T-Mobile being targeted by several groups for alleged false advertising

johnlegereuncarrier

The same day that T-Mobile was named to Ad Age’s 2015 Marketer A-List, it’s been discovered that Magenta is being targeted for alleged false advertising.

New York Attorney General Eric Schneiderman is looking to complaints that T-Mobile’s ads are misleading. Schneiderman has yet to offer an official statement on the matter, and spokesman Eric Soufer declined to share any comment due to “ongoing” investigations. However, USA Today says that Schneiderman’s office isn’t the only one targeting T-Mobile because of its advertising.

A letter accusing T-Mobile of “deceptive marketing and abusive debt collection practices” has been sent to the Consumer Financial Protection Bureau, says USA Today. The letter says that T-Mobile’s equipment installment plans, which spread the cost of a phone out over 24 months, contradict T-Mobile’s ads that say that customers can change carriers at any time. The CFBP complaint also says that if a customer ends their EIP before paying their phone off, they may be referred to a debt collection agency “with little or no notice.”

Meanwhile, Change to Win is asking that T-Mobile stop “using the misleading language around no contracts” and that it “stop claiming that it pays customers’ early termination fees.” Change to Win plans to complain to the FCC. And then there’s Color of Change, a group that says T-Mobile “tell customers one thing and they give them something completely different.” Rashad Robinson, Change of Color’s executive director, added that “our main concern is the bait-and-switch.”

T-Mobile spokeswoman Annie Garrigan did not comment on the USA Today report. John Legere did, though, with the CEO saying that the report has a “ridiculous headline to sensationalize un-seen claims.”

While many of us understand how T-Mobile’s EIP works, headlines and reports like these could give would-be T-Mo switchers some pause. These groups appear to feel that T-Mobile advertises itself as having no contracts, but that T-Mobile doesn’t make it clear enough that customers that get their phone for $0 down and $29 per month (or whatever their phone’s monthly payment is) are just spreading out the full cost of the phone and that they’ll have to pay the balance if they end their EIP early. T-Mobile does mention this on device pages, but it seems that these groups feel that those statements aren’t clear enough. Perhaps T-Mobile could better explain that if you cancel your EIP, you’ll need to pay it off all at once.

It remains to be seen how T-Mobile will respond to these claims, but with so many groups targeting Magenta, it probably wouldn’t hurt to make some sort of response beyond John Legere’s Tweet.

Source: USA Today

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  • UMadBruh

    On the T-Mobile site, for example, an iPhone 6s clearly states: “$649.99 full retail price. $0 upfront + $27/mo x 24 months. If you cancel wireless service, remaining balance on phone becomes due.”

    Not sure how else you can explain things. If you can’t read or possess basic math skills, maybe phones are not for you.

    • lomsha

      This, simple logic.

    • dcmtnbkr

      Having worked for banks and insurance companies for 8 years, one thing is abundantly clear; nobody reads a damn thing and it’s always someone else’s fault that they didn’t…

      • I lost count of how many I’ve met thinking phones are free. People really thinks they don’t have to pay remaining balance when they cancel service.

        The majority of people out there still thinks they’ve only paid $99 for their iPhone with Verizon.

    • StevenM

      Exactly. It’s a loan. How is this different from buying a car or home? You pay until you don’t owe a balance.

      They’re nice enough to offer 0%–that’s enough for me to be happy. After all of these frivolous complaints, these companies will decide enough is enough and you’ll have to pony up $700 for a new Galaxy or find your own financing.

      I can just hear it now: “Oh, you don’t have $700? There’s a finance company next door. They’ll loan you the money at 18% interest. 18% interest?!?!?! Yes, we stopped offering 0% loans because people are too stupid to understand a simple loan with 24 equal payments. Sorry.”

      • J.J.

        yea i love it. i usually put $200 down on eip. sell phone after a year and after paying off eip with profit have about $200 left over to put on new phone and do it all over. works great for me.

      • 21stNow

        Then let the frivolous complaints continue! I’d love to see carriers get out of the business of selling phones and acting as loan centers. Just sell cellular service!

  • dodo

    i am a frontline employee in the northeast…i tell every customer that it is not a contract but it is a binding agreement..and you the customer agrees to pay off their phone in 24 months or earlier, and that if they cancel service that they are billed the remaining costs of the device.

    I may tell the customer everything all the time, but I do know that I do not bait or switch anyone…every customer knows exactly everything because thats how I work. Unlike all other frontline sales associates that refuse to let the customer know anything just to make a sale.

    • ColdFeet

      I’ve always hated the term “frontline” when it comes to employees. It makes me think that you’re going into battle with the customer. T-Mobile needs to change the way they refer to their call center and store staffs.

      • Jaz

        “Frontline” is the correct term IMO, I do battle with customers all day long LOL. I work tech support for T-Mobile, I get people yelling and bitching about their phone/service all day long, they want credits for non T-Mobile related issues like their E-Mail not working or they think their ex is spying on them and hacking their phone and I have to sit there and listen to all their crap and life problems. The biggest issue doing tech support is probably replacement phones, I always get a couple people every week that refuse to replace their phone with a refurbished phone and I have to explain to them that is the only option. They argue and fight like they think they’ll eventually win and get a new phone or something…..nope. People don’t understand we’re just the middle man, we support the manufacturer warranty. The manufacturers supply the replacement refurbed phones and sometimes the refurb phones do suck. Bottom line, only replace a phone when you’ve done every possible step to try and fix the issue and you’re sure it’s a hardware issue.

        • ColdFeet

          Oh, I know. Been there, done that. I worked in the Albuquerque call center about ten years ago. But even then, I didn’t like that term. It’s not like I’m trying to be “PC” or anything… I generally have an “I hate everyone” attitude. Lol. But I always felt that it was, in a way, disrespectful to the customers.

          Yeah, off topic, but for some reason, I was recently thinking about that. Maybe because I was having problems with a new phone I bought and was expecting the worst when I went back into the store to exchange it. Remember to be nice… it’s NOT the sales guys fault! Haha

    • I’m the first to defend T-Mobile, but “it’s not a contract but it is a binding agreement” irks me because looking up the word “contract” consistently brings up the definition of a “binding agreement.”

      That’s almost as troublesome as John Legere saying T-Mobile doesn’t charge activation fees like ‘the other carriers’ do, yet charges $15 for a SIM card kit even when you don’t need one.

      • 21stNow

        Yes, I agree. This is definitely saying “it is not a contract, but it is a contract”. It is not a service contract, but it is a financing contract if you select EIP. That’s the whole point of the complaint: changing the words does not change the effect on the customer.

  • Bradley Karas

    Are you kidding me? Really? You owe for the phone it’s not free…of course that isn’t gonna stop idiots from trying to find an angle to get something for free

    • Daniel Marchand

      It was great for buying and selling phones back in the day… People Had that attitude I only paid $49 [on contract] for the phone sure I’ll take $10 (phone was worth like $250 used…)

  • The usual shakedown by the idiocracy that this nation turned into.

    • PC_Tool

      This.

  • Trevnerdio

    T-Mobile gave me a FREE phone and wouldn’t just let me walk away…UGH what a shitty company, bunch of liars! /s

    • John Doe

      no but they can let you keep paying just for the phone after you leave not refer you to a debt collector right away.

