Video Tutorial: How to Get Out of Your Verizon Contract Without an Early Termination Fee

I’ve gotten a lot of great feedback on my previous posts about successfully canceling my Verizon contract without paying an early termination fee. Based on the requests of many of my readers, I have made a video tutorial on exactly how to go about this process.

Send this post around to all your friends who have Verizon. Maybe some will want to consider getting out while they still can.

Verizon Finally Agrees to Follow Their Own Contract

After many attempts, I have finally been able to cancel my Verizon contract without an early termination fee. I got a call back from Rob, a Verizon manager, and he explained how, after further review, they will be able to follow through with my request. Now I’ve got to spread the word.

Verizon Update

I have previously discussed my trial and travails with trying to get out of my Verizon contract without an early termination fee. Here is an update.

I received a call from Rob who is apparently some sort of manager at Verizon. He seemed like a nice guy who honestly wanted to help (unlike those call center people who just sounded like they wanted to get me off the phone). Rob was clear to point out the paragraph in the contract that states Verizon is not responsible for a rise in taxes and government charges. I was quick to point that the charge that recently went up (FUSC charge) is listed in the paragraph “Charges and Fees We Set”. So much for that argument. He asked for time to review that paragraph and call me back. Apparently I know the customer agreement better than the managers at Verizon.

Rob called me back and told me that he consulted with the legal department, and according to them, since they are offering me a $10 credit to compensate for my “material adverse effect”, this negates the effect and therefore, cannot allow me to cancel without an early termination fee (ETF). This is how the conversation went.

Rob: Since we offered you the credit, we are negating any material adverse effect, and you cannot cancel without an ETF.
Me: Aren’t you proving my point? By offering me a credit to negate an effect, than you are admitting that the effect took place.

Rob: Yes. The effect definitely happened.
Ely: Okay, so I choose not to accept the credit. So now, I have a material adverse effect, and would like to exercise my right to cancel without an ETF.
Rob: I’m sorry, but my legal department told me that the credit is good enough to negate the effect.
Ely: Rob, let’s say I have a contract with the bank to pay off my mortgage. And in that contract, if I don’t pay on time every month, they could take away my house. Then, one month, I’m late. If I go back and offer them the money I owed plus some more to cover the interest they would have made on my money, does the bank still have a right to take my house?
Rob: Mr. Rosenstock, this is what legal told me.
Ely: Yes! Because once I’m late, the contract gives the bank the option of taking my house. I can’t change the rules of the contract after we already signed. That’s what Verizon is trying to do here Rob. You know I’m right. I understand your position. Verizon is trying to keep customers. But I’m not an idiot. I read what I sign. I’m following your customer agreement. What can I do here? Who can I talk to?
Rob: <long silence>

After trying to convince me to write a letter to Executive Appeals (probably the paper shredding department at Verizon), Rob told me he has someone else he wants me to talk to but he’s not in today. So I’ve got Rob’s number and am expecting a call from the head of North American Call Centers on Tuesday. I’ll keep you posted. Do you believe this!!??

Verizon Ignores Customer Agreement, GameFly Does it Right

I have spoken a lot about companies that don’t understand their customers. I’ve recently had experiences with two companies where I need to cancel my subscription. I think the difference in my experiences highlights the different approaches companies can take.

Verizon

Like so many other techies, I really want an iPhone. Unfortunately, I still have a year and a half left on my Verizon contract. I thought I would just have to wait but was pointed to a clause in my Customer Agreement with Verizon. It states that when Verizon changes their fees, and these fees have an adverse effect on me, I can cancel within 60 days of notification without an early termination fee (ETF). These fees could be any type of fee that Verizon raises. A couple months ago, Verizon raised their text messaging rate and I know people who (after hours of arguing) were able to cancel their account without an ETF. In my latest bill, Verizon notified me that it raised its Federal Usage Service Charge (a fee that, Verizon clearly states in their Customer Agreement, is a Verizon fee and not a federal fee).

