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scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

This is either a heads up to others out there with Softbank plans, or a call for submissions that Softbank are talking bollocks. I proceed:

About 15 months ago I signed up for a softbank 1 year plan, bought the phone outright, paid my bills on time, no troubles for 15 months. So my 1 year contract has ended and I'm leaving Japan in a few weeks, so called to ask them to cancel my phone. Apparently I need to pay a 4200yen breaking the contract fee because at the end of your one year contract, if you fail to tell them otherwise, they sign you up for another 1 year contract without asking.

I have no recollection of them mentioning this when I signed up in the first place, so am rather p*ssed off at this, but on the other hand thankful that it's not a more ridiculous fee.

Anyway, like I said, heads up to others, or please tell me if this is bollocks.
Cheers

humancartography · Joined: 14 May 2006 Posts: 16

Sounds about right to me. Although, you're lucky that you cancelled it in advance. My only options were to cancel and be billed after having left Japan, or wait about five hours in the store, in order for them to process the cancellation. Quite irritating.

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

I talked to Softbank people at 4 locations -- 3 outlet stores and one main Softbank store. At first, they all told me that to get a prepaid phone, I would have to pay 4000 yen for the phone itself, and then whatever amount for the prepaid cards (60- or 90-days).

None of them volunteered any further payments. I even asked one outlet store clerk if there was anything else I had to pay, ever, and she clearly said no.

Finally, though, at the main store itself, when posed the same question, they clearly said otherwise. In effect, yes, you have to pay another 3000 yen per year just to maintain the service.

I never looked at any contracts, but this is a wishy-washy way of doing business.

My question, though, is for scorchio: You wrote that you got the phone 15 months ago. That's three months beyond the first year's contract. Didn't Softbank already take out the money for your second year's contract automatically? Japanese companies are usually rather tidy with such dealings, and 3 months is a long time for them to wait without giving you some warning (in the event that you had to do it manually), whether a renewal warning, or a cancellation one.

Also, what does your contract say? My wife saw the contract, and she says it clearly states that you have to pay such a penalty unless you have the phone 24 months or longer. Then, there is nothing to pay.

Apsara · Joined: 20 Sep 2005 Posts: 2142 Location: Tokyo, Japan

I think Glenski is talking about prepaid phones whereas scorchio seems to be on the pay-by-month contract, so Softbank won't have taken all out the money for the second year's contract automatically, especially if he is paying at the convenience store etc every month.

The 4,200 yen to cancel the contract sounds like the usual to me. I don't think it was mentioned when I first signed up for a phone (actually I have au but they all have similar policies) but it was definitely in the contract that if I cancelled mid-contract there would be a fee of x amount.

gaijinalways · Joined: 29 Nov 2005 Posts: 2279

Yes, that's right (from another dissatisfied Sotbank customer) Crying or Very sad

. My wife and I plan to cancel in January. And no, we have been clients longer than 24 months, but we changed our service plan at one time, so that the time period count down starts over again and you are liable for the same cancellation charge if you decide to cancel in the middle of a year.

In addition, we found that in the case of my wife's obviously defective phone, which needs to be recharged everyday, is to buy a new one at full price! Adios Cameron Razz

!

scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

I understand the concept that cancelling mid contract incurs a penalty fee because usually you get a certain price plan depending on how many months you are committing to continuing to pay. We knew we wouldn't be here for 2 years, so chose the 1 year contract so we would be fully paid up by the time we left and just on a month to month contract after that.

We weren't aware of this automatic, without your approval, signing up for another year deal. What are you supposed to do at the end of your 1 year contract if you want the phone for another few months? Sign up for a whole year?

Anyway, I'll pay the money, it won't break the bank, but I'm not a big fan of surprise charges and what I consider dubious contract conditions. Thanks everyone for the info.

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

I'm talking about both.

In my experience (prepaid phones), I just wanted to point out the flakiness of the sales personnel, in agreement with the OP.

In my wife's experience (regular Softbank service), the contract is quite clear in spelling out the penalty fee. If the sales person didn't make that clear, that's one thing (bad servic), but the contract is there to read. My wife said that this policy is the reason so many Japanese bail out and get new phones every 2 years. They like the new features, but they don't want to pay the penalty fees.

scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

I must admit that it is possible it was in the contract, but the contract is in Japanese (fair enough since we are in Japan). There was a japanese guy from the store (one of those big electronics stores) translating for the softbank employees, but the whole thing was a shmozzle and they kept telling him different things. I'm sure he never mentioned this issue, and so my original point stands in making this a heads up to others who are on one year contracts. Thanks again for your posts.

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

Who was this "Japanese guy" translating for the Softbank employees?

If he was a friend of yours, he should have realized that penalty fees are common here, and it was his fault for not telling you, whether the staff explained or not. I'd be really ticked off if that was my friend! He could read Japanese, right?

If he was a Softbank employee with passable English skills, then it should have been his job to know this, too.

Just tell them you are not going to cancel the contract, leave Japan like you intended, and just before the 24 months are up, cancel with no penalty fee.

scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

He was an employee of the store from another department (one of those big electronics stores that have all kinds of other vendors operating within them) - not necessarily knowledgeable about the ins and outs of softbank contracts. From the amount of different stories we kept getting from softbank via this guy it seemed that the softbank employees were the ones that were somewhat incompetent. His English was very good. They kept changing the rules on us...it was very strange, even he was confused by the whole thing.

Your plan to leave the country and cancel just before 24 months has one major flaw, that in the meantime I'd be racking up monthly charges for a phone I'm not using. Significantly more than the 4200yen they are asking to cancel it now.

Chris21 · Joined: 30 Apr 2006 Posts: 366 Location: Japan

Why not skip-out on the bill? Tit for tat. If payment has been linked to your bank account, then you may not have a choice. But if you pay monthly in cash, then why not reject their shady business practices by not paying?

scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

Well, they were originally taking it directly from my bank account, but recently (after 12 months) started sending me paper bills "because the payment was declined once", which is rubbish. So they do have my account details on record, so I'll be paying the 4200 just in case, but not a bad idea.

GambateBingBangBOOM · Joined: 04 Nov 2003 Posts: 2021 Location: Japan

If you're leaving Japan for good, then you can just close your account and leave.

But, OTOH, it's 4200Y. It's not really all that much. Personally, I would'nt've had a problem just paying it.

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

Don't skip out on the bill. Military did that here, and some phone companies began asking for a 30,000-50,000 yen deposit just to ensure they had the money when people skipped out. (I believe this is no longer the case.)

Just pay the lesser of two evils and be done with it. Legally and honestly. Your claim about Softbank having a poor sales team is partly supported by my original post, but it might also help to know where you went originally. Maybe that store was the only one that does things as badly as they did with you.

scorchio · Joined: 14 Jun 2006 Posts: 36 Location: Sydney

if you read my original post you'll notice that I don't have any intention of skipping out on the bill.

It was just a complete surprise to me that such a clause in the contract existed since no such automatic contract renewal happens in Australia. After your original contract ends it switches to a month to month contract and cancellation after that does not constitute breaking the contract.

So heads up to others.