Is Total Wireless charging you a bogus Early Termination Fee? FairShake can help.
When you sign up for a service that involves a contract, like a cleaning service, a gym membership, or cell phone provider, the early termination fee is part of the terms. This is a fee designed to reclaim any money the company has contributed toward discounts they offered you when you signed up or money that they will lose on equipment when you cancel prematurely.
For example, many providers give you things like cell phones for only $100 in a down payment. But the phone never actually costs just $100. The company is paying the remainder of the cost under the auspices that you will reimburse them over the course of your contract. So if you cancel prematurely, they don’t get reimbursed for the money that they contributed toward your phone.
Yes, according to the FCC early termination fees are legal because they are designed to compensate the company in situations where individuals capitalize on a promotion and then leave without ever intending to use the company long-term. Usually these are situations where people take equipment that was given at a discount.
Early termination fees vary. Your account might have different fees than another.
That said, early termination fees are typically associated with contracts only. Wireless providers like Total Wireless who offer no contract phone plans that are prepaid don’t have early termination fees unless you take out a contract for a phone.
There are few ways that you can avoid or alleviate the total cost of your early termination fees depending on your carrier and your plan.
Firstly, any carrier with a contract has to give you 14 days to cancel that service. If you cancel within those 14 days and you return any equipment they already sent to you, then you don’t have to pay the early termination fee.
Secondly, you can take advantage of promotions called contract buyouts where another company covers the cost. These contract buyouts come from other carriers if you are switching service with a promotional deal. They usually require that you pay out of pocket for the cancellation fee which, depending on the carrier, could be hundreds of dollars for every line you have. Then you get reimbursed by way of a prepaid debit card you can use online or at stores.
A much easier way to avoid the early termination fee is to only use services that don’t have contracts like Total Wireless and to concurrently avoid any situation where you are paying for a phone, tablet, or other device on contract with monthly financing. If you are able to pay for a device outright, you can avoid any potential early termination fees in most situations.
Read through their terms and conditions and your contract.
The reason you have to read through the terms and conditions associated with your contract is because every situation is different.
The fine print is where you will find the information you need on whether Total Wireless can charge an early termination fee and under which specific circumstances. It’s not up to the sales staff to tell you specifically, it’s up to you to investigate the terms of your contract if you choose to sign one.
Sometimes you cancel within the 14 day window, you use a contract buyout, or you sign up for what you think is a contract free service and yet your account still gets charged an early termination fee when you shouldn’t be.
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