Vodafone Digital Mobile Threatening for Additional Payment for terminated iphone contract

Forums › Vodafone New Zealand › Vodafone Digital Mobile Threatening for Additional Payment for terminated iphone contract

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959 posts

Ultimate Geek
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Reply # 364465 6-Aug-2010 21:33

Since you paid the subsidized price and then the etc price they have no justification asking for more money or return of phone

It's a problem between DM and Vodafone only and has nothing to do with you,it's not your problem Vodafone don't pass that money back to DM

camtab

54 posts

Master Geek

Reply # 364483 6-Aug-2010 22:17

chrhodes: Hi

Today I went into Digital Mobile in Manners Mall Wellington.

On going there I found out that they had received a new shipment of iphone 4G handsets.

So I bit the bullet and decided to get one. On finding out that they were only available on contract I decided to do the old sign/cancel as had been detailed in GeekZone.

I signed up to a 24 Month iphone 40 plan. All was good and then when finished asked how to disconnect.

I was told that they couldn’t do it in the shop and that i would have to call 777.

So once back at work i did this and spoke to 2 CSR's (1st transferred me to the retention line) and explained that I wanted to use prepaid on my iphone and was told that the cost to break the contract would be $430+gst. I checked that this was the only cost that would be charged.

Fantastic so the contract was cancelled and the new number went dead.

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.

He stated that the reason for this was that Vodafone only credits connections and subsidies after 6 Months and even

though I have paid $430 to end the contract he would not get any of this. in addition I had only ended the contract with Vodafone and not digital Mobile.

He stated in his argument that Vodafone had contacted Digital Mobile about my cancellation (I feel so special) and the local area manager had contacted Vijay.

He also stated that I had been told when calling 777 that I would have to return the iphone to the place of purchase. FYI I wasn’t and am happy for the CSR tapes of my call to be looked at if needed.

He also stated that both his assistants had told me that I would have to return the iphone if I cancelled. This was not the case and I didn’t get told at the point of signing the contract, or after I asked how to cancel. I was just told dial 777 when asked how to cancel.

On saying this I was told that it would be their word against mine.

FYI at no point was I offered a copy of the VF T&C and the contract I signed doesn’t have them ticked as read.

Now before doing this I researched this and Paul Brislen of VFPR has stated in topic http://www.geekzone.co.nz/forums.asp?forumid=40&topicid=65194: "You don't give the phone back if you pay the ETCs."

Now when this was pointed out to Vijay he has stated that this is Vodafones point and not Digital Mobiles.

So I have made this post to ask VFPR the following

1. Are you aware that Retailers are not providing the VF T&C and checking that they are understood.

2. Are trying to Bully People when they break contracts. (Imagine if i was a little old lady being threatened... luckily I’m not)

3. Are stating that they would get staff to state items that are not truthful on the precedent that its their word against yours

4. Are stating what Vodafone CSR’s have said without any evidence (recorded calls will answer this one)

Now I am happy to assist and if you need Paul I can authorise the CSR tapes to be released (FYI I don’t have any issues with them)

Chris

So what was the outcome..I assume you didnt return the phone or pay the stupid extra fee? I plan to do this exact same thing so would love to hear the outcome

revolushn

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Master Geek
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Reply # 364516 7-Aug-2010 00:12

Well he wouldn't have returned the phone yet. We only found out about this after the shop closed I'm guessing...

And He is not going to return the phone. Because he doesn't have to.

I guess what DM is getting all huffy about is that it's a blatant slap in the face to them, they buy the phones at full price, sell them at a subsidised price, expecting a kickback from the horrendous monthly bills they want you to rack up.

Cancelling after a day (or a few hours means they effectively lose out on the sale, the salesman loses out on his comission, you get a phone (at only just over full retail price), Vodafone gets paid full price for the phone by DM, and your disconnection fee.

Serves them right really, but they do lose out on this deal.

tardtasticx

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Reply # 364517 7-Aug-2010 00:27

Why is Vodafone selling iPhones to On Account customers only to begin with? Thats a bit unfair don't you think?

Bachelor of Computing Systems (2015)

Late 2013 MacBook Pro with Retina Display (4GB/2.4GHz i5/128GB SSD) - HP DV6 (8GB/2.8GHz i7/120GB SSD + 750GB HDD)
iPhone 6S + (64GB/Gold/Vodafone NZ) - Xperia Z C6603 (16GB/White/Spark NZ)

Sam, Auckland

michaelmurfy

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Reply # 364524 7-Aug-2010 00:45

tardtasticx: Why is Vodafone selling iPhones to On Account customers only to begin with? Thats a bit unfair don't you think?

There is no margin in Apple Products, especially iPhones. I think it's only like $2 or something off the top of my head. It's not worth selling them outright in stores since they gain nothing off them + they have to do the support etc on the phone. If more prepay customers bought them then they will have no-end of problems with them all coming back with faults. Not worth it.

Plus since the NZ iPhones come unlocked by default, it's to stop people buying them unlocked from here + taking them overseas to sell as "unlocked" easily. They can track the purchases of the iPhones easier, and have more of a margin on them.

