Sprint Changing Contract Terms in January, Small Opportunity to Cancel Contract Sans ETF | webOS Nation
 
 

Sprint Changing Contract Terms in January, Small Opportunity to Cancel Contract Sans ETF 115

by Robert Werlinger Thu, 10 Dec 2009 12:34 pm EST

Sprint customers, we're coming up on that time of year where your carrier of choice likes to increase some of the fees on your account, allowing you to cancel your service without encouraging an early termination fee (ETF).  They did it back in 2008, at the beginning of this year, and it looks like they're going to be doing the same next year. PhoneNews is reporting that Sprint customers are starting to see a notice on their bill explaining that the company will be increasing its Regulatory Charge to $0.40/line, and will be assessing an additional $4.99 fee on accounts with spending limits.

Here's how it works: the increase of the Regulatory Fee and the addition of the $4.99 (see a breakdown of Sprint's fees here) both constitute what is known as a "materially adverse change of contract", and per Sprint's Terms & Conditions, that change of contract allows for the cancellation of one's contract without incurring an ETF:

If a change we make to the Agreement is material and has a material adverse effect on Services under your Term Commitment, you may terminate each line of Service materially affected without incurring an Early Termination Fee only if you: (a) call us within 30 days after the effective date of the change; and (b) specifically advise us that you wish to cancel Services because of a material change to the Agreement that we have made. If you do not cancel Service within 30 days of the change, an Early Termination Fee will apply if you terminate Services before the end of any applicable Term Commitment.

The crucial part to using this clause is calling Sprint within 30 days after the effective date of the change (the date it begins to actually affect your bill), and specifically advising them that you wish the cancel services because of the material change to the Agreement.

While some are reporting that Sprint has allowed them to go month-to-month after invoking that clause in the T&C, be warned that there are no guarantees that everyone will get those same results and your mileage may vary. So no promises from us, but if you're itching to get away from Sprint, this may be your shot.

Thanks to mikesm for the tip!

115 Comments

I'm thinking about going month to month. Then resign a new 2 yr contract and get a Palm Pixi for really cheap. But this is unethical I imagine =\

And changing the fees in a two year contract is ethical?

I'm not unhappy with Sprint but my wife is adamant about staying with Verizon so for now we're on separate plans. Once Verizon gets the Pre, it MIGHT be possible to Doctor mine to a Verizon image and then get it added on their network. If so, I'd consider using this contract clause to switch, just for the coverage and the single bill.

This has me thinking about cancelling service with Sprint, and then moving to Verizon when they offer the Pre. Or maybe trying to just move to Verizon immediately-- has anybody out there had any luck with getting Verizon to activate a Palm Pre brought over from Sprint's network?

You'll still pay alot more on Verizon then Sprint.

With the discounts through my employer, I would pay right around $10 or so more per month for something that's comparable to the features I'm using on Sprint now. That's roughly $120 per year, or $240 over the life of a 2 year contract.

While that amount of money is not a small sum, there are a few places that I frequent up and down western PA and western MD where Sprint doesn't have 3G coverage and Verizon does. While Sprint has otherwise worked *very* well for me, having the few extra areas with 3G coverage is worth the additional cost given how often I'm there. If Sprint had 3G coverage in those areas, I likely woulnd't even remotely consider leaving for Verizon (though I would still be using this fee increase to see if I could talk Sprint into letting me out of the contract and going month-to-month instead).

Keep in mind that Verizon will likely charge you for features that Sprint gives to you for free. GPS navigation, TV, ect.

Google Maps with Navigation is free, if I were to go with the Droid. But if I stick with a Pre, you're absolutely right-- I'd pay for it, if I wanted it. Given that I've already got a separate TomTom GPS unit in my car, though, I don't see this as a big thing.

I have yet to be able to watch something in the Sprint TV application that wasn't choppy and bad quality, so this hasn't been a really useful app for me. I'm not sure why, but am more inclined to say it's a problem with my phone since I have the exact same effect when using the app through 3G or WiFi at my residence.

The only features I've really been using from Sprint have been the data (of course), text/picture messaging, and any mobile. Out of these, any mobile anytime is the only thing I wouldn't get on Verizon. But that could easily be replaced with their "my faves" and setting my Google Voice number up to be one of my favorites. I believe there are Google Voice apps out for both platforms (I know for sure about the Pre, and am only making an educated guess about Android).

Overall I absolutely agree with you-- Sprint is the far better value for someone who uses all the extra "goodies" that come included with their plan. But in terms of what I'd have to pay for the features I'm actually using I'm finding there's not an incredibly large difference. Am I making sense? ;-)

I'm good, thanks. ^_^

I'll stick with sprint. I prefer yellow over red anyway.