  • Sushimane

    These groups are ridiculous it clearly there. How much clearer do they want?

  • gorilla

    I thought false advertisement was with the unlimited music and video streaming with the barely visible asterisk must be with a 3gb plan or higher.

    • Daniel Marchand

      Only video, music is for all.

  • SEBA

    Good! If someone wants to switch carriers, You should be able to keep the phone and make your remaining payments for device only. Not device and service or return the device to tmobile. That’s real no contract. What’s the difference between contract for service or contract for device? None!

    • Daniel Marchand

      If you do JOD you Could just turn the phone in and split at least.

    • Paul

      Pay off the phone and you’re golden. Otherwise, there’s no contact of service.

      • SEBA

        That’s the same if you would pay off for the service for 24 months and you’re golden.

        • Paul

          No no no, you don’t keep the service after 24 months. You keto the phone though.
          Not the same thing.

    • Bradley Karas

      They do let you do that! My mom is doing it right now

    • Jay J. Blanco

      Tmobile makes there business very clear when you want a phone. They run your credit then tell you your options. Upon getting the phone you get a lease contract to pay for the phone. Don’t like it??? Return it in 7 days no problems. Want to leave tmobile they make it clear you will have to pay off the phone. You can’t return the phone you can keep it.

      Also you can just make payments on the device through a collection company… once you cancel service your no longer a tmobile customer.

      There is a big difference between device and service contract.

      When you sign a service contract you are agreeing to pay for service for 12 to 24 months.

      With device contract you are paying for the device only not service… your agreeing to pay for the device by signing the agreement. Please do your homework before throwing allegations you can be sued for defamation.

  • matt

    how about there unlimited high speed lol when you go over what they call normal usage you get throttled or they call it prioritize I have called each month for the last 5 or 6 months now complying each month that I pay extra for unlimited but when I use it I get my speed cut down so far that I can’t even load a email that should be false advertising

    • Paul

      No, that’s not how it works. You’re only prioritized if you’re a heavy user.

    • Tj

      Unlimited and Speeds are not the same thing. You still have unlimited data just at a reduced speed if you are a heavy user.

    • steveb944

      How about reading terms next time before you sign up? Just like this lot arguing about false advertising, read the terms.

    • PC_Tool

      5 or 6 months?

      …and you haven’t switched carriers?

      I … don’t believe you.

  • Bklynman

    Doesn’t the other big 3 no longer have contacts either? Do they? If they don’t how do they word there payment plans? Using the smae words,no down payment,paid over 24 months,at $25.00 amonth,if you leave you own us the rest? Something to that affect?
    How is that different from TMO?

  • Paul

    Pay the balance in full and leave. No problem.
    Under service contacts you can’t leave, unless you pay a termination fee plus a month or so’s billing.

    So not exactly misleading.

    Site says pay the monthly payments on the phone, but if you terminate service the balance is due. No false advertising, service isn’t under contract.

    • 21stNow

      The reality to a customer’s wallet is the same under both the EIP and ETF scenarios, depending on the actual amounts of the phone and ETF in question. That is causing the issue here: saying that T-Mobile is different when the financial effects are very similar.

      A customer would still have to pay T-Mobile “a month or so’s billing”, as well, if he leaves because T-Mobile doesn’t adjust the last month’s service fee on a pro rata basis for most customers.

  • philyew

    Having entered into three EIPs now, I think it’s perfectly clear about the outstanding payment falling due if service is cancelled.

    You have to have stopped listening after someone said “no contract” to miss the obligation you are entering into.

    That said, I do think that TM could take a different approach, if they didn’t want to use the the outstanding EIP as a de facto contract. Why not have an EIP agreement allowing the original term of the agreement to be honored (ie repayment over 24 months) , but with an interest penalty added if the term is completed without service?

    It really is disingenuous to claim that the EIP does not operate with the effect of an ETF at the moment, regardless of the fact that the commitment is transparent. In fact, it could be argued that it is more effective than the old tapering $200 ETF, when you consider that many phones still have $300-400 outstanding entering the second year of the EIP.

    Much of what is said in these reports is spurious, but TM could still do better.

    • 21stNow

      Good to “see” you Phil!

      • philyew

        And you too! I don’t stop by here too often now. TM has made such progress over the last couple of years and smartphone technology is so much better (other than still only getting 4 hours active use from each battery charge) that it’s become a greatly reduced priority for me. Hope everything is good with you!

  • DILAW IDDAHLA

    Whoever came up with the eip/jod/phone lease at T-Mobile is a true genius that was thinking of of the box and I really mean that. In my opinion, companies want the customer to sign a contract to stay with them and a lease does that. However, as we all know the old contract used to force the customer to pay a penalty ($200 or $300) and return the device in some cases or pay for the device. In these lease contacts, you simply pay off the phone that’s yours. I think T-Mobile will win and they should. I would love to knows how much is T-Mobile buying the phones from Samsung, LG, HTC, Apple, etc. I personally don’t think they are selling the phones for the same price they are buying them and that’s how they make money

    • Jason Crumbley

      It’s not a lease. At the end of a lease, you have to give whatever you’re leasing back. This is basically an interest free loan.

      • DILAW IDDAHLA

        No it’s a lease, just like a car lease. Plus, you have the option to pay 6 more payments and the phone is yours after the 18 months

        • Daniel

          EIP is not a lease, but Jump on Demand is…Lease to buy if you want actually.

        • DILAW IDDAHLA

          You are correct

        • DILAW IDDAHLA

          True

        • Jason Crumbley

          That’s not how T-Mobile’s deal works. The entire cost of the phone is split up over 24 months. On top of that, you probably aren’t going to keep the phone that long anyway, because you can upgrade pretty much whenever you want.

  • dtam

    what a bunch of effing morons wasting everyones time.

  • GinaDee

    I think the point that the AG of NY is trying to make is this:

    A few years ago if you decided to break your contract you’d be billed $175 or $200 and you were done.

    Now that “contracts,” are gone if you decide to leave you can’t just turn in your phone and walk away. You have to buy the device out and can be liable for almost $1,000 per device in some cases all at once. Yes you do sign for it but that kind of bill will cause heart failure in most people. Imagine if it applied to 2, 3 or more lines and you’ll understand how quickly this can escalate.

    T-Mobile has a separate plan for iPhones called the Lifetime Coverage Guarantee. This is different than the EIP they offer to customers. In this scenario the customer can walk away after 18 months of lease payments and turn in their device without further penalty OR they can leave early, get their iPhone unlocked and take it to another carrier. In this situation the customer is allowed to change their lease into an EIP and continue to make monthly installment payments until the phone is paid off.

    T-Mobile’s biggest issue isn’t their product offerings in my opinion. It’s their employees. Most of them (including their supervisors) are clueless to their own offerings and promotions. This was never more evident than during the last iPhone 6s launch. Both customer service and retail store employees would often give misinformation to customers in reference to placing orders, applying promotional discounts and handling returns. I know because I had to go through a nightmare with care and retail trying to apply the Lifetime Coverage Guarantee on my iPhone lease.

    • Acdc1a

      Nope. Since the smart phone revolution the fees were upped to $350 per line. Consider that people were paying $200 for the phone up front and more for their monthly service it works out in the end to be about the same…except for those of us who don’t finance our phones.