I guess what I am trying to say, why offer free support for something you have made nothing on.

Michael Murphy | https://murfy.nz
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tardtasticx

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Reply # 364526 7-Aug-2010 00:51

michaelmurfy:
tardtasticx: Why is Vodafone selling iPhones to On Account customers only to begin with? Thats a bit unfair don't you think?

There is no margin in Apple Products, especially iPhones. I think it's only like $2 or something off the top of my head. It's not worth selling them outright in stores since they gain nothing off them + they have to do the support etc on the phone. If more prepay customers bought them then they will have no-end of problems with them all coming back with faults. Not worth it.

Plus since the NZ iPhones come unlocked by default, it's to stop people buying them unlocked from here + taking them overseas to sell as "unlocked" easily. They can track the purchases of the iPhones easier, and have more of a margin on them.

I guess what I am trying to say, why offer free support for something you have made nothing on.

I'm sure they must make more than that. They used to sell the 3G and 3GS outright no problems. Once again us "budget wise" people are left out. And since Vodafone is the official carrier and more than half of their customers are on prepaid, they might as well sell them what they want.

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michaelmurfy

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Reply # 364531 7-Aug-2010 01:11

tardtasticx:

I'm sure they must make more than that. They used to sell the 3G and 3GS outright no problems. Once again us "budget wise" people are left out. And since Vodafone is the official carrier and more than half of their customers are on prepaid, they might as well sell them what they want.

Trust me, there's nothing on them. I speak from experience.
You ask any Store Rep, they will tell you there's no profit on Apple Products (or very little) - Most MacBooks they will get anywhere between $50 to $150 profit on, you split that into commissions etc and it's gone pretty quickly.

While I was at Smith's City there was something insane like $5 on a iPod Touch. And believe me on this, iPhones are worse, they make the money off the plans and not the phones.

Michael Murphy | https://murfy.nz
A quick guide to picking the right ISP | The Router Guide | Community UniFi Cloud Controller | Ubiquiti Edgerouter Tutorial

tardtasticx

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Reply # 364535 7-Aug-2010 01:30

Wow, Apple are so uptight.

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eXDee

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Reply # 364543 7-Aug-2010 02:08

michaelmurfy:
tardtasticx:

I'm sure they must make more than that. They used to sell the 3G and 3GS outright no problems. Once again us "budget wise" people are left out. And since Vodafone is the official carrier and more than half of their customers are on prepaid, they might as well sell them what they want.

Trust me, there's nothing on them. I speak from experience.
You ask any Store Rep, they will tell you there's no profit on Apple Products (or very little) - Most MacBooks they will get anywhere between $50 to $150 profit on, you split that into commissions etc and it's gone pretty quickly.

While I was at Smith's City there was something insane like $5 on a iPod Touch. And believe me on this, iPhones are worse, they make the money off the plans and not the phones.

Anyone doubting this - its true. Likely any major specials on them will be below cost, or they have somehow aquired perhaps a large shipment at a slightly lower price. Apple charges stupidly large amounts for its products.

As for this - absolutely pathetic tbh. I regularly hear complaints about the local Digital Mobile being useless also.

bonkiebonks

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Ultimate Geek
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Reply # 364544 7-Aug-2010 02:50

Are First Mobile any better?

tardtasticx

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Reply # 364545 7-Aug-2010 02:56

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

Bachelor of Computing Systems (2015)

chrhodes

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Reply # 364689 7-Aug-2010 16:01

Hi just to let you all know. The phone has not been returned and I haven't heard anything from digital mobile or vodafone.

Darkcyric

29 posts

Geek

Reply # 364994 8-Aug-2010 14:37

You wont hear anything back. As others have stated, you are within your rights to keep the phone since that is what the ETCs cover, the original rebate you got on the handset.

DM / Vijay is just getting in a huff because they lose the connection commission paid to them by Vodafone. They will still get paid the rebate on the handset, so they lose no money on the actual handset, UNLESS the CSR put your disconnection through as a "Dis no sale", which they should only be able to do with the store / sales reps permission, either way, not your issue.

I would advise (as someone else suggested), to only deal with the Vodafone Retail Stores, and not FM / DM.. And especially not the DMs in Manners and Queensgate (Both owned by Vijay).

Darkcyric

29 posts

Geek

Reply # 365013 8-Aug-2010 15:24

c71931f:

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

Yeah, it really does depend on the store / franchise. DM Queens / Manners USED to be good when they first started up, now they dont give a rats about the customer and its all about the money, same as FM Courtney Central (Readings).

However FM Queensgate (Just outside on the corner of Bunny St) is quite good.. Kylie is very friendly / helpful. Ive also heard positive feedback about FM Upper Hutt.

A blanket boycott on DM / FM obviously isnt the solution, but given the option you're generally safer to go to a Voda Retail Store, as if anything goes wrong, Voda (directly) can put it right, instead of having to chase up with franchise partners to get their story / remedial action.

Predated

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Master Geek
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Reply # 365042 8-Aug-2010 16:52

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.

People like you who think they are tricking a big company only end up hurting small business owners.

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