Understanding HughesNet Early Termination Fees

Is HughesNet charging you a bogus Early Termination Fee? FairShake can help.

"What you should know about early termination fees"

If you are trying to switch service, HughesNet might have charged you up to a $400 early termination fee. That’s a pretty large amount for anyone, especially if you weren’t expecting it. What is this fee and is it legal?

Why do companies charge early termination fees?

An early termination fee is a way for companies to recuperate money they lose when you don’t require their services. When you sign up for services from companies like HughesNet you enter into a contract for a specific amount of time. That contract has a start date and end date and it explains under what circumstances HughesNet can cancel your service (like when you fail to pay) and under what circumstances you can cancel your service (any reason).

You might be moving, you might find a better deal somewhere else, or you might just need different services. Whatever the reason, you can cancel your contract prematurely… but that is when you will be charged with an early termination fee.

Are the early termination fees legal?

Technically yes as long as it is included in your contract and you are made aware of it.

How do I know if my contract with HughesNet has an early termination fee?

It is very likely that you will find the exact information you’re looking for in your contract. In fact, HughesNet has to legally include in your contract and in the terms and conditions of the service.

If you try to reach out to HughesNet customer service, you might receive a similar text given to customers who have lodged complaints with the Better Business Bureau:

From HughesNet: “When a customer signs up for HughesNet service online as *** ********** did he must check a box that he has read and agrees to the terms and conditions of service that are listed for the customer’s information in a dialogue box. The terms and conditions disclose that the commitment term is 24 months and the early termination fee starts at $400. It is *** **********’s responsibility to read closely those terms and conditions before checking the box that he agrees to them. The order will not process without an agreement to the terms and conditions. *** **********’s order processed and the commitment and termination fee is valid based on this acceptance.” 

Can I negotiate for a lower fee or avoid the early termination fee?

You can certainly try to negotiate for a lower fee especially if you are taking out a new contract. For example, you might be able to ask the company to whom you are switching services, as part of your switch to include something like a reduced or removed early termination fee. This can be especially useful in negotiations if they are offering some sort of promotion that you turn down in exchange for the switch.

Be advised that many customers have struggled dealing with customer service and reported serious problems with service and early termination fees. As one customer put it:

I signed up for hugesnet online not knowing they had a 2 year hidden contract. I waited for a technician to come hook up my WiFi he then complains that he had a jammed thumb and couldn’t dig the 40 ft trench for the cable to run to my house and he also couldn’t dig the hole for the satellite dish. So being the nice guy that I am I gladly helped the man and as soon as he hooks everything up he ask me what will I be using the WiFi for.I then replied ******* and online classes and he says to me you won’t be able to do any of that this WiFi beams a satellite and it doesn’t run that fast. So last month I decided to give these guys a call and they tell me that I’ve signed up for a 2 year contract and I can’t cancel and if I do there is a $300 charge.”

What if I get a contract buyout?

Similarly, you can try to negotiate a contract buyout. When you switch carriers they sometimes offer promotions called a contract buyout. This is designed to take customers from competing organizations no matter what monetary limits are imposed on them. Under certain promotional deals, service providers will pay the remaining balance of the early termination fee on your behalf, but only up to a certain amount. 

Does HughesNet always charge an early termination fee?

You might actually have an early termination fee under the terms and conditions of your contract but not know it. It’s quite common for many people to enter into an agreement with a service provider and not realize that there is a high fee should they cancel. HughesNet terms and conditions state that if you cancel after 30 days of activating your account and you have a two-year account, you will be charged a $400 service termination fee.

I’m being charged an early termination fee but I shouldn’t be, what can I do?

With FairShake, you don’t have to just pay an early termination fee that you don’t owe. We can help you with the legal steps to get a refund or fight the fee.

We work hard to help you get your money back. Get started now…


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