobile doesn’t lose money but T-Mobile isn’t the consumer friendly company its made out to be they are just as bad as the others.

        • JJCommonSense

          They could do anything but they dont have to, and the agreement that YOU SIGN does not require them to..

        • John Doe

          Yeah thank for that where were you during the mortgage crisis you would have saved us a lot of time and money *sarcasam*

        • JJCommonSense

          Well lets see.. I wasn’t signing any adjustable rate mortgage agreements or buying a home that I couldn’t afford. (Sorry no sarcasm there). The banks and consumers share responsibility for that mess. You, alone, are responsible for the “shock and awe” of having to pay the balance on your device upon cancellation because on every ad, price tag, and agreement that Ive seen or signed with TMobile has spelled it out for me, rather plainly, that the balance of the device becomes due upon cancellation of the service. If youre not comfortable with that, DONT AGREE TO IT!.. just like with your mortgage… if you sign an adjustable rate mortgage agreement, you are recognizing that your apr may fluctuate based on market conditions. That doesnt make me comfortable so i wont sign one. Sure i may pay a higher out the door interest rate on a fixed rate loan but thats a choice that I make for peace of mind. T-mobile, and the rest of the carriers, are offering to allow you to pay for your device in installments as a benefit of maintaining your wireless service with them. You cancel the service you lose the benefit.. flat out. It isnt a trick.. ITS A CHOICE! People like you will 8itch and complain about everything. You complain because your free phone comes with a 2 year agreement with an EFT, you complain because your purchase agreement has service conditions…. SO DONT DO EITHER AND BUY YOUR DEVICE OUTRIGHT and move the hell on! Oh but wait, then you’ll be complaining about the TRUE PRICE of your device… GTFOH!

        • John Doe

          Well I am glad that my attorney general is investigating it and I am glad that I voted for him :p

        • Jeremy Turnley

          Not really. An EIP, you can buy a cheaper phone and get lower buy-out. A contract, the buy-out is only based on the time left on your term. So if you buy a $200 phone on two year installments, you will owe $100 after a year, but on a VZW contract you will owe $300.

      • JJCommonSense

        You shouldnt EXPECT anything other than what you AGREED TO.. read your terms and conditions. No one is responsible for your stupidity but you

        • guest

          But I’m too lazy to read… it is not fair.

          I’m just kidding.

    • gpt2010

      It shows the lack of people’s common sense with the complaints of payments of the EIP. You have to pay to have service. That is how it works. No one is forcing you to buy a premium phone that you can’t really afford. Get something that works under your budget. When you can’t pay for that equipment, guess what? That company is not going to write it off as bad debt without trying everything to get their equipment or money back. Problems with EIP go away when you make your payments on time. If you can’t make your payments on time, just call TMO and they will work with you. Like most companies that offer service of some sort.

    • No, not dead, just awfully uncommon these days.

      • Bradley Karas

        I blame Obama!!!

  • NOMERCY

    Which ad(s) are allegedly deceptive?

  • race4life

    I am currently with ATT and I might just switch to T Mobile just because of this bogus claim.

  • Carlos-H

    Correct me if I am wrong but I see from BBB.org website, Verizon has the most complains recorded for the last 3 years, then Sprint, then T-mobile. So if my assumptions is correct, why are they saying T-mobile is evil?

  • Stephanie Haney

    As a current tmo employee of almost 8 years, I can assure you I, and my team and my center are always allowed and encouraged to do the right thing. Policy is a guideline, and we can work with people based on their history with tmo as a company. Yes, there are metrics to meet. There are rules with every company. Those rules change based on customer feedback, and customers have told us they don’t want to have to call back, so yes, it is tracked. If you are unhappy with your job, or your service, there are always options. Take advantage of one of them.

  • What’s the use when words mean nothing anymore, but feelings dictate everything? Black is white and magenta is blue if one feels like it. It’s like arguing with a parrot.

  • Paul

    Really?

    The EIP was easy to understand, “pay for the device in increments until
    it’s paid off…then it’s yours!”

    I’ve been
    late a few years ago and never had an issue with a collection agency. My buddy
    has called and let them know he was going to be late, and they didn’t even
    charge him a late fee.

    Weird, I know.