I might cancel sprint all together. I want to get an unlocked Iphone. The Iphone just works better than the pre, andriod, wm, treo and etc. I might get the unlimited everything from T-Mobile for $79 or shop around.

I'm surprised they're willing to do this, rather than just grandfather in current contract holders at the current rate and only applying the increase to out of contract and new subscribers.

But oh well, anything that allows people to escape a contract is a good thing. :)

I'm very happy with Sprint after 10 years. Thank you though!

Interesting... I think i'll try to go month to month. Chances are there's a Pre V2 in the works somewhere, and I'd love to be able to jump to that as soon as it happens. Moving to Verizon might be tempting also. Shoot - a 3GS with Verizon sounds decent as well. But really - Just speed up the Pre or turn down the fancy visual effects - Lag is making me less happy with my Pre...

the lag your talking about is probably caused by the pre auto saving when you switch or close apps. not 100% sure but that is my understanding of it.

I'll stick with sprint. I don't like giving my money away for no reason. "Can you pay me more now? Good."

I've tried all the phone companies except super expensive Verizon. I'll stick with Sprint so far for me they are better than the rest.

The only reason I could see of jumping ship with a pre to Verizon would be if you live an area where Sprint's signal is not good. Why would any rational person want to spend alot more money for cell service? I live in SoCal and the cell reception is good, in fact, it is better than Verizon inside my home. The money I spent buying out my contract (to escape the horrible BB Storm) I have gotten back in savings over the past 6 months. The pre is lightyears ahead of the Storm, love the phone.

If you only get the ebill online (the sprint website) where should I look for this to appear? Will I still get a notice in the mail? I have no intention of leaving sprint, but it like to be out of contract, just in case.

I think it's a consumer protection law of some kind that forces contract change notifications to be in writing. If you're worried about it, call Sprint and have them send you (resend) the notice.

It Works!!! Thanks so much for posting this. I canceled my Third line, that no one was using. It still had 18 months left under contract! Saved me a ton of money! Thanks guys!!!!

Still love Sprint! Still have Two phones with them, and a Novatel Mifi!!!

You've very lucky. Technically, you cannot claim "materially adverse" for only one line. That is, unless that line is unique. For example, you might be able to claim that 40 cents in not "material" for your $70/month line, but it is for your $20/month one.

Keep in mind that it's supposed to be the ENTIRE contract, not just part of it.

Misunderstood, never mind...

Could you elaborate on how you did this? I also just want to get rid of a third line without the termination fee.

What did you say to get them to cancel your line of service?

In the first paragraph: "without encouraging an early termination fee", the word is "incurring" as you correctly say in the second paragraph.

I'm sticking with Sprint, too! Nothing but good reviews from me!

Does anybody know if you can have your number transferred and still not have a EFT? Because if you cancel your service outright you are going to lose your number. I would have it transferred to At&t if they get the HD2 during this time frame.

Dumping Sprint and jumping onto Verizon is a suicide mission.

I would agree, when looking at certain aspects. From my experience between the two carriers, Sprint's customer service seems to be better.

And for many, Sprint's high speed data network is better. There are, however, a few areas where Verizon has deployed 3G coverage and Sprint has not. Unfortunately relatives that I frequently visit on weekends live in a few of those places... So while Sprint's coverage is certainly satisfactory around me, overall I think that Verizon may provide me with slightly more useful coverage. By the time my employer discounts are taken into consideration between the two carriers, I'll only have about a $10/month difference for similar plans. Having that 3G coverage at my relatives' homes in those few areas is worth that extra expense to me.

Overall I am happy with Sprint, and am very satisfied with the Pre. (I'm actually hoping that Verizon starts carrying the Pre *soon* or there's a way to port my Pre over to them somehow.) If not, I guess my next choice for phones might have to be the Droid... (I'm guessing there's plenty to like about it as well, but it certainly doesn't have the form factor or openness of the Pre.)

I have some specific experience with "materially adverse" clauses in contracts, so here goes...

The (legal) definition of "materially" is squishy. It's not "5%" or "over $1" or anything like that.

The definition is essentially the amount by which the "average" person would have made a different purchasing decision.

For example, if you contract went up by 1 cent per month, no "average" person would say that this was material. Meaning that they would not have turned down getting a Sprint agreement simply because it was the difference between $40/month or $40.01. One cent is not material.

The question is: does 40 cents per line per month constitute "material"?

The problem is, unless you're willing to go to court, Sprint gets to decide. To them, obviously, 40 cents/line/month is not material. So, if they do turn you down, you'd have to go to court where the jury would decide. Jury being the proxy for "the average person."

If you currently have a Pre, you're paying at least $70/month. An addition of 40 cents comes out to less than 0.6%. Could you say with honesty that 40 cents is "material" in that it would cause you not to be able to afford to pay your bill, give up something else? If so, then you'd need to convince a jury that 40 cents/month to you makes a real difference in your life.

