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Thread: "62 percent chance of a default within the next five years" - Chicago Tribune

  1. #166
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    Quote Originally Posted by YCGrad View Post
    How did T-Mobile enter the conversation? You're deflecting. This is about the behavior of Sprint's so-called prime credit class customers.
    Not deflecting at all. You brought up a point of a previous conversation that did fully involve T-Mobile trying to insinuate I thought it was ok for sprint to do it. No it's bad business on both companies part to do it. But again sprint doesn't classify them as prime credit customers. That's what tmobile classifies their 12 month prepaid crew. Both will be burned. Terrible business model to have for bad credit customers. Next?

  2. #167
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    Please explain what the business model is that you deem to be so terrible? My point is that credit class does not necessarily dictate consumer behavior. The article illustrates this by showing how Sprint is writing off $256 million due to cancellations of its handset leases. As stated this is "the equivalent of 393K customers simply walking off with a Sprint handset at lease inception, without ever making a single payment." Surely not all of these people are sub-prime.

  3. #168
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    Quote Originally Posted by YCGrad View Post
    Please explain what the business model is that you deem to be so terrible? My point is that credit class does not necessarily dictate consumer behavior. The article illustrates this by showing how Sprint is writing off $256 million due to cancellations of its handset leases. As stated this is "the equivalent of 393K customers simply walking off with a Sprint handset at lease inception, without ever making a single payment." Surely not all of these people are sub-prime.
    No not all do but I would suspect a large portion came from the converting boost over to postpaid after so many boost payments were made on time and offering them a free leased s7 as the deal. It was a direct copy of tmobiles you make 12 prepaid payments on time you are deemed a prime credit customer and are eligible for zero down financing on anything you want. That is a terrible business model to have. I would suspect an overwhelming large majority of those came from that promotion.
    A person with prime credit has worked to get it, worked to keep it, and is a lot less likely to jeopardize hurting it over a phone from sprint or any provider really. A credit challenged prepaid customer on the other hand figures eh my credits shot anyway. Who cares. Now no, not all prepaid users are credit challenged. But they also don't need to be on prepaid a certain amount of time to finance a phone. If they wanted to finance a phone they could at any time. So that doesn't apply to them either.

  4. #169
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    Quote Originally Posted by gregorio102 View Post
    No not all do but I would suspect a large portion came from the converting boost over to postpaid after so many boost payments were made on time and offering them a free leased s7 as the deal. It was a direct copy of tmobiles you make 12 prepaid payments on time you are deemed a prime credit customer and are eligible for zero down financing on anything you want. That is a terrible business model to have. I would suspect an overwhelming large majority of those came from that promotion.
    A person with prime credit has worked to get it, worked to keep it, and is a lot less likely to jeopardize hurting it over a phone from sprint or any provider really. A credit challenged prepaid customer on the other hand figures eh my credits shot anyway. Who cares. Now no, not all prepaid users are credit challenged. But they also don't need to be on prepaid a certain amount of time to finance a phone. If they wanted to finance a phone they could at any time. So that doesn't apply to them either.
    Boost's plan didn't have a payment requirement. The other guys require on-time payment history. This is a small number of units compared to the volume of financing. This is just a bump the net number positive probably in the last 2 weeks of the quarter. They know the phones are a loss and the customers won't pay. Probably more then they thought. But it's planned for wall street. They are accepting any customer who will make the $35 activation fee payment and had service with Boost or Virgin for 1 year. If they were late all the time, they don't care. They are only blast texting out the offer to the amount of people they need. The Bad Debt is something different and Sprint messed up, and competitors did not. It's bad, but manageable. The leases are a bigger risk based on unpredictable residual value of phones.

  5. #170
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    Quote Originally Posted by MoreSpeed View Post
    Boost's plan didn't have a payment requirement. The other guys require on-time payment history. This is a small number of units compared to the volume of financing. This is just a bump the net number positive probably in the last 2 weeks of the quarter. They know the phones are a loss and the customers won't pay. Probably more then they thought. But it's planned for wall street. They are accepting any customer who will make the $35 activation fee payment and had service with Boost or Virgin for 1 year. If they were late all the time, they don't care. They are only blast texting out the offer to the amount of people they need. The Bad Debt is something different and Sprint messed up, and competitors did not. It's bad, but manageable. The leases are a bigger risk based on unpredictable residual value of phones.
    It's a customer grab for both companies. It's preying on the greed of the credit challenged lower middle class mainly for their own personal corporate greed of better numbers to report. Both companies are wrong for doing it and it will burn both of them to some degree. Everything else though yea I agree.

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