Doubt about contractual penalty 2 years plan

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  • Updated 1 year ago
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I'd like to know if I buy a cell phone from Koodo Store with a 2 years plan and cancel this plan until 1 year, how much I'll have to pay the contractual penalty? And will be possible to unlock this same cell phone?
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Rose

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Posted 1 year ago

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Allan, Mobile Master

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No penalty, so say you buy the phone on Tab Medium, $15/month for 2 years, or $360. If you cancel after 1 year you will have a remaining tab balance of $180 and that will be the amount you have to pay off.

To unlock the phone you need an active account with Koodo so if you plan to unlock, make sure you do that before you cancel.
(Edited)
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Ivan, Mobile Master

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Plenty of 3rd party options for Android phones as well.
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Bernard, Official Rep

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We don't have contract Rose. So, as per Allan there is no penalty. Of course if you have bought the phone on Tab (our financing) you will be required to pay off the entire amount at that point. 
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Rose

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how this kind of thing work and what kind of documents I need to buy the cell phone and contract the plan?
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Goran, Mobile Master

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You go through a credit check. You'll need to bring 2 of the following IDs on this list:
http://help.koodomobile.com/getting-started-with-koodo/before-you-purchase/do-you-perform-a-credit-c...

If you qualify, then you can put a phone you buy on a tab.

Once you decide that you are either cancelling your plan or just want to pay off your remaining tab balance, you'll receive a final bill with the tab balancer you have left owing or you would go into your self-serve Koodo account and select the option to pay off your tab, and the amount left will be put on your next bill.
(Edited)
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titaniumtux

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I think I should state the obvious...contract/term/agreement/phone subsidy all loosely translate to the same thing from a customer vantage point. Customers primarily care about what they're paying, what they're getting, and when the time comes, what's the cost to buy-out.

Telling a subscriber with a phone subsidy on this forum that they do not have a contract is probably more confusing than anything else.

No consumer cellphone carrier has "contracts". It's now agreements. Even Koodo has you sign an agreement when you take a phone on subsidy. The difference is when activation credits come into play.

Example...$400 phone, activation credit of $40, put $360 on subsidy, 1 yr later, buy out at $180. With the other guys, $400 phone, say you pay $0 upfront, put $400 on subsidy, 1 yr later, buy out at $200.

If you take an LG G4 on Koodo, say you get it for $0 upfront on a tab small, you're only putting $240 on subsidy on a 2 yr. Say you take the same phone on Virgin, even if they let you put it on a $30 per month silver plan, you're putting $700 on a 2 yr subsidy, meaning buy out 1 yr later at $350 (but your entire plan would be practically paying installments on that LG G4, plus the little minutes and maybe a bit of data on top of that...with crazy expensive overage rates).

Fido now has a tab structure to their plans, but the tab portion doesn't fall off after 24 months, and the buy-out doesn't necessarily reflect the remaining tab installments. Say Fido were to liquidate their LG G4's and offer it for $0 upfront on a tab 5, retail $700. Your buy-out a year in would be $350, not $60.

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Bernard, Official Rep

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Fair enough. Maybe it would be more precise to say that Koodo never had a contract or a penalty upon breaking them. Unlike the others. :-) 
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titaniumtux

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@Bernard: with Koodo, the tab pay-off is the buy-out. With Koodo, there's a slightly more transparent tab structure...meaning customer with phone subsidy owes tab amount multiplied by the remaining unpaid tab installments. With other carriers, they'll still indicate how much is deducted from the phone subsidy on the agreement document. A tab buy-out is still an agreement buy-out.