That's the bad news.

The good news is that some CSR's won't know the law and will go ahead and let you go. So, it's worth a try.

The bad news is that if you get a CSR that's been told that 40 cents is not "material," there is nothing you can do about it, short of legal avenues.

Oh, and the way that companies typically handle the situation of being threatened with a negative legal judgment: they waive the 40 cents. In other words, Sprint has the option of not making the change, as a way of keeping you.

I present this based on actual knowledge of the subject. When I've presented this before, people accuse me of working for Sprint. I don't. People try to argue with me, ignoring that I speak about actual fact.

Heck, I'd love to get out of contract ETF-free. And I wish you the same. But I'm also here to tell you that legal percent shows that 40 cents on $70 is not "material."

My understanding is that there was a court ruling some time ago that essentially decided that any unilateral change in dollar amounts for cell phone-style contracts constituted a material change. This makes sense to me; otherwise cell phone carriers could just increase bills by small amounts (say, $0.50 or so) every few months and get away with it-- leaving their under contract folks with essentially no option but to pay. That doesn't sound fair to me, and it's not what contracts between two parties were intended for.

I also seem to remember a few lawyer friends saying that something about "due consideration" needing to be given to all parties in a contract when changes were made. In other words, one side doesn't have the right to make a change that benefits it without giving the other parties some consideration (i.e. benefit) in return. In this case, Sprint's benefit is clear: more money. The benefit that we receive (as the other party to the contract) is not merely unclear-- I'd say it outright doesn't exist at all. That is, unless you consider the ability to give a business more of your money to keep it afloat a benefit. I don't know if this is 100% true in all situations (most likely not), but it is something to consider though.

Another point too... For many folks this is just a $0.15/month change in prices. But for others who have Sprint credit limits, this represents a potential $5.10 change per month-- $0.15 per line (assuming one line here), and a $4.95 "penalty" for not signing up on auto-pay. While $0.15/month (totalling a whopping $3.60 over a 24 month contract) may not be material, $5.10 (totalling $122.40 over the same period) likely would be. To me, this means that those who have some sort of credit limit imposed by Sprint may have a stronger case for ending their contracts without ETFs.

Lastly, I agree with your third-to-last paragraph. If Sprint does indeed decide to waive the fee increases (the $0.15 per line per month, and the $4.95 per month fee for credit limit accounts), then there is essentially nothing that one can do. Why? Simple-- if the extra fees are waived, then no material change to your contract has been made. (That being said, if Sprint decides to go this route I'd watch my bills like a hawk to ensure that their fees are indeed waived for the remainder of the contract.)

So, for those that are looking at this as a way to cancel the contract without an ETF, should I expect to see this in my upcoming December bill? Or will it be published in the January bill? I'm trying to determine when I should be looking for this, and when I'll be able to call Sprint and see what my options are.

try telling sprint that your gonna pay them .40 less per month and see if they say yes. I guarantee you they wont cause its materially adverse to them.

For those in Sprint Premier plan, remember that you probably don't wnt to lose the ability to upgrade annually. :)

I am one of those with the spending limit, and will definitely be leaving.$4.99 is to much. .40 cents i could handle

May I ask with their bleeding subscriber base would they screw themselves with breaching contracts? Im just not seeing the logic for this.

Please essplain the "and will be assessing an additional $4.99 fee on accounts with spending limits." What is this?

I second this question. I'm not sure what the spending limit even is.

if you have one its indicated by a progress bar up to $150 on ur main sprint overview page on ur sprint account online. If you have one it should be at the bottom of the page

its a limit on your account that if you go over either by not paying the bill or charging an accessory to your account, your service will be cut off immediately until paid.

..additional $4.99 fee on accounts with spending limits.? Does this include the $69.99 unlimited package?

As a new customer who switched to Sprint because of the Pre, this is very disheartening. I, too, got imposed with the spending limit on my account. That's not a big deal. But they shut off my phone during the first 2 weeks of service because they pro-rated my bill for a partial month, billed me for another month and then cut off my phone service for being over my limit when I hadn't even received a bill. Now they want to charge me $5/mo for this? Actually starting to think I made a mistake going to Sprint...

$5 extra a month, for the same service? Um, that's actually not cool. I just might have to put in a call about this. For something will increase my monthly bill by $5 bucks, I think I should have gotten a big email or notice on my account about it.

I chatted online with a Sprint Rep and he said the $4.99 fee is waived if you are enrolled in automatic payments. Not so sure about the 40 cent fee per line but that is less of an issue. Also, those that have new accounts have spending limits because I inquired about that as well. Here is what the rep said:

1:57:55 PM Agent Todd H
If the account is enrolled in Automatic bill payments, the $4.99 charge will be waived, this will begin in January. After 18 months of service and responsible payment, Sprint may remove your spending limit and send an account notification letter.