  • gmo8492

    Wow they consider what T-Mobile is doing false advertising?! Then they obviously haven’t taken a look at Sprint…Lol.

  • JTrip

    You left out part of the complaint where apparently T-Moble’s terms have immunity to white people and only effect the black and Latino people. I’m not even kidding. Read the full complaint.

    • Steve R.

      What does this comment even mean?

      • steven berson

        He was drunk while typing.

        • JTrip

          Okay.

      • JTrip

        From the original report:

        “T-Mobile spokeswoman Annie Garrigan did not comment on the USA Today
        report. “They tell customers one thing and they give them something
        completely different”, said Robinson, who said the practice unfairly
        targets people of color, including black people and people of Latin
        American descent.”

        • Angel

          Well this here doesn’t say that white have immunity. More like the people of color have priority in the lies line. XD This line was made just to add a sense of racism and make things worse. Which is not true by the way, since I know of over a dozen latins that didn’t had a problem at T-Mo or where lie to. Now, there might a a store with a racist prick working, tarnishing the company name. There is always one of those in EVERY company. IF there is one doing this sort of things, then I hope he/she get notice and fired soon. :-) There are many nice people looking for jobs right now.

        • JTrip

          “This line was made just to add a sense of racism and make things worse.”
          It is trying to make things worse from the Color of Change group, but this part of the article is being censored out by many sites that are reposting the USA Today’s article probably for PC reasons. People need to understand some of what Legere is tweeting back about. PC belongs in the garbage right next to censorship.

        • Angel

          Oh I get what you’re saying, true. I actually had to google what you typed to see where you got those like, because it wasn’t on this article. Read the USA Todays. I don’t understand why they wouldn’t comment on this part too. They should have point it out.

          Also, PC? (I work with computers among other electronic) So can only see it as a computer term.

        • Acdc1a

          They aren’t accusing people in the store of being racist but even worse than that. They are implying that minorities aren’t capable of reading what they sign and are “being taken advantage of.”

        • Angel

          Though of that the first time I read it. Was like “Are you implying that color people are stupid?!?!?!?!” Then I was, maybe I’m just been defensive ’cause of a bad mood. But nope, it’s definitely there.

          I mean because of the latin american would be understandable since there are some that aren’t that good with english.(no offense intended, just personal experience) But about ‘black people’ assuming they meant african-american, wouldn’t make sense. So basically Robinson is insinuating that ‘black people’ are dumb. Can’t be, he himself is part of that minority so he wouldn’t call himself dumb, well he could be arrogant and think himself superior compare to the other minority. But I really think he just use that line to add wood to the fire. Help the report/new reach farther.

          (probably with something like, “I didn’t say they where dumb, that’s what T-mo think” wile there are no real news to back that up so those are HIS words, not T-mo)

  • JBrowne1012

    The only thing I could agree with regarding this is the mislead on paying etf’s. Account bill credit doesn’t really suffice as such in my opinion.

    • david

      You get a visa card in the mail if you do it correctly

    • Angel

      My aunt got a visa with the money on it. She used it to pay her cable, gas and buy clothes among other things.

  • howieLXIX

    “… those statements aren’t clear enough”? Because people are dumb and can’t read? I was taught to read the fine print prior to agreeing to any arrangement. The fact that people are too lazy… or dumb… to review the terms, or simply scroll a few lines down on the Web page, or LISTEN TO/ASK A SALES ASSOCIATE REGARDING THE TERMS is ridiculous. Too many whiney people that want to blame others for their problems and too dumb to take TWO EXTRA SECONDS to review the conditions.

    “Oh, so I’m going to cancel my service after two weeks and keep this $700 smartphone without someone wanting me to pay for it.” STOP BREATHING ALREADY!

    • Angel

      Couldn’t agree more.

    • Acdc1a

      Because no one can bother to read a FINANCE AGREEMENT. I guess if they put it on the American Express, they’d blame AmEx when they decided to switch carriers.

    • PC_Tool

      You don’t even ened to read the print.

      Honestly…

      How stupid are these people and why are we protecting them??

  • Angel

    “False advertisement” and “Misleading” really? I have a few brain dead acquaintances and even they got how it worked before switching. They are very clear when you are gonna take a phone, that you MUST PAY FOR IT if you want to keep it. You either pay full price up front or in installment, even with Jump on demand. Which is obvious to say the least. You can’t expect to be with them for a month walk out and keep the $600 phone even thou you only paid a month. Either return it or pay for it.

    Also their services doesn’t require you to get one of their phone you can bring yours unlocked, or buy a cheap T-Mo prepaid phone at walmart or bestbuy (would be cheaper than buying it from them, like HTC Desire, $170 they, $100 Bestbuy) And they’ll be okay with it.

    While this reports are. They could prevent potential customer from changing believing they’ll have to deal with the same BS of other carriers contract. These false accusations damage potential profits and image. I honestly hope they sue someone for this.

    Those who didn’t get it, didn’t educated them self before trying to get a $700 smartphone for free, sign papers without knowing what they’re signing. Those should be the one accuse of false advertisement. Pretending to be fully functional adults and contributing members of society. When they clearly need supervision. There is no excuse for not educating yourself. And if you can’t because you are really old, or simply can’t get this sort of thin, then ask someone that do. I understand that not everyone got a chance for proper education. But they could always ask for help.

    Saying this not because there’s a chance for it to be misleading. But some people just….. Well, took my grams years to stop fighting about having to turn on an extra thing to watch TV (converter box) even thou we explain many times. We got her a new TV. lol

  • Derrick

    I am thinking they might be referring to the commercials that are on tv. Switch to tmobile, no contracts, we’ll buy you out your current contact. Now on those commercials it does say balance due on phone if service is cancelled early but you don’t notice it at the bottom when there are flashing lights. We understand this whole thing but we all have to put ourselves in the mind of the average consumer who aren’t techy people. They are going to see things for what they are. So seeing that commercial and going to the store they are going to want what thr commercial says. So thrm having to sign phone agreements for 24 months in their eyes is a contact hence cancelling early results in paying 500+

    • Acdc1a

      Lame. So what you’re saying is when you take an auto loan you’re tied to that auto maker for the term of the loan? Nope, pay off the car and onto the next one. No different.

    • Agreement/Contract

      Well stated, it is an agreement….otherwise know as a contract. Yes, we have the option to buy off the device earlier without penalty…but it is a contract.

    • Mike

      Your sales rep at T-Mobile will let you know when u sign up to finance a phone that your phone balance is in full is due if u cancel service. If u decide to turn in or leave your a leased or financed car , house , or whatever your owe balanced is of course still owed and will be referred to collections or worse.

  • Erick121

    Equipment plans is necessary a contract if you wanna switch companies you have to pay off the rest of your phone (termination fee) I been with tmobile for 10 years I don’t see why I have to pay 650 for a phone now when I was used to paying 200 since I know two years from now I’ll be with tmobile

    • J.J.

      huh, first paying off the phone is not a termination fee, you are simply completing payments the phone you were given at 0% interest that you now own and can sell for profit. secondly yes you have to pay $650 for a phone now because they have always cost $650 you were just previously tricked into thinking you got a deal at $200 down because they just added that $450 difference into your bill.

