Cellular Sales vs. Verizon - early termination fees

[FLJbird]

Bought 6 phones from my local "Verizon store". In Oct 2014 cancelled Verizon to go with Sprint. Paid Verizon $1,245 in early termination fees on 6 phones. My understanding was this reimbursed them for discounts received on phones. Now, 6 months later, received letter from attorney for Cellular Sales stating I owe them $961 for "defaulted retail installment contract". How can I owe both Verizon and Cellular Sales for the discounted phones? I have never received any type of billing from Cellular Sales, and didn't know they existed separate from Verizon until receiving this attorney letter. My belief was I purchased the phones from Verizon at their store. Anyone have any experience or knowledge regarding this? Thanks.

[Snn5 · Accepted solution]

3rd party retailers are NOT the same as Verizon Corporate stores.  There are many differences, mainly in appearances, but when you buy from them you agree to their terms AND Verizon's terms.  The private store might have had terms outlining your responsibility to them if you cancelled service.  Those stores have to buy the phones and may have markups so that they make profit.  Yes, Verizon makes money off of those stores, but those stores are there to make money too and run their own promotions and service agreements.

[sprmankalel]

At some point in the process of purchasing the devices you signed something (whether you were told this or not) that stated that you would keep these devices active on your line with VZW for at least 180 days. The reason for this is because VZW has a 6 month turn around.  The Cellular sales store is paid commission by VZW for selling you the contract and if said contract is terminated prior to 180 days they have to give that money back to VZW. In the Cellular Sales agreement (check the receipts from purchase) this should be explained. Basically they are charging you because they had to pay the money back to Verizon and you still have the devices. They lost money on the deal and that's what they want to make them whole again.

[FLJbird]

Thanks for the excellent information and education. Obviously not what I wanted to hear, but it is what it is - buyer beware. Great to get such a clear and concise explanation. Spent hours with Verizon customer service reps that could offer no insight or assistance whatsoever as I was transferred from department to department. This is definitely the venue to ask questions! Thanks again for your time explaining.

[sprmankalel]

You are quite welcome. I would call the customer service number for Cellular sales and see if you can return the devices to wipe out the collection.