Several cellphone service providers have been sued for their practice of charging customers early termination feed when they want to end their service contract. Consumer advocate groups have proclaimed that charging these types of fees is an illegal practice that gorges the customers and stifles fair business competition.
After being taken to court for billing their customers with these $100+ termination fees; AT&T, Verizon Wireless, and Sprint Nextel have implemented the practice of pro-rating their service cancellation charges.
T-Mobile is currently facing a class action lawsuit for charging their customers for early termination of their cellphone service. According to Information Week, the company is looking to settle the lawsuit. T-Mobile is proposing an agreement that will allow them to reimburse customers who paid the termination fees between July 1999 and February 2009. The compensation will come in the form of money, phone services, or a combination thereof.