    • Erik

      No carrier is going to give a $600-$900 phone for $1-$200. That’s just crazy. That’s why it’s a contract. The payments for the phone isn’t itemized in the bill. That’s why there is a higher line cost when someone was on a contract. The rest of the line cost is for the device within the 2 hears. Now when there is payments for the devices, the line price is $15-$25 lower than contract plans. Does that make sense?

    • Golbez352

      Think back to the old data plans there was a reason they charged $20 for 1gb back on classic plans. The $440 was built into the bill.

  • Acdc1a

    The fact that we’re even having this discussion is a black mark on society in general. Two things are at play here. First and foremost is people are in a lot of cases buying things they can’t afford because carriers make it easy. Second, people need their hand held at every moment of their existence because they can’t read a simple agreement. The more I read, the more I want to find a mountain and remove myself from society.

  • ajsaloon

    Is this a joke? BYOP! I haven’t bought a phone from T-mobile in 5 years. Haven’t been on a contract since 2009ish.

    • Ascertion

      You can do this at all the carriers, even on plans designed to be on a contract. As long as you don’t upgrade, you don’t get locked in. How is financing a phone through T-Mobile any different than a 2yr agreement when you pay off the phone on both plans when you cancel service? In fact, the 2yr ETF is often less.

      • ajsaloon

        Didn’t say financing was different than a 2yr contract. Simply stating that if you don’t want to be locked into anything then BYOP.

    • AJ2

      Great in am ideal world but Many people can’t afford to do that.

      • ajsaloon

        I bought the MOTO G $199 of Amazon. People seem to think they need a $700 phone.

    • That’s why I’m planning on getting the RM-1085 Lumia 950 XL. Yes, that’s a single SIM phone – unlike the ones Microsoft is selling in the States.

  • mingkee

    I don’t know why nobody knows how financing works.
    It’s not contract. You pay off the device over time, but once you’re no longer with the carrier, the carrier serves no obligation to provide financing, and now other carriers are following.
    You’re no longer bound with contract after all.

  • PC_Tool

    The service has no contracts, the device *may* … if you finance it.

    Anyone who is incapable of understanding this really shouldn’t be buying anything more expensive than socks. Our coddling of the ignorant really needs to be toned down.

    • J.J.

      This is America! make sure there dumb, be more easier to control later. see… look at my grammer!! im a victim

      • Truth

        This is the most intelligent point made thus far.

        America is not free. We are all slaves to our government. We cannot rebel against what we do not believe in without risking losing everything – family, work, and your own credibility.

        Let’s continue to talk about how EIPs are the new contract. How greedy these companies all are to get more and more wealth. If you really want to change how something works, maybe something more than talking about it would solve the problem….. Hmmmm…

  • NardVa

    The advertising is only deceptive if you are not paying attention. Also how clear are store reps explaining the phone agreement to the consumer.

    • AJ2

      How clear are the reps in understanding their own company’s policies and how trained are they… Or are they working on commission and will do almost anything to get someone to sign up with Tmobile?

  • taxandspend

    Are people so stupid now that they think you don’t have to buy a phone to use the service?

    • AJ2

      Only if commercials tell them theres no contract, they can leave whenever they want, theres no termination fee, and they can walk out the door with a new phone and zero down

      • taxandspend

        And they can do exactly that. But they ~do~ have to buy the phone, whether or not they keep the service.

  • VernonDozier

    As a T-Mobile customer for over 10 years, I know that T-Mobile specifically targets lower-income and “underserved” demographics first. These groups of people are typically price-sensitive; hence the reason why T-Mobile has targeted them over the years. They developed programs such as very prosperous portfolio of prepaid services.

    When it comes to new services such as a “no contract” plan, these obligations carry very specific legal meanings, even for un-carriers. Thusly, I applaud the attorney general’s office in NY for standing up to new definitions of words which don’t follow the definition. As advertised, the words “No contract” dont mean in the widely accepted definition that a financial obligation or requisite “loan” comes with the service.

    However, when the “loan” is approved, T-Mobile also extends its own line of credit, in the form of postpaid billing. Service is not paid in advance, and “activation fees” are also collected. It’s just calling a peach a banana at that point.

  • Joe

    Seriously do you need to be that intelligent to know that you need to pay off your phone before you leave if you are under EIP. It’s not like an early termination fee cuz you keep your phone so you keep your phone.

  • Mo

    People must be Stupid,Stipid, Stupid to not understand that they are obligated to pay for the phone. People sign an agreement (contract) when they pay for the phone over time. Its life man, no pay, no service.

    • AJ2

      So why advertise no contract and you can leave whenever you want

      • maximus1901

        You can leave. You can port your number but you’re still liable for the phobe

        • Fabian Cortez

          So is this person related to “AJ?” :P

          Or is there a preceding “AJ1?”

      • Fabian Cortez

        No service contract.

        T-Mobile provides a service. That service being cellular service.

  • Mike

    Fact is many ppl get phones they can’t afford so they finance it and then they stop making payments on cant afford the service and phone payments . Then they cry and complain when the phone is blacklisted and the balance they owed gets sent to collections and put on there credit report. Be smart and if you decide to buy a expense phone either save up and buy it outright or at least out half down and pay it off quickly .

  • Rupesh

    Most people easily understand that this is a loan and that it needs to be paid off. Problem here is the journalists are trying to sensationalize an issue that does not exist so they can see these type of discussions amongst the community thereby increasing the traffic to their blogs / websites. Shame that, in this age, they don’t know what 101 journalism is..

    • VernonDozier

      Well, the real cool thing about T-Mobile singling out journalists (that are doing their job and reporting the news) is that other journalists see how the company handled the issue.

      When a Journalist is asked in a public forum by a CEO of a publicly traded company if they’ve been ‘bought off’, the press will then form their own opinion about how the company is managed.

      Legere never addressed the claims made by the Attorney General’s office in the state which he lives; instead resorted to passing blame to the journalist.

      Remember- TMobile paid this guy $25M in stock; and he bought Randolph Hearst’s New York apartment. You’d think he respected how journalism worked.

      • AJ2

        That’s cuz he’s a bully. He acts like the Trump of wireless

    • AJ2

      Most people seeing a 30 second commercial don’t understand that. You have to realize most people don’t read these types of blogs. Most Android users don’t even know what version of Android they have. You’re giving people way too much credit

      • Rupesh

        You mean to say that people don’t understand this when they are explained the terms by the store reps when they purchase? If so you are right, I am giving way too much credit for people. Lol

      • Chris

        If you don’t understand the commercial in 30 seconds, do a research or ask questions when you get to the store. Anything you sign these days you’d have to understand. It doesn’t matter if it takes you 30 minutes in store to read the darn thing, you should know, you’re signing something and you need to understand what it is. This doesn’t just go with T-mobile; it goes with everything.

        Read before signing.

        It clearly states in the EIP contract that you have to pay it off if you cancel wireless service. The rep even reminds you of this before you sign when they explain how much is your monthly.

        I mean come on. Blaming it on a 30 second commercial?

        That’s the most stupid thing I’ve heard.

        • 21stNow

          The commercial is the issue because the whole complaint is about truth in advertising. I get what EIP financing means and most of the people who read tmonews get it. But, advertising is the issue here, not what people can find by doing additional research (which shouldn’t contradict the advertised claims anyway).

