After taking a trip down mobile phone memory lane thanks to Jeffrey Powers post below (I was a proud owner of the gigantic Motorola “Brick” phone) I wondered how many more phones I may have burned through over the years if not for everyone’s favorite little constrictive clause, the Early Termination Fee (ETF.) After years of despising and cursing that clause, engaging in the eternal pursuit of devising a way around it (to no avail) there is finally hope on the horizon.
The Associated Press (AP) is reporting that the Federal Communications Commission (FCC) may seriously limit, but not eliminate totally, the fees cellular companies charge customers to cancel contracts.
Usually in the neighborhood of $275 or so, the ETF is the penalty you pay to get out of your mobile phone contract. Cellular companies insist the fees are needed to offset the losses they take on the sale of handsets at the front end of the 1 to 2 year contracts.
The FCC offering cellular companies a bone in exchange for the proposed ETF concession including protection from several ETF-related class action lawsuits currently moving through the courts.
This article was submitted by Matthew as part of a contest we are having on my podcast.