TRACNotes
Vol. 3 # 32 --
August 12, 2005
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WIRELESS WATCH
New Service Provides Relief for Consumers Who Want to Dump Their Cell Phone Contract - – Wireless telephone consumers who want out of their one-to-two year service contracts early usually have to pay a $150-$200 or more early termination fee. However, there is another option for getting out of a contract. All of the major wireless carriers have a “transfer of responsibility” clause (also known as a “transfer of liability”) in their service contracts. This allows the contract holder to transfer the contract to someone else who would assume responsibility for fulfilling the rest of the contract. Unfortunately, most consumers are unaware of this option and even those that are have generally been limited to trying to get friends or a family member to assume their contracts. However, thanks to CellTradeUSA.com, a new online matching service, consumers looking to transfer their contracts may be in luck. The service allows cellular customers to register a free user profile to list their plan and phone details (months remaining on contract, monthly cost, handset models included). Customers who see that their profile is generating interest from other users can then pay a $19.99 fee to have their contact information listed. Other CellTradeUSA.com users can then contact them and set up the transfer on their own with the contract holder’s carrier. Once the transfer is complete, the original contract holder should be free and clear of their contract obligations. CellTradeUSA.com operators are on hand to answer any questions that the two parties might have about the process. For more information on CellTradeUSA.com and the transfer of responsibility process, click here. One thing to keep in mind about CellTradeUSA.com is that it is very new (it launched in July and currently has only 162 plans listed), so consumers should tread lightly. For example, before you pay the $19.99 registration fee, TRAC recommends that you check with your carrier for any restrictions they might have regarding transfers of responsibility. Most carriers will require that the original contract holder to be in good standing and that the prospective transferee is credit-worthy. Other rules and regulations may apply as well. You may want to also “sell” your actual wireless phone to the person taking over the contract, but you don’t have to. If the person buying the contract already has a phone, it is easy enough to move the number to the new plan. Also, in order to keep your current wireless phone number after transferring your contract to another person, you must begin a new contract with another carrier and have your current number ported to the new plan. Be sure to inform your new wireless carrier that you are porting your number from your old carrier.
Consumers Fed Up With Early Termination Fees, Says Study - Nearly half (47%) of all cell phone customers would switch or consider switching cell phone service carriers to get a lower rate and better service if they didn’t have to pay an average penalty of $170 to cancel their service contract, according to a new study released this week by the U.S. Public Interest Research Group (USPIRG). Additionally, 36% of study respondents said that the early termination fee had prevented them from switching. USPIRG’s survey also found that more than three out of four (77%) or wireless telephone consumers would support the elimination of the early termination penalties. The wireless telephone industry has generally justified one-to-two year service contracts and the attendant early termination fees as necessary devices to help them recoup the costs of providing free or discounted phone to new subscribers. Unfortunately, the USPIRG survey did not ask survey respondents if they would be willing to pay more for their phones in exchange for an elimination of early termination fees. High early termination fees are one of the main reasons why TRAC recommends that wireless phone consumers take advantage of their carriers’ 14-30 day trial period after service activation. If you find during that time that the carrier’s service quality is not what you expected, cancel the service and return your phone. All of the major carriers have signed on to the industry’s Consumer Information Code which mandates a minimum 14-day trial period. Find out from the carrier the details of their trial periods before signing the service contract. For more information on the USPIRG study, click here. For more information on the Consumer Information Code, click here.
BUCKS WATCH
New Deceased Do-Not-Contact List Available - Consumers who have recently lost a loved one often find that their grief is exacerbated when telemarketers call and ask to speak with the deceased. To help avoid these sorts of incidents, the Direct Marketing Association (DMA) has launched a Deceased Do-Not-Contact (DDNC) list whose sole purpose, according to the organization, is to remove deceased individuals from commercial marketing lists. Consumers who register a name with DDNC, the person’s name, address, phone number and e-mail address is placed on a special do not contact file. All DMA members are required to eliminate these individuals from their prospecting campaigns. The service is also available to non-members of The DMA so that all marketers may take advantage of this service to eliminate names. There is a $1 credit card verification fee for each consumer registered in order to have a permanent record of the credit card information of those who did the registering and to help prevent misuse of the system. The DMA is encouraging funeral directors, hospitals, doctors’ offices and others to provide the DDNC’s website address (https://preference.the-dma.org/cgi/ddnc.php) to the bereaved.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
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