Hmm... Still seems like a material change to me, something that should easily allow you to get out of your contract. Any hassle from their end would, in my opinion, indicate less than ethical behavior on their part.

They require access to your account and your authorization to automatically withdraw the funds they see fit to take, or charge an extra $4.99/month? It sounds like the whole deal is only conferring benefit to them-- no consideration is provided to the consumer.

Sucks if you're not automatically enrolled, however, I am and this would remain acceptable to me. Just seems like a shady practice--especially to do with a new customer.

Thanks repin for doing the hardwork so I didn't have to =)

For whtever reason (geographic?) Sprint is the only carrier that gets reception at my house. So I'm pretty locked in to Sprint and really don't have any complaints. I will persue this, however, because I want to be month-to-month so I can get the next cool phone when it comes out.

I wish cell phone companies would realize that people generally stay with the thing they know becaus it's comfortable. I wouldn't change companies for no reason, so if I'm treated right I'll stay.

That Droid does look pretty cool, though...

(Actually I've read some reviews that make me think it's not all it's cracked up to be. Not to mention I love webOS and think it's only getting better.)

hi just looked at my sprint bill and talked with a sprint rep.we all pay a .40 regu. fee already.the only increase will be a 4.99 fee for people who have a spending limit.those with a pre im sure you dont have a spending limit..so you can ignore this and stay with the best cell phone company out there.thanks

I only have a $0.20 regulatory fee listed on my bill. We're talking about the one under "Sprint Surcharges", "Regulatory Charge", correct?

YUP! Mine is .20 cents and its going up. The sprint rep lied to you (meant to the poster that said he talked to the sprint rep) Guess im going to cancel my contract. Also to be PREMIERE all you have to do is have the 70 dollar plan for 3 months and you get enrolled automatically.

Did your notice come with your December bill, or was this some sort of separate mailing? I'm just trying to figure out when I should call Sprint and find out what they will be willing to do for me.

I will stay with sprint thanx. What I pay for 1500 anytime minute and unlimited data for my familly shared plan for 4 people (Sprint Premier)is peanuts compared to what some people pay on verizon or at&t. And I have no complaints about my sprint service either. Plus I get the option to buy the Pre 2 if there is such a phone next september.

Lost a lot of interest in my pre but sprint is cheaper at the moment. if i can go month to month i'm doing it and i'd likely be out soon after if i can afford the other carriers. Plus reception is bad in my home.

I am thinking about leaving Sprint, even though I just signed up on 10/31/09. So, as I understand it, I would be able to avoid an early termination fee by invoking this material change of Terms and Conditions. I haven't yet received the notice, but I'm sure I will. I also have an account spending limit on a plan that is $69.99, so that addition of $4.99 is over 7% added on to my bill. What I don't understand is do I have to wait until 1/10/10 and the 30 days after to call Sprint and try to cancel my contract, or would I be able to do it now?

I'm sorry, but increasing my bill 5 dollars is bs and it sucks, but all these people who are saying they are going to leave sprint b/c of this i feel are crazy. Your going to pay more then 5 dollars extra each month any where else you go. Sprint isn't the only company that will up there fee's either. Verizon has done it, i know b/c they did it to my wife. I don't know about At&t, but there is an article that came out today saying the at&t is putting more of a limit on iphone users and if you go over the limit guess what your going to have to pay more and i'm sure its more then 5 dollars. I don't think its a good move on Sprints part especially since they are still losing customers.

it's not the only reason for some of us and i left T-mobile and my service was stellar and i go back if they had phones i wanted.

When you get the notice of the contract change it should have the text that discusses what you need to do to cancel without ETF. Sprint wouldn't be including that info if the change they were making wasn't deemed material.

Do not call ahead of time, else they might just give you a credit for the charge. What you want is to trigger a disconnect process.

If you for whatever reason would like to be able to jump to AT&T or VZ and get a Pre or another handset, this is for you. Waiting until you get the notice and then a few days more will allow you to see if AT&T's Pre or VZ's is out by then and then you can jump to them, maybe even reusing you existing Pre if you are going to VZ.

If you want to stay with Sprint, the CSR will likely try and talk you out of leaving. Some folks have reported being able to go to month to month contract terms, basically enabling you to terminate at any time without an ETF, which is to your advantage when the Pre II or other nice handset comes out - you'll be ready to upgrade without paying a lot of money for being in contract. They may give you some other free incentive to stay as well. The bottom line is that you get a lot more leverage.

If you want to keep your Pre and stay on Sprint, you can cancel you service, and then attempt to get a new account with your existing Pre later, and be provisioned on a month to month basis with no contract, which is again a great deal. If the new iPhone comes out a few months after, or some other handset that's great, you can then jump later without worrying about ETF.

