Early Termination Fees on Cell Phones Ruled Illegal in Ca

Jane Vee
According to California judge rules early cell phone termination fees illegal on Yahoo Tech a judge has ruled early termination fees are illegal. This may change the way the cell phone industry does business. Obviously the ruling can be appealed as I am sure it will. The FCC is generally lenient with fees so if the FCC allows the charges the courts will probably uphold what ever view the FCC takes. The FCC is supposed to maintain the regulations not set them.

The court ruling determining early termination fees for cell phones illegal will have an impact on all the customers who have refused to pay the early termination fees. The customers that owe the money for early termination may no longer be held liable for that money according to California judge rules early cell phone termination fees illegal. From a legal stand point I am not sure how accurate that is. Most things have a grandfather clause meaning if you owed the money before a certain point you still owe the money even though new customers won't.

I wonder how the cell phone companies are going to handle this new information. If they call the early termination fee a charge of some sort the FCC may let it slide. The cell phone companies should probably go that route because it could cost them a complete loss if the appeal the ruling and get handed the same decision. In this case ignorance may just be bliss for the cell phone companies.

Millions of customers including myself are happy about this new ruling. I for one hate getting a new cell phone and have problems with reception or the phone and being "stuck" with it. I had so many problems with different cell phones and then you have to go back to the store and sometimes you get the third degree. The hassle isn't worth the drive to the store. With any luck the ruling will get rid of the fees and you will have time to really try the phone out.

Published by Jane Vee

Jane is married with two wonderful children. She has worked in the childcare industry for over 20 years. Her profession for 18 years has been accounting. She enjoys home interior and design as well as hom...  View profile

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  • Fabletoo8/12/2008

    US cell phone companies are scamming customers. Here in Thailand, we only pay for outgoing calls, ulike the US where you also pay for incoming calls - that means, in the US, the person calling AND the person receiving the call pay for it. Absolutely ridiculous. My friends from Asia and Europe can't believe the US companies do this and that it's allowed, as it doesn't happen in Europe or Asia. Glad CA made this ruling :-)

  • Lisa Riggs8/7/2008

    Great report!

  • Louisa3648/6/2008

    thank you for this great article!! It's about time someone made this illegal.

  • Blackbird8/1/2008

    I can only imagine the appeal. The cell phone companies do not want this...

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