Thursday, May 22, 2008

Feds may end early-termination fees

Cell phone users can rejoice knowing that the government is stepping in to <A HREF="http://blogs.pcworld.com/staffblog/archives/007001.html">rein in the early-termination fee,</A> one of the biggest blemishes of owning a mobile phone. The plans being developed would benefit consumers and carriers, who are regularly taken to court over termination fees.

Under the proposal, consumers could get out of a cell phone contract scot-free up to 30 days after signing the contract or ten days after receiving the first bill. After that, the fee to cancel a cell phone contract would be reduced every month, essentially prorating the termination fee. In response, the government would give larger cell phone carriers a "get-out-of-court-free-card," as Chris Murray, senior counsel for Consumers Union, put it, on any pending lawsuits over high termination fees.

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