  • Kyle Thompson

    only in america today could people get upset or think it false advertising when you agree to buy something on 24mo installment plan, don’t pay it off, and think it’s wrong you don’t get to keep using the device.

    • AJ2

      Well it’s not clearly stated. People could assume you just return the phone & can switch to another carrier. This all was discussed when Tmobile first came out with this plan. Many felt eip was just another firm of contract because many customers couldn’t just switch when they wanted if they then had to pay $400 for a device (just like an ETF)… Leasing a phone that you’d return if you left would resolve that problem

    • maximus1901

      Correction: only DEM attorney generals and their social justice extortionists.

  • AJ2

    Phone ads around payment plans need to be like prescription ads that warn you about all the side effects

  • Paul

    Here is the example that explains it.
    The service is non-contract. Bring your own phone and your good to go. If you’re not happy then take the phone you brought and leave, you own the phone after all.

    The phone lease is not the same as the service. If you pay for the phone in full you own the phone, you can now take it with you.
    Can’t afford the $800 phone? Then you make payments until you pay out off, which can be less than 24 months.

    It’s not false advertising, people are may ignorant.

    • Steven

      Very right, its pretty transparent to me. People are dumb, for real. Blaming others for their own stupidity.

    • VernonDozier

      They should call it a “Lease” then. This is what Sprint does. A general layperson understands what a lease is.

      • Steven

        On some of the iPhone commercials where it shows “how cheap you can get the iPhone 6s for” its says lease in print…. People are just dumb and love to blame others for their own stupidity

      • If it was a lease, you’d have to give back the phone after 24 months. It’s an interest-free installment plan, similar to making monthly payments on a credit card. Hell, it’s in the name: Equipment INSTALLMENT PLAN. You pay installments if you can’t afford the phone outright or don’t bring your own.

        • VernonDozier

          Well, T-Mobile should take it a step further and change their business model and stores into “Smartphone Showrooms”. Under a “Showroom” business model, funds to pay for phones come from an ATM machine in the corner.

          They could even re-brand as U-Mobile because U get the phone you want. U is also the next letter in the alphabet after T.

          At the ATM, customers can select No-Contract MetroPCS, AT&T, TMobile Sprint or Verizon. If approved, the ATM would dispense cash to take to the Showroom Salesperson and complete the sale.

          This physical separation of phone transactions from actual service is genius. It adds transparency so customers won’t be confused. As an added benefit, T-Mobile will do what it does best- sell phones without being obligated to hassle with coverage or service issues. Many salespeople seem to run fast and loose with pre qualifying customers to coverage and service.

      • Paul

        I’m so sorry you don’t understand the whole “pay $XX for 24 months, or less, and you will own the phone” agreement. It’s that simple, with no smoke and mirrors.

  • I’ve never went the postpaid route due to the language. I’m on prepaid with T-Mobile and I strongly suggest others go the prepaid route on T-Mobile as well. No ambiguity with that!

    • TylerCameron

      And no roaming, either.
      I go to Iowa every year for about a week, and rely on iWireless, a T-Mobile roaming partner for service when I’m there.

  • Ordeith

    People buying phones they can’t afford. /smh.
    Of course T-Mobile perpetuates the problem by taking full advantage of the poor impulse control some people have.

    • Adam

      The last few promos have been exclusive to financed plans. T-Mobile is trying to get people in the habit of financing, hoping people will continue after the promos end.

  • JaswinderSinghJammu

    It clearly states that if you cancel services the full amount becomes due immediately so what is so hard to understand? It’s just poor people buying devices they clearly can’t afford to impress others. .

    • Ascertion

      I think the issue stems from people being used to having a contract, in which their ETF becomes due when you cancel service. The same thing happens at T-Mobile, but they word it as ‘No Contract.”

      • Chris

        Because you don’t need to get the device from them! I personally don’t have an EIP with T-mo at the moment because I don’t get my phones from them. Plenty of phones out there that are reasonably price, last long, and you don’t have an EIP contract with T-mobile. T-mobile as a service is “No Contract”.

      • dontsh00tmesanta

        SERVICE CONTRACTS ARE GONE

        please show me where a bank has allowed you to return a car or house simply cuz you dont like it

        • Ordeith

          Please show me a bank that requires you to pay off your car loan in full just because you close your checking account.

        • dontsh00tmesanta

          completely no sense does this make

          take a nap too

        • pbxtech

          You don’t make sense.

          The bank knows well that you have money to begin with, it’s called loan underwriting. Also, the car loan you took from bank has INTEREST.

        • pbxtech

          EDIT: The bank knows well that you DON’T have money to begin with, it’s called loan underwriting

        • Ordeith

          So does T-Mobile, it’s just built into the inflated price of their phones.
          No interest financing is available from a number of businesses that pull the same trick, but NONE of them would force you to pay off the loan in full if you didn’t promise to keep buying additional services from them every month.

        • Galvatron

          If I buy an iPhone 6s from Apple at full retail price I pay $649.99. If I finance the same phone from T-Mobile I’m paying $649.99 over the course of 24 months. Where is this hidden interest you speak of?

        • Ordeith

          Samsung Galaxy Note 4: $500 unlocked, retail. $550 T-Mobile financed (“On Sale”, even)
          Galaxy S6: $500 retail, $580 T-Mobile financed (also “on sale”)
          HTC One M9: $400 retail, $650 T-Mobile financed.

          Apple has strict pricing controls, they are probably the one manufacturer T-Mobile can’t pull their crap on.

        • Guest

          YOU are an idiot. Actually you can cancel your service and keep paying off the phone w/ tmo…part of UNCARRIER. Why are you even on here trolling. You are the type of customer my employees want to slap every single day :)

        • Ordeith

          IF YOU FINANCE YOUR DEVICE AND CANCEL WIRELESS SERVICE, REMAINING BALANCE ON PHONE BECOMES DUE.

          Slap yourself for being the idiot here.

        • dtam

          sure, furniture stores that have 0% on their store cc. all credit cards in fact

        • Ordeith

          and, you’re wrong.
          Imagine that.

        • dtam

          sure, try cancelling your credit card with a balance and I’m sure they’ll forgive all of your debt.

        • thepanttherlady

          Of course they’re not going to forgive the debt but you are protected by the cardholder agreement. Close a credit card with a balance and you continue paying monthly until the debt is paid.

        • Ordeith

          They won’t forgive it.
          They also won’t require you to pay it off all at once either.
          You can cancel a card and still make your normal payments toward the balance.

        • Ascertion

          What does returning have to do with anything? A correct analogy would be signing an agreement to only purchase gas at one location and to one day stop going to that gas station in favor of another one. But the agreement you signed when you bought the car states you must pay off your car to switch gas station providers.

          T-Mobile phones will work on other carriers (prepaid, international, or AT&T.) The fact that T-Mobile has the financing tied with the line of service is in theory, a contract. T-Mobile could very easily keep the device financed through them, even if you canceled service. That is what ‘No Contract’ should be. If you believe otherwise, then you’re a product of marketing.

