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Jul 24, 2008 12:12 pm US/Eastern
Angie's List: Cell Phone Contracts
Breaking your cell phone contract without breaking the bank.In today's
Angie's List report, Jim Donovan shows you how to avoid paying a full
termination fee.
Two of the biggest cell phone carriers have already started scaling back
those fees and the FCC is also working to regulate them. But in the meantime, if
you're not happy with your contract, there are some things you can try.
Dropped calls, poor customer service, they're just some of the reasons you
might want to get out of your cell phone contract early. With the help of the
FCC, those expensive early termination fees could become a thing of the past but
for now they're a reality.
"So if you are faced with trying to get out of a contract right now, this may
not help you right in the beginning, but at least be aware of it and be ready to
negotiate. Know your contract and know what talks are going on so you can ask
for the same treatment," said Angie Hicks, founder of Angie's List.
She says there are ways to save on your bill right now.
"One great to save on your monthly bill is to review that bill every month, a
lot of us don't do that. If you have a contract for a thousand minutes and are
only regularly using 500 minutes, call and lower your cell phone minutes and
that will save you right away. Also, never let your contract auto-renew. Many
times we don't even know when our contract is going to expire, but that is a
great time to re-negotiate a better deal," said Hicks.
Angie's List Tips to avoid paying a full termination fee:
Know your contract:Understand what you've signed up for, so you can
negotiate out of it. Have your contract with you when you approach the company
and quote from it to bolster your position - especially if you didn't get all
the service the contract promised
· Shop the competition: Determine what other providers are offering
and use that as leverage. Even if you have to pay a termination fee, you may be
able to save overall by jumping ship.
· Start with the Customer Service Department: Lay out your case for
why you want to end your contract early. Be specific about what you signed up
for and outline what you haven't gotten (if that's the case.)
· If necessary, go to the top: If the representative insists that you
must pay the full termination fee, remind him/her of the actions the FCC and
some providers are taking. If you still don't get anywhere, ask for a manager
and lay out your case again.
· Ask for customer retention department: If you have a good payment
record with the company, ask to speak with the Customer Retention Department and
lay out your case one more time. If you have a good record, the Retention
Department will work hard to keep you as a customer, possibly forgiving the
termination fees altogether and offering you a better deal.
