The 2-year contract scam

Satellite, cell phone and many other companies offer the 2-year contract which promises to save you money. The way the satellite companies pull you in is by advertising the low price of $29.99 giving you Prime movie channels like HBO for 3 months for free. When you get your first bill you are charged for the rental of the receivers which was not included in the advertised low price of $29.99. The basic package does not include channels anyone wants so you must move to a more expensive package.

Finally you find a package deal you like but it is the $39.99 so your first bill is $55 for the first year. A promotional $100 rebate card which had no cash value adds to the great deal. Phone companies give you a free phone with all the newest bells and whistles which all sounds good, but is it worth binding yourself to a 2-year contract? A lot can happen in two years in this economy like a loss of a job. Your financial situation changes and there you are stuck in the middle of a two contract that is legal and binding.

Year two comes and then the boom is lowered. They make up for all the costs not paid in year one. You are a prisoner of the two-year contract and at their mercy of whatever they decide to charge at that moment. You are penalized if you stop their service before 2 year is up. They have your bank account and credit card information to make sure you do. You are caught in a vicious but legal scam and do they care that you lost your job or life changed for some reason? No, definitely not as you signed a legal and binding contract made to order for their company without you the customer in mind.

Solution:

• Try not to purchase anything that requires signing a contract.
• If you are in a 2-year contract notify the promotional department as they want to keep you as a customer when the contract ends. Request a lower payment. Sometimes they will take off $10 or more.
• Bartering in furniture stores, appliance and major stores like Home Depot can get you a good deal, It never hurts to try as everyone really needs your business especially in these difficult economic times.

Being at their mercy they can charge whatever they desire and they make sure to cover themselves to only their benefit not the consumer. There is something very wrong with 2-year contracts and being a victim of life changing events beyond my control I have learned a costly lesson. They do not want people to skip back and forth between satellite/phone companies but could care less about the customer after you are in their trap. Being stuck in a 2-year service agreement you must pay them any outrageous price they decide to charge. Believe me you are going to pay them back for everything you thought was a great deal initially.

My price now for satellite was $85 for the next year. This was not okay and not fair. They offer packages that are very rigid when I only watch about 6-10 of the 300 channels they offer. Most channels are useless so do not believe the 500 channel scam. They can turn certain channels off and on form the office, give you pay-per-view but they cannot offer you a individualized package that could help you the customer save money when your situation changes and make attempts to talk to them verses avoiding them. You are at their mercy and they make no effort to try and work with you. Advertising uses psychology to pull you in and millions of dollars are spent for this very reason. Really make sure it is a good deal before signing your life away.