Hello and welcome to our comprehensive guide on Verizon early termination fee calculation. In this article, we will provide you with all the information you need to know about Verizon’s early termination fees, how they are calculated, and what you can do to avoid paying them.
Over the course of this article, we will cover the following topics:
1. What is an early termination fee?
Before we dive into the specifics of Verizon’s early termination fees, it’s important to understand what an early termination fee is and why it exists. An early termination fee is a penalty that a customer may be charged for canceling a service or contract before their agreed-upon end date. This fee is designed to compensate the service provider for the costs and losses associated with early cancellation.
Early termination fees are commonly found in contracts for services like cell phone plans, cable TV packages, and gym memberships. In the case of cell phone plans, early termination fees are meant to offset the cost of the subsidized phones that many service providers offer to customers who sign up for a contract.
Now that we have a basic understanding of what an early termination fee is, let’s explore how they work specifically for Verizon customers.
2. How does Verizon’s early termination fee work?
Verizon’s early termination fee policy varies depending on the type of service you are canceling and when you cancel it. In general, the earlier you cancel your service, the higher your early termination fee will be.
If you cancel your service within the first 14 days of signing up, you will not be charged an early termination fee. After 14 days, the fee will be prorated based on the number of months remaining in your contract.
| Months Remaining in Contract | Early Termination Fee |
|---|---|
| 24 or more | $350 minus $10 for each full month of completed service commitment |
| 18-23 | $265 minus $10 for each full month of completed service commitment |
| 12-17 | $160 minus $10 for each full month of completed service commitment |
| 6-11 | $80 minus $10 for each full month of completed service commitment |
| 1-5 | $20 minus $10 for each full month of completed service commitment |
For example, if you cancel a two-year contract with Verizon after 12 months, you would owe an early termination fee of $230. This calculation is based on the $350 early termination fee minus $10 for each of the 12 months of completed service commitment.
2.1. Can I avoid paying an early termination fee?
If you want to avoid paying an early termination fee, there are a few options available to you. The first is to wait until your contract is up before canceling your service. This may not be feasible if you need to switch providers due to poor service or other reasons, but it is the simplest way to avoid the fee.
Another option is to try to negotiate with Verizon to have the fee waived. This may be more effective if you have a good reason for canceling your service early, such as moving to an area where Verizon service is not available. It’s worth noting, however, that Verizon is not obligated to waive the fee.
If you are switching to another provider, some companies offer to pay your early termination fee as an incentive to switch. Keep in mind, however, that these offers usually come with their own stipulations and requirements.
3. Frequently Asked Questions (FAQs)
3.1. How is the early termination fee calculated?
The early termination fee is calculated based on the number of months remaining in your contract, as well as the type of service you are canceling. The fee is prorated based on the amount of time you have completed in your contract.
3.2. Can I avoid paying an early termination fee?
Yes, there are a few options available to you if you want to avoid paying an early termination fee. The simplest way is to wait until your contract is up before canceling your service. You can also try negotiating with Verizon to have the fee waived, or look for deals from other providers that offer to pay the fee as an incentive to switch.
3.3. What happens if I don’t pay the early termination fee?
If you don’t pay the early termination fee, Verizon may turn your account over to a collection agency and report your non-payment to credit reporting agencies. This can have a negative impact on your credit score and make it more difficult to obtain credit in the future.
3.4. Can I cancel my service without penalty if I am not satisfied with it?
Verizon does not have a satisfaction guarantee for its services, so canceling your service early may result in an early termination fee.
3.5. Can I return my phone if I cancel my service?
If you cancel your service, you may be required to return any subsidized phones that you received as part of your contract. Failure to do so may result in additional fees or charges.
Conclusion
Early termination fees can be a frustrating and costly aspect of contract-based services like cell phone plans. However, by understanding how Verizon’s early termination fees are calculated and what your options are for avoiding them, you can make informed decisions about your service and contract. If you have any further questions or concerns about Verizon’s early termination fee policy, be sure to consult with a Verizon representative or visit their website for more information.