  • Mo

    Some people are Stupid, Stupid, Stupid. The world must be full of assholes that can’t read, don’t listen or simply have an entitlement mentality. I really really want a new iPhone but know that my budget is tight (disabled). Rather than over extend myself or not be able to keep my obligation to pay for it – I went to Craigslist and picked up a second hand iPhone. Yes it older but it works fine even though it has some dings and scratches-importantly though it’s within my means. T-Mobile make it very clear that if you end service you have to pay up for the equipment you agreed to purchase. If like me you can’t afford the new shiny iphone -even with a no interest payment plan – simply don’t buy it. Do the responsible thing and get a lower cost alternative within your means. It’s pretty simple!

    • Chris

      People like us who have common sense isn’t so common anymore.

      Living within our means is always been the mantra of living.
      It’s not just phones – cars, houses, tvs, clothes, etc.

      I’ve seen people take out loans on a Benz with a high interest. I mean come on, buy a $1,500 car from craigslist. Point of the car is to get people from point A to point B.

      This is the same thing happening with phones. People are putting it on installment and then couldn’t afford it. Point of a phone is to call / text – communicate.

  • Fabian Cortez

    The organization behind this is the same organization that was for the AT&T and T-Mobile merger.

    These types of shenanigans usually occur when people and companies tend to be doing well.

    No surprises here.

  • JJCommonSense

    Completely bogus! Why are they “targeting” T-Mobile when both ATT and VERIZON, and even Sprint, are engaging in the very same business practices! This is nothing but the Big Blue Bully and the Redrum death star trying to stifle competition! They should be fined for such antics! It says on every freaking advertisement that “the balance of your device will become due if you cancel your service” same thing that the other companies advertise. If your service sucks, you have 14 days to return and cancel. I am so OVER these other lame ass companies who push their weight around to try to hurt other companies.. but who ends up getting hurt? THE CONSUMER! This is nothing but greedy capitalism at its WORST!

  • Steven Rash

    My biggest takeaway is that the CWA has a hand in this. I don’t trust those guys. These are the same people that somehow got an entire database of T-Mobile employees’ addresses during the AT&T acquisition time – and even VISITED SOME OF THEIR HOUSES.

  • guest

    The unions are coming!
    No need for common sense.
    The end justifies the means.

    Things like these give unions a bad name. And that is sad.

  • John123

    I’m pretty sure none of you heard of their Lifetime Coverage Guarantee for customers who are on Jump On Demand. Basically if you buy one of the top flagship devices are not satisfied with service/coverage after 30 days, 1. You will receive a refund for the current months service and 2. You will get your phone unlocked AND continue making payments on your device while not being a T-Mobile customer anymore.

    This launched back in September.
    https://newsroom.t-mobile.com/news/company-news/lifetime-coverage-guarantee.htm

    -T-Mobile Rep

  • mOe

    Is it me just thinking that this is an inner city, minority movement lead by a “Union” that will further rip off the poor and take the majority of any settlement money as their prize. Will this “Union” give a crap about these people once they find that there’s no deception or false advertising going on.

    • Shawn Philpot

      You know minorities don’t make up a large part of unions, right?

      Take that somewhere else.

      • JJCommonSense

        Right.. his comment doesnt even make any sense.. the freaking article tells you whose behind this “movement”.. some people cant help but to inject ther racist political views into everything!

      • mOe

        Not according to a 2012 UCLA study. In 2012, African Americans had the highest unionization rates. Whites had the second highest unionization rates followed by Asians and Latino. The reality is that monirities make up more than 3/4 of all Union membership. Not racist rhetoric here just stating the facts.

        • Shawn Philpot

          Two things:

          1) remove state employees and tell me if the number is the same (its not).

          2) I’m done with this topic.

    • guest

      I don’t think it is a movement coming from regular people, I think it is the union heads trying to stir things up.
      I mean they have to do something other than processing union fees,

  • pseudoswede

    CWA = Can’t Work Any less

    That’s all you need to know.

  • jim hoch

    BTW: the contact for the website it Mattew Painter who previosly was

    Assistant Director of CommunicationsSEIU Local 32BJ2009 – 2011 (2 years)
    Just a union smear job.

  • DILAW IDDAHLA

    I am sure there are more customer complaints now , than before.

