EltMrx Says... Don't get ripped of by these cell phone sales scams, buying a new phone can cost you hundreds extra!

Hopefully you have read some of my other hubs exposing the truth! I EltMrx (Elliot Marx) am here to inform you how to save money when it comes to a new cell phone as well as scams to watch out for.

You might be thinking... How can this friendly young man or girl in a tie or polo shirt scam me? How can this end up costing me hundreds extra? To the many people who have cell phone horror stories what you are about to read is not only real and can destroy your credit but can be prevented with the information I am about to reveal. Not only that but I will also reveal how the wireless (cellular) phone industry makes its money and why there are such incentives for salesmen to scam their customers. Remember wireless phone companies uses contracts and check your credit. In any situation where contracts or credit are involved it's best to do your homework.

First this is how wireless sales with a contract work.

• A customer like yourself chooses a phone, usually assisted by a salesperson. For our example the phone will be a "free" phone.
• A salesperson then helps you choose a monthly service plan
• Additional features are then added: text messaging, internet, push to talk and insurance are the most common
• Your information, Social Security Number, Address, and date of birth along with the serial number of the phone are then put into a computer
• A deposit may be required for not so great credit
• An account is created marrying the phone's serial number to your account
  
• A contract is printed and signed by you the customer and the sales associate
• The phone is activated
• The wireless company then pays the store several hundred dollars which is used to pay for your "free" phone, or discounts for others phones, and any commissions that are due
  

This is the basic process for buying and activating a new phone. There are variations to this process which include

• Family plans
  
• Multiple line accounts
• Upgrades
• Porting a number (bringing a number from one carrier to another)

But for the most part they are all basically the same.

The salesperson can get paid in a variety of ways. Either on the number of new accounts he opens, a percentage of your monthly recurring charges (the plan you chose) or a combination of both.

Example time! Lets pretend an employee was paid like so:

• $10 for every upgrade
  
• $10 for each line on a family plan after the first 2(the first two count as a new full activation)
• $30 for every new activation with a plan over $40/month
  
• $20 for every new activation under $40/month
  

**This is a fairly accurate representation without being exact**

Without further ado and in no particular order scams that cellphone salesmen use to rip you off.

Falsifying your information Many wireless carriers pay more for customers with prime credit. Customers with sub-prime credit scores, no credit history, or customers who must leave a deposit usually do not pay as well as Prime credit customers. Many salesmen re-input customer information into their systems in a creative(illegal) way to get a higher commission, or to close a sale that might otherwise not have been made.

• Changing birthdates (often making minors older)
  
• Changing service addresses or making up apartment numbers
• Entering in fake social security numbers

All of this is being done usually without the customer knowing. If someone told you that you had a $150 deposit to open an account, then pressed a few buttons on a computer and said that they "Waived" it for you, you would probably be excited and thankful to this person. You would probably even send business to this person because they "helped you out". They often lie and say you were approved for a "Special 2 Line deal" which is a family plan. This would make a no-sale into a 2 new activation situation. According to our pay scale we made up is  $60! A credit challenged customer paying for an extra phone line, activation fee , or extras like data or text messaging can end up costing hundreds to a customer...

Now lets say you are a Prime Credit candidate.  Many salesman use the exact same line about "waiving" a deposit for a Prime credit customer. But even worse they may simply activate every single account you have been approved for!

If you are approved for 5 lines. They may activate a single line on one account. Open a second account with one line... Then turn these two lines each into 5 line family accounts! If each line has text messaging and a data plan this can lead to thousands in activation fees and monthly charges! This according to our pay scale can make the salesman an additional $140!

Let's say you already have an account and just want to upgrade your phone. Many salespeople may try to "Change" your phone number... Saying that it isn't in this market or making up some reason why you need a new phone number... Why? A new phone number activation is worth $30 and an upgrade worth only $10. After activating a new line they will cancel your existing one. Which may leave you with a termination fee if it is still under contract!

You might be thinking oh my gosh! These grimy horrible salespeople! You may protect yourself by buying online or over the phone direct from the carrier. Or maybe you haven't had this happen to you... There is still another source itching to rip you off! Who is it? Your own wireless carrier! Think the stories of thousand dollar phone bills because of roaming and overage charges are a thing of the past? No way!!

Wireless carriers use special wording to charge you tons of money! "In-network" calls are unlimited but "out of network" calls are limited. Or your data for your smart phone may be unlimited only in certain areas costing you extra if you use it outside of coverage.

What can you do to protect yourself? Here it is:

• Research the hardware you want
• Make sure you see everything they type into their system
  
• After activating a new line call customer service to confirm charges
• A week before your first billing date call again to confirm charges
• Setup an additional pin or password to protect your account
• Read the entire contract before signing
• Be skeptical of "special" unadvertised plans
• Keep copies of everything you sign
• Make note of any dealer code, or salesman code
• Keep all copies of receipts and ask for extras
• Make sure any mail in rebate forms are up to date and not expired
• Keep track of your usage, call your wireless carrier and upgrade your plan before billing cycle ends to avoid overage charges

Beware, be wise, ignorance is no excuse for being ripped off. Learn something, and if something seems to good to be true, it probably is.

You may have read all this and are upset... Wanting real insider tips to save money and not just be scared about being scammed... Ok, here it is :)

Call your carriers customer care center a few weeks after you activate or upgrade your account!

They have the following:

• Retention departments that can apply up to 10% off your account for the remainder of your contract. Either ask to be transferred to retention or claim that you are going to cancel your service, don't ask for the discount but say you are going to cancel, the service was misrepresented, you aren't happy and you want them to make it so you want to stay.
  
• Customer satisfaction incentives for you like 500 text messages for free for the remainder of your contract, or waiving/reducing activation fees
  
• Unadvertised plans: many have a few hundred minutes available for about $20 a month. These plans usually are very stripped down but for emergency phone use are great
• They can apply discounts from your employer, many companies have anywhere from 6-18% off of major wireless carriers. Call customer care or your companies HR department to find out
  

-EltMrx