1. centerwaters's Avatar
    Costco requires return of S6 if I cancel contract within 90 days
    but doesn't say what will happen if I don't. (no mention of $$$
    penalty in writing.... only saying that the phones "must be returned")

    This is not the carrier's ETF. Obviously the ETF will be charged
    by the carrier itself.(AT&T, Verizon, etc)

    So what will happen if I buy the S6 from Costco, call the carrier
    after 60 days to cancel and pay ETF. How will Costco enforce
    their own rule that says the phone must be returned?

    (link goes to Costco's wireless phone sales website)
    http://membershipwireless.com/index....ent/do/returns
    It's listed at the very bottom.
    08-24-2015 07:36 PM
  2. Aquila's Avatar
    Costco used to be very popular for Verizon customers trying to upgrade at a discount while retaining unlimited data. The way I understood it was that if they receive word from the carrier that the contract is unpaid, late or cancelled, they simply add the MSRP of the device to your Costco bill, which must be paid in full in order to utilize the membership and/or renew it. They do this because they are paid up front on the contract by the carrier and they have to return the money if the customer does not have an account in good standing at any point in the first 90 days on that particular line. This even goes so far as to include simply putting any different device on that line.

    On a side note, generally we discourage discussion on methods of defrauding others, including companies. I am sure that is not your intent, but the hypothetical has the possibility of reading that way.
    xocomaox likes this.
    08-24-2015 07:57 PM
  3. xocomaox's Avatar
    They will bill you and it will eventually go to a collection agency which will hurt your credit severely. This is not recommended and is going to hut you more than getting a "free" phone. They could potentially sue you, but will probably just bill you instead.
    08-24-2015 08:08 PM
  4. bbtkd's Avatar
    So what will happen if I buy the S6 from Costco, call the carrier
    after 60 days to cancel and pay ETF. How will Costco enforce
    their own rule that says the phone must be returned?
    ....
    They'll come take back those tires you bought from them...
    xocomaox likes this.
    08-24-2015 09:18 PM

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