Government Urges FCC To Take Aim At Early Termination Fees |
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Written by Administrator
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Wednesday, 21 May 2008 03:11 |
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Wednesday May 21st 2008 -- The Federal Governement has proposed steps that would ensure customers are not charged the exhorbited early termination fees set forth by carriers that can cost up to $175 per cancelled cellular phone line when still under contract.
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The new plan laid out by the government would require carriers to give users 30 days to cancel their lines with no penalties, or 10 days from the time they receive their first cellular phone bill.
The plan would also call for a proration fee that would reduce the fees on a month by month basis, creating cheaper cancellation fees as customers near the end of their cellular contractual obligations.
The deal would also come with the stipulation that billions of dollars in lawsuits nationwide be dropped against the carriers for what many subscribers have called unfair business practices for the collection of the high fees associated with cancelling a contract. In many cases a family plan with more than 1 phone can cost customers a flat fee per line cancelled on the plan.
Under the new plan cell phone companies will be able to link the direct cost of losing the customer to that customers cancellation fee, an amount that will allow the company to recup phone costs which are often severely discounted with the agreement of a contractual obligation between 1-2 years in length in most situations.
Whether the plan will be adopted is yet unknown, the move has not been accepted by the FCC at this time.
Find out more at: MSNBC
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Last Updated ( Wednesday, 21 May 2008 03:22 )
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