When You’re Done, You’re Done — Resist Early Termination Fees!
Dear Consumer Advisor,
I purchased a two-year “Family” Plan for cell phone service
for my two daughters and I from Verizon. It turned out to be a
mistake. The phones would drop calls a few seconds after making a
connection. Customer service was not helpful. After two and a half
months of getting the runaround, and complete dissatisfaction with the
products I purchased, I want to cancel the service.
When I called Verizon they informed me that if I wanted
to cancel my contract I would have to pay an early termination fee of
$175 for each phone, $525! This doesn’t seem fair, especially since
the service doesn’t even work.
Verizon also told me that they could terminate my phone
service, but would keep the other two family members, who are minors,
connected. They claimed each phone is an individual contract, and in
essence, we were signing three separate contracts. If you set up a
“family” plan with group benefits and costs, can each member of the
group be held individually liable for penalty costs?
Are we really going to be stuck in this cell hell for two years? I want to end my relationship with this wireless carrier!
Sincerely,
Done
Dear Done,
Your contract with Verizon should not mean a sentence to cell hell.
First of all, as far as your daughters go, if the other two
family members on your plan are minors, and you ordered service under
your line of credit, Verizon cannot hold them individually liable.
Their account expires at the same time that yours does. If they are
not minors and they want to continue with the service, you should have
them put in their own names and remove yours from the account.
With regard to the early termination fee, TURN and many other
consumer advocates have been fighting these excessive and unfair fees
for years. Some lawsuits challenging them have been successful. The
cell companies have fought tooth and nail against any attempt to outlaw
these fees, but have bowed to all the pressure with policies to
“voluntarily” prorate the fees.
Your experience shows how inadequate “voluntary” measures are,
since they tried to get you to pay a fee even though your service
didn’t work properly. If you are persistent in refusing to pay a fee,
Verizon is likely to back down.
AT&T and Verizon usually don’t charge a cancellation fee for
the trial period at the beginning of a new contract. Thereafter, the
$175 fee on one- and two-year contracts is often reduced by $5 for each
month you stay with the service.
However, you are obligated to pay for phone usage and the
activation fee should you cancel. And remember that terminations
during a monthly billing cycle become effective on the last day of that
cycle. This does not apply if you terminate your plan at the end of
your minimum contract, usually two years.
TURN encourages customers to shop around for a wireless carrier
who will commit to pro-rating fees, and include it in the contract.
Right now the market is saturated and wireless companies are dying for
more customers, so consumers have more power then ever before.
