Question: Why are you still paying early termination fees

It was almost a year, because the judge in Alameda County, California, ruled that Sprint Nextel for early termination fees are illegal, and at the same time, Sprint and all other major U.S. wireless operators still charge customers a fee for canceling their services before the expiry of the contract .

What gives? Why are these pesky early termination fees still around, if they are against the law?

This is a good question, and that many readers have asked me over the past year. Because I get so many questions about these charges, I decided to put together this FAQ, to help people understand that the recent court decisions mean for them and provide some information about where cell phone early termination fees stand today.

Let’s start with the most obvious question: what the court decides in the cell phone early termination fee in the case of Alameda County Superior Court in California?
In July 2008, a judge on the case in a preliminary ruling that Sprint Nextel for early termination fees were illegal. In December, the court rendered its final decision to maintain that a preliminary ruling in favor of the plaintiffs.

Does this mean that people involved in the class will get the money?
Well, the case is still under appeal in Sprint. But as it stands now, it is unlikely that someone in the class will receive the money. And here is why. The court ruled in favor of class members and ordered Sprint to pay the expense of approximately $ 74 million. But the judge in a ruling the jury was supported by Sprint contract. And the jury found that the participants in this class have been violated by their Sprint contracts. As a result, the jury awarded Sprint about $ 226 million loss. Eventually, the members of the class was still due to Sprint about $ 150 million. But Sprint waived its right to collect money, so the end result is that nobody gets any money.

But the court in California found that Sprint early termination fees are illegal. Does this mean that I do not have to pay an early termination fee if I have to leave Sprint reshu now?
No, this is not the case. On the one hand, the class participates in the lawsuit has been certified only for employees in California. Thus, for anyone living outside of California in the ruling does not mean anything, because the court has no jurisdiction.

What if I’m on my mobile phone subscribers in California? I still need to pay an early termination fee?
Yes, mobile phone subscribers in California still have to pay an early termination fee specified in the original contract. The reason is that the judicial decision in this case, only took into account the specific facts involved in this case. He was not a blanket decision that all early termination fees are illegal. Instead, the court ruled that this particular type of early termination fees imposed by Sprint is illegal in its current form.

In short, this means that cell phone companies can continue to charge early termination fees. And if they will be challenged in court - even in Alameda County or anywhere in California - the court may decide, the other based on the specific facts of this case. Technically, this is not correct to say that the early termination fees are illegal in any place. Instead, Sprint early termination fees at the expense of consumers in the manner and within the time specified in this case was found to be unlawful. That’s all.

In addition, the jury in this case Sprint contract is considered valid, which means that anyone who does not pay their early termination fees to break their contract and in accordance with the terms of this contract.

Sprinter representative said the company position:

“Sprint will continue to enforce contracts with current customers,” said Matt Sullivan, in press Sprint Nextel. “The court in its ruling not to allow Sprint to charge early termination fee when a customer terminates his contract early.”

Are not there other claims for an early end fees? What was the outcome of these cases?
Yes, there have been several other cases. Verizon Wireless also filed a lawsuit in California over early end charges, and the company settled the case in July 2008, agreeing to pay $ 21 million to former customers who claimed that the company’s ETF was unfair and excessive.

Sprint also defend itself in another class action lawsuit, which is certified for nationwide class. In the case resolved in New Jersey, but will cover the plaintiffs’ former Sprint customers in all states except California. Sprinter said that the company is close to a settlement in this case, and that the conditions are similar in magnitude to those in the village, which Verizon Wireless agreed last year. Settlement in this case would also lay to rest all the other cases against Sprint for the early termination fees, except in California, which is still in court.

So it looks like all those sorts of claims was not really a lot of impact on the industry, because I still need to pay an early termination fee. Is this true?
Well, not quite. In the claims, and consumer outrage over these contributions will probably prompted Congress and the Federal Communications Commission to take notice, as a result of which several public hearings regarding the early termination fees. In the FCC even considered regulating early termination fees to establish a national policy. But the agency decided to back out because the industry is taking steps on their own.

Which mobile phone operators do to change their early termination fees?
Over the past few years, all four major wireless operators in the United States began in proportion to their mobile phone contracts.

