Assistance - Ombudsman Tips | Misleading Lease Contract (Telstra)

fratzhaus on 12/11/2018 - 20:04
Last edited 12/11/2018 - 20:04

Hi Team,

I feel I've been coerced into a lease contract that I was misled into thinking was a standard contract.
I plan to raise a complaint with the telecommunications ombudsman tomorrow, as Telstra have been pretty useless at helping/explaining much to me, despite my patience. I'm pretty blind when it comes to knowing my rights or how I would go about raising a complaint, but I've paid a lot for my plan and I would not have signed it knowing it was a lease contract.. any help or tips on how to go about raising this to the telecommunication ombudsman would be greatly appreciated!

My Situation:
Back in December 2016, a month or so after Telstra began offering Leased mobiles, I was talked into buying into a "Go Swap" Plan at a Telstra shop by one of the sales staff. I was led into thinking I was signing a standard contract, and at no point was I told it was a lease/that i would have to hand the phone back at the end of the 24 months.
Fast forward to now - I expressed my desire to terminate my contract at the end of the 24 months, before having them tell me I'd have to hand the phone back, with extra fees due to minor wear and tear, OR purchase the phone at a "Fair Market Price" as determined by "Higher Authorities" (their words, not mine)

My Plan: Pixel XL 32gb w/2GB + 3GB per month
Monthly cost: $75 + 26 + 10 for plan, phone repayment and 'Mobile Swap Assure' (i don't know)
($1800 + $624 + $240) - not my smartest move I know
Return Fee would be $190 due to wear and tear.
"Fair Market Price" is $292

My Contract mentions the word 'Lease' once, and only in the fine print.
I'll end this with the following excerpt below:

"The total remaining payment for your Pixel XL 32GB is $1272, which will reduce by $53 each month you stay on your plan and repayment
option. If your plan or repayment option is cancelled early, you will have to pay the remaining payments for your Pixel XL 32GB in addition
to any early termination charges for your plan."

TL;DR Signed to a very expensive lease contract, believing it was a standard
TL;DR tl;dr Telstra bad, Me good.

Thanks

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Comments

  • mskeggs on 12/11/2018 - 20:20

    Can you keep the phone if you stay on the plan a little longer?

    • fratzhaus on 12/11/2018 - 20:24

      Unfortunately no, unless I pay the Fair Market Value of $292, they'll also still be charging $111/month for the plan.

  • follow on 12/11/2018 - 20:23

    Ouch! Does your monthly bills state lease anywhere? Just searching Go Swap comes up the description.

    • fratzhaus on 12/11/2018 - 20:26

      The word lease isn't used at all in the bills, only in the contract. The Go Swap is referenced 5 times just stating the plan name though.

  • tinx on 12/11/2018 - 20:23

    So your contract now ended?

    For $292 i think there's a good chance that telstra will waive that.

    Call their 13 number and ask for complaint dept.

    Or live chat and ask for complaint dept.

    They're the one who willing to give discount etc in my experience.

    Good luck!

    • fratzhaus on 12/11/2018 - 20:28

      I spoke to a supervisor in the Billing team yesterday on Live Chat, do you think a supervisor in the complaints dept would have any more pull/say or am I just wasting my time there?

      • tinx on 12/11/2018 - 20:44

        supervisor are useless.
        especially the one from overseas division. which most of live chat agents are from…

        best bet is to call and ask for Complaints/Escalation team.

        during business hours.

        • fratzhaus on 12/11/2018 - 20:52

          Yup, almost absolutely useless. I was told by this one that a member of the Escalation team would contact me today after 3:30PM to address the issue which naturally didn't happen however I think this only helps my case once this goes to the Ombudsman.

          • tinx on 12/11/2018 - 21:03

            @fratzhaus: yeah.

            from previous experience, i will insist that they transfer me right at that time.
            as long as it's business hour.

            if they offered a solution and you not happy with it, do mention that you are going to escalate to TIO.

            supasaiyan is willing to help below or you can even use online form and they will contact you back https://say.telstra.com.au/customer/general/forms/Email-Comp…

            again, good luck. but complaint dept usually able to solve it. and it's below $300 you have good chance :)

            • fratzhaus on 12/11/2018 - 21:09

              @tinx: Thanks! Chins up and hoping for the best outcome, if I can't win I'll try cost them as much money as possible trying to get an answer!

