Rumor Mill
Contract Cancellations Cheaper?
Someone told me last night (that someone is an inventory rep for the company that I work for) that most/all companies are going to lower their rates for cancelling contracts. Is this true? He said, instead of paying a huge cancellation fee, eventually everyone will just have to pay some sort of pro-ration amount to get out of contract.
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Thats is what is to my understanding. That beginning next year 08 that companies will be doing a prorated cancellation instead of a set fee. But I dont know if that means after you have been on the contract for a certain amount of time before you can get the prorate or its prorated no matter how long you have been on the contract whether it be for 18 months or 3 months. I have 2 lines and I want to take one of lines to another carrier but the number I want transferred the contract is not up until June. So I was informed to wait until Jan 08 to transfer so I can get the prorate fee.
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The King of Kingz said:
sorry to seem like a dumy but was is a "prorate fee"
A pro-rated ETF (Early Termination Fee) is where with a contract, the amount lowers each month into your contract. The high fee is what you start out with. Then each month the fee lowers until the contract ends. If the pro-rated ETF is $200, then decide you want to cancel just a year into your contract, the fee should be $100 to terminate your contract yearly.
As for the person who asked about if everyone will get pro-rated ETF's. That will eventually happen. But that's only if everyone else (reamining carriers) jumps on it. For carriers that already offer it, it only applies to contracts started on a specific date. For ...
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Originally, you pay $200 etf for cancelling your contract before the expiration of your 2-year commitment. Now, if you've been on the contract for only six months, you only have to pay the etf for the remaining 18 months which is $150.
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I personally wish wireless carriers would not go to a prorated ETF. If someone signs a contract and for whatever reason decided not to honor it to the end of the contract should be charged whatever the wireless carrier charges.
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The new prorated early termination fees will only apply to new contracts.
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yes, this is true. vzw has had this for over a year now. if any new or existing customer extended their contract after 11/16/2006 they were enrolled in the pro rated etf policy. which means, for each full month of the contract that was completed the etf would reduce by 5.00 each month from the standard 175.00. other carriers have adopted this, however i believe it will start in 08 sometime, im not sure their amounts tho. i would assume it would be the same enrollment process tho
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Yes this is correct. Since Verizon started this in 06 all carriers have recently jumped on the bandwagon to offer this to their new customers. So as stated, anybody who is a current customer will not be eligable for this promotion if thats what you want to call it until they upgrade.
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