        • dontsh00tmesanta

          In theory a contract is not a contract

          You don’t have to get a financed phone lol no one is forcing you so stop bitching as if there’s a gun to your head

    • dontsh00tmesanta

      people cant read

  • KenP

    T-Mobile clearly states “IF YOU FINANCE YOUR DEVICE AND CANCEL WIRELESS SERVICE, REMAINING BALANCE ON PHONE BECOMES DUE.” A new phone from T-mobile not required to use the service. If T-mobile discouraged low income people from doing an EIP on an expensive phone they would be accused of discrimination against minorities by these “Colors of Change” type groups.

    • maximus1901

      TMO should just increase credit standards and move those low credit delinquents to metro.

  • Adam

    If EIP is not a contract, customers should be able to return their phones anytime they like. If the phones were not subsidized, customers could keep paying the same monthly phone payment after leaving. I liked the non-subsidized phone model. Too bad it didn’t last.

    • Chris

      God damn, it’s not a contract cause it’s a freaking loan. You loaned money from T-mobile when you get the device. You’re paying off that loan in 24 months interest free.The only difference is there is no “loan officer” handing you a damn check to take to the cashier.

      Don’t people take care of finances on their own??

      No wonder the damn housing market collapse years ago.

      You don’t pay 0% down on a house and expect to return it to the bank if you don’t want it anymore without serious consequences.

      Heck we don’t even have to get to houses analogy, just think of cars.

      • Adam

        All loans are contracts. It sounds like you are confusing a loan with a gift.

        • dontsh00tmesanta

          take a nap and dream a better argument

        • Adam

          Eric Schneiderman is a professional arguer, it would be foolish to disagree with him.

        • dontsh00tmesanta

          take a nap dude trust me you will find a better argument

        • DILAW IDDAHLA

          I think whoever will or filed the law suit is going after T-Mobile advertising the “NO CONTRACT” when in reality there is a contract for the EIP/JOD or whatever you want to call it. A contract is simply an agreement between two or more parties for the doing or not doing of something specified and that’s exactly what EIP/JOD is. You went to a T-Mobile store, they gave you a phone and you signed a paper with your name on it saying you will pay X amount of dollars a month for 18 months.
          T-Mobile can simply fix it by advertising “No Service Contracts” and be done with it. I personally think T-Mobile should win the case, but just advertise “Service Contracts”

    • dontsh00tmesanta

      EIP is a loan, phone contracts are done with.

      THEIR ADS SAY ALL SERVICE CONTRACTS ARE GONE

      go to sleep maybe you can dream up a better argument!

      • TylerCameron

        I signed a piece of paper saying that I agreed to pay off a phone by the end of a 24-month term. I also signed a piece of paper that says I will pay for a phone for up to 18 months, and that I can trade it in, etc.
        I signed it with my signature and there was fine print. If I violate what I signed, there can be repercussions.
        If that isn’t a contract, then I don’t know what is.

        • dtam

          out of the goodness of their hearts, tmobile is giving you 0% financing on a new phone. obviously you need to pay for the phone if you leave.

        • Ordeith

          Hardly

        • dontsh00tmesanta

          Idiot

          That’s on you

          None forced you

          Besides show me a loan that isn’t a contract

          There are no contracts in service

      • ronjon400

        i think they are talking about carrier contracts genius

        • dontsh00tmesanta

          That’s what I said ass clown

  • vinnyjr

    Doesn’t take much for the competition to strike back anyway they can. T-Mobile is taking tons of customers every month from the other three. Total bullshit, this will be thrown out. Just trying to give bad publicity to T-Mobile. Won’t work. T-Mobile’s contracts are all legal and very easy to follow, just ask. Thank You T-Mobile, Thank You John Legere.

    • Adam

      The Attorney General in investigating the legality of T-Mobiles advertisements, not the contracts.

      • dontsh00tmesanta

        dude

  • Green is the Game

    All, Peace… the only thing T-mobile (John Legere) sees is Green (profits and growth). As a result, we Benefit from great and affordable service, marketing and phones!

    • BillCosby

      agreed. That’s why he lives in Randall Herst’s home.

    • Jay Alexander

      In business, customers AND employees exist for ONE reason: PROFIT. Anyone who can’t except this should move to another country. The ONLY reason all of these companies grow into large corporations is because they make a lot of money. Instead of complaining about not being able to afford something, learn how to make a lot of money and buy better quality goods and services.

      John Legere is focusing on the poorer customers who cannot afford or don’t want to pay for better service. Those are customers that At&t and Verizon don’t need anyway because they want more than their money’s worth. What good is it to have a store and have customers who want you to not make a profit off of them . The ONLY reason to have a customer is to make a profit off of them. If you cannot do that then they are not a customer.

      T-mobile’s stock price has dropped over 20 percent. If it continues down this path, someone will just buy them out if investors and traders in New York don’t put them out of business first. The CEO has been warned that he BETTER do something to get money out of these customers or he is fired.

      Their approach is to deceive customers by making them think that T-mobile does not need to make as much money as the other companies in the same industry. This argument fails miserably because T-mobile needs to make MORE than the other to catch up!

      Additionally, because new federal laws REQUIRE benefits and health care for more workers, T-mobile has to be able to offer more money to get the best employees. The formula they are using IS bait and switch. They want to add customerss, get themm into 2 year payment agreements so they don’t leave early, and then raise prices.

      I have worked in this industry for years AND I traded for years. These are FACTS. not my opinion.

      Its just like someone telling a bunch of kids that Santa Claus is coming to town IF you give me $20 and that Santa will give you $1000 worth of toys. If you stop looking for more than your money’s worth, you will not get tricked by people who think that YOU are crooks for not wanting bthem to make their profit.

      In sum, Verizon and At&t will make a lot more profit and a lot more advances in the industry BECAUSE they make so much money and T-mobile will have to beg them to use their network or buy bandwidth from them.

      Without the billions of dollars invested by Verizon, the industry would be NO WHERE NEAR what it is now.

      Those of you who seek DISCOUNTS over QUALITY SERVICE, be prepared for years of lousy service because your service provider cannot invest billions in the network to make it a better one.

      You get What You Pay For!

      • Dustin Roe

        You realize that by by stating these misleading claims and implications as “FACTS. not my opinion” you are opening yourself up for slander.

        Potential candidates:
        “These are customers At&t and Verizon don’t need anyway because they want more than their money’s worth” -Both of these companies would realize a higher the profit margin of these customers over than in the markets they have shown high growth the last 2 years.
        “The CEO has been warned….” Really? Who warned him that the stock doubling over the last 3 years before dropping 20% in the last month is going to get him fired?
        “because new federal laws Require Benefits and health care….more money to get the best employees” Are you stating as a “FACT” the T-Mobile is not providing benefits?
        “They want to add customerss, get themm in 2 year payment agreements…., and then raise prices.” First off, learn to spell. That made me cringe to quote it. Second every plan signed up for has not been changed without the customer opting to exchange higher cost for a plan with more service in the last 5 years I have been watching.(I have checked on this each time a new plan is offered and verified it is true which is why I am still on the original simple choice because I didn’t choose the extra services)
        “…your service provider cannot invest billions in the network to make it a better one” How much do you think T-Mobile has spent on network upgrades per year in the last 3 years? I think you would prove your “FACT” wrong again(see what I did there with making it my opinion since I don’t have a document supporting my claim?)

