DirectTV’s DVR Lease Shell Game
My life in television purgatory came to an end recently when Kassia and I moved back into our home, after an extensive remodel, and re-activated our DirectTV service.
My brief stint with Charter Cable reminded me of what truly bad customer service is like. Never mind the torture device that Charter calls a DVR. The day Charter Cable is the only option in my life is the day I stop watching television. Which is pretty much what I did for most of the spring and early summer.
Given the amount of time I’ve spent ranting about Charter Cable over the past four months I should be happier about my return DirectTV.
While I am still happy with DirectTV’s service, I have to say that the company’s equipment leasing scheme has me feeling like I’ve been fleeced.
When I think about watching TV, what I’m really thinking about is watching TV on my trusty TiVo. Without the TiVo pay TV isn’t worth watching. TiVo is an essential filter that brings value to my television viewing experience.
I was more than a little annoyed to discover that in order to upgrade our service to an HD package, I would have to buy a new DirectTV brand receiver/DVR.
I was fine with the part where I had to buy a new DVR, my TiVo is nearly seven years old. It was the part about not being able to buy a new TiVo that really bothered me. My recent Charter experience demonstrated how truly horrible a DVR can be. Don’t let anyone tell you that all DVRs are the same. Those people are fools who watch commercials by choice and buy what they’re told to buy.
After doing a bit of research (research = talking with Tim Gaskill) I decided that the DirectTV DVR couldn’t possibly be worse than the Charter DVR, and might actually be a slight upgrade from my ancient TiVo Series One with the hole drilled in the case and a frayed ethernet cable hanging out of the side. My TiVo has been modded so much it looks like something Homeland Security should know about.
I decided to call my friends at DirectTV to upgrade my service.
The helpful DirectTV sales lady explained that the new DVR would cost $199, and that an additional $4.99 per month lease fee would be added to my bill.
Wait a minute? Did she say lease fee? If I was leasing the DVR what was I paying $199 for?
The operator explained that the lease fee isn’t really a lease fee at all. She doesn’t know why they call it that. It’s actually more of a DVR service fee.
She assured me that the $199 that was about to be charged to my Visa was indeed a purchase.
To be honest, I felt sort of strange even asking. Why else would I pay $199 for a DVR if I wasn’t actually buying it? If I walked into a Circuit City or a Best Buy and paid $199 for the very same box I certainly wouldn’t ask the sales person to verify that I was, in fact, really buying the DVR.
So, I take the operator at her word and finalize my purchase.
Three weeks later my next bill arrives. I’m looking at the details and I see the $4.99 lease fee. Actually seeing it on my bill makes me more curious.
I do a bit of research on The Google and quickly realize that I’ve been had. The lease fee that is not really a lease fee is, in reality, a lease fee.
And the $199 I paid for the DVR? That’s also a lease fee. Except it’s really more of a down payment.
I’ve come to find that I didn’t really buy anything, and the new DVR that’s sitting in my living room is actually property of DirectTV. If I cancel my subscription tomorrow I have to return the box or pay a penalty.
Oh, then there’s the small matter of the two year commitment. Of course I agreed to that without complaint. After all, I’ve been with DirectTV for nearly eight years and I have every reason to expect that I might be with them for another 8, or maybe even 80.
At least that’s what I thought before they snookered me into this crazy equipment lease deal.
Could this possibly get worse? Well, yes, in fact, it can. It turns out that the DVR I’m leasing comes with a 90 day warranty. If the damn thing breaks after 90 days I have to pay to repair or replace it. Even though it technically isn’t my DVR.
DirectTV has a solution to that problem. For an additional monthly fee I can insure the DVR that isn’t really my DVR against any possible damage.
Honestly, I don’t know how this can possibly be legal. Apparently I’m not alone. There’s a class action lawsuit in the works and I’ve discovered a legion of disgruntled DirectTV subscribers (and former subscribers) on various AV forums online.
If you read the fine print you find that DirectTV does actually mention the lease agreement, but it is so buried on their website that I can’t actually link to it. The lease is not mentioned on the the DVR product page or the page that lists the details of each service package. And based on my experience, some of DirectTV’s own employees don’t really understand the lease agreement.
Here’s what DirectTV needs to do to make things right:
1. Provide better disclosure. DirectTV needs to be more obvious about the fact that all equipment is being leased, and more transparent about the terms of the lease. They also need to disclose the total cost of the lease prior to signing consumers to a long-term commitment.
2. Educate all DirectTV sales staff and affiliates (including sales people at Best Buy, Circuit City, and any other retail outlet that sells DirectTV equipment leases) about the terms of the lease, and instruct them to provide customers with accurate information.
3. Give customers the option of purchasing their own equipment, and support third party products like TiVo.
In the past I’ve been something of a DirectTV advocate, providing a strong recommendation for the service and encouraging friends and family to sign-up.
After this experience I’m much less likely to recommend DirectTV, and I’ll probably spend quite a bit of time warning people about DirectTV’s deceptive equipment leasing practices.




13 Comment(s) so far
1. larry wrote on August 11th, 2008 at 9:28 am
ATT U-verse.
