They'll probably bill you for the full price of the phone and include a note that says they will credit you with $400 when the phone is either activated or returned.

PorStaker said:blok said:Shishir said:Wats so Fcked up.. Its even gr8... u dun hv da $30 3g plan but u can instead take $15 edge plan, U r still in 2 yr contract with ATT but wont be paying for data plan... U mite hv inserted ur old sim card into iphonetats y the data plan did not get activated....

You must rent from me, you spell like a retard

New Topic: "My Tenant read my thread on Fatwallet and knows exactly how to combat my eviction process, what do I do now? PM Me"
I doubt the tenant reading will be a problem...

codename47 said:Due to a number of issues, it took AT&T about 2 weeks to ship me the phone. It arrived on a friday, and I didn't go about trying to activate it until tuesday of the next week.
Count me in the free iphone camp. One key thing is that the email refers to the ORDER cancellation, not service cancellation. OP never even had a service to cancel or so much as an activated phone. No acceptance/consideration of ATT's contract, and since they cancelled it, he is in the clear, IMHO. They sent him a free phone.

Just think, if they DID try to send it to a collector, what are they going to say when he whips out that email or demands proof of an accepted contract.

Was he credited back the $199 purchase price on the order being cancelled? Let's presume you're correct and the order has been cancelled, by the line not being activated (the requirement for the $199 price), he has not completed his obligation within this cancelled contract and could be subject to the difference between the w/contract pricing and the non-contract price. That said, my guess is they won't catch this initially and if it shows up it would be from a collection agency - but no one knows for sure how this will settle. That would be a worst-case scenario in my opinion (you being liable for the difference in purchase price).

Now, from a morality stand point - this is more equivalent to you purchasing an item and it not ringing up correctly. You've paid $199 for an item that the correct price if you don't activate and agree to a two-year contract should be priced at $599 or whatever the out-of-contract pricing is. It is not the same as paying the advertised price (in your coin example) nor taking firms up on their offers in accordance with the terms and conditions you're bound by (not to say that firms always uphold their end, as an example the life of balance issues that have arisen). If you'd be fine paying 1/3rd of what the correct price is due to a mistake by the 'cashier' (ATT) in another situation, then ride this out and see where you land then run with it (worst case is you pony up some cash or return the phone if they accept that, possibly impacting your credit in the short term but you should address it before it hits your credit file). If you wouldn't, then you should just go into the store and activate the phone, and then enjoy it.

Promise your iPhone to your attorney friend and you might hear quickly.

RichUnclePennybags said:rossasarus said:I have an iPhone that I legally paid for (albeit at a discounted rate - $199) and no contract. Since they cancelled the contract am I free and clear?
Noooo way. (The way AT&Fee sees it) You entered a service agreement with AT&T when you purchased the iphone. You are still on the hook for the service plan regardless of activation. *I'm not a lawyer.

ATT Cancelation Policy said:Cancellations/Early Termination Fee: An Early Termination Fee of $175 may be assessed against you in the event that you terminate your Wireless Service Agreement and/or selected plan before the expiration of its term. For Service activated on or after May 25, 2008, the Early Termination Fee will be reduced by $5.00 for each full month toward your minimum term that you complete. You may cancel your service, for any reason and without incurring the Early Termination Fee, within thirty (30) days of signing your Wireless Service Agreement, PROVIDED, however, that if you cancel service you will remain responsible for any service fees and charges incurred.
http://www.wireless.att.com/cell-phone-service/legal/plan-terms....

Cnet.com said:Typically, the acquisition of a subsidized cell phone involves a contract which, if breached prior to the agreed upon timeframe, results in steep charges to the customer should they wish to keep the phone.
http://reviews.cnet.com/8301-19512_7-10115571-233.html

I'm guessing your planning on keeping the phone with no contract.

$175 Cancellation Fee
$ 36 Activation Fee
$400 financial penalty upon non-contract
Amount Due: $611+

The key word is:

Cancellations/Early Termination Fee: An Early Termination Fee of $175 may be assessed against you in the event that you terminate your Wireless Service Agreement and/or selected plan before the expiration of its term.

The party that breaches is not generally entitled to its remedies under the contract.

How about just call them and tell them what happened!

rossasarus said:I have to say I'm a little bit shocked by the great offense I have caused some of our readership. While it seems like Fatwallet readers like to pride themselves on their strong moral compasses, I do have to point out that the finance forum is largely trafficked by people who are looking to find the best deals just this side of illegality.
Credit card arbitrage is legal but essentially equally immoral to what I am asking about. Test driving cars for profit is probably even less so. How about opening multiple checking accounts so as to gain signup bonuses? Dare I go on?
Order Dollar Coins from US Mint at Face Value with Free Shipping (Alive!)
Bumping and Bumpage: TU now bumps after Equifax? Reoccurring choppage
Sites that offer automatic $1 charges to qualify for rewards offers, meet high yield checking requirements, etc.
This site attracts people smart enough to ask questions and find the edges AND the loopholes of promotions. It is as simple as that. I don't care what moral difference you create between buying hundreds of dollars of dollar coins and manipulating your credit score and eeking out the bare minimum number of transactions to make your high yield checking account happy. It doesn't matter. The one unifying factor is that they are all LEGAL.

Not paying taxes is illegal.

Why is this a moral issue with some people? I entered into a contract with a business and they broke their side of the contract. I am asking if anyone has been in the same situation or has any insight into the relevant legalese. I don't care what every reader feels might be the best thing to do. AT&T wouldn't care if I wanted to pay an ETF if I had cancelled my contract. I only care what is legal and what isn't.

If you want to offer advice or share knowledge, please do. If you want to make yourself feel bigger by criticizing the morality of a legal issue: keep your puritanical thoughts to yourself, and consider the company you keep.

I don't know if you can hear me, but I'm clapping.

Thank you for choosing AT&T. Unfortunately, either we have not heard from you in several days, or you have chosen to cancel your order. In either case, this e-mail confirms your order cancellation. If you believe you received this message in error, please resubmit your order on att.com/wireless, or visit a local AT&T retail store. Go to att.com/storelocator to find a store near you. Thank you.
.I would follow exactly what ATT told you to do. if they keep giving you free phones, or discounted phones without contract, more power to you.

I would hold on to the phone for like 4-5 months and see if anything happens. If not sell it! I have ATT and they are way overpriced anyways, i would go with sprint

Why don't you sue them for the punitive damages that they've caused you? You Winner.