California judge rules early cell phone termination fees illegal
 

In one of the most significant legal rulings in the tech industry this year, a Superior Court judge in California has ruled that the practice of charging consumers a fee for ending their cell phone contract early is illegal and violates state law.

The preliminary, tentative judgment orders Sprint Nextel to pay customers $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.

http://tech.yahoo.com/blogs/null/99655

Looks like everyone in California will have to start paying full price upfront for their phones from now on.

Nah, the cell phone companies are hoping the FCC steps in but it will be likely that termination fees will lessen the longer through the contract you are.

If I call Verizon today to cancel will they know about this? Can I cancel with no fees?

Yeah, I posted about it on PornNewz dot com yesterday. It's about time someone called them on that scam!!

How is it a scam when you sign the contract? What makes it illegal to add that to a contract? Maybe they should just charge you the rest of your contract? You have a $50 a month contract, you cancel your contract 12 months early, you owe them $600 bucks.

I'm curious about this too. If they apply it to cell phones shouldn't it be across the board for any type of contract with a cancellation fee? Like if I wanted end the lease on my apartment early I think I'd have to give up my deposit plus some other fee I can't remember.

Doesn't really make sense, without the termination fees, some wise guys will just take the $600 phone they got for free, and cancel the account within a month... sounds like the judge fucked up on this one...

wow, that is huge. i paid fuckin nextel/sprint $200 to switch to an iphone

But that's how they make their billions, that's a bad judge, he needs a spanking.

Well maybe phone will come to doable prices and your phone wont be attached to a phone company.

I'm thinking the same thing. And in your example, it's even more of an issue because it is a place of living, instead of just a luxury.

I don't know what the laws are, but this does not sound right. A contract is a contract. I wouldn't mind getting out of mine, but I made the deal and got a $400 phone for $100 in exchange.

no, its a scam when they automatically renew your contract for some BS reason.

Im stuck with tmobile for another year. my contract was supposed to be up in March 08 but in December I lost my phone. I went into tmobile and PAID FULL PRICE for a phone, but they extended my contract anyway for another 2 years. this is complete shit in my book. I purposely didnt take the discount on the phone so it would extend my contract, but after many letters later, i found out it is regardless if you take the discount or not.

True story... same shit happened to me when my contract was up with Cingular (Now AT&T) and I already was with another contractor. :mad: