New Admin Fee?

New Admin Fee?

[ Edited ]

I hear everyone is getting a brand new fee, called the "MOBILITY ADMINISTRATIVE FEE".

 

What is it, how much is it, and what is it for?

Message 1 of 87 (10,338 Views)
Tutor

Re: New Fee?

Oh my goodness.what is going on no raises from jobs but more fees from companies paying less taxes.
Message 16 of 87 (8,754 Views)
Voyager

Re: New Fee?

it is not fair for companies like AT&T. They can not pass these operating or business charges to customers by tagging a different name. This practice allows the companies to identify minute/granular detils of their business process and call them as admintrative charges which most of customers may not aware of those terms.

 

I just put my comments on http://www.fcc.gov/complaints. If more customers put these type of complaints to FCC and I hope it will ring the bell to FCC for some action.

Message 17 of 87 (8,407 Views)

Re: New Fee?

I just filed complaints with the BBB, FCC, and FTC. Doubt it will accomplish much, but if lots more people did the same, it would.
It's real easy. You can just paste this into the forms on the BBB FTC and FCC websites:

"AT&T has raised the price on every wireless line in service by $.61 a month by adding a new fee to every bill, which they explain as follows:"MOBILITY ADMINISTRATIVE FEEEffective May 1, 2013, the Administrative Fee will be $0.61 per line per month. The Administrative Fee helps defray certain expenses AT&T incurs, including but not limited to: (a) charges AT&T or its agents pay to interconnect with other carriers to deliver calls from AT&T customers to their customers; and (b) charges associated with cell site rents and maintenance."

This is a baloney way of saying "price increase", and is a blatant violation of basic contract law which does not allow the changing of terms after the beginning of a bilateral agreement. The vast majority of ATT customers have 2-year contract agreements which prevent their switching carriers without paying a huge penalty clause.

The ATT Wireless Agreement reads: "If we increase the price of any of the services to which you subscribe, beyond the limits set forth in your customer service summary... you may terminate this agreement without paying an early termination fee or returning or paying for any promotional items."

CTIA Consumer Code reads: "Carriers will not modify the material terms of their subscribers' contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee."

ATT claims that the price for the service remains the same and are only adding a "fee". What's from stopping AT&T from adding an additional $50/month fee and not letting customers out of their contract?

$.61 doesn't sound like much, but some people have multiple lines. In addition, multiplied by 115.78 million customers, AT&T makes an extra $847 million a year from this dishonest price hike.

As it is not any kind of tax or government mandated charge, the new fee should be included in the basic price displayed in advertising and informational material. The new fee should only be charged on new contracts beginning after the increase, and existing contract customers must be allowed to either reject the price hike or be allowed to terminate their service without penalty, as the contract has already been breached by the carrier."

Message 18 of 87 (8,239 Views)
Tutor

Re: New Fee?

Harryspar,

 

I agree completely with you.  The justification provided by AT&T for this new Administrative Fee does not qualify as cost recovery in my opinion.  Cell tower site rentals?  Really?  That is part of the cost of doing business.

 

I will also file complaints with BBB, FCC, and FTC.

 

Has anyone complained to AT&T?  If so, did you get any relief?

 

I have a 5 line family plan, so my bill went up $3.06 per month because of this, or over $36 per year.  The amount of money is not the big issue for me.  It is the backhanded way they are increasing prices.  If they just said we are increasing the prices when your contract renews I would have no problem with it, as I could decide to not renew at that point. 

 

 

Message 19 of 87 (8,147 Views)
Tutor

Re: New Fee?

Complaints successfully submitted to BBB, FCC, and FTC. It is very easy, however, the BBB and FTC sites will not accept the full length of the complaint text in harryspar's post above. You will have to edit it down some for BBB, and a lot for FCC.
Message 20 of 87 (8,143 Views)

Re: New Fee?

Thanks, johnbinsc! If it picks up steam there's a chance it will get somewhere. Look what happened with Verizon's $2 bill-pay fee: http://money.cnn.com/2011/12/30/technology/verizon_fee_canceled/index.htm

Message 21 of 87 (8,106 Views)
Contributor

Re: New Fee?

[ Edited ]

harryspar is right. you cannot raise the price on the contract period. why even have a contract if one side can do anything and the other side must put up with it.  any contract that gives all power to one side and none to the other are inherently unenforcable. you are right that more people should compain. bunch of sheep. they rip you off a little at a time.

 

[Per Guidelines:  Keep it Relevant and Appropriate].

Message 22 of 87 (7,892 Views)
Expert

Re: New Fee?


engdahl wrote:

harryspar is right. you cannot raise the price on the contract period. why even have a contract if one side can do anything and the other side must put up with it.  any contract that gives all power to one side and none to the other are inherently unenforcable. you are right that more people should compain. bunch of sheep. they rip you off a little at a time.

 

[Per Guidelines:  Keep it Relevant and Appropriate].


regulatory and cost recovery fees are NOT part of your contract, the only fee that IS tied to your contract is the base cost that you apy for voice minutes. SMS, data and the such are features that are added so they do not count. Make sure you understand before complaining, this is all documented in your paper work that you recieved either physically, electronicly or as a link in the OLAM - makes good reading to know what you are responsible for

Message 23 of 87 (7,818 Views)

Re: New Fee?

