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Government may limit cell phone termination fees

Both Congress and the FCC are considering limits on those large fees cell phone companies charge to cancel your contract.

Termination fees are a frequent subject of complaints to our office, with consumers feeling stuck in a long-term contract for cell service they don't like. Congress' role would be to pass a federal law that limits those fees. The FCC (Federal Communications Commission) could simply issue some regulations on the subject - they're the agency that regulates the telephone industry. The chair of the FCC is talking about an investigation by year's end.

Until then, you have may have options if you want out of your contract. We have blogged in the past about some tricks you can try.

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Posted by Travis on September 13, 2007 1:46 pm :: Comments (5) :: Permalink

5 Responses to "Government may limit cell phone termination fees"

Tyrone says:

September 16, 2007 3:59 pm

ye s i think that cell phones hould not have a cancellation as high as $50-75 because , some companies offer really bad csr services , and consumers should feel stuck in a contract because of high cancellation fees if they are unhappy witth service, it's like a credit card , if don't like it cancel it orroll the balance over

Renee says:

September 19, 2007 1:57 pm

I signed my family up for the family plan,(3 lines), and then discovered that the service in our area was not good at all. US Cellular is charging me $150.00 early termination fee PER phone!!!

super_chargers says:

September 21, 2007 10:28 am

I hope they do more than consider this, but I'm not holding my breath. The telecommunications lobby is very powerful.

If we want something done, we need to get involved. Call your representative and senator. Elect candidates that care more about the good of the people than cashing in while in office.

Kevin says:

October 5, 2007 11:32 am

The Stolen Cell Phone and Hooker Scam


The way it works

Someone with access to your home, your home phone, cell phone and other personal information, (usually some kind of in home service person), while they are in your home if they have the opportunity will place a call from your home phone to an escort service, massage parlor or other unscrupulous place. This provides them with a phone calling record trail. If they have access to this information prior to them even coming to your home they may start this process before you ever meet them. While in your home if the opportunity presents itself, they will steal your cell phone, and turn it over to someone that works at or pretends to work at one of these types of places. They in turn will attempt to call this person’s home phone and cell phone over the next few hours, days, and sometimes weeks hanging up trying to lure the person into returning their call to establish an ongoing phone record of calls to these places. In many cases multiple establishments have been used. Once they feel you have been duly primed they will place a (Ransom Call) telling you that they have your cell phone and will call your home exposing your (fabricated) involvement in seedy conduct unless you agree to pay some type of payment. (Usually between 250.00 and 1,000.00) We have found that the most typical victims are men out of town in some type of temporary housing, (Apartments, extended stay hotels, rentals ect…). In many cases the (Ransom Call) is never made because the perpetrators are made uneasy, for many number of reasons, about pursuing the victim because the fear of uncovering this scam. These scams are very difficult to trace, but should be reported to your local Attorney Generals office.

Shelley says:

December 17, 2007 10:03 am

Just wanted to mention that another alternative in fighting unreasonable cellphone termination fees, especially if service is poor, or the photo is older, is to take the company to small claims court.

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