Bottom line is there is something good here for everyone. With Sprint hurting with Wall St. because of losing subs, they will be very aggressive trying to keep you as a customer. You should absolutely take advantage of this!

I hate ETF's - it provides lock ins that prevent people from commoditizing the cell phone carriers because of handset exclusivity. The timing of this change is great - VZ and AT&T should have the Pre available next month. Take advantage of Sprint's greed in raising this fee which is pure profit for them and get some freedom for your self in return! And be sure to tell every other Sprint sub you know to get in on the deal.

Good luck!

Any ideas whether this could be used as leverage to get one's contract term reset? My thought is that I would love to get my wife a Pre, but the contract on her line doesn't end for another year. If I could reset that to now and sign another 2-year contract, I could afford to get her a new phone. I guess saying "reset her line's contract date or we're taking all our phones over to Verizon" probably won't be met with a lot of success, huh?

What you want to do is easy. Call them up and terminate your wife's contract on her line. No ETF paid. Then turn around buy and activate a new Pre with Sprint.

Or, you can see about getting them to change you guys to month to month. Once you are effectively out of contract, you can upgrade to a Pre like a new user would.

What you want to do is easy because of this change.

Good luck!

Hmm, but she needs to keep her number, so canceling her line will mean losing that, which can't happen. So with this change you can request that they change the contract to month-to-month for all lines on our account?

This is tempting, but I'm sticking w/Sprint. A couple of reasons:

1) My son just got a pixi for $30 from Best Buy Mobile. (Yeah the one where I do the comparisons) He *loves* it. There's really no smartphone on any other network that he could get for that price.

2) After complaining several times to Sprint about my Pre, in an attempt to get them to switch it to an HTC Hero, they offered me $20/mo for 24 months in compensation. After my 25% corporate discount, I simply can't assemble a plan on any other carrier that has 3 lines on it, with unlimited sms & data for $93/mo (before tax). And that doesn't account for any mobile, anytime. To approximate that, I'd need to get into a calling circle, and those plans cost even more.

So I'm sticking with Sprint. And being on the Premier program, I only have 6 mos left before I can upgrade to android - which, by then should be even further than it is today. Who knows, by then maybe WebOS will have caught up and/or passed it.

Question. We can upgrade a phone after a year if you are a Premier member. Does that add any time to the end of the contact? So if you had 1 year left, does that mean you now have 3 years?

you start a whole new two year contract starting from the day you activated ur upgrade

It doesn't add to the end of the contract. It starts a new 2 year contract.

I last upgrade on June 5, 2009: the release day for the Pre. Under Premier, I will be able to upgrade this phone on June 5, 2010. If I do this, my contract commitment will be until June 5, 2012.

If I don't upgrade my phone on June 5, 2010. I will remain on my existing 2 year contract and have a commitment until June 5, 2011.

Does that make sense?

What did you complain about to get them to lower your bill? And which department did you talk to?

I want to point out that Sprint will NOT put a Pre on any "Family Share" type of plan as far as I can tell. I expect Verizon Wireless will continue to allow any phone (like the Droid or Pre) on any plan, though they may require a full data plan on such models. I still have a Treo 700p on a 750 minute shared plan with 3 other family members at $9.99 per month each. I should be able to upgrade to a DROID or a Pre on the same plan I've had for years. Sprint has similar plans, but they won't let you put a Pre on them. That's why I don't have a Pre! At this point I still haven't decided between the Pre and a DROID.

This is not correct. We have an Everything Plus Family 1600 plan. There's an Simply Everything family plan as well.

Not correct. They won't put it on the Everything Messaging. But they will activate it on Everything Data.

WELLL DUH!!!

they make you pay full price if you dont have data, that was the same with my HTC TOUCH,

i use between 500,000kb to 3gb a mnth on my pre, depending if i use mytether or not

Verizon ETF is now $375 for smartphones. Just wanted you guys to know that if you're thinking of going there.

Also, please correct me if I'm wrong, but we need to wait till January 10 to see this item on our bill in order to call Sprint and let them know? Or have people already used this particular change to make get out of a contract?

they told me to call back january 10th(for me) and they would honor the month to month without any ETF, the guy darrell wouldnt give me his last name but gave me his ID number
he also said he would note my account....plus it says in the Terms n conditions that you have 30 days to do so

WHY would anyone want to go to Verizon and pay $50+ per month MORE than Sprint - especially if they have the same phone (Pre on Sprint to Pre on Verizon)???

There's a map for answering that question .. LOL

Please get real. The number of VZ and ATT subs dwarfs Sprint subs. Are you saying they are all crazy for choosing VZ instead of Sprint? There is a reason why Sprint is a 2nd tier carrier.

