Vodafone Digital Mobile Threatening for Additional Payment for terminated iphone contract

Forums › One NZ (including Farmside) › Vodafone Digital Mobile Threatening for Additional Payment for terminated iphone contract

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BDFL - Memuneh
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#365043 8-Aug-2010 16:54

Predated: As you have admitted here you didn't intended to see the contract out and end it straight away, you have not entered the contract in good faith and as such have obtained a subsidy by deception, this is illegal. Digital Mobile are within their rights to claim this subsidy back.

He didn't get the subsidy at all, since he paid the ETC, which covers it.

What I don't understand is why people just don't buy outright from the Apple website...

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mikerussellnz

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#365045 8-Aug-2010 16:58

The reason people don't order direct from the Apple website is that the shipping time is 3 weeks. I know as I have ordered one.

freitasm:
Predated: As you have admitted here you didn't intended to see the contract out and end it straight away, you have not entered the contract in good faith and as such have obtained a subsidy by deception, this is illegal. Digital Mobile are within their rights to claim this subsidy back.

He didn't get the subsidy at all, since he paid the ETC, which covers it.

What I don't understand is why people just don't buy outright from the Apple website...

camtab

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#365047 8-Aug-2010 17:08

freitasm:
Predated: As you have admitted here you didn't intended to see the contract out and end it straight away, you have not entered the contract in good faith and as such have obtained a subsidy by deception, this is illegal. Digital Mobile are within their rights to claim this subsidy back.

He didn't get the subsidy at all, since he paid the ETC, which covers it.

What I don't understand is why people just don't buy outright from the Apple website...

Predated - There is no question of good faith here, he signed a contract that had an exit clause and he invoked said exit clause as he had every right to. DM have no right to throw their toys and demand extra

Frietasm - The main reason we chose to go this route is because Vodafone gave us no option. Up until about 130pm that day (1 and a half hours AFTER they went on sale) we weren't advised that the online store would even have the handset. The launch was a shambles so we took the first path we were offered (on contract) to secure the phone. We also didn't want to have to wait 3 plus weeks

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#365061 8-Aug-2010 17:52

mikerussellnz: The reason people don't order direct from the Apple website is that the shipping time is 3 weeks. I know as I have ordered one.

Life still goes on though.

tardtasticx

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#365062 8-Aug-2010 17:54

c71931f:
tardtasticx: First Mobile are absolutely horrible. No one wants to help you in store unless you want to buy something. If you need help with a phone you brought from them, they don't wanna know

Somehow i just think your unhappy they won't sell iPhone 4's to prepaid customers, so your saying things like what you said in the post i'm quoting.
First Mobile is fine.. only had one problem and that was sorted, thanks to michaelmurfy

I brought a sony ericsson phone off them, after them sending it away 4 times, and me waiting for them to finish refurbishing their store, they finally replaced it with a different model, and that one was faulty as well and they kept sending it to some place in Christchurch to be fixed before they said it had water damage even though this was the middle of summer and I would know if I got it wet.

I'm not to bothered that they wont sell iPhones to prepaid customers, it doesn't bother me since I can't afford one outright anyway. lol.

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#365076 8-Aug-2010 18:45

chrhodes: Then this afternoon I was called by Vijay who is the franchisee for Digital Mobile in Manners Mall asking for either the iphone to be returned or an additional $480+gst to be paid as a subsidy payment.

On saying no I was told that a debt agency would be involved to recover the cost. He also said that he reserved the right to get Vodafone and Apple to blacklist the phone for service.

Classic - you should have told him you reserve the right to lay a complaint of extortion.

Predated: As you have admitted here you didn't intended to see the contract out and end it straight away, you have not entered the contract in good faith and as such have obtained a subsidy by deception, this is illegal. Digital Mobile are within their rights to claim this subsidy back.

ROFL. It's not illegal to end a contract, irrespective of the amount of time it's been in effect.

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VFNZPaulBrislen

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#365491 9-Aug-2010 16:57

Just to spell it out, here’s our process for hardware subsidies/returns etc.

If you buy a phone on contract you have a 14-day period in which to change your mind. This cooling off period allows you to quit the contract without paying an ETC (early termination charge) if you return the hardware in new condition.

If you take out a contract and then wish to cancel it, ETCs will apply. They slide from a full rebate cost down to zero over the duration of your contract so if you’re within a few months of your contract expiring you probably can break the contract and sign a new one without any ETC being applicable.

This link to Vodafone web site shows all the ETC periods for iPhone.

Customers who sign up to a two-year contract and then immediately break it should be covered under the cooling-off period option providing the hardware is returned in new condition.

If you chose to pay the ETC (presumably you never intended to honour the contract in the first place but just wanted the phone) you need to call 777 and you’ll end up paying around $1250 for the iPhone 4 which is more than the RRP via Apple’s website.

