Judge rules cell phone company can’t charge you for early termination of service
A Superior Court judge in California has ruled that charging customers a fee for ending their cell phone contract early is illegal and violates state law. As a result Sprint Nextel has to pay their users $18.2 million in reimbursements and, more importantly, orders Sprint to stop trying to collect another $54.7 million from California customers (some 2 million customers total) who have canceled their contracts but refused or failed to pay the termination fee.
Of course they’ll appeal because it could potentially change the way business is done in the cell phone industry. What would they do if they can’t hold a $200 termination fee over your head? You can change carriers like you change shoes! They will no longer be able to lock you into a two or three year contract. I don’t know anyone who likes their cell phone company or their cell phone plan that long. Even when you switch your plan Sprint extends your contract for a year. Looks like that could finally be coming to an end. Thank you to this judge, thank you.
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sugarlips
On July 31, 2008 at 6:00 pmI would guess that they will charge more for the phone itself if they can’t guarantee your business for 2 years. But the article says it violates state law. It might just be a California thing.
Mocha
On July 31, 2008 at 6:05 pmOnce it happens in one state it’ll spread like wildfires, plus Nextel is located there so it may apply for all customers. They already charge the full price for the phones if you had one within the time of your contract. The only time they help is when you first sign up.