The cell phone mammoths are trying to finally help their customers with some of the expenses. They’re trying to cut a deal with the Federal Communications Commission (FCC) to lower their fees, specifically termination fees. The deal gives consumers the opportunity to cancel service without any penalty for up to 30 days after they sign a cell phone contract or until 10 days after they receive their first bill. Also, the proposal would cap the termination fees by reducing them monthly over the length of the contract based on how long customers have left, as reported by the Associated Press from “people familiar with the offer speaking on condition of anonymity because the FCC has not accepted it.”
What a nice gesture right? Out of the kindness of the cell phone company’s heart they are extending the olive branch to their customers to make up for shoddy service. Sounds too good to be true…IT IS! Of course they have to get something out of the deal.
The reason they’ll be able to extend such a ”bargain” to their customers is that in return for the drop in fees, they’ll get let off the hook of having to pay billions of dollars in class action lawsuits that have mounted. One of the lawyers that represent the people, Pamela Gilbert, an attorney with Cuneo Gilbert & LaDuca, a Washington D.C.-based law firm, said if the FCC gives the greenlight on the proposal, it would save cell phone companies hundreds of millions of dollars.
“The people left holding the bag are the millions of people who paid illegal ETFs (termination fees) and now will never get their money back,” she said.