Sprint's early termination fees illegal

[Paddy]

http://www.siliconvalley.com/ci_10039461?source=most_viewed

Much as I loathe the cell carriers (particularly here in Canada) and their ridiculous nickel & diming, when consumers break a contract that they agreed to and signed, then the cell carriers should have some recourse. REASONABLE recourse - ie: pay a pro-rated amount for those "free" phones you get with a contract that aren't really free. Flat fees don't address this at all - they just keep consumers tied to contracts they don't want any more. Some providers, including Rogers here in Canada, have a pro-rated fee which is somewhat fairer, though still doesn't address the cost of the phone itself. If you sign onto a 3-yr contract with a cheapo phone, and want out a year before the end of the contract, it seems ridiculous to have to pay $200 for the privilege. (Rogers caps the fee at $200)

Of course, the best deal of all for consumers would be the end of contracts altogether, more reasonable pricing of monthly rates and unlocked cell phones which you buy on your own. Now that might actually create some genuine competition. Ain't gonna happen, of course...

[krissel]

Verizon got tagged for the same thing in California.

QUOTE

Verizon Wireless will pay $21 million to settle a class-action lawsuit that said its previous flat-rate cancellation fee violated state and federal laws. The settlement reached July 10 in Alameda County Superior Court affects all U.S. customers billed a flat-rate fee since July 23, 1999

QUOTE

In November 2006, Verizon Wireless reduced its $175 termination fee by $5 for each month that a customer remains with the company. AT&T matched that policy as of May 25.

As of June 28, T-Mobile began prorating its $200 fee: A customer would pay $100 for canceling six months early or $50 for canceling three months early. Canceling with one month to go would cost either $50 or the standard monthly charge, whichever is less.

Sprint said it will charge a lower fee by the end of the year. "Our competitors offered it before we did, but we're responding," said Sprint spokesman John Taylor. "If we didn't intend to prorate, the consumers would send us a message."

http://www.sfgate.com/cgi-bin/article.cgi?.../BU9T11QCJF.DTL


My folks have been called incessantly by Verizon to sign up for a new plan ever since their contract time expired. It took me a while to convince them that they were much better off on a month to month basis. Mom was convinced that Verizon would somehow sabotage their connection if they weren't on a plan. Finally she got the message that it was just the opposite, they would have no incentive to improve service if they were tied into a contract. So now when they call Dad gives them a hard time.