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etfs
Tmobile just announced that they will let early termination fees decline over the course of a contract. Previously, you had to pay the full monty whether canceled on the first day, or last day, of your contract. This chart shows you how the new fee breaks down over time:
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news from the swamp
The FCC held hearings today to discuss early termination fees (ETF) for wireless carriers, the ~$175 charged if a customer exits contract before the contract is up. FCC Chairman Kevin "Golden Child" Martin's proposals largely mirrored those offered by the carriers themselves last month. Here's what he said today:
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success stories
etfs
cellphones
early termination fees
verizon
Somehow, an arbitrator has approved a massive $1 billion class action lawsuit against Verizon over their early termination fees. In letting the lawsuit proceed, the arbitrator wrote, "...millions of class members are entitled to adjudication of the central common questions of fact or law in this arbitration related to whether the $175 early termination fee imposed by respondents Cellco Partnership d/b/a Verizon Wireless ... is based upon an unenforceable liquidated damage clause." With cellphone companies switching to prorated ETFs and the rise in ETF-related lawsuits around the country, one wonders if we won't see the death of ETFs in the next few years. By that time, cellphone companies will have figured out a new technique to keep people from leaving their contracts.
Verizon Wireless faces class action over ETFs [RCRWirelessNews] (Thanks to Steve!)
early termination
My son recently was deployed to Iraq. His cell phone carrier is Alltel. Prior to leaving for Irag, he cancelled his cell phone coverage before the completion of his 2 year contract commitment. As his father, I telephoned Alltell, explained the situation and asked Alltel to have the $200 early termination fee waived. Alltel explained they only waive the $200 early termination fee if the party is DECEASED.Seriously, that's just messed up. More »
success stories
A Consumerist reader reports his success with escaping Sprint without paying an early termination fee by calling the Sprint Consumerist Executive Help Line (703-433-4401), who were the only people who didn't give him a line of bull when he called. He argued that the new fees Sprints was imposing were a material change of contract (see "Sprint Mails Customers A "Get Out Of Sprint Free" Card") and thus voided his agreement so he could now switch carriers and port his number without penalty.
Jeff writes: "I called Sprint and spoke with a customer care rep. I was advise that the increase in fee's was government regulated event hough it states on the post card I got that "these charges are not taxes and are not amounts we are required to collect from you..."
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Sprint has mailed postcards to its customers saying that, beginning January 1st, it will stop charging so-called "recovery" fees and create new fees to replace (or possibly exceed) them. Sprint customers are now asking themselves whether or not this is a change to the Terms & Conditions—if so, then they should be able to cancel their contracts without paying an ETF, or early termination fee.
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changes
reversal of fortune
news from the swamp
apple
cellphones
early termination fees
cancellations
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