Who cares about Sprint anyway? This is a Pre forum, not a Sprint one!

Well if 3G doesn't become a reality in my town by then I will seriously consider taking my three lines to AT&T. There is no point in having a phone like the Pre when most of my calls go straight to voicemail because the Pre is using its data connection for something else when the call comes in.

This is a problem with CDMA. It will always be true for Sprint and VZ both. If it's really a problem for you, you should use the contract change opportunity to move to AT&T which doesn't have this problem.

well I can tell you with absolute confidence that you can get out of your contract this way. About this time last year (as stated above) Sprint did the same thing. A buddy of mine called got his contract canceled (no ETF) then ported his number to an iPhone.

I would do the same but I don't think AT&T can touch my employee plan (plus the Touchstone is kick a$$).

I just tried to cancel my contract and they are claiming that the change is not a materially adverse change of my contract. I don't believe them for one second, so I am going to wait for them to bill me then I am going to take it from there. I don't think it is right for a company to decide at will to take money away from a person who has agreed to a contract for service at a define amount. Unchecked we could all wake up once Sprint finds themselves in real trouble with a substantial change to our contracts in order to keep it afloat. I suspect this is something that could be occurring pretty regularly in the future, as Sprint finds itself unable to find it's way into balanced sheet. Honestly, if you are happy with Sprint you still need to flex whatever muscle you have in order to prevent this from happening now or in the future. Because we all have power if we speak up and stop letting companies dictate to us how and what we will pay. They expect you to roll over, so stop and stand up for yourself, because this isn't right no matter if you are happy with them or not. It is your money! You spent that time at work for it not them.

Why not call them back again, and again, and again? Keep playing customer service roulette until you get someone who has been properly briefed on what the law says you can do.

If they had hit me with "That's not a material change," my next question to them would be how they are defining "material change". I would also ask them what they would do if I refused to pay the additional monthly fee. If their answer is anything like "shut off your service", "turn you in to collections", etc. then it becomes very easy to argue that it's a material change-- since their actions for non-payment of the fee would treat it as such.

I went through this whole discussion with Sprint years (maybe almost a decade?) back under nearly identical circumstances. They were pushy about it, and I had to work my way through several customer service reps, but eventually they agreed to honor their contract and let me cancel without paying an ETF. Sprint may not want you to leave, and may try saying various things to keep you from leaving, but in the end they will.

Ultimately Sprint realizes that it's cheaper for them to lose a customer than it is for them to spend time answering complaints filed with the state attorney general's office, federal government (FTC and FCC), BBB, and whomever else you feel like writing to.

They also realize that there's no way for them to force you to pay the ETF. If they turn the debt over to a collection firm for non-payment, you can just dispute the debt. If you've kept records of your conversations with Sprint (date/time of calls, customer service rep name and ID) along with your contract and notice that should provide more than enough information to show that the "debt" Sprint complained about isn't really owed. But I doubt it would go that far, as doing this type of thing will result in no extra income for Sprint plus a lot of bad press.

Plus, I believe there have been some court rulings stating that any change to contract terms involving monetary amounts is material. Deep down Sprint realizes this too, and knows they don't really have a leg to stand on to force any ETF from anyone who chooses to leave by citing the appropriate terms of their contract.

As a little Sprint birdie I can say this:

If you are affected by this change in surcharges/fees, you will be able to cancel your account or have the contract removed without an ETF. However, this does NOT allow you to have your upgrade eligibility moved up if you go month-to-month. The only way you will be able to swing this is to cancel and get a new number.

Spending limit customers don't realize one thing:
Nobody else will take them without a deposit or at all. Pay the $4.99 per month or pay a sizable deposit with another carrier.

Unless, of course, you left a previous carrier for Sprint, in which case you can hop right on back.

100% False. I've got three lines with sprint and a $450 spending limit today. Last year my brother who doesn't have any credit asked me if I could get him an iphone with att, and not only did I get it without any deposit, but the guy told me I could get up to 5 iphones with my credit.

I have great credit, but somehow I still have a spending limit with sprint...go figure, it's not so simple.

This is accurate.
Today I went to Sprint to add another line to my family share plan. I have 3 lines now.

They stated I was only originally approved (6 months ago) for 3 lines and a $450 spending limit. They were not sure why (based on my credit results) but they can not do another review until after 12 months. According to the store and CSR's (including supervisors) they cannot legally pull credit again until 18 months (or 12 months if requested by account holder). Without pulling credit (again) they can not initiate an account review. So I cannot add an additional line until 12 months when they can initiate the review.

I went to Verizon and they ran my credit and I can get 4 lines without any deposit.

