Rumors surrounding Verizon Wireless'
Termination Fees (EFTs) have been flying around in recent days. Over the
weekend, Verizon officially upped the fee for cancelling your contract early from
$175 to $350. Under the new fee schedule, Verizon gives you a bit of a break by
reducing the fee by a mere $10 per month for the life of the contract. Of
course, that still leaves you with a $120 EFT 23 months into a 24-month deal.
The new fee applies to "advanced devices." Verizon
a full list of these devices, but safe to say, most smartphones are on there. You
should also know that other phones not considered smartphones are on the list as
well, such as the Versa and Glyde. EFTs for Verizon wireless devices that are
not on the list such as standard cell phones won’t change. The current ETF is
$175, and it decreases by $5 each month over the life of the contract.
Anyone who bought a phone prior to the 14th
should be under the old fee schedule. You can also avoid the fee by paying full
retail price for a phone, though keep in mind this is a very costly option up
The increase is an interesting move for Verizon, who just
last year agreed to pay $21 million to settle a class-action lawsuit in California
over early-termination fees. In the lawsuit, California customers claimed
Verizon's EFTs were illegal under California law and that they were designed to
unfairly lock customers into long-term contracts.