4 receivers, 1 hd dvr no purchase, no lease
wifi router
monthly agreement, no long term contracts
6 mbps inet connection
so far I’m happy
2. Jim wrote on August 11th, 2008 at 9:40 am
So basically, given the two-year commitment, DirecTV is charging you $320 dollars just to give you the ability to pay them another $80-100 month to watch their programming.
What happens if, next year, they come up with the most godlike HD-DVR in human history? Despite the fact that you don’t actually own your DVR, you can’t upgrade, right?
Or even worse, what happens if they ever decide to support TiVo again? Too bad! Such bullshit.
The fact that all DVRs aren’t the same is, ironically enough, the reason that I’m sticking with Charter. As long as they’ll support my TiVo Series 3, I’ll probably remain their customer.
3. Kirk wrote on August 11th, 2008 at 10:07 am
Larry: So far no AT&T UVerse isn’t available in my area. Maybe in 2 years after my DirectTV commitment expires.
Jim: My sense is that I could upgrade to whatever super new DVR DirectTV comes up with. I would just have to pay whatever the new lease fee is AND extend my commitment by another 2 years. It’s funny that DirectTV is acting like a mobile phone provider right around the time the courts are ruling that mobile phone providers can’t charge an early termination fee.
4. Tyson wrote on August 12th, 2008 at 7:37 am
Two words: Tivo HD
Kicks A S S!
Even places nice with Time-Warner cable.
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6. Vinny wrote on February 15th, 2009 at 9:18 am
OK ..maybe someone can shed some light for me …Direct TV’s notorious leasing deal. I have two receivers …one came free of charge, with the service, one is being billed a 4.99 “lease” charge. Now …according to DT, I own both boxes; this 4.99 is a “programming fee”. I wanted to upgrade one reciever, and add to the system, using my own purchased boxes. According to them, I’d have to pay the 4.99 “lease fee” for all addtional boxes I didn’t even BUY from them. Why?
7. Kirk wrote on February 15th, 2009 at 11:22 am
Vinny, It’s been my experience that DirectTV isn’t very good at explaining the details of the monthly bills that they send to their customers. If you purchase a receiver from DTV, it’s actually a lease. After MANY calls to DTV I finally got them to eliminate the monthly lease fee on my single HD DVR receiver.
The 4.99 monthly fee is per *additional* receiver, and it applies to any additional receiver, regardless of where you purchased it. It’s actually a programming fee, although your bill probably identifies it as a lease fee. DTV operators are helpless to do anything about the wording, despite the fact that it’s misleading.
8. Whistleblower wrote on April 26th, 2009 at 5:36 pm
Here’s the secret- yes it is a lease fee- a fee of 200 dollars- that’s just for the privilege of having the device. The lease fees you pay every month are actually unavoidable Mirroring Fees. Mirroring is what DTV calls their way to copy the service of the “Primary” receiver over to other receivers. That means you will ALWAYS pay this- even if you own it which… truth told- owning that receiver is $500 or $499 but lets not split hairs. Owning the HD-DVR which is only guaranteed to work on Direct TV’s service (and rarely works then) doesn’t save you any money- you still pay the $5 mirroring fee every month forever.
Also- Leasing is just that; not lease to own as many seem to be confused by… you will never own leased equipment. Ever….
The only advantage to owning is that you won’t have to return the receiver when you wise up and cancel your services.
Also- for those that don’t know- DTV REVERES 3 year customers to the point they will offer a free upgrade if you have never had that type of advanced equipment… however they will still place the 2 year commitment that is $480 early cancellation fee (Either involuntary or voluntary) it does tier down 20 bucks every month you complete but…. that’s hardly compensation.
End of the line- yes ATT is more expensive than some cable companies- but it doesn’t lure you in with introductory pricing plans (that I have ever witnessed) and both ATT Uverse and Cable companies that offer all 3 services will offer all 3 services at a premium of just under about 200 bucks. (which is actually somewhat pleasing in my eyes)
In fact our current supplier of internet, Cable, and Phone gives us high speed internet topping out at 23 MBPS down- 2MBps- over 200 channels and two phone lines for only 150 bucks or so and that’s the price after introductory offer.
So needless to say- DTV is the devil- stay away from it- I am warning you now…
Signed;
Whistleblower
9. sam richmond wrote on May 6th, 2009 at 1:47 pm
directv well I have currently an HR10 which was HD but they changed and it is no longer HD so I upgraded for $100 and new 24 month contract guess what they sent me a refurbished unit that is scratched and plastic front has a gash they refused to replace it due to cosmedic I will be changing to Dish Network
10. Kelly wrote on May 12th, 2009 at 8:15 am
Does anyone know the address I can mail ALL the equipment to, I am canceling it and want NOTHING to do with Direct TV again!
Thanks!!
11. DirectTV DVR Lease Shell Game Medialoper | Shed Kits wrote on May 26th, 2009 at 6:47 pm
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12. thomas grahame wrote on June 1st, 2009 at 3:45 pm
before direcTV I had a programmed VCR which functioned very well. Since DirecTV I cannot record at all
in spite of wiring diagrams and help from experienced people. Does DirecTV have a way of blocking existing equipment to sell DVR
13. DirectTV DVR Lease Shell Game Medialoper | fix my credit wrote on June 16th, 2009 at 7:07 pm
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