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Verizon won't let me out of a fully-paid contract 2 weeks early - spite?

Here's one I really don't get. I'm a Verizon customer, and I have a really terrible contract: limited minutes, limited data, $80/month. But, it was my decision to sign so I won't complain about that. However, I'm on the last month of my contract now - it ends 2/27/14. My bill for this last month (February) is fully paid.

I called Verizon and asked them if I can switch my # away from them 2 weeks early - it's not like it makes any difference to them financially, right? To my surprise, I was told that if I try leaving even a day early, I'll get slapped with a $130 early termination fee.

Seriously??

I understand the need for early termination fees - they subsidize the phone and want their money back. Understandable. But in this case, they're not losing any money at all - all 24 months of the contract are now FULLY PAID FOR. Verizon isn't losing any money at all on this. And yet, they still insist on charging me an early termination fee?

I guess I just want to understand why. Are they doing this out of spite? "You want to leave? Aha! We will keep you tethered for every last second that we legally can! MUHAHAHAHAHAHA (evil laugh)"

Comments

jroeder

It's not spite.

If you cancel early you pay an ETF, it doesn't matter if it 2 weeks, 2 months or 2 years.

So, they would be assessing the prorated ETF based off early cancellation.......

grabma

Thank you, jroeder, for repeating what I said: they're charging a termination fee. You were very helpful.

But that doesn't answer the question of why? They're not losing any money by letting me out 2 weeks early. In fact, they'd stand to gain by doing so - less network usage for the same $$ gain for them.

So, why?

jroeder

I did already answer the question as to why.

Because you would be cancelling the service before the contract ends.

So again, if you cancel before the contract ends you will be assessed a ETF.

Even if the service is paid for, the agreement to keep the service for 24 months is not completed and thats what the ETF is based off of.

AlmostOver

More to the point, if you cancel early they have to pro-rate your last payment (and give you back 2 weeks worth of payment you already made) legally and then the last 2 weeks would not be paid and you'd be terminating early. If they were able to keep that payment in full, I'd agree that it would be silly.

jroeder

As per the customer agreement:

If you cancel a line of Service, or if we cancel it for good cause, during its contract term, you'll have to pay an early termination fee. If your contract term results from your purchase of an advanced device, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. Otherwise, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete. Cancellations will become effective on the last day of that month's billing cycle

So, AlmostOver, legally they do not have to prorate the billing because the agreement states otherwise, the agreement that was signed by the customer. Even if the customer canceleld early she would not receive prorated credits for services paid in that billing cycle.

tommyman

is it a problem just waiting the 2 weeks until the contract actually ends?

if it is, it is likely that it is because of something that has nothing to do with verizon, and that's not their problem

sounds like senseless whining to me

flutterfly8497

You answered your own question. They won't let you out of your "fully paid contract" because it is, in fact, NOT fully paid. You signed a 24 month contract, not 23 1/2 months.

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