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Writer's pictureCherie Britton JD

Cancelling a Cell Phone Contract

Cancelling a cellphone contract can be quite a challenge especially if you refuse to pay the most-often-than-not-exorbitant cancellation fees (also known as early termination fee). The hard and fast rule seems to be that regardless of your reason for cancelling, you still have to pay the fees. As one customer care representative said some time ago, it likened to a penalty for cancelling the contract, almost like having to pay them for damages that they are going to suffer as a consequence of the cancellation. It sounds ridiculous, I know. In short, what mobile carrier companies are saying is that once you are in you are stuck unless you are willing to pay the cancellation fee.

Experience tells us that there are easier ways of having to cancel your cellphone contract without putting a hole in your pocket. Some grounds for cancellation without having to pay the penalty include an arbitrary change in details of one’s cell phone contract by the company or repetitive poor service that tantamount to no service at all, and the best way to do it is with a formal written request for cancellation written in the tenor of a demand letter. This written document will come handy later on when you complain before higher authority. It proves that you have made a reasonable request to cancel but the company’s illegal policies won’t let you.

Let’s discuss arbitrary change in details of one’s cell phone contract. It is not uncommon that cellphone companies alter the percentage of a fee or a rate. In some cases, they add new charges or new service which may be free or paid. New charges make take the form of a change in text message costs, late fee or cancellation fee, and tacking on or removing additional taxes or regulatory fees. Even if the fees do not apply to you – say you unlimited text messaging, and the cost of texting goes up – it is still a ground for you to get out of your contract.

Each of these change is a valid ground for the consumer to cancel the contract. If your monthly bill shows that you have been charged more than usual because of changes in the contract, contact the cellphone company and request for cancellation. If the representative tells you that you cannot cancel simply because of these changes, let them know that if their resistance persists you are going to report the matter to the state authority. This will most likely let the customer representative cave in and process your cancellation without the fees.

Needless to say, poor service, especially if it amounts to no service at all, is a valid ground for cancellation whereby you are not expected to pay cancellation fees. Just like any other consumer complaint, it is best that you have this poor service documented, more so if it is repeated. Take your cellphone unit to the company and show them that their service is really bad. It is not enough that the company representative tell you that their map or grid says the service is fine; they should be able to come up with a solution to the problem. Now, if your mobile carrier informs you that they have a clause that specifically says bad service is not a ground for cancellation, let them know that such clause is illegal and that you can report them to the state authority for their unfair and unlawful consumer practices.

Another way to go about it is to sell the unit and one’s cell phone contract for the unused months prior to the plan’s expiration. We see a lot of sellers doing this on eBay. They describe the cellphone unit and tell you that it comes with a mobile carrier plan. Check out online companies that offer cell-selling and swapping services, they can help you pass up your contract without having to pay the cancellation fee.

Returning a newly purchased phone within the time frame allowed by the company likewise frees you from the burden of having to pay cancellation fees and lets you get a refund on the purchase price. You can invoke the “buyer’s remorse” part of the contract as the reason for returning the newly purchased phone. Buyer’s remorse includes situations where you found a better deal elsewhere. In all likelihood the company’s customer representative will lure you with several juicy offers to keep you from cancelling, but if you have resolved to cancel the contract, you can simply tell him that your decision is final. Take note that cellphone companies have different grace periods to return a newly purchased phone, although two weeks appears to be the standard period.

Before purchasing e cellphone, it is not enough that you know all the costs the purchase entails, you should know what it takes to cancel your subscription. It is a step that will guide you when it is time to exercise your right as a consumer. Before cancelling your cellphone contract, have your number transferred into the new phone and the new contract (presumably from a different mobile carrier company), and then you can proceed with the cancellation of the original contract. This process makes sure that you do not lose your cellphone service during the interim period.

Regardless of your reason for cancelling your cellphone contract, the company’s customer representatives will move heaven and earth to prevent you from doing so; they are trained to do that, and it is their job to do that. If you know your rights and you know what you want, be calm and hold your ground. Don’t let them sweet talk you into getting what you do not want.

This blog is not legal advice, but shares information on the law. We are living in hard times; people lose their jobs and many are struggling to make ends meet. Legalbargain.net gives back to society by sharing it’s knowledge and producing advocacy videos to put justice within the reach of those who believe justice is only for those with money.

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