Cell Phones: Sick of those pesky early termination fees for mobile phones? FCC has your back
By Mike Ferro
Okay maybe they don’t quite have your back, well it really depends on how you look at it. As the FCC has recently announced they are looking at ways to regulate those pesky early termination fees incurred when canceling your cell phone contract from the provider.
In the United States major cell phone carrier’s have an iron grip over consumer’s freedom to switch carriers with hefty early termination fees if one wishes to cancel their contract which can span one to two years. If a consumer decides to terminate their contract they could face up to over $200 in fees.
Of course most consumers that are unsatisfied with this setup are those that find out the carrier does not work well for them in their area. The problem arises when the carriers offer a very limited window, usually 14 – 15 days to cancel their contract without repercussions. However as most consumers have found out, it is quite impossible to determine if their carrier will work in all of the locations they frequent in that short amount of time.
The announcement that the FCC plan on regulating the early termination fees may be a good thing for consumers as well as for the wireless carriers, as they have faced numerous law suits in the past regarding this practice. With regulation, the specifics on how the early termination fee operate would become standard throughout the industry. This move would help clarify any confusion the consumers face when switching carriers.
According to eFluxMedia, the FCC plans on increasing the period consumers can cancel their contract to 30 days post signing. Also after this trial period ends, consumers will get to pay $5 less for each month they remain on the contract. Meaning someone who decides to cancel one year into a two year contract would not have to pay as much as someone wanting to cancel two months into their contract.
It’s still isn’t quite as satisfying as no contract, as many Asian and European countries practice but it can still be seen as a small victory for those that live in the US.
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