Shouldn’t be allowed unless you can return the phone when they cancel your service. Paying/held liable for something unusable is ludicrous. Even if people repay their debt, the phones aren’t unlocked because they’re not an active customer.
Far more people didn’t repay their debt before, because their devices were unusable. Even active customers had difficulty getting their phones unlocked when they weren’t automatically unlocked after 60 days. Absolutely no incentive to pay when the balance is sent to collections and you can’t guarantee an unlock when the collection is paid. In the end, taxpayers foot the bill when these companies write off their losses every year.
More people will go prepaid and buy from the manufacturer at a discount, to not be tied to a carrier. That’s part of why they eventually started doing auto-unlocks after 60 days.
Once it’s sent to collections, the carrier no longer owns the debt anyway, a third party does, so they should be unlocked then.