  • David

    like election, this group and website is probably backed and financed by the evil duo to sabotage tmo.

    • Android_God

      WOW!! Please continue…

      • guest

        I don’t think that’s the case, but remember these unions were in favor of the merger.
        Talk about looking out for the consumers.

      • guest

        But they coming out swinging and in a concerted kinda way makes you wonder, doesn’t it?

      • Jeremy Turnley

        Gotta admit, them specifically picking on one carrier when all of them follow pretty much the same practices with installment plans is a little on the fishy side.

      • nps_ca

        In a perfect world the CWA has had NO issues with Verizon and AT&T – no such thing in reality though. TMO may not be union but Verizon and AT&T do no favors to CWA workers. Lots of jobs that were run internal to both carriers have gone to outside groups. The CWA counts at both are much lower and with landlines becoming less relevant the counts will go lower. TMO is an easy “blame on them” target – the Duopoly of AT&T and Verizon NEVER has the unions interest in mind and this is something CWA and other pro labor groups forget. I’m not anti-union, I’m just a realist – AT&T and Verizon would love to lower headcount further on in house union staff – this has NOTHING to do with TMO’s strategies and more to do with lowering labor costs. Doesn’t mean they go against the union – it means the draw down numbers of in house staff and depend more on 3rd parties like Alcatel Lucent, Nokia Siemens Networks and tower co-lo partners like Crown Castle. Easy to scapegoat an anti-union competitor then to challenge the management at YOUR union company.

  • Jordan

    What bothers me is what idiots people are, and how entitled people think they are, thinking that just because they don’t want service they don’t feel the need to pay for the phones they bought from t-mobile. They don’t do contracts anymore, it’s an installment plan. The verbiage is different, yes, concept pretty much the same. But still different entities. You’re agreeing to paying for the phone over a course of X amount of months. If you choose to cancel service, you still have to fulfill the agreement of paying X amount of payments to own the phone. When you cancel, the remaining balance is due in full. Plain and simple, clear as day. Anybody with a functioning brain stem can understand that.

    T-Mobile isn’t doing anything wrong or deceptive at all, and they are transparent when it comes to purchasing devices and upgrading on EIP. It’s really not hard to understand. And if you have problems with that, then you should have considered your financial situation before you bought the phone and stop blaming others when really, the only problem in the equation is you failing to be able to pay your bills. Period.

    And about the bullshit claims about putting the reps under intense pressure to meet certain metrics like average handle time and frequency of resolved calls, literally every god damn call center has those EXACT same metrics. They are called something else in every center, but measured in the same way. If you’re a rep working at a call center and feel like a failure, feel like you’re under too much pressure to meet said metrics, then find another job, because obviously you’re doing that one wrong. Plain and fucking simple.

    • IamTwone

      Ive been with tmobile 2 years now the only thing i dont like is. If they are so no contract why cant i just walk in and buy a phone full price. If you go into the store there always a extra $50-$100 if you want to buy outright with no installments or ive been told by corporate stores that they dont sell phones without service. Even though I have financed phones and paid them off quickly i dont see the value over contract. When you just have to pay max $200-$300 upfront and then at most pay $325 if you canceled service and that went down every month. So we went from paying $600-$700 to now paying $800-$900.

      • Tmo1082

        If you are on a postpaid plan the price of the phone is the same on EIP or buying out right. If you are on prepaid plan T-Mobile does charge a little more on high end phones. You do have to have T-Mobile service to get a phone from a T-Mobile store.

        • IamTwone

          Yea but if there no contract why is service required. Why Charge more ive been in tmobile stores where customers wanted to buy there family members phones for christmas, and tmobile wanted to charger them an extra $100-$200 per phone. Because he didnt want service. And as a customer who has great and can have 10 lines of service and 5 data devices. I have people that arent my family on my line account and they want to purchase a tmobile phone outright from tmobile they cant there forced to give me the money to purchased it. & i know its soppost to be but here in NJ they even with an account they try and force you into jump when you want to pay in full to the phone, to the point ive been turned down with a good account or have to get the store manager to do it.