So – pay the ETC, keep the device. Return the device within 14 days in new condition, avoid the ETC.

Cheers

Paul

Paul Brislen
Head of Corporate Communications
Vodafone

http://forum.vodafone.co.nz

Buttonmash

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#365499 9-Aug-2010 17:14

PaulBrislen:
If you chose to pay the ETC (presumably you never intended to honour the contract in the first place but just wanted the phone) you need to call 777 and you’ll end up paying around $1250 for the iPhone 4 which is more than the RRP via Apple’s website.

Am I doing my math wrong somewhere?

16GB:
$1099 from apple.co.nz
$619 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1165.25

32GB
$1299 from apple.co.nz
$799 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1345.25

robbyp

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#365500 9-Aug-2010 17:19

This is why I don't sign up to companies who make you sign up to these types of contracts, even ISPs. The safe way is to buy the handset outright (probably from apple if they are cheapest for outright purchasing) and choose you own pricing plan, whether it be prepay or on contract. Also you can move between networks without penalty. Remember that long term fixed contracts are the gooden goose for companies, as it is a largely passive fixed income for them.

camtab

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#365501 9-Aug-2010 17:22

PaulBrislen: Just to spell it out, here’s our process for hardware subsidies/returns etc.

If you buy a phone on contract you have a 14-day period in which to change your mind. This cooling off period allows you to quit the contract without paying an ETC (early termination charge) if you return the hardware in new condition.

If you take out a contract and then wish to cancel it, ETCs will apply. They slide from a full rebate cost down to zero over the duration of your contract so if you’re within a few months of your contract expiring you probably can break the contract and sign a new one without any ETC being applicable.

This link to Vodafone web site shows all the ETC periods for iPhone.

Customers who sign up to a two-year contract and then immediately break it should be covered under the cooling-off period option providing the hardware is returned in new condition.

If you chose to pay the ETC (presumably you never intended to honour the contract in the first place but just wanted the phone) you need to call 777 and you’ll end up paying around $1250 for the iPhone 4 which is more than the RRP via Apple’s website.

So – pay the ETC, keep the device. Return the device within 14 days in new condition, avoid the ETC.

Cheers

Paul

Excellent. Thanks for the update and official word. Good to have some confirmation

camtab

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#365503 9-Aug-2010 17:26

Buttonmash:
PaulBrislen:
If you chose to pay the ETC (presumably you never intended to honour the contract in the first place but just wanted the phone) you need to call 777 and you’ll end up paying around $1250 for the iPhone 4 which is more than the RRP via Apple’s website.

Am I doing my math wrong somewhere?

16GB:
$1099 from apple.co.nz
$619 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1165.25

32GB
$1299 from apple.co.nz
$799 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1345.25

Yeah same question..my math had the same outcomes as you Buttonmash so keen to hear where the $1250 came from and if that was 16GB or 32GB

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LennonNZ

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#365504 9-Aug-2010 17:29

Buttonmash:
PaulBrislen:
If you chose to pay the ETC (presumably you never intended to honour the contract in the first place but just wanted the phone) you need to call 777 and you’ll end up paying around $1250 for the iPhone 4 which is more than the RRP via Apple’s website.

Am I doing my math wrong somewhere?

16GB:
$1099 from apple.co.nz
$619 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1165.25

32GB
$1299 from apple.co.nz
$799 from Vodafone. + $40 for the first month and $506.25 ETC ($450+GST) = $1345.25

yes That sounds right as far as I can tell..

So only $66.25 more than RRP and you get a months usage so really paying $26.25 (16G) and $6.25 (32G) more than RRP+ 1 months usage

Or am I working it out wrong as well?

Thanks

VFNZPaulBrislen

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#365511 9-Aug-2010 17:45

I'm relaying someone else's maths... happy to be corrected. I imagine if this practice takes off we would review the ETCs as a result.

Either way, you pay more to buy from Vodafone and instantly disconnect than to buy directly from the Apple store.

Cheers

Paul

Paul Brislen
Head of Corporate Communications
Vodafone

http://forum.vodafone.co.nz

LennonNZ

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#365512 9-Aug-2010 17:48

PaulBrislen: I'm relaying someone else's maths... happy to be corrected. I imagine if this practice takes off we would review the ETCs as a result.

Either way, you pay more to buy from Vodafone and instantly disconnect than to buy directly from the Apple store.

Cheers

Paul

Is there any time frame in people being able to buy iPhones 4's outright from Vodafone Stores?

Buttonmash

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#365515 9-Aug-2010 17:50

Thanks Paul. I was wondering if there was another cost I didn't know about

Nice to have official feedback on this!

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