Cancelling Your Cell Phone Contract

by Cooper Lang on December 20, 2007

Too often, cell phone users realize that the contract or provider that they’ve chosen to go with isn’t cutting the mustard. It could be that they don’t like their plan, their provider isn’t treating them well, or they can’t afford the costs anymore. Whatever the reason, if you’ve got a monthly plan, you’ve got a contract – and breaking it can be an exercise in extreme annoyance. A few years ago, breaking a contract was next to impossible. Like any legal document, it was virtually indestructible. However, the cell phone companies have realized the need for the ability for termination; so, they have allowed users to get out of their contract if they need to. However, it’s still not that easy, and there are things you’ve got to know before simply cancelling a contract.

Sometimes, we find ourselves in situations that mean that we have to cut luxuries out of our lives. Sometimes, we find that the way our service providers treat us isn’t something we feel we have to take. If this is the case with your wireless provider, then here are some steps to help you get out of your contract easily, efficiently, and without much trouble:

First, read your contract carefully. You’ll have a much easier time with your wireless provider if you know what’s expected of you and what they’re willing to provide. As well, there should be no surprises through your contract period if you’ve read the small print. Never, ever sign something without reading it – many wireless contract cancellations come about because people don’t read the fine print.
Secondly, don’t throw out any boxes, papers, contracts or receipts. When you go to break your contract, your wireless provider will ask for these things. You may need to return the phone in its original container, especially if you’re breaking your contract within 30 days of purchase.
Many websites will give you ways to get out of your contract without actually talking to your service provider. Beware of these: some of them are illegal. It is hard to get out of your contract without paying the fee. You can utilize their roaming service – you won’t have to pay, but the carrier will. If you overuse it, they may cut you loose. However, you may be liable for their Early Termination Fees, anyway.
Expect to be charged an Early Termination Fee if you’re cancelling your service after the 30-day return date. These can range from anywhere between $150 and $250, depending on the provider. Some providers have a clause stating that you’ll need to pay either the Early Termination Fee or the price of your plan times the months left in your contract, whichever is greater. Make sure, again, to read the fine print on this one. Beware if you’ve bought your phone from a kiosk in the mall – Early Termination Fees can be as high as $400. This link gives some of the major U.S. providers’ termination fees, current as of this writing. Beware – if you have a family plan, the Early Termination Fee applies for each phone on the line. If four people use the service and cancel, that can be up to $800.
Check for violations in the contract that can potentially get the providers to waive the fee. For example, if they offer unlimited nights and weekends, but limit the number of minutes during that period in any way, you can cancel it. Another way to do this would be to check for jumps in text messaging costs – if they’re increasing them without telling you, you can cancel the contract.
You can request credit for dropped calls with some companies. If you do it too often, they may let you out of the contract.
Cell phone providers may attempt to “talk you back into” another plan. If you’re cancelling your contract, chances are you have a good reason for your dissatisfaction. If it has to do with the service you’ve been given, that likely won’t change with a new plan. Don’t take a hit because you’re sweet-talked into it.
You can also choose to pass the contract to someone else. This has its pros and cons, however. Certain sites will allow you to give your contract to someone else. You pay a $20 fee and then the contract is out of your hands. However, it can be sketchy, like most internet sites. You also may find that it’s not an instant process and that your buyer has to pass a credit check.
You can cancel your service without liability if the person whose name the contract is under dies. Also, no one can enforce a contract on a minor.

Myths About Getting Out of Your Contract

Some people talk about getting out of their cell phone contract by calling customer service too many times. There is a clause in your contract that states that the provider can drop you if you’re becoming a liability. However, calling customer service too much may result in the provider setting their legal department on you, and you’ll still have to pay the fees, plus court costs. As well, many providers have free roaming, but you still may be liable for placing a five-hour call in a roaming area.

Another myth is that you can cancel your contract for bad service. The fact is, no cell phone provider ever promises you good service. What they promise you is a cell phone and service, working or not. The best way to figure out if you’re being fleeced in this regard is to use the phone as much as you can within your magical 30-day period where you won’t be liable for the Early Termination Fee.

Cell phone contracts are legally-binding contracts and never should be taken lightly. If you’re cancelling your contract, you’ve likely got a good reason. In many cases, you’ll have to pay the fee anyway. Sometimes, however, communication with your provider can waive the fee and make the experience a little easier.

Filed under : Wireless Issues