        • guest

          The full retail prices of the phones are clearly stated.
          If you don’t get service you’re not getting promotional discounts.
          If you don’t like that you can buy a T-Mobile phone from Best buy or Walmart; bring your compatible phone or get an unlocked compatible phone.
          You know, prepaid providers are giving phones for free, if you get service of course, how dare they, if you want to complaint to them I’ll give you some names: Boost, Cricket, Metro…

        • IamTwone

          I know i have tmobile service, but where the value for the customer. You say promotional discounts, but going back like 2 yrs ago you could get a galaxy s4 for free during the holidays with a 2yr contract and still be paying about $99 a month for unlimited data now its $95 plus the phone. From a customer standpoint you have to wait for deals like me i got a Note 4 for $400 new thru tmobile because i traded in a iphone 5s that staples & radioshack was giving away for 1 cent with contract. It cost me 15 days worth of service on AT&T.

        • guest

          That is a pricing issue, nothing to do with the “false advertising” claims.

        • Fabian Cortez

          No service contracts.

          And please provide proof that T-Mobile charges more for a device if someone wanted to simply purchase a device without service.

        • lzdking

          You can buy any GSM phone directly from the manufacturer and bring it over to T-Mobile.

        • Chris

          They are a wireless network company – not a cellphone store.
          Good God.

          If you want a cell phone unlocked, buy it directly from manufacturer, or best buy or amazon or any other electronics retailer.

      • guest

        As Tmo1082 said, that is not the case.

        Maybe you should really try T-Mobile, you gonna like it.

      • Chris

        You actually can. Just tell the you’re getting that phone and you won’t be putting it on EIP. I’ve done it before I started buying phones outside of TMO.

        Or, put it on EIP, then on next month bill, pay the EIP off. that’s pretty much the same thing as buying it outright (only a month later).

        “ive been told by corporate stores that they dont sell phones without service”

        They are not a cellphone store, they are wireless network corporate store that happens to provide cellphones that work on their network to their customers. Big difference.

  • temp

    My “favorite” argument by lefties: TMO’s debt collection (or whatever) policies disproportionately affect minorities so TMO is racist.

    By that logic apple is racist because its phone prices effectively discriminate against minorities.

    Of course if TMO makes a large enough contribution to the Rainbow Coalition… racism goes away.
    It’s like paying the Vatican to absolve you of your sins. Aka a racket.

    You lefties amuse me. A lot.

    • guest

      You just re-posted that.

      To the rest I say don’t just read this article, also check the other links Alex provided, like the one from PCMag, and maybe promote those.

    • Jeremy Turnley

      What does that even have to do with left vs right? It definitely leads me to think you have an underabundance of education and no grasp whatsoever of politics beyond what someone on some radio show tells you.

      • guest

        Or that he/she is trying some sort of divide and conquer.

        No need to make this a political issue, just use your common sense and follow the money trail: union fees, union heads, AT&T, maybe some gifts…

    • Green is the Game

      The Name of the Game is Green, that is, the Only color T-mobile and other companies see is Green. As a result of increased Green (profits), T-mobile growth benefits all who decides (optional) to sign-up for their services! Otherwise, each of are free to seek service with other wireless carriers…

  • Jonathan S. Flores

    you can even have a zero plan, take it to another carrier and pay for the phone, just the phone monthly, we wil also let you put insurance on it.. lolz .. probably if there is any people behind it, they are the ones that come to the store after two months of not paying their bill to why their phone is not working.

  • Matt

    All large companies do shystery things. T-Mobile isn’t immune.

    • Well Said…

      Well said, Well said…

  • Brandon C. Foreman

    This is ridiculous. I came to T-Mobile as soon as they became the uncarrier from Sprint so I know what an etf is. The difference is when I was with Sprint and I bought a handset up front or off Craigslist my bill never reflected ownership of the phone. With T-Mobile I am able to choose to increase my bill by financing a phone through them or buy my phone outright. If you cancel your service you are free to leave but still have to pay off your phone as you should. If you want a true no contract experience, buy your phone outright…

  • Submitted my complaint…

    Tmo initially owed me $50 because I left halfway thru the month and the statement said it’d be sent within 2 months. 2 months later I got a notice from a collection agency saying I hadn’t PAID $50 to Tmo. Called Tmo, said it’s because they never received the return of their Personal Cellspot router and anything owed after 8 weeks is sent to collections so since my account was closed 8 weeks prior, even though they initially _owed me_ a credit, with the $100 fee for non-return of the router it was considered an overdue amount that I owed them. I had to pay this amount immediately so it wouldn’t be “reported to the credit bureau”.

