You might have paid early termination fee of $150 or even more while canceling your cell service. But problems for the customers who remain unsatisfied with a particular cell phone company don’t end here, they have to face the outrageous practices such as early cell phone termination fees, double billing, poor service, and high late fees imposed by the cell phone companies. The Federal Communications Commission is planning to limit the termination fees that cell phone providers charge if you want to get out of a contract early and transfer to another provider. Indeed, it is bad news for cell phone companies that earn a lot of money through early termination fee. According to current proposal consumers will get the opportunity to cancel service without any penalty for up to 30 days after they sign a cell phone contract or until 10 days after they receive their first bill. And if the customer honors the contract for longer term, he’d have to pay less to get out of it.
However, Wireless companies are justifying the cancellation fee by saying it necessary to recover the cost of cell phones, which they subsidize under long-term service contracts, and to defray their costs for signing up new customers. In other words, this plan will not abolish cancellation fees entirely, but it will surely regulate and bring more transparency in the charges, known as early termination fees.