        • Facebook User

          First of all it’s libel not slander. And just because I have information that you do not have does not mean it’s not true. I worked in the industry and I can’t reveal every single thing that I know about what is going on in the markets and in the industry. But point-blank if T-Mobile cannot start making the same amount of profit is its peers and competitors in this industry, the CEO will be replaced. And most importantly for those of you who do not understand. The markets have changed and people do not care about what has happened two years ago. The only thing that matters to the stock market in traders and investors is what the stock price has done in the last 30 days 60 days 90 days. Ever since the stock market crashes in the systems becoming automated, no one wants to hold anything for any long period of time.

          And just to clarify, T-Mobile has been good for the industry because it has caused the other carriers to offer better service and slightly cheaper prices. There is no disputing that. But T-Mobile has acquired customers by giving away the profit and if they are going to be profitable they are going to have to start charging more in the future or else the stock price Will continue to drop and there will be a new CEO elected by the board. And somethings are public record and somethings are not. But once you sell stock in the company your loyalty is to the shareholders into the stock market, not your customers or your employees. It is a deal with the devil to become millionaires and billionaires. And that’s what T-Mobile has done. So if you had millions of dollars of T-Mobile stock, and you see that Verizon and AT&T are building better networks and paying dividends out to their shareholders and that they are making a lot more money then the company that you spent your money on, what would you do?

        • Jay Alexander

          Additionally. T-Mobile has already raised prices for new customers. And the issue with the Attorney General is that T-mobile in general is trying to convince people that they do not need to make as much money from its customers when it fact it needs MORE to catch up. Its competitors also offer TV, internet and a variety of services that contribute to the bottom line. If the federal goverment allows it, T-mobile might be sold if the stock price does not change go up. They are hoping to raise prices for new customers which will allow At&t and Verizon to raise prices as well. This is how the game is played. WE ARE ALL JUST BEING USED FOR PROFIT. And T-mobile is wrongfully trying to convince people that they can get $100 for $1. Its a lie. Good service costs more not less

  • Agitators looking for an easy payday.

    • Guest

      How’s T-Mobile’s in-building coverage in Denver, Pete..?

  • ACarlson

    I think what Vernon Dozier has to say below is a reasonable request.

  • Fabian Cortez

    So then why do you still pay T-Mobile for service if the phones are paid off?

    That’s the whole idea isn’t it? Separating the device from the service plan. In that instance, with your iOS devices, you should be able to freely choose the carrier that serves your area using your well paid for device.

    • VernonDozier

      I enjoy reading about pain and suffering.

      It reminds me of the people around me that built me up so I can make peace with them and build a better business and way of living.

      When John at T-Mobile breaks roaming agreements with rural providers and (They’ve already broken a few in the last 3 months). I unleash because at that point T-Mobile isn’t about providing service on the bill.

      John’s goal isn’t service based, it’s actually all about pumping the stock valuation. Pumping stock has done him well.

      • Fabian Cortez

        I enjoy reading about pain and suffering.

        That’s quite sadistic, sir.

        When John at T-Mobile breaks roaming agreements with rural providers and (They’ve already broken a few in the last 3 months). I unleash because at that point T-Mobile isn’t about providing service on the bill.

        At that point, you should find a carrier that serves you better. T-Mobile is not in the business to provide you roaming. If that’s the case, then you need to sign up with the carrier that you used to roam on.

        John’s goal isn’t service based, it’s actually all about pumping the stock valuation. Pumping stock has done him well.

        His goal is absolutely service-based. The network improvements are quite stellar and the company seems to be competing on user experience. No one is discounting the stock, on the other hand.

  • AS118

    Well, EIP payments are pretty clear, imho. You don’t have to stick with T-mobile, but if you leave, you just have to pay off the phone.

    That said, since it’s a GSM phone, you could always just move to another GSM carrier, like AT&T, or a MVNO that uses AT&T or T-mobile’s networks.

    • VernonDozier

      I stay with T-Mobile for the rollercoaster ride, hanging phones outside windows for better coverage, and everything else a UN-CARRIER stands for.

  • Truth

    EIPs are contracts. You pay $x.xx amount of money per month for 24 months, pay off the remaining balance early, or pay the entire balance if you cancel wireless service with an EIP attached to that line of service.

    In the past, you’d pay an Early Termination Fee of up to $x.xx dollars per line, depending upon how many months of service you had left on the contract.

    In either case, the customer “owns” the phone. However, rates went down to split the cost of the rate plan from the device since carriers were not making as much money. Now you have your rate plan and device separated from one another so you can “see” the “true” cost of your service.

    • BillCosby

      Call it a contract then. Otherwise it’s a Jello Putting Pop.

    • kohler

      EIP’s are contracts to buy the phone, not contracts for service. You can’t get financing on a phone without a contract. You can get service, and will not have a contract for said service. Pretty simple.

  • econobiker

    Simply isn’t T-mobiles no-contract now either: “Bring any darn already-paid-for phone you want that works with T-mobile and we’ll set you up on our service”
    OR
    “We’ll sell you a new phone with your service but we WILL make you pay the phone off if you leave. We won’t be bothered with repossesing the phone if you leave, because, hey, you can hide a phone anywhere or drop it in a river and we also don’t want pictures of your cats and private nasties brouight back to us on soon to be obselete technology anyways.”

    I took it to understand that T-mobile ditched the “contract with a free phone but ETF early termination fee if you leave” when T-mobile began to get burned because smart phones were getting to be worth far more than the early termination fees cost.
    Circa 2011-2012:
    Customer John Q. Public signs up with T-mobile on a 2 year contract with free samsung S3, two months service, then “Oops I’m leaving with the phone, here is your $200 ETF see ya!” then sells phone to someone else or jailbreaks it etc. saving $200 to $400 in the process.
    T-Mobile execs: hmmm, we’re sending out alot of expensive smart phones and only getting $200 ETFs back when customer leave, something is wrong about this…

  • mikeZo6

    About time someone did something about Tmobile bs

  • Guest

    If I could bend anyone over a couch, it’d definitely be be Anna Carlson (Fergolia). Seems like Fergola isn’t very good. and she need it several times. I have no vested interest in the compay.

    • VernonDozier

      I’d write her up three times. If she screws enough people I know, I’d probably write her up 6 or 7 more times.

      I’m pretty sure Anna is a whore that one really knows. But she’s probably good at providing T-Mobile Service as you lay down on the couch.

  • Enough!

    Very simple! Contract you have a fee no matter when you try to leave within the two years. EIP you can pay off any time you want. Many customers actually come into the store and pay off their payment plan much sooner.
    And yes shame on TMO for trying to get their customers to finance and stay with them. Damn T-Mobile!
    Oh and how dare you attract lower credit class customers who leave and don’t pay for service or phone! T-Mobile def doesn’t want better credit class customers who stay longer.

  • Jay Alexander

    In business, customers AND employees exist for ONE reason: PROFIT. Anyone who can’t except this should move to another country. The ONLY reason all of these companies grow into large corporations is because they make a lot of money. Instead of complaining about not being able to afford something, learn how to make a lot of money and buy better quality goods and services.

    In regards to Verizon and At&t have made hundreds of millions for company executives , shareholders and traders in New York. Verizon SELLS Network Bandwidth to everyone else because they own most of it. When you are spending tens of billions of dollars to create something, you better make as much money as you can from it. Verizon and At&t have almost 300 million customers. When you want better service, you pay more.

