T-Mobile is Charging an Early Termination Fee: Help Me, WalletPop!

Before you go, we thought you'd like these...
Before you go close icon
t-mobile early terminationIf you're having a problem with a business, Consumer Ally can help. Write us at HelpMe@WalletPop.com.

Q. When I took a T-Mobile phone for the year I signed what I was told was a one-year contract. I am now told by the store that I signed with that this is a two-year contract and I am responsible for the cancellation charge. Am I responsible to pay a cancellation charge after one year?
Alfred ZernerA. Hi Alfred, as you know, there seems to have been a mix-up here, although I'm not sure what, exactly, went wrong. I reached out to Patty Raz in T-Mobile's corporate communications and she would only say that they resolved the issue. She wouldn't comment on the details of the situation because of the company's privacy policy. However, I know that someone at the company reached out to you and waived the cancellation fee this time. You'll need to send them a payment for your final month of usage, and you should do that right away.

Just to eliminate confusion for any other readers who are T-Mobile customers, it seems that this was a special exception. You either misunderstood or were misinformed about the contract you signed, and because of that -- and, in no small part, I'm sure, because of our intervention -- T-Mobile waived the fee this time. However, Raz says the company's contracts depend on a customer's chosen rate plan and service needs, and are not always two-year terms, so it's possible that what you signed was a one-year contract. The lesson: Make sure you understand exactly how long you're committed before you sign off, and keep a copy of all contracts so you can reference them when questions pop up.

As far as T-Mobile's early termination fees, Raz says they are applied on a schedule: "The early termination fee is $200 if termination occurs with more than 180 days remaining on your term; $100 if termination occurs with 91 to 180 days remaining on your term; $50 if termination occurs with 31 to 91 days remaining on your term, and the lesser of $50 or your monthly recurring charges, including any applicable taxes and fees, if termination occurs in the last 30 days of your term."

And one last thing: If you do want or need to get out of a cell phone contract early, try a website like cellswapper.com to find someone who will take it over. It will costs around $20 to post your phone and contract to the site, much less than most early termination fees.

Consumer Ally problem solver Jean Chatzky is the "Today Show" financial adviser, a longtime financial journalist and best-selling author.
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners