Except... that you are.
> You're paying for something as you use it, and getting a discount because you agreed you'd use it for a year.
So... you're getting the use of something before you've paid for the full year. That's a loan.
Hmm, no, you're still not. You are paying for the months as you use them. You merely agreed you'd use the service for a certain amount of months in exchange for a discount.
Is paying rent on a year long contract is a loan? Is paying your monthly phone bill (which is on a 2 year contract) a loan? No. The phone company is not loaning you money. They're just providing the service at a certain rate contingent on an agreement to use it for a certain amount of time.
I don't think the way you are using the concept "loan" is how other people (and the dictionary) uses it. Agreeing to pay something in the future for services they will render in the future is not a loan.
If that were true then there wouldn't be a cancellation fee.
> You merely agreed you'd use the service for a certain amount of months in exchange for a discount.
That's disingenuous anti-consumer corporate bullshit.
> Is paying rent on a year long contract is a loan? Is paying your monthly phone bill (which is on a 2 year contract) a loan?
They both should be considered worse than loans. They're not only demanding that you pay all the money if you want out but they're also fully necessary in a modern tech society.
> Agreeing to pay something in the future for services they will render in the future is not a loan.
It is if you have to pay for those services even if you don't want them any more.
This isn't the gotcha you think it is. The cancellation fee does not cover the full amount owed for the remainder of the services, so clearly the existence of a (50%) cancellation fee indicates it is not a "loan" you are paying back. If it was a loan, you'd actually be on the hook for the whole thing.
> That's disingenuous anti-consumer corporate bullshit.
Could you elaborate? If you want an actual rolling monthly contract, that is an option too. The point of the yearly contract which you pay monthly is to allow for cheaper prices because you are guaranteeing a year of revenue. If you want maximum flexibility, pay monthly.
> They both should be considered worse than loans.
You realize contracts protect both sides, right? If you have a rolling monthly phone plan, the price can increase every month. If you agree to pay for a year, you get a locked-in price, the seller gets a guaranteed year of revenue, and everyone wins.
> It is if you have to pay for those services even if you don't want them any more.
As pointed out in point 1, you're not paying for the services so this argument is actually the opposite of what you want it to be.
You have to pay back the discount if you end up not using it for a year, as it should be.