Comments on: Proposal May Cap Cancellation Fees On Cell Phone Contracts.

By: Vince Wylde

Vince Wylde — Fri, 15 Aug 2008 19:57:38 +0000

The fact is, there is no reason for the penalties whatsoever. If you provide a decent service, you will not lose customers. This fee is completely unnecessary other than to keep these bastards content with providing mediocre service because they are guaranteed at least 2 years of your business. For bonus points, try this: Cancel your contract midway through citing tragedy and major change of lifestyle as a reason, and then offer to make monthly payments until it’s paid off and be told, pay the balance in 3 months tops, or you go into collections, and oh by the way, sorry about your dead mother… Life sucks, pay up.

By: Mrs. Micah

Mrs. Micah — Fri, 23 May 2008 19:01:31 +0000

I like the idea. A small part of me wonders whether the government needs to regulate this sort of thing, but if they consider it an unfair business practice (and I hate it) I wouldn’t mind having them step in.

I like the prorated idea…because if you cancel early then it’s just their way of making up for your sign-up benefits (deals on phones and the like). But they certainly make it back. And unlike leased homes/apts, cell phones aren’t something that might lie vacant for months before the owner can find another tenant. Once the company made its money back from the initial benefits they’re not risking anything.

By: Jorge Silva

Jorge Silva — Fri, 23 May 2008 14:25:09 +0000

In Portugal, after you sign a (normally) 12 month contract with a cell phone company you have to stick to the contract otherwise the company can charge you a fee equivalent to all the monthly charges up till the end of the contract.

By: david

david — Thu, 22 May 2008 18:16:05 +0000

Just a few companies are starting to have prorated fees. They should get rid of free and/or discounted phones, as A. it would get rid of the fees and B. there would be a lot less e-waste to deal with as people would not just throw out their phone every 4 months for a new one!

By: DebtDieter

DebtDieter — Thu, 22 May 2008 18:12:12 +0000

I’m shocked you don’t already have prorated cancellation fees over there?

Cancellation fees are a necessary evil (I work for a phone company here in Australia) as setting up and activating a new customers costs us money, and it’s usually to support the discounted or free handset subsidisation costs.

By: david

david — Thu, 22 May 2008 18:09:59 +0000

Hopefully they can get the contracts changed.

By: Patrick

Patrick — Thu, 22 May 2008 17:18:34 +0000

I think almost $200 to cancel is very high. But it is in the contract and people sign it, so it is legally binding. I think a prorated cancellation fee is more fair.