    John Legere is focusing on the poorer customers who cannot afford or don’t want to pay for better service. Those are customers that At&t and Verizon don’t need anyway because they want more than their money’s worth. What good is it to have a store and have customers who want you to not make a profit off of them . The ONLY reason to have a customer is to make a profit off of them. If you cannot do that then they are not a customer.

    T-mobile’s stock price has dropped over 20 percent. If it continues down this path, someone will just buy them out if investors and traders in New York don’t put them out of business first. The CEO has been warned that he BETTER do something to get money out of these customers or he is fired.

    Their approach is to deceive customers by making them think that T-mobile does not need to make as much money as the other companies in the same industry. This argument fails miserably because T-mobile needs to make MORE than the other to catch up!

    Additionally, because new federal laws REQUIRE benefits and health care for more workers, T-mobile has to be able to offer more money to get the best employees. The formula they are using IS bait and switch. They want to add customerss, get themm into 2 year payment agreements so they don’t leave early, and then raise prices.

    I have worked in this industry for years AND I traded for years. These are FACTS. not my opinion.

    Its just like someone telling a bunch of kids that Santa Claus is coming to town IF you give me $20 and that Santa will give you $1000 worth of toys. If you stop looking for more than your money’s worth, you will not get tricked by people who think that YOU are crooks for not wanting bthem to make their profit.

    In sum, Verizon and At&t will make a lot more profit and a lot more advances in the industry BECAUSE they make so much money and T-mobile will have to beg them to use their network or buy bandwidth from them.

    Without the billions of dollars invested by Verizon, the industry would be NO WHERE NEAR what it is now.

    Those of you who seek DISCOUNTS over QUALITY SERVICE, be prepared for years of lousy service because your service provider cannot invest billions in the network to make it a better one.

    You get What You Pay For!

    • Nope

      – Verizon has a large amount of spectrum but there is a lot of available spectrum in the auctions (which t-mobile and the other carriers are aggressively pursuing)
      – Where did you read that Legere’s job is on the line? This sentence alone kills any credibility you have. Legere saved this company from the brink of non-existance. Yes they are trying to raise ARPU but they are also trying to provide customers as much value while doing it.
      -T-Mobile has always offered benefits for all of their part time and full time workers.

      • Facebook User

        No one is seeking approval on credibility. It’s industry news in New York

        whenever you cannot get the stock price to go up and you are not making the same profit or better than your competitors, your ass is out the door. That’s what you get for selling stock in the company in the first place in trading on the markets. But perhaps that’s way beyond your understanding.

      • Facebook User

        The primary problem is that these companies are compared to the competitors in their industry. If you are adding subscribers and they are not equaling more profit then you have a problem. There is a reason that Verizon is so successfulIt target people who make more disposable income and who are more profitable. That is just plain old American capitalism at work. As a business owner, I believe that you should make as much money as you can off the customer. So I brace the same business principles they do. Intead of people trying to get discounts and get more then their moneys worth, they should focus on making more moneyand better quality products and services. The problem is that no one wants to believe the truth and that is that there are no free rides in life. There are no true discount rides in life. You get what you pay for

    • Facebook User
      • maximus1901

        shocking: owner of tmobile doing all it can to advance a softbank buyout so it can exit an unprofitable market.

    • (J²)

      I think this is worst case scenario but you are on point.

  • Facebook User
  • taxandspend

    “Change To Win” is a group of labor unions. What possible interest could they have in consumer advocacy? The answer is none. There is an ulterior motive.

  • Legal Team…

    Believe it or Not, that is what T-mobile pays there Legal team for is to defend and/or clarify their position….

  • Financial Care

    With having worked in Financial Care, I’ve seen first hand how much they actually care about their customers, if you keep a rep on the phone too long they will refer you to a “specialist”. That’s just a way to say they are done with you and they transfer to customer care..

    When you ask for a “supervisor”, you would yell across the room and tell them that some jerk wants them, they have as much care for the customer as you do.

    With call times of 3:30 minutes, who really has time to care about a customer or their account. That’s why I saw so many of my coworkers release calls.. I resigned after 4 years because the one good thing I got out of that job was part of my degree being paid for.

    Other than that, the whole team including John Legere was more deceptive than the nasty grin he always has on his face.

    • guest

      I’m a T-Mobile costumer for about 10 years and only once I had a problem with a customer service rep.
      And I don’t have an agenda.

  • guest

    Nonsense.
    Yes T-Mobile needs to clarify and simplify many things, but i don’t see those things as deceptive, it’s just sloppiness.

  • JMccovery

    Here’s what I don’t understand: A commercial I’ve recently seen had the details about EIP in the disclaimer text at the bottom.

    Is it that people just can’t be bothered to actually read and/or do research?

  • BadBatz

    Lawsuits tend to do nothing because our (US) business laws, both in in letter and spirit, tend to favor the business.

    When Legere started his “Uncarrier” spiels, one of the promises was simplification of the contract/no-contract language and getting rid of the mumbo-jumbo fine print. Of course, what T-Mobile did is total opposite, promulgating catching slogans and increasing the size and complexity of the fine print while making it less and less favorable to customers: it is exactly what BS artists do and Legere is a master BS artist, a world-class specialist in hard sell disguised as velvet gloves. Just listen to what he says (and how he does it!) about the competition: what makes you think that he harbors different feelings toward his (= T-Mobile) customers… A boar is a boar is a boar.

    Each time T-Mobile has announced something new, the costs keep rising. Yeah, there are some minor cool/advantageous things in the “Uncarrier” scheme that are important to, sometimes tiny, subpopulations of subscribers, but all-in-all it is a giant rip! Probably the only truly worthwhile and useful to consumer “Uncarrier” thing was free international data roaming, everything else could titillate only the people who are really (really!) bad at math. No contracts? In lieu of a 200 dollars subsidized phone plus service, one gets a 600 dollars phone and pays the same, or more for service. Wow, what a deal! Oh yeah, one can leave T-Mobile at any time but, wait, you’ll need to pay the phone off whereas “before Uncarrier” it was just a few hundred dollar ETF.

  • Navi

    Verizon att and sprint offer their own F’d up versions of contracts and financing and leasing. They throw in line access fees with financing or they charge you a big fee with contracts that it’s the same bull crap no matter what. T-mobile says hey lease or finance you pay monthly for your physical phone and your plan $50. That’s it. The lawyer prosecuting is probably getting paid a million dollars to make some stuff up. Lol. Cable providers rip you off so much. Why not attack that.

    • guest

      Yeah, it stinks.
      They are going after a company that doesn’t lock you to a two year contract; that it’s only charging you the exact price of the phone in installments if that’s the OPTION you prefer to pay for your phone; no overages; etc…
      So, either these people are not really smart or they have an agenda.

  • Jay Alexander
  • Jay Alexander
  • purenupe1

    An EIP is a contact….the customer is locked in to the carrier whether its a classic plan or EIP. In both instances there is a balloon payment used to discourage the user from leaving. The only;y way to realize the “no contract ” benefit is to BYOD or use the same phone past the EIP date; this is uncommon as most subscribers update between year 1 and 2…further extending their obligation to the carrier. There is no realized savings for this customer versus a classic plan