How to Cancel Your Nextel Contract without Paying an Early Termination Fee

Like most cellular phone companies, it breaks Nextel’s heart to see you go. That’s why they’ve put up so many obstacles in the way to prevent you from doing so – 200 obstacles, to be exact. That’s right, if you want to move on to greener pastures before your contract is up, it’ll cost you $200. The rationale is that when you signed up with Nextel, they gave you a free Motorola Debut or a BlackBerry Curve or some other super awesome phone that would normally cost you hundreds of dollars to buy without a contract. Cutting out before your contract is up is sort of on par with being invited to a wedding, skipping the ceremony, dropping in at the reception to slug down two glasses of champagne and fill a doggy bag with chicken and beef and then hitting the road before the cake is cut. So, Nextel has a point.

Of course, it’s not always like that. We, the consumers, aren’t always the bad guys (some might argue that we are never the bad guys) and sometimes there are some genuine reasons why we might want to take our business elsewhere. Poor service, rate hikes or a shiny, new phone that isn’t offered by Nextel (Hello, Samsung Behold with Android!). In that case, it can be tough to make a clean get away without losing your shirt.

Still – there is a way. Here’s what you do:

Watch the mailbox for any letters from Nextel. Why?  Because the only way you can get out of your Nextel contract is if they make a change to the terms. And when they do, they’ll have to tell you in writing. Here’s the actual wording from the Nextel contract:

Except as provided below, if a change we make to the Agreement is material and has a material adverse affect on you, you may terminate each line of Service materially affected without incurring an Early Termination Fee only if you: (a) call us within 30 days after the effective date of the change; and (b) specifically advise us that you wish to cancel Services because of a material change to the Agreement that we have made.

So, as soon as you get a letter with revised contract terms in it, start going over it with a fine toothed comb. Look for any changes in text message prices, administrative charges or other new pricings or fees. Let’s say you found a new clause stating that the cost to keep your number unlisted was going to double. This can be grounds for terminating your contract. Pick up your phone and do the following:

1. Call Nextel customer support.
2. Read them the section of the contract in question and ask if it affects you.
3. Read the Material Adverse section (excerpted above) to the CSR.
4. State that the previously mentioned change has a material adverse affect on you and that you wish to cancel your contract without being charged a termination fee.
5. Here, you’ll likely meet resistance. Stay firm and escalate to a supervisor, if necessary.
6. Continue being persistent. Call back multiple times if necessary. Keep a record of all of your calls and the names of the people you spoke with. If someone refuses to comply, you may have a case, as demonstrated in California, where early termination fees were declared illegal and Sprint/Nextel was force to pay $18.2 million in reimbursements.

Congratulations! You are free of your Nextel contract and no one had to end up $200 poorer. Now, what phone will you go with next? A Nokia from Verizon? An HTC from AT&T? The possibilities are endless. Just look before you leap this time – check this blog for rumors and announcements of the next big thing so you won’t be left regretting when the coolest phone in the world comes out on a rival carrier.

Let us know in the comments if you have any success with this method. Also keep an eye out for any material changes to your terms that may entitle you to a free cancellation.

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