So, I call up customer service, explain the situation, quote my contract and let them know that I’m notifying them within 60 days and would like to exercise my right to cancel without an ETF. Here is a list of the arguments Verizon made to not allow me to do this:

Verizon: The FUSC is a federal charge and not a Verizon fee.
Me: Actually, it clearly states in the contract that the FUSC is a Verizon fee set by Verizon.

Verizon: It says in the contract that we can change the fee, so it doesn’t apply here.
Me: You’re right. It does. You’ve done nothing wrong. You can change the fee. It also says in the contract that I can cancel my account when you change the fee without an ETF. So we’re both following what the contract says.

Verizon: Well, the FUSC changes every quarter.
Me: Interesting. So according to the contract, I can get out of my plan every quarter. Thanks for that information.

Verizon: A raise in this charge isn’t a “material adverse effect”.
Me: What would you call a material adverse effect?
Verizon: If we stop providing service to your neighborhood.
Me: In the contract it states in the paragraph titled “Our Rights to Make Changes” that you have the right to change any fees. Right after that it states that if these changes have any material adverse affect on me, than I can cancel without an ETF. The change isn’t talking about coverage, it’s talking about a change in fees.
Verizon: Well, you have a different definition of material adverse effect.
Me: My definition is from your contract.

Verizon: We’ll give you a $10 credit to your account. That will make up for the material adverse effect on your account.
Me: I don’t want the credit. Nothing in the contract talks about a credit to my account. I’d like to exercise my right per the contract that you and I agreed upon.

After speaking to 4 people, I’ve been told that I’m going to get calls back today from managers. I’m not holding my breath. I’ll try again next week.

Gamefly

A friend of mine was trying to get a free Xbox 360 through one of those referral sites. How it works is that you get a bunch of friends to sign up to a service and in return, you get a free gift. My friend did lots of research and found a place that it legit. One of the services to sign up for was Gamefly. He thought he’d pay each friend $10 for a one month Gamefly subscription. After the eight referrals he’d get the Xbox 360 for $80. Not bad. I figured I’d help him out.

My month is nearly up and am ready to cancel in the next few days. A friend of mine had already canceled. Here is the process. You got to My Account page. Click on the “cancel membership link”. Follow on-screen instructions. And you’re done. That’s it! Simple and easy.

Bottom line: Verizon pissed me off and if ANY carrier out there had decent service and wasn’t horrible to their customers, I would use them in a heartbeat. Unfortunately, all cell phone providers are like this from what I hear. While I don’t have a desire to continue Gamefly right now, I was impressed with the service and would recommend it to friends. I would also consider using it when I have a video-game-playing child and don’t want to shell out $60 every time he/she wants a new game.

In the next 5 years we’re going to see technology that changes the telecommunications sector. Just like VOIP for landline service, something will come along and shake up the wireless world. And when it does, Verizon is going to pay for their mistreatment of customers. I can’t wait.

Kicking Off the New Year with a Blog and a Phone

To kick off this blog I thought I’d talk about a real-life dilemma I’m in. My Verizon Wireless cell phone contract is up and it’s time for me to make a decision on a new phone. So here are my options:

Splurge: Go buy an iPhone or a Blackberry and spend the enormous amount of money (upfront and monthly) for many additional perks including great web surfing and/or great email and messaging.

Middle Ground: Get a Treo or Motorola Q9M and have a decent experience with the web and messaging and only be overpaying a little.

Go Cheapo: Get a thin phone like the LG VX 8700 and give up the idea of having the cool web experience on my phone.

So which direction am I going to go? I already know. It’s the cheapo route. I just want a phone that is thin and that gives me a great web experience that won’t cost me $100 a month (or $300 for the phone). Is that too much to ask? Here’s hoping that 2007 gives us cost-conscious consumers a web-focused mobile device that’s affordable. Happy New Years everyone, and welcome to Crastinate.