California Judge Rules: Early Termination Fee’s Are Illegal
I never thought I would see this day. A common sense ruling, out of a California courtroom, in favor of the consumer. “The fees that cell phone carriers charge customers who break service contracts took a big hit in a California courtroom when a judge said such charges by Sprint Nextel Corp. likely violate state law. The judge, in a tentative ruling issued late Monday, said Sprint will have to pay $18.3 million to customers who sued over the fees and credit $54.8 million to those who were charged but did not pay the fees.”

The article goes on to state that, “the same judge is considering other lawsuits against telecommunications companies over their so-called early termination fees, which can range from $150 to $225. This month Verizon Wireless agreed to pay $21 million to settle an identical lawsuit just as trial was starting.” Imagine being able to go from carrier to carrier without any penalty. This ruling will mean an increase in competition and a decrease in costs. Net, Net good for us.
July 30, 2008 3 Comments