    I used the shipping label they provided me to send the Cellspot back. Luckily I kept a copy of it, tracking # said delivered to them. I called and provided the tracking number and was told since it had been returned they would issue me a credit.

    It took a total of four more phone calls and a total of SIX MONTHS to get my money back.

    Turns out someone at the return facility had filled out the form incorrectly when the Cellspot was received. Coincidentally, someone filled out the form to correct that form incorrectly. Then several people had resubmitted the messed up form so it continued to be denied each time I called to follow up. Finally someone who knew what they were doing filled out the form correctly and a week later I finally got my refund.

    I find it ironic Tmo sends me to collections without ANY prior notice, yet when they sent me statements monthly for 4 months saying I had a credit on my account they would not send me the money without me continually having to follow up for a total of 6 months.

    This all stemmed from the fact I decided to return the router (even though I liked it and wanted to keep it) because when I called to see how much it’d be to just keep it they couldn’t give me a firm answer, just said the fee could be up to a GRAND. Ended up being just $100 which I gladly would’ve paid to keep it…

  • Let’s be Open and Honest

    I work for T-Mobile and I can’t disagree more. The metrics are tough at times, but never unreachable or unrealistic. I am really big on reading internal policies and the reason I love T-Mobile so much is how it makes so much sense why we do things the way we do. I don’t think T-Mobile has any policy that is maliciously anti-consumer.

    Lots of customers unfortunately don’t read their bills or check T-Mobile.com or use the myT-Mobile smartphone app and I think are so used to having to argue or shout with customer service from other companies that whenever they have a concern or confusion about a charge, they yell and scream and hang up and call back and get pretty abusive.

    We take it though because it’s not personal, we know they’re frustrated and we want to help them, but when folks simply transfer their number to another carrier because their phone was acting up and they never took the time to call in and let us know, what can we do?

    A customer has a phone financed with no interest and it’s now locked because they cancelled without paying it off first, and now want to use it with another carrier? You don’t want T-Mobile’s business but you want T-Mobile to finance a phone with no interest for you to use at a competitor? That doesn’t really make any business sense.

    A customer wants to cancel and is upset that their Galaxy Note Edge has an unpaid balance of a few hundred dollars. You signed up for a high end luxury smartphone, even while T-Mobile offers more affordable handsets. T-Mobile can’t just write off the balance on the phone.

    A customer transfers to another carrier due to coverage issues, but never called Technical Support to discover that maybe all they needed was a new SIM card. What can we do here?

    The screen on your phone cracked and you opted out of insurance on your phone and you’re angry or you are upset that the insurance on your phone, just like car or medical insurance, involves a deductible. The insurance offers waived warranty exchange shipping fees. If you can’t see the value of insuring your tech investment, that’s out of our hands.

    You had a payment arrangement that failed and you were charged reconnection fees, even after you have failed various payment arrangements in the past and have had reconnection fees waived. Put yourself in T-Mobile’s shoes regarding this scenario. Maybe T-Mobile prepaid is a better option for you. That’s why T-Mo has prepaid, it’s better for some customers and their financial situation.

    T-Mobile eliminated 2 year contracts. T-Mobile lets you stream music and video from premium providers like Netflix, Hulu Plus, Spotify, Google Play Music All Access, and Pandora without counting against your data plan. T-Mobile offers unlimited data. T-Mobile has done so much to disrupt the industry and it’s because we LOVE our customers and we LOVE technology and we LOVE how a smartphone and a tablet and a smartwatch can enrich your life and make it easier to get work or school work done and stay connected with friends and family. We get excited about new Android and Apple phones, we get excited when we have new rate plans that smoke the competition. We’re customers who pay our phone bill, too. We all want to make sure we’re consumer advocates and that we offer a compelling service experience that competes with Verizon and At&t for substantially less money.

    PLEASE, PLEASE, PLEASE let T-Mobile know when you have an issue or confusion with your bill, or if you want to see how to lower your rate plan or if your phone is not working as expected. We just need to know you need help to help you! Do it. Call 611. Let us know how we can better serve you. Do it. DO IT.

    http://www.t-mobile.com/Templates/Popup.aspx?PAsset=Ftr_Ftr_TermsAndConditions&print=true

    These are T-Mobile’s terms and conditions that are effective as of November 14th, 2015. There’s nothing to hide, and nothing deceptive.

