Good news for those of you looking to break your cell phone contracts!

jsxtreme

jsxtreme

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http://tech.yahoo.com/blogs/null/99655


California judge rules early cell phone termination fees illegal

In one of the most significant legal rulings in the tech industry this year, a Superior Court judge in California has ruled that the practice of charging consumers a fee for ending their cell phone contract early is illegal and violates state law.

The preliminary, tentative judgment orders Sprint Nextel to pay customers $18.2 million in reimbursements and, more importantly, orders Sprint to stop trying to collect another $54.7 million from California customers (some 2 million customers total) who have canceled their contracts but refused or failed to pay the termination fee.

While an appeal is inevitable, the ruling could have massive fallout throughout the industry. Without the threat of levying early termination fees, the cellular carriers lose the power that's enabled them to lock customers into contracts for multiple years at a time. And while those contracts can be heinously long, they also let the carriers offer cell phone hardware at reduced (subsidized) prices. AT&T's two-year contract is the only reason the iPhone 3G costs $199. If subsidies vanish, what happens to hardware lock-in? Could an era of expensive, but unlocked, hardware be just around the corner? It's highly probable.

Of course, the carriers aren't going to take this lying down. Early termination fees are seen as critical to business, so carriers are expected to look for ways to reclassify the fees (such as by calling them "rates," part of the arcane set of laws that covers the telecommunications industry). The industry is also pushing for the federal government to step in and claim oversight over the early termination fee issue, which would invalidate any state ruling. The FCC is generally more tolerant of such fees, though Chairman Kevin Martin has proposed a plan whereby the fees are decreased the closer you are to the end of your contract.

The FCC may also buy the argument that, since carriers are nationally based (and consumers can use their phones anywhere in the country), that a single policy should apply across the nation, rather than creating a patchwork of legislation that could lead to confusion and chaos caused by having 50 different policies.

Is the early termination fee dead? Not yet, but it's looking a little haggard.
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Not there yet, but this def makes an impression!
 
Usually you can just get out of them because they constantly change the damn contracts and text messaging rates! I know all T-mobile costumers can get out of their contract right now.
 
Cell companies offer a discount on the hardware because they can expect to recoup the hardware costs over the life of the service contract. It's pretty absurd to expect not to pay a termination fee when your phone was discounted by several hundred dollars.. :rolleyes:

I agree that the fee should be pro-rated .. That's how I got screwed by Verizon.. They charged me $175 per line (I had two) to cancel when I wasn't all that far from my contract end date .. But, I felt that it was worth spending $350 to end my business with them. AT&T gladly accepted my business. :cheers:
 
Its california.

75% of the wackiest decisions come from that liberal state. Followed secondsly by the liberals in Wisconsin.
 
Michigan courts don't care what California does.

Michigan cares only about the Michigan Supreme Court, the 6th Circuit Court of Appeals and SCOTUS.
 
breaking you contract is easy. When i upgraded my plan, it put me on a new contract starting the date i changed my plan. You have 30 days after your plan starts to cancel with no penalties. I cancelled the next day and didn't have to pay the 175.00
 
they will just change the name, call it a contract buy out, but have it pro-rated, lower rate farther through the contract
 
mdhmi said:
Cell companies offer a discount on the hardware because they can expect to recoup the hardware costs over the life of the service contract. It's pretty absurd to expect not to pay a termination fee when your phone was discounted by several hundred dollars.. :rolleyes:
Click to expand...

I agree with this. You go into the contract knowing full well there is an early cancellation fee, not like they spring it on you after you sign...
 
Joe said:
I agree with this. You go into the contract knowing full well there is an early cancellation fee, not like they spring it on you after you sign...
Click to expand...

But if the service totally sucks your stuck paying it.
Like when i had nextel it wouldn't work in my house. I had to stand on the porch no matter how many phones they sent or diffrent types. They kept me busy for the 30 days switching out phone, sending phones back. When i had enough they told me 150 to cancel my contract.
Yes i knew there was a cancellation fee but i didn't know i had to stand on my porch to talk on it either.

Altho i can agree and disagree with it, but if customer service and the service just sucks. I don't think someone should have to pay a fee to cancel.
 
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Reactions: Joe
90_Notch said:
But if the service totally sucks your stuck paying it.
Like when i had nextel it wouldn't work in my house. I had to stand on the porch no matter how many phones they sent or diffrent types. They kept me busy for the 30 days switching out phone, sending phones back. When i had enough they told me 150 to cancel my contract.
Yes i knew there was a cancellation fee but i didn't know i had to stand on my porch to talk on it either.

Altho i can agree and disagree with it, but if customer service and the service just sucks. I don't think someone should have to pay a fee to cancel.
Click to expand...

That is reasonable, they should let you out in a situation like that when they have worked with the customer to resolve an issue with no success.

Side note, +1 for the crazy avatar :haha:
 
Joe said:
That is reasonable, they should let you out in a situation like that when they have worked with the customer to resolve an issue with no success.

Side note, +1 for the crazy avatar :haha:
Click to expand...

Service i have now. i like and don't mind the contract at all.

Thanks found it and laughed my ass off so i had to use it :lol:
 
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