  • Associated87percent @ Telstra on 12/11/2018 - 20:43
    +3

    Op, I work for Telstra. If you want me to raise an internal complaint, send me a pm with your name and mobile number

    • tinx on 12/11/2018 - 20:50

      this is for another matter, but is it still possible to get technician come and do commercial qoute for the unit that i live now?

      situation : nbn box is on outside wall, but they haven't come to install the inside wall port. which according to nbn website estimated to finish at jan - mar next year… :(

      trying to get cable installed in the meantime, but since telstra website say no cable access, I can't get it.
      But some people from whirlpool forum managed to get it via commercial qoute.

      sorry for hijacking your thread OP!

      • Associated87percent @ Telstra on 12/11/2018 - 22:24

        As far as I know, they've pretty much stopped all commercial quotes. They're only doing standard installs for HFC now

        • tinx on 12/11/2018 - 22:40

          dang. any other way to make telstra update their database ?
          can you do it ? hehehe :)

          • Associated87percent @ Telstra on 12/11/2018 - 22:55

            @tinx: I'm going to guess that you live in a sub-divided block?

            • tinx on 12/11/2018 - 23:07

              @87percent: Its 3 units in a block of land. Old unit circa 1978. Nbn dig a new line for us since they can’t find the old telstra pit lol…

              Should’ve asked for nbn guy ph number so i can chase it up … well too late now.

              • Associated87percent @ Telstra on 12/11/2018 - 23:19

                @tinx: Usually with units, the cable infrastructure is on the street but it never gets hauled to the individual units (usually because it's quite expensive)

                A friend looked info it as he was in a similar scenario, and it was close to $10k to get hauled.

                But unfortunately, I'm pretty sure you got no hope

                • tinx on 12/11/2018 - 23:25

                  @87percent: Yup. That’s why i was happy that nbn did it for free lol.

                  Now just need to wait for someone from nbn to connect the cable from outside box to inside… which according to their site will take up to 6 mths…

                  Oh well, just have to wait with my lousy adsl then….

    • fratzhaus on 12/11/2018 - 21:08

      Messaged! Looking forward to hearing from you 😊

  • Ughhh on 12/11/2018 - 20:58

    https://www.telstra.com.au/support/category/mobiles-tablets/…

    Never completely trust the words of a salesmen. Always read the contract. If there are terms and words you don't understand, research and/or ask. This goes for anything eg. Buying a house, a vacuum etc

    • fratzhaus on 12/11/2018 - 21:07

      Like many, I've learnt the hard way now always to read the contract and to take my time. I'm just glad it's only at most going to cost me a couple of hundred $ if things don't go my way and wasn't something like buying a house!

  • delaforce83 on 03/10/2019 - 12:53

    Fratzhaus I would love to hear what the outcome of this was as I am in the same position now. I have been on Telstra contracts for years and was never aware in October 2017 i went on a lease!!!

    • fratzhaus on 03/10/2019 - 22:21

      I actually had a mate use my account to post this - but I do remember the outcome: Phone cost was dropped so he got to keep it, and was put on the $45 a month plan with 30gb data for $30.
      He still had to have the 12m contract but I'm pretty confident he can just jump into live chat and switch that to no lock in now.
      Getting a case manager and spending a decent amount of back and forth with them was required. Roomie did not have a fun time.

      • jigna27 on 30/11/2019 - 18:33

        I'm about to embark on a similar process! I was pretty much misled by the sales people at Telstra / JB and signed up for a 'cheap' lease plan for my mum. They made it out like at the end of the lease, they'll likely waive the leftover cost or it'll be something reasonable. To my surprise, 8 days from expiry, I went to a telstra store yesterday and they quoted $564 effing bucks for a 64gb iphone X. It's been costing $102 per month for 2 years and now to keep it will be $564!!!! insanity. Logged a complaint online earlier and will follow up on Monday.

