Getting Out Of Cell Phone Contracts

(CBS)  Breaking cell phone contracts can be extremely difficult to do and sometimes it comes at a price as high as $200.

It's a potential issue for the 230 million cell phone users in the United States. Nearly half of them say they would consider switching carriers if there was no fee.

The Early Show consumer correspondent Susan Koeppen has some strategies to avoid paying a high price for switching cell phone plans.

Koeppen said cell phone companies make contracts difficult to break in order to offset the inexpensive or even free phones they provide to entice a customer to sign up for a plan.

"They're afraid that you're going to walk in, get the free phone and then you can go to anybody you want," she said. "So they have those termination agreements in place so that they can offer you the free phones and the good plans. Without the fee, you're not going to be getting those freebies."

Here is the advice she offered:

Swap your plan Online:

There are Web sites where people can put up their contracts for others to assume. The sites charge a fee of around $15 or $20. Koeppen said that cell phone companies usually don't mind as long as the person who is taking over the contract has good credit.

Negotiate with your provider:

If you have a serious problem with your phone – for example, you are dropping an inordinate number of calls — Koeppen said call your service provider and explain what is going on. Write a letter and document when the calls are dropped.

Cite problems and changes:

If your rates suddenly go up or your service changes, that is also a legitimate complaint, Koeppen said. Pay attention to other deals the provider might offer. They are usually willing to give you a better contract.

"There are plenty of companies," Koeppen said. "So go out there, do your research, talk to your friends ... talk to your neighbors, ask around."

Koeppen also said that people can buy a phone without a contract and look for prepaid plans that might allow you to supply your own phone.

[natalieR27]

I was absolutely furious with these unknown fees that I had to pay when I wanted to leave my cellphone contract. Someone sent me this website and it made things SOOOO much easier for me! Check it out- celldefense.com

Net10 phone is now my new cell phone company and they have saved me so much its ridiculous. Check out the video on that website and save some money!

[chuckyboy5]

This whole issue is ridiculous. All the information, including the disconnect fee are explained up-front, on top of that most cell companies offer a 30 day trial, where-in if the customer is unhappy they are able to cancel with no fee.

And on top of this, most companies won't require you to sign a contract, they only require the contract if you want a discount on your new phone. If you don't want to be binded to the company your using, just buy your phone at retail, and use their service month-to-month.

It kind of scares me that actual professional people in this country can't grasp this, especially someone in the medical profession, that really scares me. Either a alot of people are just plain stupid, or cheap.

[undrt8kr1961]

I have gone through pure hell to try to get out of my Verizon contract. I have tried being very forceful on the phone with the customer service rep. We have to phones and it would cost us $350.00 to get out of contract. Who has that much just laying around. Anyway, after 30 minutes or so I told him that I was going to report to the militarys Black List, (This a list that tells servive members what companies not to do business with), and he said he would take it down to $150.00. My response was "Hell No". I serve my country and feel that the least these cell phone companies can do is give a break to someone who is defending thier freedom and country.

[undrt8kr1961]

I have gone through pure hell to try to get out of my Verizon contract. I have tried being very forceful on the phone with the customer service rep. We have to phones and it would cost us $350.00 to get out of contract. Who has that much just laying around. Anyway, after 30 minutes or so I told him that I was going to report to the militarys Black List, (This a list that tells servive members what companies not to do business with), and he said he would take it down to $150.00. My response was "Hell No". I serve my country and feel that the least these cell phone companies can do is give a break to someone who is defending thier freedom and country.

[undrt8kr1961]

I have gone through pure hell to try to get out of my Verizon contract. I have tried being very forceful on the phone with the customer service rep. We have to phones and it would cost us $350.00 to get out of contract. Who has that much just laying around. Anyway, after 30 minutes or so I told him that I was going to report to the militarys Black List, (This a list that tells servive members what companies not to do business with), and he said he would take it down to $150.00. My response was "Hell No". I serve my country and feel that the least these cell phone companies can do is give a break to someone who is defending thier freedom and country.

[undrt8kr1961]

I have gone through pure hell to try to get out of my Verizon contract. I have tried being very forceful on the phone with the customer service rep. We have to phones and it would cost us $350.00 to get out of contract. Who has that much just laying around. Anyway, after 30 minutes or so I told him that I was going to report to the militarys Black List, (This a list that tells servive members what companies not to do business with), and he said he would take it down to $150.00. My response was "Hell No". I serve my country and feel that the least these cell phone companies can do is give a break to someone who is defending thier freedom and country.

[slug1923]

When does the provider have to honor THEIR CONTRACTUAL OBLIGATION? In every contract, the cell phone provider agrees to provide service. Too often they don't fulfill that promise. Since May, 2006 when I signed with Nextel, I have had three i850 phones -- all of which don't hold a battery charge (an all too common problem with that model phone). In the ten months of service I have paid for, I have been without service for a total of 7 weeks. Nextel representatives have charged me with $150 for replacing faulty telephones with "refurbished models" & a representative from Motorola with a heavy accent from a desk in an unknown country has corrected me on my use of the English language. I couln't understand what she was saying -- imagine that! I'm always told that I "can buy out of the contract for $200", but no one can tell me how they can actually fix the problem. I'm an RN on a hospital medical floor. If we did our job like Nextel does theirs, we would leave a trail of dead bodies. But then, we are ACCOUNTABLE.

[teeus]

"If you make things unpleasant enough for them, they'll take the easy way out, which is to give you what you want."

Dude. I'm not saying you're wrong, but you are a customer service rep's worst nightmare. Cranky and mean and taking it out on the person who happeded to pick up the phone ON PURPOSE. Yikes.

[destardi]

I urge everyone interested in Broadband wireless internet, to STAY AWAY FROM VERIZON's.

I had it for 8 months, and 3 other lines of service..paid the bill on time, and I woke up one morning to use it, only to have it not work. I called in and was transferred to the "fraud" department. Apparently their "unlimited" service is not truly unlimited, and I breeched that cap. They kept making reference to "possible illegal use," but couldn't provide a window of usage, or specifics. Sooo, you can legally download songs, from legal sources, under there terms of service, but you can't download as much as you want, because then you'll break the "Unlimited (but not REALLY unlimited" terms of service. THEN they reconnected me the next day, and tried to charge me an early termination fee of $175.00. I didn't receive an email, or a letter warning me of my overage, or that they were going to disconnect. I'm switching ALL lines over to Sprint, as they have tiered data plans for Broadband wireless. No to verizon!

[DoggerBlue]

So, to sum up, out of Susan Koeppen's three pieces of advice for "getting out of cell phone contracts", the second is to stay in the contract and write letters, and third is to (um, hello!) RE-UP with a new contract with the SAME company?!?!

Gee, thanks Susan. If headline accuracy were enforced, this one should be called 'Taking your medicine like a good little citizen'.

Are you folks sure Ms. Koeppen isn't on the cell phone industry payroll?

By the way, if you really want out of your contract, don't write polite and ignorable letters, and DEFINITELY do not agree to a brand one (duh). Kick and scream on the telephone all the way to the top. If you make things unpleasant enough for them, they'll take the easy way out, which is to give you what you want.