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k2mp12345's profile

Teacher

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3 Messages

Friday, February 21st, 2014 12:53 AM

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Signed a 1-year contract and then AT&T raised price

I was going to cancel my service in December last year, but when I called to cancel, AT&T offered U200 for a certain rate for 12 months in exchange for me signing a contract for one-year.  So I agreed to keep AT&T U-Verse for 1 year and pay that set price.

 

Subsequent to our agreement, AT&T raised the bill by ~$4 in February (yes, the notification was in the December bill but that bill was generated after I entered into the one-year contract).

 

I had an online chat with customer care and I was told that it is AT&T's policy to apply the rate increase even to customers who are under a contract.  I sent a private message this past weekend but I have yet to hear back.

 

It is absurd that AT&T thinks this is okay:

 

1) If I cancel the service before December this year, I have to pay a penalty.

2) Yet AT&T can raise the rate at any time without my consent.

3) If I don't like the rate increase, I can cancel the service but I still have to pay the penalty.

 

Is anyone else having this same issue (i.e., those who have to pay a penalty if they were to cancel within the contract period, similar to how cell phone contracts work)?  Please share your experience here.  Thanks.

Accepted Solution

Official Solution

Former Employee

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1.1K Messages

10 years ago

Thanks for your post k2mp12345,

 

When entering into a contract with AT&T, though there may be introductory promotions, we reserve the right to make changes to the base rates.  You can access your Customer Service Summary by visiting My AT&T Customer Service Summary

 

Let us know if you have any questions or need further assistance. 

Mentor

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28 Messages

10 years ago

The exact same thing happened to me. I thought about switching/canceling when my contract was up in December, but negotiated to get my total Uverse bill lower, including giving up HD TV. Then, the next bill, it was even higher than it was under my last year's contract because of the increase. ATT said that the "fine print" allowed them to raise the rates and that what I had negotiated were "discounts" which remained in place throughout the contract. However, my customer rep only talked about the total price without a breakdown in fees/discounts when I agreed to accept a new 1 year contract. I think it is wrong for consumers to be locked into a contract, with penalty, where the price can be increased.

 

[Legal discussions are not permitted per the Guidelines]

Teacher

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3 Messages

10 years ago

Same here.  The customer rep only talked about total price, not the discount amount.  Regardless, it defies common sense-- by their logic, AT&T can enter into an agreement w/a customer for a $20/month discount for one year, but then AT&T can raise the price right after the agreement by $20/month, wiping off the discount.

 

I don't know what "fine print" they are talking about -- I didn't sign any written agreement, and the only written thing I got from AT&T was an email (copy & pasted below) "informing" me of the terms and conditions one week after the verbal agreement (notice how they don't even clearly state how the early termination fee is calculated).

 

* * * 

 

Thank you for choosing AT&T U-verse®!

You recently accepted a 12-month promotion and we are writing to inform you of the following terms and conditions for that offer: 

  • AT&T is making this offer available to selected customers.
  • A credit will be applied to your monthly bill for 12 months.
  • The offer you selected requires a one-year term commitment to retain U-verse TV service. An early termination fee of up to $180 may apply if U-verse TV service is cancelled before the end of the term.

We sincerely hope you are enjoying your U-verse experience, and look forward to continuing to bring you the very best in entertainment services! 

 

Tutor

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2 Messages

10 years ago

Same experience for me. Just now seeing the increase on the uverse internet bill.

I was going to switch away from uverse in early Feb, though the nice rep gave a promotional 1/2 off discount on internet (though only on the next higher speed and with a 12 month commitment). I agreed to that. There was zero mention of an upcoming price increase. 30 days prior to an increase and the rep didn't think that part was important to disclose?

 

My prior two bills do not mention any upcoming price increase for ATT services under "news you can use". I just found the notice by searching on ATT site. The email confirmation I received upon committing to the new internet contract was generic (same three bullet points as yours).

 

I have been with ATT for 20+ years. It's not the $5 increase, but ATT's approach and perceived lack of value that they place on their loyal customers who make the commitment, though are not clearly informed during the decision making process.

 

Times have changed. I can be o.k. with that, they write the rules. Though they need to remind themselves that this is a two way street and ultimately the customer will make the final determination. If ATT is o.k. with compromising that relationship, that's pretty risky.

 

I will move to another provider at the next opportunity that I can.

Mentor

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28 Messages

10 years ago

I agreed to renew ATT uverse for one year in December, based on a quote to me of a total price for services. Now ATT says it is fair to raise the rate one month into my contract, yet I am penalized if I break the contract. Shouldn't a contract obligate both sides to the agreement?

Mentor

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28 Messages

10 years ago

But I signed a contract based on a rate quoted to me. If ATT has the right to raise rates, I should have the right to break my contract without penalty.

ACE - Expert

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14.1K Messages

10 years ago


@Zaylyn wrote:

I agreed to renew ATT uverse for one year in December, based on a quote to me of a total price for services. Now ATT says it is fair to raise the rate one month into my contract, yet I am penalized if I break the contract. Shouldn't a contract obligate both sides to the agreement?


With rare exceptions, AT&T promotions are for a discount, not for a monthly price. In other words, you agreed to $X off for 12 months, not to pay $Y for 12 months.

Mentor

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28 Messages

10 years ago

The ATT phone rep never mentioned that my agreement was for a discount. He only emphasized the total monthly cost I would be paying. If I am agreeing to a contract via a phone call, the rep is obligated to clearly state the terms of that contract, including the possibility of a price increase.

Teacher

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3 Messages

10 years ago

The point is not what the initial agreement said or did not say.

 

The problem with AT&T pointing to that language in the initial agreement (agreement #1) -- which did not involve keeping service for 12 months -- is that the language in Agreement #1 is superseded by Agreement #2 (i.e., the one where we said we'd keep the service for 12 months) that customers entered into.

 

That is because Agreement #2 was that customers would keep the service for 12 months for a set price. That is what the customer rep told me.  Not "set price subject to change at our own discretion."

 

I plan to write to the California Public Utilities Commission as well as the FTC.

 

Mentor

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75 Messages

10 years ago

Sounds like one of those "You can keep your doctor" promises.

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