T-Mobile Penalizes Loyal Customers in FREE Phone Upgrades

So on Father’s Day, I called T-mobile after hearing of their “FREE” Samsung Galaxy II offer and was connected to a CSR, Tyson, who was located in Tennessee. He ran his spiel by me and said that although the phone was “FREE”, I would still have to allow him to place a “holding fee” of $299.00 on my bill. He stated that I wouldn’t “really owe this amount” but that it was necessary to complete this particular promotion. He said most people were charged this amount on their credit cards but because I had been with T-mobile for a good amount of time, he could perform an override that would show this amount of $299.00 on my bill and then the mail-in rebate and ensuing rebate VISA card that I would receive would take care of this fee. I was also signed on for a new 2 year contract and was happy to finally be upgrading to a phone that I had wanted since first seeing it available.
Tyson also told me that I would receive the mail-in rebate form in the mail. This was just the first of a number of errors to occur that has made this FREE phone deal a complete debacle. After approximately 3 weeks having gone by with no mail in rebate form showing up in my mailbox, I called customer service to inquire about this part of the deal and was told that I had to go to the T-mobile website and copy the correct rebate form myself. I went to the nearest T-mobile store where they assisted me in retrieving the form and also to ask them about a puzzling and surprising new charge that had mysteriously appeared on my bill. Now the alleged amount that I owed was at the grand total of $656 and some odd cents. The CSR’s in the store stated that there must have been some kind of accounting error and “not to worry about it” since I “really didn’t owe that amount”. The relief I felt was short lived as my bill continued to climb in dollars.
I dutifully mailed in my rebate form and also now was being charged, $721 and some odd cents. At this point, I found myself wondering just exactly how much a FREE phone cost with T-mobile. So I began making phone calls to customer service again. As many of you know with most of our CSR services over in India… that’s who I first began talking to. I spoke with FOUR different CSR’s who followed their scripted responses very carefully. While I had to repeat the details of my “FREE Deal” until I felt like recording it and just pushing the repeat button. None of them were able to make any difference in my bill or the additional fact that now my phone service was SUSPENDED until I receive my rebate VISA which could take approximately another month. I finally was transferred to accounting in Arizona and spoke with two different people. By this time I was sorry that I hadn’t been more patient as my previous contract would have been completed in October of this year. My original plan was to switch to Verizon.
The final outcome was that the accounting department would subtract $300.00 from the $721 and then I could pay the $299.00 or actually $356.00 today and my phone service would be reactivated. I was informed that “this is what most people do” and then they pay themselves back with the rebate VISA. Even if I had the $300.00, which I do not, I would NOT pay any amount for a phone that was supposed to be FREE! Is this how T-mobile really thinks is the best way to retain loyal customers and encourage new customer s to join their service? In these difficult financial times that we are living in… how do they justify this type of customer service? And what about the difference between the $721.00 and $656.00 on my bill? Where did that mysterious amount come from? I am a very unhappy customer and cannot wait for my new contract to be finished so I can leave this unethical cellular service. And my bill as of tonight is still the same… with no subtractions having been performed. No wonder T-mobiles quarterly sales have taken a huge hit and the company’s ratings are sliding. I’m sure my experience is just one of hundreds if not thousands. This is a very sad commentary on American businesses today.

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Obviously cell phone companies like to promote things as "FREE" with a mail in rebate of the phone's sale regular sale price, when they actually aren't free, in order to lock in contract. From what I can tell, the extra $300 was a mistake, and the difference was the amount of the monthly phone bill + any other service. Was the original rebate that you were supposed to get received? Did you fill out the proper paperwork to begin with to receive the rebate?

Don't get me wrong, I think it should be an easier process too, but unfortunately you have to be aware of the fine print.