Most of the "base cost" that ATT charges IS "cost recovery." They pay for electricity, personnel, facilities, call centers, vehicles, etc etc etc.
What's left after that is their profit.
If they could put all their costs below the line on the bill it would be $30 or more.
If you think it would be OK for them to add a $30 "Business Expenses" surcharge on every bill, well, I think that's absurd.
AT&T thinks that's fine.
I will leave it to the readers of the forum to decide if it makes sense to them.
Message 24 of 87 (7,812 Views)
Highlighted
Expert

Re: New Fee?


harryspar wrote:
Most of the "base cost" that ATT charges IS "cost recovery." They pay for electricity, personnel, facilities, call centers, vehicles, etc etc etc.
What's left after that is their profit.
If they could put all their costs below the line on the bill it would be $30 or more.
If you think it would be OK for them to add a $30 "Business Expenses" surcharge on every bill, well, I think that's absurd.
AT&T thinks that's fine.
I will leave it to the readers of the forum to decide if it makes sense to them.

You are confusing the requirements of the contract with your own interpertation. The only part of the cost that is charged that has any reflection on the terms of the contract is voice minutes, period.

 

Please don;t use the habit of putting words in my mouth to justify your interpertations of what I have said. You have absolutely no idea what will or will not have me deem anything acceptable or unacceptable so don;t try and fit it to your beliefs.

 

To the people that understand business and cost recovery, it is reasonable. The one major thing you missed in your response, you are assuming probably becasue you miseed the entire sentence that how the term "base cost" was applied.

 

My comment was "IS tied to your contract is the base cost that you pay for voice minutes." Not sure how you came up with " They pay for electricity, personnel, facilities, call centers, vehicles, etc etc etc.". That has absolutely no bearing on the comment that was made. Although it is high school level economics for how costs bear to the EBITA which relates to shareholder profit in the end.

 

Bottom line, if it not acceptable go to another carrier, by the way they already have that recovery charge also

Message 25 of 87 (7,799 Views)

Re: New Fee?

Difference is, if I went to the other carrier I would be agreeing to the charge at the BEGINNING of the contract, which is OK.

I'm not putting words into anyone's mouth. I have no idea who does or doesn't think ATT is within thier rights to impose a $30 fee next month if they want to cover $30 of expenses. I'm simply sutting the question out for public comment: If
1) it is OK to add fees below the line if they are for business expenses rather than taxes, and
2) ATT has more than 61 cents od expenses per month then
3) what is the limit?
Message 26 of 87 (7,784 Views)
Expert

Re: New Fee?


harryspar wrote:
Difference is, if I went to the other carrier I would be agreeing to the charge at the BEGINNING of the contract, which is OK.

I'm not putting words into anyone's mouth. I have no idea who does or doesn't think ATT is within thier rights to impose a $30 fee next month if they want to cover $30 of expenses. I'm simply sutting the question out for public comment: If
1) it is OK to add fees below the line if they are for business expenses rather than taxes, and
2) ATT has more than 61 cents od expenses per month then
3) what is the limit?

 


harryspar wrote:

If you think it would be OK for them to add a $30 "Business Expenses" surcharge on every bill, well, I think that's absurd. AT&T thinks that's fine.

I know where my limits are but do not know where yours would nor do I speculate, what is the limit for the cost of gasoline? What about electricity. If you feel that the .61 cents is your limit then change carriers, it is as simple as that.

Message 27 of 87 (7,785 Views)

Re: New Fee?

If it's not OK for $50 then it's not OK for $.61.

Message 28 of 87 (7,761 Views)
Tutor

Re: New Fee?


wingrider01 wrote:

harryspar wrote:
Difference is, if I went to the other carrier I would be agreeing to the charge at the BEGINNING of the contract, which is OK.

I'm not putting words into anyone's mouth. I have no idea who does or doesn't think ATT is within thier rights to impose a $30 fee next month if they want to cover $30 of expenses. I'm simply sutting the question out for public comment: If
1) it is OK to add fees below the line if they are for business expenses rather than taxes, and
2) ATT has more than 61 cents od expenses per month then
3) what is the limit?

 


harryspar wrote:

If you think it would be OK for them to add a $30 "Business Expenses" surcharge on every bill, well, I think that's absurd. AT&T thinks that's fine.

I know where my limits are but do not know where yours would nor do I speculate, what is the limit for the cost of gasoline? What about electricity. If you feel that the .61 cents is your limit then change carriers, it is as simple as that.


Sorry - it is not that simple. The problem here is that you cannot simply change carrier because most people are still locked into their contract. 

Message 29 of 87 (7,760 Views)

Re: New Fee?

hojbjerg I agree with you. Of course, technically once they raise the price your contract is off because they broke it. But they will charge you the ETF or send you to collections and kill your credit, so it isn't worth it.
Message 30 of 87 (7,732 Views)
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