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The June 12 public hearing FCC
plans to hold on early termination fees (ETFs)will be a disputed one for sure,
as consumer advocates prepare to respond to what they consider to be a way for
carriers to escape the multimillion dollar lawsuits filed against them by
unhappy customers.
Verizon, together with other
wireless carriers, proposed in a FCC filing the regulation of early termination
fees, which, if approved, would grant customers 30 days after they sign a cell
phone contract or 10 days after they receive their first bill to cancel the
agreement with the service provider.
Customers are now charged around
200$ for early cancelation of the contract, but under this proposal, they would
have 30 days after they sign the contract to reconsider the deal, with no
penalty involved.
Furthermore, phone companies
would have to reduce fees depending on how long the customer has been in a
contract (the longer the contract stays valid, the lower the terminating fees).
However, despite the fact that
consumers constantly complain about the unusually large early termination fees,
which sometime go as high as $200, approving the carriers' proposal would be
like giving them an “get-out-of-court free card,” as Chris Murray, senior counsel
for Consumers Union told the Associated Press last month.
Consumer advocates believe that
by approving the proposal, FCC would take the customers’ only weapon in case of abuse, restricting their right to take the matter to court.
Cell phone companies said they
apply cancelation fees in order to recover the cost of cell phones, which they subsidize
under long-term contracts.
However, consumers have
complained of large fees, saying that carriers use them in order to discourage
customers from switching to another carrier. Phone companies have been sued
multiple times for applying what consumers call “unreasonable fees.”
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