teleguy
Enthusiast
Apr 9, 2005, 7:40 PM
Post #1 of 1
(1057 views)
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Yikes and yikes again! Early termination fees have always been a sore point with cell users.
Some are reasonable.
Example-- Carrier A gives you a $150 rebate on a new phone with the understanding that you're on for 2 years. You decide to leave after 1 year due to bad service etc and Carrier A asks for the $150 rebate back which you are no longer entitled to. Fair enough.
Some are a bit excessive.
Example-- Carrier B gives you a $100 rebate and when you leave early due to lousy service etc, Carrier B requires a $200 hit. Ouch.
But now, the middlemen are also getting their finger in the pie. Has anyone out there been hit with this EXTRA jab in the back as you left your carrier?
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Cell yell this: 600 bucks to cancel?!
BY MICHAEL SAUL
DAILY NEWS CITY HALL BUREAU
Now hear this: Canceling your cell phone service in New York City could cost a whopping $600.
A guide released yesterday by Public Advocate Betsy Gotbaum reveals many small cell phone dealers around the city charge cancelation fees in addition to the penalties charged by national cell phone service providers such as Sprint, Verizon and Nextel.
The service providers charge $150 to $240 for early contract cancelation. The additional fees from independent local dealers - typically a surprise to cell phone customers - range from $50 to $400 per plan.
"People are being ripped off by stores that charge double cancelation fees," Gotbaum said. "My guide empowers New Yorkers to become smarter consumers by asking about additional fees, hidden costs or even public discounts."
Gotbaum said she is proposing legislation that would require cell phone stores to post signs detailing all costs and informing customers of their rights.
Researchers in Gotbaum's office canvassed 10 neighborhoods across the city, visiting 55 cell phone stores. Roughly half charged additional cancellation fees, they found.
According to the guide, the independent store with the highest early cancellation fee, $400, is Wen Zhou Eastern Wireless at 44 Bowery in Chinatown.
Asked to comment, a woman who identified herself on the phone as the store's manager said, "I don't have time right now."
One of the surveyed stores, Bahia at 96-09 Roosevelt Ave. in Corona, Queens, charges $300 for early termination.
But Pedro Morales, the store's manager, said customers are only charged for early termination if they got their phones for free. He insisted the customer always is informed up-front.
"We always tell the customer three or four times," he said.
The guide is available online at http://www.pubadvocate.nyc.gov or by calling Gotbaum's office at (212) 669-7200.
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