https://www.youtube.com/watch?v=4pSK5POJZDo

In an apparent effort to reduce installment plan fraud, AT&T has updated its rules on device purchases made using installment plans. In particular, AT&T will restrict access to devices purchased on an installment plan to the specific AT&T account associated with that plan.

While AT&T and other carriers have always locked devices on installment plans to prevent their usage on a competing carrier, the company is now taking things a step further by only allowing them to be used with a single wireless account on its own network.

How AT&T Blocks Your Device Is Described

For AT&T, actively preventing its own devices from accessing its network is a major step forward in its fight against various sorts of fraud.

If you try to use a device on an installment plan with a different account, such as by swapping the SIM card, you will see a "unpaid device" notification that directs you to this support article.

This alert is showing because you are trying to use a device that is associated with another AT&T Wireless account that has an active AT&T Installment Plan. You cannot use this smartphone with any other AT&T Wireless account. For this device to qualify for the AT&T Installment Plan, it must be used with the AT&T Wireless service on the approved AT&T account.

Until the final installment is paid in full, this will be an issue any time you wish to use the device with a data plan from a separate account.

Mobile internet users often have many accounts on the same network, despite the fact that most people use devices on the account they purchased the device for.

For instance, if you financed the purchase of a mobile hotspot from AT&T, you would not be able to use it with a prepaid account, Cricket, a reseller, or even a SIM card from another AT&T postpaid account.

Please note that this new policy is limited to devices that were purchased from AT&T and are still subject to a payment plan. Mobile devices and wireless networks are especially vulnerable to this. Unlocked devices and devices with no remaining balances are not affected.

Taking Away The Limit To A Single Device Per Account

The most direct route to removing this restriction is to pay off the device in full and then use the AT&T device unlock webpage. If that isn't an option, the device will be tied to the account that assumes responsibility for the installment plan's payments. If not, the gadget can only be used on the installment plan account.

Verifying the Health of Devices and Acquiring Pre-Owned Devices

The Graphical Mirc Phone marked with a cross and a block Particularly problematic for individuals looking to buy a used smartphone on the secondary market is the fact that AT&T does not provide a simple IMEI checker to identify whether or not this policy applies to a given handset.

You will not be able to use the equipment until the installment plan is paid in full, if applicable.

In order to unlock the device, AT&T suggests consumers visit the AT&T unlocking portal.

Regrettably, this requires providing sensitive information, and it may take the system up to 24 hours to respond. It's hard to know what to do with the answers.

We put an unlocked AT&T M6 hotspot through the system's paces as an example. The unlock request email arrived the following day:

In either case, the manufacturer does not have an unlock code or your device is already unlocked, hence your request to unlock has been denied.

Although we are aware that the smartphone is unlocked, the message may lead users to believe that they need an unlock code to use it.

We also tested this with an AT&T device linked to a bill that we know is still being paid in installments, and we got the same confirmation from the system.

Disclaimer for the AT&T Unlock Device Installment Plan

If the previous owner has not transferred billing responsibilities to you or paid off any outstanding installment debt, you will not be able to utilize the device with your AT&T account and should therefore not purchase the device.

Analysis and Recommendations

There are two key outcomes from this new policy:

It significantly reduces the attractiveness of buying gadgets from AT&T on an installment plan, especially for people who want to or need to use the item on a different account before the complete payment is made.

It raises the stakes for those looking to buy used phones, since they'll need to make sure the gadget is paid off before buying it so it can access AT&T's network. AT&T's inconvenient device unlock method is the only means of verification.

Furthermore, it appears that this new regulation is retroactive; we have heard accounts of customers who purchased used phones more than a year ago having their devices abruptly stopped due to unknown outstanding payment obligations.

Some of these customers purchased their gadgets via second-hand retailers like Swappa, and thus have no idea who the original owner was. Furthermore, AT&T will not disclose this information to the current owner nor will they accept payment from them.

We wonder if AT&T is going too far in its fight against the very real problem of device fraud, especially as it is not providing users with a simple BYOD tool to determine device status.

If at all possible, we advise that our readers buy their gadgets outright, or at least opt for brand new, unlocked models. In the event that a better data plan becomes available, you will have the greatest amount of leeway to switch to it.

In addition, while shopping for a secondhand AT&T-branded handset, you should exercise extreme caution to avoid unwittingly incurring a costly installment obligation.