        • fratzhaus on 01/12/2019 - 09:51

          Just be open to signing up for a new SIM only plan or something, they're going to be nicer if your intention is to remain their customer, but up to you

          • jigna27 on 01/12/2019 - 14:09
            +1

            @fratzhaus: Thanks for the tip. I'll definitely be looking at whatever the best option is.

            At best, they'll waive the fee and be done with it. What I'm thinking may be likely, they calculate the 'gap' between what the lease plan cost vs standard plan over 24 months and that's the payout. From memory it would have been an extra $10 a month to go on a standard plan. $10 x 24months = $240, that's a much more palatable number

  • DemocracyManifest on 03/10/2019 - 22:26

    I don't believe you didn't know what you signed but the lease bullshit is a disgrace esp when the phone is now over 2 years old it's a money grabbing exercise

    • fratzhaus on 04/10/2019 - 12:53

      My dude the leased plan was grabbed in store. The only context given was the word leased, without the context of the plan and how it works, considering it was a new concept - AND the price that was being paid - it's easy to assume it was a pay as you go until the contract ends and you keep the phone.

      Like you said, the lease plan concept is bullshit - why would I assume such a bullshit expensive plan exists? Especially when the plan is basically the price of other competitors to own outright.

  • PaulRoss on 07/03/2020 - 19:20

    Hey there everyone. I have just joined and read the above conversation about Telstra deceiving customers regarding the leasing and never owning the phone two years ago.
    I too was and am one of those fools who never read all the tiny print and trusted stupidly the salesman who rewrote my contract and I thought it was the usual change up that was and is again.
    I have a iphone 8, a dongle and a Tablet costing me $138 per month for 36 gb.

    Meantime I am at the end of my contract in weeks and wonder about my options as the online Telstra wont give me a value on the phone and neither will the store as to fair market value and says it is up to their invisible higher ups—but will be about $200 to purchase.

    I wonder if I just now continue with them will I be obliged to just pay for data usage?

    The salesman of course is only interested in telling me how much various phones and deals cost and of course this both involves upgrading to a new phone, new deal and new 2 year contract.

    Personally I would like to walk away from 50 years of loyalty from my end and go anywhere else but them after a dozen hours on phone and offices trying to pre arrange a future with them. they are almost secretrive and certainly NOT transparent.

    Has anyone had a happy outcome
    I can almost see that Telstra will only negotiate with me if I want to renew some contract with them but will punish me by either taking my phone and stored information away from me or making me pay more money that the $99 per month for the phone at the end of the contract on 31-3-2020. As a pensioner this is not desirable or fair.

    Appreciate any and all advice my fellow sufferers can share please. Paul

    • fratzhaus on 07/03/2020 - 22:45

      Hey, as mentioned I had my roommate at the time post using my account - but the best advice to get as good of an outcome is to get in touch with them and try and get assigned a case manager who can see you through.
      It might take a bit of back and forth, but my roommate got to keep his phone at no extra cost, and just simply got moved to a $30 a month 12 month plan with 30gb - $15 cheaper than advertised.
      Just be clear about what you expected the plan was, and that your costs were high throughout the whole thing (the lease plans were) - use that long term customer note as well. It sucks moving providers when you don't want to.

      Just expect back and forth, be patient and see it through - and best of luck.

    • EvilOverLord on 17/03/2020 - 16:06

      I just spoke to someone at Telstra support who said I wouldnt have to return my phone, even though it is on a lease. So I had her re-say that as I recorded her. WIll see how I go…

  • Kohia on 19/07/2021 - 12:34

    I have just got off the phone to Telstra as I feel I also was not explained that I was leasing. I thought I had just upgraded my plan and was in a rush at the time as I had along way to travel home etc. I just got off the phone and was told I must pay $273.00 to have my plan downgraded and to end the lease and I have purchased the phone. The other option is to take phone back to a Telstra store and pay $190.00 so they buy it back and then cancel the lease agreement. As a business with Telstra for over 40 years and the crap I have had to tolerate with internet issues, being unable to use my mobile inside my house and our internet bridge not working since modem issues that took 10 hours of my life with Telstra to fix Im ready to change over to a new provider. Just wondering if we can take our old numbers with us. Cheers

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