Cell Phone Fees

By Associated Press
.

People who want to bail out of their cell phone contracts could be getting a break from 
cancellation fees. Cell Phone Fees
Published: Wed, May 21, 2008 - 1:15 am Last Updated: Thu, May 22, 2008 - 2:11 am
WASHINGTON (AP) - People who want to bail out of their cell
phone contracts could be getting a break from those sky-high
cancellation fees.
The Associated Press has learned that the Federal Communications
Commission is quietly negotiating with phone companies for customer
relief.
At present, it can cost you $175 or more to cancel a cell phone
contract early.
One provision being negotiated would let you switch with no fee
at all for the first 30 days or within 10 days of getting your
first bill.
Another would pro-rate the fees over the life of the contract.
The longer you stay with it, the less you would have to pay to
cancel.
As an incentive for the cell phone companies, the deal would let
them off the hook in state courts where they're facing billions of
dollars in lawsuits from angry customers.
One of those angry talkers is Ric Causey of Allen, Texas. He
says he got slapped with a bill for $600 when he tried to bail out
of a Sprint contract on three phones because of poor reception.


(Copyright 2008 by The Associated Press. All Rights Reserved.)

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locked phones: no, the iphone is locked all over europe and in every country but france. unlocked phones are availble for 700 dollrs or so. sure oyu can use it on another network but the other networks didint put in the infrastructure to support the phone, so many of the features wont work. no visual voice mail, the edge network is 1/2 the speed of att’s edge network, the email servers do not function as seamlessly just to name a few. att invested in the infrastructure upgrades to make the phone work like steve jobs demonstrated it would, the other companies didint have the service area or infrastructure to support it, they should get the exclusive contract to support it. verizion was the only other company in competition to even be competitive, thats why att got the contract.

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To TED: “getting screwed” would imply that I’m not satisfied with my phone or my service.  I have no complaint with either my phone, my service, or my lack of contract.  Nor can anyone complain that they “got screwed” if they did not do the research, shop around, check reputations, and coverage area. If you end up with a phone that don’t work where you want it to, it’s due to your lack of research. It just gets old hearing people whine about simple, unavoidable situations.  shut eye

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Opinionwriter you are right.  I had to go to South Korea a couple of months ago and my taxi driver had a cell phone that linked into his taxi and could tell him up to the minute traffic reports, he could watch tv, it would also give directions.  It was one of the nicest phones I have ever seen and he drove a taxi.  The whole time I was thinking wow that is way better than the junk phones I get that work for about 9 months and then never hold a charge.

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What the FCC really needs to be working on is to eliminate the practice where cell phone companies lock phones down so that they work only on their network.  Yes there are ways to unlock phones but it can be risky and you’ll end up with a brick instead of a phone if you mess up.

This is the only country (that I know of) that locks cell phones so that they are carrier specific.  It’s why we have the world’s least reliable networks.  Go to another country and you’ll be surprised at the coverage/reliability.  Leave it to American companies to get away with this sort of junk… and we put up with it.

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Here’s what you tell them:
“The clause in your (enter cel company name here) contract that charges a penalty fee for cancellation of services is called a “liquidated damages clause.” Basically, this means that whether you cancel your contract within a year and eleven months left, or one day left, you pay the same amount on the cancellation fee; such damages must be reasonable and graduated according to how much time is left on your contract.  In Texas, liquidated damages clauses are invalid as a matter of law and cannot be upheld.”

To DEW26M: What is the customers recourse if the cell company doesn’t meet the terms of the contract i.e. poor service/coverage? See if there is a provision in contracts for that scenario. Of course there is nothing but if you don’t meet your requirements well then you better pay up. You paid $379 cash for a phone that cost the company a negligible amount but I guess getting screwed that way makes you feel better. Either way the companies are making $$.

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The flat fee is already unenforcable according to Texas state law. Such penalties have to be prorated in Texas. They will try to bully you into paying but in the end they know they can’t enforce it.

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There’s an easy way of not having to pay a cancellation fee and getting bound into a contract. PAY FOR YOUR PHONE. So many people go out and get the newest, top-of-the-line,and technically savvy phones, and only have to give the phone companies $25-50
for a phone that has a MSRP of $300-500. You sign the contract as a means of them being reassured of payment of the phone. When I got my cell phone, i forked out the $379 cash, instead of being bound into a 3 year contract and only paying $29. I have no contract, and I can cancel at any time i wish. If you can’t afford the phone you want, SAVE SOME CASH, and be sure to read the fine print before signing your name on a piece of paper. IGNORANCE IS NO EXCUSE after you already signed! snake

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I’m all for this, but it sounds like cell phone companies are getting some legal immunity in exchange for lowering these fees.  This could cause more problems because people with the most severe cases of being wronged might not have any options in court .  What stunts might cell phone companies pull if there are no legal consequences?

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I think this will help a lot of the younger people. I heard of cases from some of these kids where they had lost their jobs for one reason or another and couldn’t pay their last months bill or cancellation fee and the company kept adding to the charges the monthly fee even though they had asked them to discontinue service until they could get another job and be able to pay the cancellation fee and last months bill. Not being able to discontinue a service until you pay a cancellation fee sounds a lot like a loan sharking deal. I must be the only person in the USA who doesn’t have a cell phone.

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