Court in California Compliment - Cell Phone Termination Fees Ruled Illegal
A judge in California has ruled termination fees for canceling a cell phone contract early are illegal. The poor cell phone companies say they need the termination fee to cover the cost of subsidizing the 'free' phones. But why if you cancel 2 weeks before the end of your contract do you pay the whole termination fee? The initial fees may be higher to pay for the overpriced phones but the consumer could cancel at any time without penalty. I use a prepaid phone with no contract so I don't worry about termination fees, and that is the big reason I don't go with a contract - the outrageous termination fees.