"Dealer chargeback"? Common?

When I signed my agreement the dealer also had me sign an agreement
that if I cancelled my plan within 6 months I would be liable to the
STORE for the cost of the hardware. This is a seperate issue from the
early termination fees Cingular charges. After wrangling with the
store & Cingular for 4 months trying to resolve a mistake the dealer
made on the contract (quoted plan price was $10 less than what I was
being billed) I have cancelled my contract with Cingular. They are
cool with it. Their CS sucks & they refused to settle the dispute or
even arbitrate it but they DID let me out of the agreement scott-free.
The STORE, however is threatening to charge me for the cost of the
hardware. I turned everything back in as I received it--boxes & all.
I have a receipt for it as well. My position is that since the STORE
screwed up & my contract with Cingular is void, then ALL contracts
related to it are also void. I'm waiting to see what their next move
is.
Meanwhile--Is this a common practice? Cingular CS seemed to have no
clue what I was talking about so maybe this is unique to this store
(or franchise)?
Advice or experiences?

---

› See More: "Dealer chargeback"? Common?

When I've purchased in a Cingular store there was a $150.00 charge to the
store if you cancelled within six months.


"Mark" <[email protected]> wrote in message
news:[email protected]...
: When I signed my agreement the dealer also had me sign an agreement
: that if I cancelled my plan within 6 months I would be liable to the
: STORE for the cost of the hardware. This is a seperate issue from the
: early termination fees Cingular charges. After wrangling with the
: store & Cingular for 4 months trying to resolve a mistake the dealer
: made on the contract (quoted plan price was $10 less than what I was
: being billed) I have cancelled my contract with Cingular. They are
: cool with it. Their CS sucks & they refused to settle the dispute or
: even arbitrate it but they DID let me out of the agreement scott-free.
: The STORE, however is threatening to charge me for the cost of the
: hardware. I turned everything back in as I received it--boxes & all.
: I have a receipt for it as well. My position is that since the STORE
: screwed up & my contract with Cingular is void, then ALL contracts
: related to it are also void. I'm waiting to see what their next move
: is.
: Meanwhile--Is this a common practice? Cingular CS seemed to have no
: clue what I was talking about so maybe this is unique to this store
: (or franchise)?
: Advice or experiences?

"Mark" <[email protected]> wrote in message
news:[email protected]...
> When I signed my agreement the dealer also had me sign an agreement
> that if I cancelled my plan within 6 months I would be liable to the
> STORE for the cost of the hardware. This is a seperate issue from the
> early termination fees Cingular charges. After wrangling with the
> store & Cingular for 4 months trying to resolve a mistake the dealer
> made on the contract (quoted plan price was $10 less than what I was
> being billed) I have cancelled my contract with Cingular. They are
> cool with it. Their CS sucks & they refused to settle the dispute or
> even arbitrate it but they DID let me out of the agreement scott-free.
> The STORE, however is threatening to charge me for the cost of the
> hardware. I turned everything back in as I received it--boxes & all.
> I have a receipt for it as well.

So they still want money even after you returned the phone? Or are you just
mentioning it in general?

Charge you how? Did you sign some kind of before-the-fact credit card
charge (described in the store's contract), or are they pretending they will
mail you a bill for $150?

My position is that since the STORE
> screwed up & my contract with Cingular is void, then ALL contracts
> related to it are also void. I'm waiting to see what their next move
> is.

Indeed. Plus you returned the phone to them, but the value of that depends
on whether or not the store contract states that returning the phone makes
you exempt from the fee. Some don't (and with good reason - a 6-month-old
phone is not worth much to them), so read it carefully and make sure you
didn't give them back the phone for no reason.

However, in your case it sounds like they screwed up, so I would agree that
they lose some of their power.

> Meanwhile--Is this a common practice? Cingular CS seemed to have no
> clue what I was talking about so maybe this is unique to this store
> (or franchise)?

Almost any indirect dealer will have a similar contract, because most
carriers try to screw the store out of the commission even if it is canceled
well after the trial period, so they have these contracts to make up for it.
Some will require you to put a credit card number on the form and sign it
saying you approve whatever charge if you cancel within whatever that
carrier's screw-job period is (4 - 6 months).

Not ALL CS reps don't know though. In fact, most probably do because it is
such a common occurence. Even if Cingular doesn't train them on it, anyone
working in the cancelation department for more than a week is bound to have
heard of it.


---
Update your PC at http://windowsupdate.microsoft.com
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.543 / Virus Database: 337 - Release Date: 11/21/2003

"Carl." <[email protected]> wrote in message news:<[email protected]>...

> So they still want money even after you returned the phone? Or are you just
> mentioning it in general?
>
> Charge you how? Did you sign some kind of before-the-fact credit card
> charge (described in the store's contract), or are they pretending they will
> mail you a bill for $150?

When I was an indirect Cingular dealer we had a 6-month dealer
chargeback- $200 or the phone, but not both.

> Indeed. Plus you returned the phone to them, but the value of that depends
> on whether or not the store contract states that returning the phone makes
> you exempt from the fee. Some don't (and with good reason - a 6-month-old
> phone is not worth much to them)

True, but then again, we weren't after blood- just trying to recoup
some of the expenses. Any phones we did get like that, we'd recycle
as used pre-paid phones.


> Almost any indirect dealer will have a similar contract, because most
> carriers try to screw the store out of the commission even if it is canceled
> well after the trial period, so they have these contracts to make up for it.

True. Cingular never really could explain why they kept the early
cancellation fee on phones sold by indirects. Theoretically the fee
was to cover what the carrier lost on the phone subsidy. Well, since
Cingular took all commissions back from dealers on contracts cancelled
within the first six months, AND keeps the EFTs, they "double dip"-
they keep the subsidy and the EFT, and the dealer is left holding the
bag.

I always argued that Cingular was better off if you cancelled in the
sixth month rather than the day after the contract expired. The EFT
was probably more than the profits on six months of service, and their
subsidy expenses are recaptured from the dealer!

> Some will require you to put a credit card number on the form and sign it
> saying you approve whatever charge if you cancel within whatever that
> carrier's screw-job period is (4 - 6 months).

Thankfully the number of chargebacks we had were small enough we never
bothered. The few we had were usually happy to return the phone,
since their "beef", if they had one, was w/Cingular and not us.

> Not ALL CS reps don't know though. In fact, most probably do because it is
> such a common occurence. Even if Cingular doesn't train them on it, anyone
> working in the cancelation department for more than a week is bound to have
> heard of it.

They know. In fact some (the good ones, at least IMHO!) would
actually call us on a three-way call with the customer and wouldn't
cancel the account until we were informed.