    • Zer0.exe

      Beautiful piece, man. I couldn’t agree more. I work phones for Verizon and we get a lot of the same types of calls with the insurance nonsense and whatnot. People will jump ship SOOOO easily when it’s financially irresponsible to do so, especially considering their logic is unreasonably bad and they will run in to the same problem on ANY of the other carriers.

  • MastarPete

    Would be amazing if this group went after the root of the problem instead of attacking the bark of the tree. If anything they should get the FTC to look at the cellphone industry as a whole for the price fixing of handsets which gets easily hidden behind subsidies and device payment plans.

    IMO the real crime here is that carriers remain the dominant source for cellphones that are guaranteed to work on their network. Which means there’s no real price competition on the phones themselves, they all more or less sell them for MSRP.

    The technology exists to make ONE cellphone model that is capable of working on all carriers in the US. Phones exist that already are capable of connecting on any US network but are blocked via software, I’m not just talking about carrier SIM locking.

    Remove the carrier imposed connectivity restrictions like “I’m a special snowflake” only my variant can connect to my network and we just might see real price competition when stores are able to sell carrier neutral phones. Potentially enough that EIP like programs wont be necessary.

    If I can go out and buy my own cable modem, and use it with any cable internet provider in the US, then why shouldn’t cellphones be the same.

  • steven berson

    What a bunch of morons. If you get a phone on a eip you have to pay whats owed. Before carriers were charging more on rate plans to discount your phone. Even after the 2 years or if you bought your own phone the monthly bill would still be the same. These dumba** should go after Comcast and ATT.

  • ZxyLady

    I just wanted to add something, I have 9, yes, 9 lines- 3 smart watches, 1 tablet, and 5 smartphones. And of those, 2 smart watches and 3 phones are financed on EIP. With all of the times I have financed phones and tablets, the T-MOBILE staff always, I mean ALWAYS state very clearly the conditions of financing anything. Even though I have payed off 6 phones, 2 tablets through T-Mobile’s EIP, they still always make sure I understand what I am expected to pay for. This is definitely a smear campaign. Can’t T-Mobile claim defamation or something? If there are people stupid enough to not understand the concept of EIP, or even PAYING for what you receive, ,won’t some people believe the crap this “union” is spewing? …

  • ronjon400

    does anyone else think this is a retaliation from the other 3 companies serving cell phone coverage? i think so. john legere has worked hard to get the customers in his corner (myself included) and i know those 3 are taking it in the tailpipe some thru revenue loss.

    ~~my status is:
    bought and paid for 3 iPhones thru EIP(so far flawless experience). Two more phones are still on EIP and we owe less than $200 because of overpaying some. We have 5 lines and a corp. discount and my bill is about $120 aside from the EIP’s. Including the EIP’s our bill is about $185. And that is almost…..almost exactly HALF what i was paying Verizon for 4 lines with 15GB of data (back in the droid razor maxx days) of course that was a “BUCKET” so, like me, if you have one data hog in the family 15GB can go literally overnight. Just about every other month i would have overages to pay for, 1GB at a time (bend-over) Verizon was good, but eff that bill every month. i used to have a honda $140/month and $400 verizon bill. now i have a BMW and a $120 T-Mobile bill. Just because you have money doesn’t mean you have to spend it by making poor decisions. Like my dad used to say, “My money looks better in MY pocket, rather than someone else’s”
    **At no time have i felt cheated, overcharged, or mistreated by T-Mobile or their employees and i have utmost respect for John Legere.**

  • Chris G

    I think AT&T is far more deceptive when it comes to devices. AT&T charges anywhere from $50-100 for a comparable Android device on T-Mobile. Note 5 for example is $80 more (700 vs 780) expensive on AT&T, even though they are the exact same phone. Who is tricking who?

  • DStudio

    I knew there was something fishy about these groups’ names when the first article appeared here recently.

    Don’t waste your time arguing these points – this is nothing more than Union propaganda. They have absolutely no interest whatsoever in the truth or appropriateness of their claims. All they want is to get their way.

