Loop hole paying Early Termination Fees

[officerkillian]

Could I renew my contract get a 9700 for $150. Sell the phone on ebay. It goes for about $400+ on ebay. After selling the phone, I would then pay the $200 Early Termination Fee. Would that work?

[BlkBear]

If you cancel the contract before the end of the extended period, you are on the hook for the full price of the phone, not the discounted price of the phone.

And this is what happens if you decide to not give the phone back.

Even if it's lost or stolen, you are on the hook. So it's $200 for the ETF and $400+ for the phone, looks like a lose lose type of thing selling it.

But by all means call up your carrier and ask them this question.

"If I get the phone with the contract and my phone is broken or stolen before the end of the contract and I decide to cancel the contract because I can't afford a new phone, do I still have to pay the ETF and pay for the phone?"

[NorrisCell]

What you're explaining can be done. I knew someone who activated 5 AT&T lines with 16 GB 3G-S Iphones right after they launched. Each phone was $200, plus $175 for the ETF, for $375 total, plus tax. Had me unlock them, then sold each one for $650. Pocketed about a grand after all was said and done.

Is it honest? Not really. Is it legal? Sure. I don't agree with the process.

[NorrisCell]

Originally Posted by BlkBear

If you cancel the contract before the end of the extended period, you are on the hook for the full price of the phone, not the discounted price of the phone.

Perhaps I'm misunderstanding what you're explaining. He's saying buy the phone for $150, break contract and pay $200, then sell the phone for $400+. Not a ton of profit for the hassle IMO, but still makes sense. Are you saying he must pay the retail ($450) price of the 9700 if he cancels early? If so, that's incorrect.

[officerkillian]

So NorrisCell, would i have to pay back the phones full price like BLKBEAR said?

[BlkBear]

Originally Posted by NorrisCell

Perhaps I'm misunderstanding what you're explaining. He's saying buy the phone for $150, break contract and pay $200, then sell the phone for $400+. Not a ton of profit for the hassle IMO, but still makes sense. Are you saying he must pay the retail ($450) price of the 9700 if he cancels early? If so, that's incorrect.

As I understand it, if you get a phone at a discounted price and a month into the contract decide to bail, (because you sold the phone), that you get stuck with the remainder of the bill for the phone at retail price.

So you'd just get dinged for the ETF and that's it?

[NorrisCell]

You keep the phone at the discounted price, you just pay the ETF. You just have to wait past the 14 day return period to cancel.

[leskchan]

This is why Verizon raised the ETF to $375 for smartphones to combat these abuses. It just ruins it for everybody.

[BlkBear]

Originally Posted by NorrisCell

You keep the phone at the discounted price, you just pay the ETF. You just have to wait past the 14 day return period to cancel.

Ah, so it's the timing of canceling the contract, that allows you to keep the phone at without paying anything more, then the ETF.... thanks for clearing that up.

I do have friends that have canceled AT&T and T-Mobile and ended up paying the full retail price of the phone they decided to keep. So don't know the details (Corp store vs Third party reseller), of why they ending up having to pay the remainder of full retail vs just the ETF.
Is it possible in those cases it was a promotional plan/phone offer, and the only way to keep the phone was to pay it off?

[Prozart]

Yeah, as far as I understand it you only have to pay the full price of the phone if you cancel within the return period. Basically you're saying you changed your mind about service with T-Mobile, so you return the phone and you're not charged with any kind of ETF or anything. Or you can keep the phone, but they'll charge you for it. But if you cancel any other time, you just pay the ETF, because that's basically the reason it's there. You say you're gonna be with them for 2 years, so they give you a discounted phone. The ETF is to make up for giving you the discount.

[NorrisCell]

Originally Posted by BlkBear

I do have friends that have canceled AT&T and T-Mobile and ended up paying the full retail price of the phone they decided to keep. So don't know the details (Corp store vs Third party reseller), of why they ending up having to pay the remainder of full retail vs just the ETF.
Is it possible in those cases it was a promotional plan/phone offer, and the only way to keep the phone was to pay it off?

The only reason I can think of for that would be cancelling within the return period, as Prozart just mentioned. The ETF is the trade off for the phone discount. If you don't pay an ETF, you pay the retail price. If you pay an ETF, you pay the discounted price.

All of this applies to corporate store purchases only. Indirect dealers often have separate clauses to protect them from early cancellations.

[AaronWasHere]

Originally Posted by leskchan

This is why Verizon raised the ETF to $375 for smartphones to combat these abuses. It just ruins it for everybody.

Exactly!
/thread

[b4k3d]

I'm wondering if you figured the math out on this. From my estimates it seems like your going to be too much for little or no profit... Now here is a rough estimate

$150- phone
$49 - month bill(or what ever cheapest tmo plan)
$200- EtF
this comes out to $399. So your going through all of this hassle for a W0pP'n! $1

Posted from my CrackBerry at wapforums.crackberry.com

[jamestbrewer]

dont forget taxes

[TequilaAddict]

Originally Posted by b4k3d

I'm wondering if you figured the math out on this. From my estimates it seems like your going to be too much for little or no profit... Now here is a rough estimate

$150- phone
$49 - month bill(or what ever cheapest tmo plan)
$200- EtF
this comes out to $399. So your going through all of this hassle for a W0pP'n! $1

Posted from my CrackBerry at wapforums.crackberry.com

You forgot the activation fee.