Senators Propose New Cell Phone Bills

Washington, DCWhile consumers grow increasingly frustrated by the poor treatment and outrageous fees, including cell phone early termination fees they are subjected to by their cell phone carries, lawmakers are proposing bills to curb the powers of cell phone companies. The proposed bills would include rules regarding early termination fees, extra fees, and maps of service quality areas.

Perhaps the most anticipated section of the bill deals with early termination fees. The senators, as noted online at The Washington Post, are looking to make cell phone companies prorate their early termination fees. Some carries, such as Verizon Wireless, already prorate their cancellation fees but the practice is not yet widespread throughout the industry. Rather, most companies charge a flat fee of between $175 and $250 per phone line for customers who want to cancel their cell phone plans early.

In making the announcement, Sen. Amy Klouchar (D-Minn), as quoted online at RCR Wireless News, said "Early termination fees are a family budget-buster; families should be able to terminate service without outrageous fees...It's a simple matter of fairness."

Making the early termination fees more unbearable is that consumers can actually extend their contracts without realizing they have done so. This occurs when a customer makes a change to their contract and the company automatically extends the contract. An article in the Omaha World-Herald gives the example of Ryan Hinsley, who was told that he would have to pay $236 to end his cell phone contract. His carrier, Alltel Wireless, extended his contract by two years after he increased his minutes. At no point was he informed that by increasing his minutes he was extending his contract.

Hinsley's complaint, combined with many other customers' complaints, has caused some states to question the actions of cell phone carriers. Anne Boyle, Commissioner of the Nebraska Public Service Commission, has called on cell phone companies to cut, prorate, or eliminate early termination fees, comparing the fees to ransoms.

Meanwhile, consumers are filing their own lawsuits in a number of states, including Florida and California, challenging the legality of early termination fees. The suits allege that early termination fees punish customers for switching service providers. One such a class action suit could have a trial date in the next few months.

According to the Washington Post, one cell phone consumer actually went to the trouble of faking his own death to get out of a cell phone contract. Corey Taylor told the Post he was tired of dropped calls and repeatedly receiving defective cell phones, so he tried to cancel his contract. However, Verizon charged him a $175 early termination fee to do so. Corey had a fake death certificate faxed to Verizon, but the company figured out that it was a fake and he was forced to pay the termination fee.

Corey is not the only person dissatisfied with cell phone service. The Council of Better Business Bureaus notes that cell phone issues generated more complaints than any other industry over the past three years. The top three complaints were contract issues, billing problems and service problems.

More lawsuits will likely be filed as customers grow tired of paying early termination fees for contracts in which they have received poor service from their cell phone carrier. If you have paid an unfair early termination fee to cancel a contract, especially if you had poor cell phone service, contact a lawyer to discuss your options.