How To Get Out of Cell Phone Termination Fees

How To Get Out of Cell Phone Termination Fees

Q. My cellphone carrier contract is ready to expire. I have considered changing carriers but if I do not like the service, I would hate to be stuck in a contract that has bad termination fees/ clause. I noticed many of them are prorating those fees, but is there a catch?

Frustrating Termination Clauses

Frustrating Termination Clauses

A. There is always a catch. Those contracts are written with the company in mind, not necessarily the consumer. They are in business to make money whether it is through your actual service, equipment, and/ or termination fees.

As cellphones have become more popular, carriers have indeed improved the contract requirements. Eight years ago if you were to cancel your service after two months, the fee would be no different if you canceled one month before it was to expire.

When a cellphone carrier “prorates” your termination fee, it is not in proportion with the amount of time you upheld your contract. Verizon and AT&T have very similar clauses within the service termination of the contract. It is a standard $175 dollars, but for each month you have service, the termination fee would be reduced by $5.

Most carriers will entice new customers by offering free or very cheap phones with a specified length of contract. The termination fee allows the companies to limit their losses for the promotional products. Even if the cost of your phone was at a $30 dollar discount from the retail price, the same termination policy applies.

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