Verizon Wireless was the first to adopt a rating policy in 2006. And now, almost every caller is Verizon prorated early termination fees as part of their contract. AT & T was next. As of May 25, 2008, all new AT & T customers have had their termination fees prorated for the duration of their contract. Both Verizon and AT & T subscribers, early termination fee starts from $ 175 and decreased by $ 5 for each month of living in one-and two-year contracts.

T-Mobile USA began proportional to its early termination fees for 28 June, 2008. Since then, new customers in one year or a two-year contract have already seen their early termination fee drop from $ 200 to $ 100 if they end their contract with 91 to 180 days remaining on their agreement. If they complete the contract with less than 91 days, they pay a termination fee of $ 50. Customers who discontinue their service during the last 30 days of the contract or to pay a $ 50 fee or their standard monthly charge, depending on which is cheaper.

Sprint Nextel was the last of the four major wireless operators to offer the prorated contract. As of November 2nd, 2008, Sprint adopted a policy that falls in the $ 200 early termination fee of $ 10 increments, starting from the sixth month of the contract. This means that the 15 th month of the contract, the ETF fell to $ 100. The new policy applies both new customers and those on the extension of the service agreement, so long as they are signed or renewed their contract since November 2, 2008.

How can I avoid signing a contract with my wireless connection and to avoid early termination fees altogether?
All four major wireless carriers offer alternative contracts. There is a prepaid service that allows customers to pay in advance, and do not require a contract. Most providers also offer the opportunity to buy a mobile phone in full retail price without committing to a contract. Of course, it also means that consumers must pay the full retail price and can not receive free or reduced price phone. Customers then pay for the service month to month basis.

Several consumer advocacy groups, who recently asked the four major wireless operators to abandon their early-termination fees for people who were laid off and can not afford to pay their bills more than a mobile phone. Are any of them are considering doing this?
No, but wireless operators are not completely heartless. Most of them allow customers to reduce their plans to save money without forcing the clock on their contract, or punished.

But what if I can not afford my car more data? Can I get rid of this and revert to a voice only service?
This is a tricky one. And before you decide to do what you must know from your carrier about their policies.

The representative of Verizon Pica Tom said that the company considers these types of issues on an individual basis. Customers who are having trouble paying their bills can talk to Verizon customers to develop a solution. But Pica advises people who are trying to contact customer support sooner rather than later.

Sprinter said that if a client with a separate data plan, wants to abandon the plan and switch to voice only plan, or go to a lower monthly data plan no early termination fee. But if the customer has a BlackBerry, which requires a BlackBerry data, the client must swap out your phone to avoid early termination fee. If a customer buys a new phone, a two-year contract hours restarts, but if it activates the phone, he already owns, there is no early termination fee.

Client with a phone and a separate data 3G-card for his laptop, which repealed its data service will be charged an early termination fee for the data card service. The easiest way to think about that from an early termination fee goes to the equipment.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google

Related Posts


Tags: , , , , ,

Leave a Reply

µØÏ³ÇÓëÓÂÊ¿Íâ¹Ò dnfÍâ¹Ò dnf±¦Âí dnf±¦Âí dnfÍÁ¶¹ dnf¿Æ±È dnfÁ¬·¢ dnfÁ¬·¢³ÌÐò dnfµÚÎåÕÂÃâ·ÑÍâ¹Ò dnfÍÁ¶¹ dnfÃâ·ÑÍâ¹Ò dnfÍâ¹Ò dnfÍâ¹Ò dnfÃâ·ÑÍâ¹Ò ¿Æ±ÈÍâ¹Ò DNFÍâ¹Ò DNF¿Æ±È¹ÙÍø DNF´óÉñÍâ¹Ò DNF´óÉñ DNF´óÉñ¹ÙÍø DNF´óÉñÍâ¹Ò DNF´óÉñ DNF´óÉñÍâ¹ÒÏÂÔØ DNF´óÉñ¹ÙÍø dnfÍâ¹Ò DNFÁ¬·¢ DNFÁ¬·¢³ÌÐò DNFÁ¬·¢ DNFÍâ¹Ò ÏÊ»¨ËÙµÝ ÉϺ£ÏÊ»¨ ÏÊ»¨ HTPC ¸ßÇåµçÄÔ