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My parents have been getting this discounted t-mobile data plan from a third-party retailer for a year or two. My parents get $10 off of their bill every month and a $200 check from the retailer every 6 months.
In return, the store orders two iphones on my parents' behalf every six months. My parents' credit card gets charged $350 for the phones. My parents then bring the phone to the store, who then keeps the phones. My parents' bank account get refunded a few weeks later. My parents also receive a $1000 prepaid t-mobile card in the mail later. They bring the card to the retailer. The retailer keeps the card.
How does the retailer make money from this? Is it legal?
My parents have been getting this discounted t-mobile data plan from a third-party retailer for a year or two. My parents get $10 off of their bill every month and a $200 check from the retailer every 6 months.
In return, the store orders two iphones on my parents' behalf every six months. My parents' credit card gets charged $350 for the phones. My parents then bring the phone to the store, who then keeps the phones. My parents' bank account get refunded a few weeks later. My parents also receive a $1000 prepaid t-mobile card in the mail later. They bring the card to the retailer. The retailer keeps the card.
How does the retailer make money from this? Is it legal?
My parents have been getting this discounted t-mobile data plan from a third-party retailer for a year or two. My parents get $10 off of their bill every month and a $200 check from the retailer every 6 months.
So your parents are getting $10*12+$200*2=$520 year in cash back. In exchange they buy 4 iPhones and are paid back and get $1000 card that goes to the retailer. Are these $900 iPhones or cheaper models.
These are the most recent iphone models. Also, I pulled my parents' credit report and there was nothing out of the ordinary on it.
I know what the retailer does doesn't sound right, but my parents, who've only been to the US for a few years and don't speak much English, believe there's no harm to be part of this - they are getting ~$500 off in various forms every year by literally doing nothing except having to stop by at the retailer a few times to drop off the phones and the card.
Maybe it's time to alert my parents or even report the retailer.
OP, I think you need to wait for the next shoe to drop. There may be an ugly surprise that has yet to show it's face yet. I hope there will be no issues for your parents. Best wishes.
What is the big surprise, the dealer gives the parents a discount because he sells the iphones for big money and make a big profit, which he shares a little of with the parents. He also uses the $1000 card to buy more phones, thus maybe your parents could ask for more since the dealer is making way more than he is giving your parents.
I know of other people who did similar deals with a dealer in New York and never got cheated even once. The parents can take the phones and sell them and get the full pop, that is if they know how to and have a reputation on place such as ebay but they probably do not, the dealer also probably speaks their home country language, so they may feel comfortable with him and he feels comfortable with them, a win win.
Now, is what they are doing illegal, I really do not know but how can they lose, it is not costing them anything is it, and they have been doing it for 2 years already, so they should know by now if they would be getting cheated..
My suggestion for the op is to check online how much the plan his parents have actually cost a month, metro pcs charges less for tmobile service than tmobile does, possibly that is what the dealer is giving them.
Maybe it's time to alert my parents or even report the retailer.
That doesn't seem like a good idea.
I know it is frustrating but if you can figure out the exact nature of what the retailer is doing, then show something to your parents in writing and let them make a decision.
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