    Whether or not you’re pro-union, this behavior is despicable.

    • SatanicSponge

      Because they’re from a union, it’s defacto “propaganda”? If they’re wrong, prove it. Dispute the sources and calculations from their report. I’ll be waiting…

      • DStudio

        I must have hit a nerve.

      • Zer0.exe

        From the article “However, there may also be some murky motives behind this Calling Out T-Mobile campaign. As PCMag’s Sascha Segan notes, Change to Win is aligned with Communications Workers of America, a group that’s working to help organize a worker union at T-Mobile US. Additionally, groups like the League of United Latin American Citizens and the Asian Pacific American Advocates, count AT&T and Verizon as corporate partners. Those are two of the six groups that’ve signed a letter to the Consumer Financial Protection Bureau in support of Change to Win’s Calling Out T-Mobile campaign.”
        MIC DROPPED

  • steveb944
  • Seanjeep

    Tmobile has enough clear disclosure about EIP when signing up, the fault lays on the consumers for not reading it.. Its quite clear you are walking away with a 600$ loan so I fail to see what the complaint is.

    The sad part about this post that no one seems to talk about, is the reps in the call center and their call quota and stress involved. No one should feel like they have to bend rules to meet a quota or goal. That and truly taking care of a customers needs via a call may take some time. Its nothing that should be rushed through. Take care of your people and they in turn will take good care of the customers!

    • (J²)

      I truly agree with you but in the country we live in, the tiniest things will be exploited. Plus, the economy is fueled by consumer spending not consumer debt. The customers will always win in situations like this.

      First of all, service and devices were never bundled. In exchange for a 2 year commitment, carrier provided customers with subsidized phones. Unfortunately, since Verizon and AT&T have always been the industry leaders, it has led customers believe that phone subsidies equal higher service cost (as if this theory was actually in the contract).

      Instead of the traditional 2 year contract, T-Mobile has introduces Equipment Installment Plans (or EIP) which does away with the subsidy.

      Either way, both are still contracts and when a customer leaves prior to the contract being fulfilled, the balance becomes due immediately. If I spent $199.99 on an iPhone 6s and cancelled the contract, I would have paid $549.99. Unfortunately, with an EIP you’d owe $649.99 for that same device plus taxes on the full retail price rather than the subsidized price. Also, the ETF’s become lower every month on a traditional 2 year agreement but with a EIP, that is not the case.
      EIP’s are much more harmful to customers who decide to leave.

      T-Mobile is no more of a “No Contract” carrier than the other 3 major players. I think T-Mobile simply needs to allow customers to leave and continue paying on their devices in installments rather than sending the account of to collections.

      That is why T-Mobile is under fire. I personally never thought EIP’s balanced out to be any better after weighing the pros/cons.

      • Zer0.exe

        “Also, the ETF’s become lower every month on a traditional 2 year agreement but with a EIP, that is not the case.”
        FALSE
        You pay EIPs monthly, so every month your buy-out price decreases by exactly 1/24th of the total cost of the phone. Research helps when you want to sound smart ;)

        • (J²)

          Sounds like you are confused…

          The EIP decreases because you’ve made a payment the ETF decreases because you’ve remained a customer for another month.

          Not exactly the same concept. It’s paying with commitment versus paying with money -.-

          Might want to be careful on where you conduct your research. Doesn’t require too much research for those of us who have direct experience :)

        • Zer0.exe

          *You’re the confused one here. ETFs are Carrier insurance to keep you part of their company. While yes you pay with “commitment” to lower the ETF, it doesn’t change the fact that your EIP balance is decreasing monthly (at a directly proportional rate of what you pay to what you owe still). Also, contract monthly rates take into account that you’re also partly paying for the subsidied phone behind the scenes. You don’t NEED to sign an EIP to have Tmo service either. If you’re the type that buys phones outright (like a nexus), you can leave carriers whenever you want, since EIPs are JUST for buying phones, not service. EIPs are much more transparent and consumer friendly, regardless of what angle you look at it from.

        • (J²)

          You are not making a valid point.

          Yes, a contract is designed to keep both parties together. It’s not accidental.

          If you didn’t know, you can actually use unlocked phones with all 4 major carriers (Sprint has limits) meaning there’s no contract required.