Sprint did offer to open an additional account (same feature plan on single line) and discount my current one and this new one so heavily that the price would be the same each month as adding another line ($19.99). This leads me to believe that it is some type of system/legal limitation they cannot get around (easily?) if they are willing to go that far.

My ex-girlfriend had no credit history. While she paid for her phone andbrand new car. They were all in her parents name. She walked into an ATT store and was able to walk out with an iPhone. She got a new credit card soon after...with a $500 limit.

Idk why everyone wants to go to Verizon to use the Pre unless your Sprint service sucks so bad. I'd consider moving from Sprint for a better phone. I hate the Pre and wouldn't mind an iPhone but I was a SERO customer and now on a shared everything for 150/month before discounts. Won't find that on ATT/Verizon

If I only get hit with the $0.40 fee, is that enough to cancel my contract? Or do I need to get the $4.99 spending limit fee as well?

My understanding is that either constitutes a material change to your contract, since it involves you paying them more money without receiving any benefit in return. Disclaimer: I am neither a lawyer, nor someone who stayed at a Holiday Inn Express last night-- so your mileage may vary. :-)

I will be doing this to get away from Sprint contract and go month to month. I love the phone too much to move over to big red. I will go to big red once it becomes available because in SoCal, my house, I get dropped calls all the time when im in the garage, my entertainment center.

Have you considered an airave? Sprint is usually willing to hand those out for pretty cheap to get you to stay on their service.

Called sprint, was on the phone for about an hour total. Billing dept sent me to acct services, acct services rep put me on hold for a little while while trying to figure out information, he wasn't able to talk to who he was trying to speak with and got tired of leaving me on hold (call time?) so he went ahead and expired the contracts on both lines for today. Man, sprints customer service is way better now than they used to be, thank you sprint. Don't plan on leaving but figured why not get out of the commitment.

2 of my 3 pre's (on 3 of my 4 lines) have physical problems (flaky power button, scratched screen, chipped casing, etc) and I have no insurance. So I think it might be a good idea to cancel the contracts if possible, then purchase new phones on new contracts, or at least be ready to do so when new phones come out (a palm pre 2 maybe??).
any other ideas welcome...

i have found the palm pre hardware to be less than ideal, but i find the phone otherwise excellent, sprint's service reliable, and sprint's service price very reasonable. No need to switch providers and no better phone for me available at this time. (although I like the android platform)

Without insurance, there is nothing you can do about the scratched screen or chipped casing. However, the power button issue should fall under the manufacturers soft warranty. You should be able to go to a service and repair center, and get another device ordered.

I just called Sprint and the customer service guy said to call back on January 1 if I want to opt out of my Sprint account, BUT he said it would CANCEL my account and I won't have any service, he said I couldn't go month-to-month. Is this right??? Why are they allow some Sprint customers to opt out of their account and go month-to-month and not others!!!!???? Help me out!

I am on an ASL because I am a 18 year old student with no credit history. I pay my bill every month (their rep Jose(?) even called me to upsell me yesterday and said I had a "stellar payment record") and there is no way I am paying an ETF. I am happy with Sprint and want to keep my current plan and phone. The .40 cents a month does not bother me.

So I called in and talked to Francis who asserted there was no such charge, and there will be no such charge. I was then transferred to her supervisor Rose, who also assured me that there was no such monthly charge and there will be no such charge. I even told her about the blog post on the Sprint forums. She put a notation in the account so that if I am ever charged for one I can go back and complain.

I am not, however, paying $4.99 extra per month because I am 18. Especially when their rep said I have a "stellar" payment history. I take pride that I live within my means; that I have the money to pay them and I have paid every bill on time. It's offensive that they are going to charge me extra because they think that I am not going to pay them when they have no reason to believe that.

I don't mind the spending limit. It's $150 but does not include the MRC - only extras - which are overages. I don't plan on raking up any overages and I am happy that they cap my overages. I would even cap it lower.

-Plaz

I'm rather a new sprint customer, this will be my 3rd month with them. The only reason I switched from big red was the pre and to be honest the service is s**t compared to big red. I have a perfect credit history and all I have is 1 line with them, I checked my bill and it said I have $600 spending limit, if that is the case and they'll want me to pay them even a penny more I'm getting out of this rip off.

The 600 spending limit is place on accounts for the first 3 months of service and then removed. It essentially means your credit is really good to perfect.

I did the math before we jumped from Verizion to Sprint. One thing I love is mymilitary discount comes off the whole plan, notjust the voice, the way Verizion's did. For my wife and me it's over $500/year saved with Sprint. I'd love to have Verizion's 3G coverage, but it's not worth that much money, and wi-fi makes it not matter as much.

It worked. I hated Sprint service, I live in Miami. No service inside any building, roaming constantly on Verizon, conflicting information between different Sprint stores. The first representative I spoke to, and it worked like a charm. As much as webOS had promise, the phone was kind of laggy and I got out of the contract scott-free! Incredible, thanks PreCentral.

