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Old 07-31-2008, 04:37 PM   #1 (permalink)
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Default Termination Fees Ruled Illegal in Cali?!

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California judge rules early cell phone termination fees illegal : Christopher Null : Yahoo! Tech

check this out. Sounds like this might effect the US in due time. Could affect BB users as prices might change if a 2 yr contract agreement gets "dumped"
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Old 07-31-2008, 04:42 PM   #2 (permalink)
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everything in cali is illegal, except marijuana
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Old 07-31-2008, 04:58 PM   #3 (permalink)
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Originally Posted by murpheous View Post
everything in cali is illegal, except marijuana
lmao! I know right.
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Old 07-31-2008, 04:58 PM   #4 (permalink)
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Well if ETFs are illegal then you will see carriers just selling no contract pricing at 300-400$ more than the pricing we see now. That will be much worse.
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Old 07-31-2008, 05:01 PM   #5 (permalink)
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Wirelessly posted

Now they are going to cry about how there paying more for cell phones and of course telcos are just going to say no contract can't get rebates
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Old 07-31-2008, 05:03 PM   #6 (permalink)
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One person in California just messed things up for all the rest. Agree with above.^^
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Old 07-31-2008, 05:08 PM   #7 (permalink)
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How is an early termination fee illegal if the buyer signed the contract knowing they would be charged a fee if they left early? I guess contracts (for anything) are no longer binding to all parties who signed them? This is a bad precedence to be setting.
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Old 07-31-2008, 05:18 PM   #8 (permalink)
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idk i just found the article... i dont think this will change the price of phones...if you read carefully it says companies can call these "fees" "rates" in their plans and possibly still get away with it. I will never pay 700 for a phone as long as i live so if thats the case this really blows.
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Old 07-31-2008, 05:34 PM   #9 (permalink)
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What if they make you pay 200$ as an "account setup fee" which "will be returned uppon the end of your contract"? Either way, I hope this only affects customers in cali : P
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Old 07-31-2008, 05:39 PM   #10 (permalink)
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i doubt it will stay in cali...this thing is expected to have a huge nationwide fallout...it remains to be seen if this will be negative for the consumer or not.

The problem to phone companies face is that fee or no fee, consumers will not pay ridiculous amounts of money for cell phones. Maybe for smart phones but the main thing here is that the suppliers must meet the consumers demand or else they will go out of business. In the end consumers dictate the market and with companies in fierce competition they will want to keep prices friendly. I believe they can combat this with raises prices in plans by a few pennies.
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Old 07-31-2008, 05:59 PM   #11 (permalink)
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Did AT&T not change their contracts from an early termination for to an equipment useage fee years ago? They will figure a way around it they always do. They will offer to finance a certain amount of the phone on your account at a monthly rate and if you terminate the amount becomes due and payable. In the end this will only hurt the end user because you know they won't absorb the extra cost.
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Old 07-31-2008, 08:53 PM   #12 (permalink)
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Maybe I'm missing the whole point, but let me try anyway.
A Cali judge ruled that Sprint's early termination fee is illegal. Now, doesn't that mean that, in his opinion, it was NOT legal, that it should not have happened in the first place (please, correct me if I'm wrong)?
So, if that means that prices are probably going to go up on services & products, doesn't that also mean that they never should have been that high in the first place seeing that they lowered them in an illegal manner using illegal means?
I'm sorry, but right is right, and wrong is wrong. If prices go up, don't blame those that brought the lawsuit, blame the company that chose to break the law.

Just my 1 cent worth (sorry, I'm a penny short).
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Old 07-31-2008, 09:29 PM   #13 (permalink)
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Verizon changed their term fees two years ago. They work on a sliding scale so the further into a contract you are, the less your early term fee would be. While I would like to see carriers eliminate this policy completely, I think if you signed the contract, you should be held to those terms. Specific term contracts are in place in many markets, not just wireless carriers. Early term auto leasing carries substantial penalties. Ever try getting out of a Bally's contract? How about ADT or Brinks? They both make you sign annual contracts with hefty penalties to cancel early. Anyone ever withdraw funds from a 401k before age 59? Try telling the IRS you won't pay the 10% penalty for early withdrawal. I say if you signed the contract and want out, suck it up and pay.
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Old 07-31-2008, 09:31 PM   #14 (permalink)
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I wish the state would fall into the ocean.
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Old 07-31-2008, 09:38 PM   #15 (permalink)
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Quote:
Originally Posted by kjjb0204 View Post
Verizon changed their term fees two years ago. They work on a sliding scale so the further into a contract you are, the less your early term fee would be. While I would like to see carriers eliminate this policy completely, I think if you signed the contract, you should be held to those terms. Specific term contracts are in place in many markets, not just wireless carriers. Early term auto leasing carries substantial penalties. Ever try getting out of a Bally's contract? How about ADT or Brinks? They both make you sign annual contracts with hefty penalties to cancel early. Anyone ever withdraw funds from a 401k before age 59? Try telling the IRS you won't pay the 10% penalty for early withdrawal. I say if you signed the contract and want out, suck it up and pay.
I hear 'ya on that, but according to the judge in this case, part of the contract is illegal. When I sign a contract, I assume that it is a legal one, that all parts are within the law. Should I now be held liable to a partially illegal document (No, I'm not in or with Sprint. I'm just saying.).
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Old 07-31-2008, 09:40 PM   #16 (permalink)
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Quote:
Originally Posted by danedel View Post
I wish the state would fall into the ocean.
SPLASH!
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Old 07-31-2008, 09:44 PM   #17 (permalink)
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Quote:
Originally Posted by danedel View Post
I wish the state would fall into the ocean.
You wish that millions of people to die because you don't like how they govern themselves... nice.
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Old 07-31-2008, 10:31 PM   #18 (permalink)
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Wirelessly posted (T-Mobile 8120)

Guys let's not turn this into a bad thread! I think we can all agree that the states laws aren't for ALL of us!
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Old 08-01-2008, 12:56 AM   #19 (permalink)
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Quote:
Originally Posted by Kamau View Post
Maybe I'm missing the whole point, but let me try anyway.
A Cali judge ruled that Sprint's early termination fee is illegal. Now, doesn't that mean that, in his opinion, it was NOT legal, that it should not have happened in the first place (please, correct me if I'm wrong)?
So, if that means that prices are probably going to go up on services & products, doesn't that also mean that they never should have been that high in the first place seeing that they lowered them in an illegal manner using illegal means?
I'm sorry, but right is right, and wrong is wrong. If prices go up, don't blame those that brought the lawsuit, blame the company that chose to break the law.

Just my 1 cent worth (sorry, I'm a penny short).
I would like to see the Judge's actual opinion on the case and see WHY he said the fees were illegal. After all, it was spelled out in the contract that the customers signed, and to which they agreed. How can it now be judged 'illegal'? On what grounds?

As for prices going up, I definitely would blame those that brought the suit. The carriers are only charging 'what the market will bear', and do need to recover their investment in the equipment that they subsidized. Generally speaking, in Europe, there is little (or NO) equipment subsidization, shorter contracts and lower monthly service fees. But the customer pays FULL PRICE for the equipment. I don't link paying more than I have to, but the carriers ARE entitled to a profit - and they must turn a profit or they go out of business - plai and simple.
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Old 08-01-2008, 12:59 AM   #20 (permalink)
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Quote:
Originally Posted by Iare Tosevite View Post
You wish that millions of people to die because you don't like how they govern themselves... nice.
No body said anything about anyone dying... lighten up just a bit. But you have to agree that there is a lot of whackiness on the left coast.
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