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The facts about Verizon doubling early termination fees
November 6th, 2009, 1:04 pm · 14 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
After being the first in the industry to pro-rate 2-year mobile phone contracts, Verizon Wireless now plans to double that fee — BUT only in some cases.
Beginning Nov. 15, Verizon’s early-termination fees jump to $350 for higher-end devices like smartphones, netbooks and other advanced devices. The current rate is half that, at $175. The higher rate kicks in only on customers who sign a new contract.
Verizon still will prorate the contract, subtracting $10 a month (all other phones are prorated $5/month). So, by the end of 23 months, affected users will still need to cough up $120. But by then, you might as well wait a month to leave without paying a penny.
Why is Verizon changing its early termination fee? To make subsidizing these expensive devices worth it to the company.
Interestingly, the new Motorola Droid is $199.99 with a 2-year contract. But without a contract, it sells for $559.99. That means you could save $10 by buying the phone, and then canceling the 2-year contract ($200 + $350 = $550). And since the new fee doesn’t kick in until Nov. 15, that means people who buy a Droid before that date and then cancel service will get it for $375 without a contract! No wonder Verizon upped the fee.
As I’ve mentioned before, anyone can test a Verizon phone for 30 days and then cancel without having to pay any early termination fee. Read my earlier story covering testing policies, I mean, return policies by the major mobile providers: “How any consumer can ‘test’ a cell phone.”
Verizon also adds that if you bring a compatible phone to its network and sign up for service, you don’t have to commit to any long-term contract.
Earlier on cell phone policies:
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ALL,ALLL,ALL VERIZON CELL PHONES ARE CHEAP MADE. I WENT THROUGH 47 CELL PHONES IN LESS THAN 1 YEAR. THEY KEPT SENDING ME A REPLACEMENT WITH NEW PROBLEMS. IF I HAVE A MAGIC WAND, THAT CEO WILL BE AT PLANET MAR
Well, don’t know what kind of phone you had or how you treated it, but my LG phone is 4 yrs old. I was eligible to replace it with new every 2 in Aug of 2007, but it was still working fine to do what I want–make phone calls.
The battery was not holding a charge after less than a yr so I went in to a Verizon store and they gave me a new one for free. That one must have been a bad one or old when they sold it. The one now isn’t holding a charge as long as a new one, but still acceptable.
Previous phone was Samsung and the hinge on the flip phone broke before I was eligible for new every 2. I had it taped together and it kept coming loose.
Need Windows mobile for business so just bought the HTC Touch Pro 2. Only $99. Well actually $99.99. And then the state of CA has them charge sales tax on the full retail price–greedy state govt. So my sales tax was at a rate of 42% on the price of the device.
I saw this article back before they raised the early termination, but I’ve been with Verizon for years now and the ratings on having the best network count for something. AFter all, if I want to make a call, I want to be able to make a call.
And especially since a cell phone can be a safety device. Having saved $ on the mo bill doesn’t count for much if you are in danger or need help and are in a dead zone.
This report just reinforces why I stay with Verizon even if they aren’t perfect.
LAY OFF THE CAPS!
Maybe he had the need to VENT!
you think?
WELL MAYBE HE CAN VENT WITHOUT CAPS!!!!!!!!
i checked out the android and its hype. Iphone is way better. Its all about raping people when they decide they dont like android and want iphone.
I have no need for iphone so i still use verizon. Good coverage. I have the old LG env. Still runs great.
my contract expired 1 year ago. but i still go with them.
500 for a phone is rediculous. smart phones will be cheaper in the future i’ll wait till then.
Raise your hand if you bought the Motorola Razor for 500 bucks back in the day. congrats, yer a sucker. lol
Stay clear away from Verizon . THey did me wrong and are finding new ways to keep people locked-in with contracts. I’ve learned a pricey lesson that I don’t care to elaborate on to much. Do not let them sell you anything over the phone in regards to adding 500 + minutes to your service to cover overages. They will somehow forget to mention that you are being lured back into a contract for an additional year for those minutes. If I wanted to be in a new contract , I would have at least recieved new phones , right ??. THey are not willing to fix their misrepresentation tactics use by their associates and stick it to you. You have no recourse , since it is a verbal ( he said , she said aggreement) over the phone.The rep. never mentioned anything about new contracts.I think I would of remembered anything said about a new 1 year contract . That would of killed the deal !! I also never received a letter of what was added to my service , until I tried cancelling one of my three phone lines. They slipped in and locked-in the 2 old lines that were Not under contract to one year contracts . Verizon , you have lost my business forever. You legalized theives !!! You are as bad as the Credit card companies. Never again.. You slimes !!
I have to agree. I thought AT&T was so-so, but Verizon is even worse in other ways. An early termination fee of $350??!! That’s just stupid and just grossly insulting. There is probably going to be some class action suit against that kind of abuse. It’s making me reconsider, and now gonna think more seriously about getting an iPhone.
I wanted to say a similar thing happened to me ..but, mine was I added minutes ahead of time and they forget to tell me that my new date to renew minutes the following month would change.. so, guess what overage charges. On my credit ,tried to dispute…big problems!!
They raised their termination fee because their service sucks and people are leaving them. The iphone going to At&t probably KILLED verizon.
Ideal phone/cell service.
Iphone with Verizon service.
This article is dumb. No one would buy a phone at verizon only to cancel to get the phone for 375 or 550. you know why? Because you can’t use Verizon’s phones on other CDMA networks like sprint. If you want to use the phone you have to use Verizon.
Phones don’t cost that much. Really, when you find articles on the component breakdown, the phones are worth 200 bucks max. The iphone costs only about 180 to make. There is nothing in there that should make it cost 600 dollars without a contract. Cellphones are a rip off and the whole industry is in on it.
So maybe that is why they discount them, but then the state of CA makes them charge sales tax on the full price. My new HTC Touch Pro 2 was listed as $99 with the new every 2 that I was eligible for. Well that was a bit deceptive as they truncated the amount rather than rounding it. It really was $99.99 I found when I actually purchased it.
They show the Retail Price as $489.99 and the price as $199.99. I guess that was the new every 2 price with $100 internet discount. It isn’t available in the stores.
Anyway, sales tax was $42.87! So that’s 8 3/4% on the full retail price.