The Federal Communication Commission is looking into Verizon Wireless’ doubling of termination fees on customers who break their contract on smart phones. Verizon Wireless raised the fee on canceling a smart phone contract to $350 in November. The higher fee is double what was previously charged and the FCC is asking why.
Verizon says that since smart phones are becoming such a bigger part of their business and cost so much more they have to charge such a high fee for anyone who breaks their contract. There are also questions of a $1.99 data access fee for customer’s whose phones don’t have data plans.
Verizon hasn’t said how customers will know if their phone applies to this new fee but the FCC isn’t finished with their questioning. Fees for terminating accounts have been a problem for many consumers, as they feel trapped by the contracts.
If someone is having trouble paying their wireless bill and wish to end the service provided by that wireless company then some feel there should simply be a stoppage of service without excessive fees that often are more costly than monthly bills.
Does Verizon actually lose money by stopping a customer’s wireless plan or are they collecting fees just because they aren’t going to be taking anymore money from that particular customer and they want every penny they can get? Is this a fair practice?
If Verizon says it will provide a service for a specific cost for a certain amount of time and I no longer want their services should I have to pay a fine or is the wireless contract that binding?
Either way, phone companies will always make their money back as they can assess fees from other customers and charge for almost anything. The probe by the FCC may be a small matter or it may grow and bring more questions to the wireless phone industry. Many users who are spending too much on a cell phone service each money will seek bad credit installment loan help. Rather than taking out bad credit loans to pay bill it might be a very wise decision to look at all alternatives. Creating a strong weekly or monthly budget is usually the best way to go.