So I haven't received any notification from sprint on the matter of an increase. Is everyone being notified or are they just going ahead and calling?

Good timing. What with the new Android phones hitting TMo early this year and them lowering their rates if you bring an unsubsidized phone I may finally leave Sprint. They have always been my carrier of choice but I am willing to leave if someone can finally beat them on price.

Where in the bill will it show the increase?

Also, has anybody stayed on with the service and just cancelled the contract?

I tried to go month to month. They said NO but to try in January when it actually happens.

The notice of increase is on the second page of your bill in the boxes on the left side.

I made a phone call to Sprint about the increase this morning.

The first CSR said that it didn't apply. I disagreed with him and read him the "material adverse effect" clause. He then asked if wanted to be transfered to Cancellations.

The Cancellations rep understood and agreed. I also tried to go month to month, but he said it was not possible. We then started chatting about the phone and other phones, and I told him that I was happy with Sprint services, but that being able to get out from a contract had its appeal since I was essentially a gadget freak. He then offered to allow me to upgrade my phone if I wanted, and reset my account to reflect that. If I want to cancel all together, I have until March 15th to do so.

How do you have until March 15th?

I tried to cancel my contract today citing the T&S change. However, the change doesn't take effect on my plan until Jan 10th so I need to wait at least until then. I tried to argue but to no avail.

Be careful that they don't proactively waive the fee increase to keep you under contract.

I love the Pre but as things are changing so fast, I would love to go month to month or somehow get out of the 2 years. I also have a strong feeling that the Google phone is going to change things forever. If they offer it for $99 (or free with ads) and unlocked, the entire business will change. I'd love to be able to time it right to do whatever I can do at the time this happens.

Plus as someone who has to work with apps, I need to get an iphone and an android phone to develop apps. Paying for the Pre doesn't do much for my business. Only personal rewards.

It worked. Just called Sprint and CSR was polite and helpful, able to deal with the issue quickly, confirming I can end contract by the end of my billing cycle without ETFs. He offered a $20/mo discount if I renewed my contract (including the higher surcharge fee). He made a notation in the account record that I should not be charged the ETF.

I am going to the iphone, although I am fond of the pre and like its potential.

For those who intend to stay with Sprint, this is an opportunity to get a discount.

So I called Sprint today and spoke to a very nice CSR about this contract issue. Long story short, I was offered the 20 bucks off a month, which is nice. Sadly, they said that if I cancelled and tried to get a new Hero instead of my Pre they would find a flag on my name and not allow it to happen. Maybe a game, but who knows. Anyways. I got til the end of Jan to decide on the 20 bucks off a month, or go to VZW and pay a lot more for more 3G coverage. BUT, I did score a free Airave and they waived the monthly service, and I've only a sprint customer for 5 months.

SO, here I sit debating whether or not to renew for 20 bucks off a month and keep my Pre. Why can't the Pre be a solid build!?! Why does the Hero have to be so sexy?!!

so how exactly do i do this? I have read a lot of these but I want to get clear concise instructions on how to get out of my contract. I am only hit with .40 fee not anything else? Will this still give me the "material adverse effect clause"?

I just called and tried to go to month to month. They said that is not an option. I have to either cancel or agree to a reimbursement of the fees (plus a little extra) every month. But month to month is not something the legal department is allowing. Not sure why since it seems like they'd make more money that way. I'll probably try to call back another day and try again. And if I still can't do it I'll just cancel.

For those of us who terminated the contract without ETFs, don't we own our pre's outright now, so that we can transfer/sell them to someone else if we want? The CSR I spoke with to end the contract was unclear about this, speculating that I might be told to mail the pre back to Sprint. That seems wrong to me, as I paid the $199 after rebate on 6/6/09. Does anyone know for sure? Thanks in advance.

Ok I just called and was told that you cannot go month to month. You can cancel your contract with no ETF, or you can setup auto payments and have the fee waived.

I really like the palm pre but the aspect of the google phones are tempting. I want to stick around for the 1.4 upgrade but then it will be too late to cancel :-(.

How is everybody getting the $20 off. And how did that one guy get a free upgrade? I want to try to get this but I don't want to sound demanding...do you have to say your canceling and then they offer it to you?

Well, I just received my $4.99 Fee letter in the mail the other day and I'm completely torn. While I love my Pre and can certainly set up ACH to avoid the $4.99 Fee, Sprint's service in my area and the issues I've had so far make this no ETF offer sound very tempting. I wish I could get off the fence and make a decision.

Where is my letter? Was it included in the bill?
Also, can I keep my number when I switch to another company?

Good post, thank you for sharing. Keep up posting.
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