          What research are you doing? You just try to give a know-it-all response with no facts or experience.

          Kindly go find another place to troll. You have no valid argument just slightly different view points.

        • Zer0.exe

          My point is that EIP is not a SERVICE contract, it’s an agreement to pay for your phone over time. I’m also stating that it is more consumer friendly as it is more transparent and upfront about what you’re actually paying for. As for “Research”, I’ve read all the terms of service for Tmobile since I have them. I work for Verizon, so I HAVE to know how their policies work. As a sidenote, I wasn’t saying you couldn’t use unlocked phones on other carriers. However, (at least until very recently), you would still need a service contract to use their service at all, whether you BYOD or not. Unlocked phones on tmobile do NOT require a contract of any kind, EIP or otherwise.

        • (J²)

          I never said an EIP was a service contract. I said that both contracts are essentially for the phone and to guarantee your commitment as you mentioned. I pointed out that neither was a service contract despite what people chose to believe. Yes, it may technically be a service contract to a Verizon rep but that’s where the deception begins. It’s simply an industry practice.

          As far as cost goes, it has the potential to be worse on customers who opt to cancel when compared to a traditional 2 year contract.

          I think your missing the point, the whole complaint is based on false advertisement. That completely disregards what may be in the fine print or what industry practices may be. I’m not flat out disagreeing but I’m arguing both sides not just one. Since you work for a carrier clearly we will not agree. You are not looking at it from a customers point of view. So argument dismissed.

        • Zer0.exe

          Dismiss all you want, it doesn’t change the fact that Tmobile advertised “no SERVICE contracts”, which EIPs don’t fall under. I do agree that it’s difficult for a customer who wants to leave and pay off the remaining balance, but why would one finance a ferrari if they can only afford a honda civic? Also, it’s a bit unreasonable to expect Tmobile to continue financing your device INTEREST FREE while you use it on a competitor.

        • (J²)

          T-Mobile inconsistently advertises “No Service Contracts”. Most of the time they simply state “No Contracts” which an EIP would fall under. Even when those terms are not stated, how many times has T-Mobile said it doesn’t trap customers? Again, I’m not stating that customers should be excused from reading the fine print or the terms and conditions but T-Mobile makes the complaint easy with the inconsistencies.

          T-Mobile does allow customers to continue to pay off their phone after unlocking it via Jump On Demand (assuming the purchase option is explored) interest free as long as it meets the criteria for their “Coverage Guarantee”. Again, this is another inconsistency. There’s so many promotions, policies and inconsistencies that even T-Mobile employees don’t know it all, even at a corporate level – Check the BBB if you need proof of this. T-Mobile should allow all customers (not just some) to leave when they wish and continue to make their installment payments to continue to please its customers and squash the complaint raised.

          After all, T-Mobile is just going to write off the debt if the customer doesn’t pay – it’s truly a loss for T-Mobile. If T-Mobile continued to allow former customers to make installment payments on their devices to complete the contract both parties would be happy.

          I’m arguing the consumer’s side and you are arguing the business’ side. Neither opinion is wrong, Don’t take it personally… While we may understand the terms and know the ins/outs, plenty of people do not and that’s what I’m arguing. The only reason I’m pointing it out is because may people are turning a blind eye to the situation (just look at all of the dismissive comments).

        • David

          It’s not a contract, it’s s payment plan. If you can’t keep up your end of the bargain… There is no extra fee attached. Just finish paying what you owe. You’re not bound to the service. You can leave when you want.

        • (J²)

          David,

          A payment plan is a contract.

          You’ve clearly one of those that clearly dismissing an opposing viewpoint. Well no flpping duh, you are 100% correct BUT that’s NOT the argument being made.

  • MingZhang

    It will worked much better if the instore/on the phone reps knew what they’re doing. I been charged 115 more for 3 new jump on demand phone with 2 trade ins, which the rep told me should cost me like 15-17 top for the 2 I trade in, and the 3rd without the trade in should have $7 credit per months… I have to fight with the lady on the phone, even tho I had called a month before and the rep told me should be resolved this months with the extra credit for last month too… But not only it didn’t, I ended up paying 10$ more for then last months, which is 105 more… Sigh!

  • Jason Crumbley

    Sounds like a lot of nitpicking to me.