Get out of your cellphone contract by "sub-leasing"

Aside from assuming a new identity or moving out of the country (or both), there are few options for people wanting to switch cellphone service providers in the middle of a contract other than shelling out around $200. A company called CellTradeUSA thinks they have the solution to this problem, in the form of a website where people post their remaining contract obligations to be "leased" by someone else (they will also begin offering advertiser-sponsored contests wherein they will buyout your contract for you). Usually the person pawning off the contract will throw in a free phone as well as some accessories to sweeten the deal, although most carriers require a credit check before this type of switch is allowed, so not all bidders will end up being eligible. Now, while we're on the subject, does anyone know any other legal ways to avoid that ugly early termination fee?

[Via thewirelessweblog]

[Pip @ Dec 19th 2005 2:38AM]

Countdown to mj spamming her web link in... 3...2...1..

[sirhc @ Dec 19th 2005 2:38AM]

i've heard that with Nextel you can put your line "on hold", and pay something to the order of $6/month until your contract runs out. there's probably a similar feature with other operators. not free, but it can be a lot better than the $200 some.

[HigherBeing @ Dec 19th 2005 2:38AM]

I have worked for cell phone companies for the past 3 years now, and I have found a few ways to get out of contracts easily... if they are "legal" I dont know... so use on your own risk...

First way is to look at the service providers map, and located an area where there is absolutely no coverage at all, and then try to find an address in that particular area, and then call the provider and explain to them that you are moving into that particular area and you are wondering how the coverage is. Ussually they will let you out of the contract at that time. (works great with T-Mobile and Sprint)

Another way to get out of a contract is by calling your service provider and explaining to them that you are in the military and you are getting deployed overseas. Ussually they ask for some form of proof. In reply you should say that all the documents are top secret, and that they need a clearance to view them, if they have any problems with that they can contact your battalion commander (this has worked for me with all services)

For AT&T Customers....

AT&T customers are now elligble to migrate over to Cingular, no matter how far they are in their contracts with AT&T. They will be treated as new customers at most stores, and can take advantage of the new customer pricing on the new phones.

[Vikesh @ Dec 19th 2005 2:38AM]

I've gotten out of a Nextel contract by arguing that I had too many dropped calls and it was due to lack of service that I was cancelling service. The rep then checked my dropped call percentage and since it was above 5%, the termination fee was waived.

This was after 3 months of service in a 2 year contract.

[Akshay Rangnekar @ Dec 19th 2005 2:38AM]

The way I got out of my Sprint contract was I went into a Sprint store, and behaved totally obnoxious and rude until I got one of their employees to swear at me, and the manager to throw me out. Then I complained to the Better Business Bureau. Within a couple of weeks, I had a written apology from Sprint, and the offer to waive my termination fee.

[David @ Dec 19th 2005 2:38AM]

From what I remember, you can just look at their coverage map and pick a city that isnt covered and call them and tell them you're moving there

[Joe @ Dec 19th 2005 2:38AM]

I used to work for sprint before they merged with nextel and you used to be able to claim military service as a reason for early termination, i a doubt they really check into it.

and if that didnt work you could alway put the phone on the "Vacation Plan" i don't know if they still have it but when they did you basicly paid $5 a month for the plan and a whopping $1 a min for all phone call so you just but the phone on the plan and leave it in a draw until the contract runs out. then cancel it and you only have to pay the $5 a month until then.

but agian it was over a year ago so im sure things have changed, if anyone knows about it confirm it for us.

[Derrick @ Dec 19th 2005 2:38AM]

In Iowa I'm pretty sure its a state law that they have to let you go without paying an early termination fee. They will still try to charge you but legally can't if you tell them you know about the law. I never had to try it out though. I moved to FL and my cell provided didn't have coverage down there, so I got out for free.

[mroach @ Dec 19th 2005 2:38AM]

If you can prove that you're moving out of the country, you can cancel without a termination fee.

[Tom @ Dec 19th 2005 2:38AM]

As a member of the military myself, I know that you can in fact claim military deployment as a reason to terminate. Sprint let me 'hold' for no fee and also ended the contract. They do in fact require a copy of your orders as proof.

