By Jamie Burch
.
Published: Thu, June 12, 2008 - 1:00 pm
Last Updated: Thu, June 12, 2008 - 2:34 pm
WASHINGTON (AP) - Federal Communications Commission ChairmanKevin Martin has proposed a plan to regulate the fees that cell
phone companies charge people for canceling their contracts early.
The companies say they charge the fees in order to cover the
cost of the phones that are subsidized under the long-term
contracts.
The cell phone companies have been hit with a number of
class-action lawsuits in several states, and bills are pending in
Congress and state legislatures that would force the companies to
stop charging customers for dropping their service.
Martin says he is skeptical that the lawsuits will resolve all
the issues surrounding the unpopular fees, which he says "leave
people locked into a service that they really want to leave."
The chairman's plan would require the fees be related to the
actual cost of the phones. He also wants the charges to be
pro-rated over the life of the contract.
Many state officials are not happy with the possibility of
federal control over the fee structure. They say their consumer
protections are more responsive to customer complaints.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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The contract should state the cost of the phone,pro rated, to be paid should early cancellation occur and service and other charges stop at the time of cancellation.