The Rantings of SpikeRants

I'll start off by saying I used to work in the retention (i.e., we don't want you to cancel your service with us department) at Sprint.

The then $150 cancellation fee was explained to us as a way to reclaim potential money from the customers who opt out of the contract early. The futures of the cell phone companies, my trainers said, were based on X amount of customers spending Y amount of money. If A amount of customers canceled, they would lose B amount of money, so the cancellation fees would help balance that out and make them look like they weren't hemorrhaging money.

Kinda sounds like a line, but it makes a bit of sense.

So, many companies put in a "retention" department to keep customers from leaving. There were loopholes for getting out of a contract, like leaving on military duty, leaving the country, etc. But for the most part, you were stuck. If we set you up with a better plan, one not nationally advertised, yes, you would have to sign a new contract. Makes sense.

But those plans didn't always work. Some customers wanted a new phone. We had no "existing customer rebate" program. So, it was an incentive to get new customers to an opposing company to give them a free phone. Or, a greatly reduced one.

So, eventually, the big wigs listened, and existing customer rebates were put into place. Now, after 18 or so months of service, you could sign a new two year contract and get a phone at the new customer price. That made my day when I heard that!

So, long story slightly shorter, I get a new phone from AT&T in August with a new two year contract.

But, if the FCC puts in what I've seen, such as lowering the cancellation fee based on how long you've had it, does this mean the end of the existing customer rebates?

These companies are in it to make money. Now, don't get me wrong. I know a bunch of people I worked with would stick on a new contract to people who made them mad, or not tell people when they had to sign a new contract to ensure they kept their four minute average talk time. But for the most part, you knew you had a contract. You knew for how long. If you weren't told, well, heck, we live in the internet age. It says on your account. Your first bill. If you didn't look, that's your bad.

Do we need to get rid of the cancellation fees? No. It helps the companies make back their money. You were told (mostly). At Sprint, we RECORDED the person agreeing to the contract. Name, SS# and Date of Birth were all given.

BUT-- and here's the thing that brasses me off the most-- when a customer would ask to hear their voice, I was always told to tell them "That's proprietary information, and Sprint doesn't disclose that."

Huh? No. If a customer has a dispute, pull up their voice. If there is no recording, no signed contract, or if it's their friend calling and pretending to be them, LET THEM OUT.

This might mean the end of the benefits to existing customers: retention plans, new phones, special offers. Because they all require a new contract.

I canceled with Sprint before my two year contract was up. My phone was broken, the insurance was asking for about $70, and I was sick of not having service on 75 just north of Plano. I paid the $150 when I got the bill. It would have cost me more to keep the service for the next six months AND pay $70 for the replacement phone than just the $150.

Yes, it stinks. But these companies are in it to make money. They should NOT be allowed to rip people off. But you should know what you're getting in to. And if you don't want a contract: GO PRE-PAID.