[Damo @ Dec 19th 2005 2:38AM]

#4: I tried to get out of my Verizon contract because I moved (really) to an area with no coverage. They said no problem, send us a copy of your lease and/or mortgage agreement! This wasn't an issue for me since I really did move, but if someone else tries it (with Verizon at least) be prepared to talk your way out of sending a lease or mortgage agreement.

[Michele Johnson @ Dec 19th 2005 2:38AM]

There site seems to be having problems: http://www.celltradeusa.com. I could only hit their review page and that's about it.

mj
http://www.junglemungle.com

[roberto @ Dec 19th 2005 2:38AM]

#4 is right. you can get out of your contract if you "move" and don't get any more service in the area. even if for example you live on a hill. get service at the bottem of the hill but not at your home.

[Skylar Challand @ Dec 19th 2005 2:38AM]

LOL Akshay, sounds like a good way to do it

[cr3p @ Dec 19th 2005 2:38AM]

I once went into my service provider and said I wanted my service canceled. They aksed me for the $200 contract termination fee and I gave them $200 in monopoly money. Boy - phone ppl are teh dumbz0rs.

[Ben Dalton @ Dec 19th 2005 2:38AM]

Joe:

My roommate cancelled his sprint contract a few months ago citing Military deployment. They made him fax in his orders (despite the fact his orders didn't say anything about being deployed) and they let him out of his contract.

I had to laugh. He is now a happy Cingular Customer.

[phi @ Dec 19th 2005 2:38AM]

someone ban that annoying michele johnson already

[raccoon @ Dec 19th 2005 2:38AM]

People, people, people, there's a much easier way of getting out of your cell phone contract: Fake your own death!

[Jason @ Dec 19th 2005 2:38AM]

I got out of a T-Mobile contract when I moved out of the country. Simply had to fax a copy of my new lease. They even unlocked the phone remotely, so I could use it with my new carrier.

[philip @ Dec 19th 2005 2:38AM]

easiest way is to file a bbb complaint. that is if yu find a valid reason. IE the terms have changed. if you find a fee that does not fall in line with what specified is a great way to break a contract like this.

[Chip @ Dec 19th 2005 2:38AM]

what the heck is jungle mungle, and why don't they know when to use a GIF and when to use a JPEG?

[gr33n @ Dec 19th 2005 2:38AM]

buying cellphone at full price in the first place probably will save any charges afterwards :)

and if nr.6 isn't joking, he must be really enjoying his life ......

[Phil @ Dec 19th 2005 2:38AM]

RE: #4:

I tried to upgrade my AT&T phone to a Cingular phone this past summer, but decided not to after multiple Cingular reps (in the store and on the phone) confirmed that my contract currently prohibits the upgrade without paying full price for the phone. I'm locked into my current AT&T/Cingular contract and don't get to take advantage of any of the deals or promotions they're offering. Apparently I should have upgraded the phone in the summer of 2004 when I called to switch to one of their "nationwide" plans. By changing plans then, I signed a new 2-year contract and that prevents my getting a new discounted phone. Instead, I bought an unlocked phone on eBay and I'm now waiting out the end of the contract to decide whether to switch carriers or become a full-fledged Cingular customer.

[Akshay Rangnekar @ Dec 19th 2005 2:38AM]

The way I got out of my Sprint contract was I went into a Sprint store, and behaved totally obnoxious and rude until I got one of their employees to swear at me, and the manager to throw me out. Then I complained to the Better Business Bureau. Within a couple of weeks, I had a written apology from Sprint, and the offer to waive my termination fee.

[bEE2643 @ Dec 19th 2005 2:38AM]

i just tell teh CSR im talking to that i hooked a car battery's negative terminal up to the speaker on my phone and if he doesnt terminate the contract i will connect the positive side which will melt his headset to his ears and blow the phone up killing him.

FIDO is teh sux

[Steve @ Dec 19th 2005 2:38AM]

I suspect these large termination fees may be illegal - or are on the verge of being illegal, according to contract law.

basically, you can't have a contract where the penalty is much larger than the actual performance/damages. in other words, a contract that says you give me a pencil, and if you break the contract you give me your first-born - that wouldn't be held up in court.

someone who is more up on the legal side, wanna chime in?

[Asher @ Dec 19th 2005 2:38AM]

Early termination charges are there to offset the discount you get on a phone when you commit to a 1 or 2-year agreement. If you get your Treo 650 for $199, instead of $699 for an unlocked version, would it be fair for you to get out of the contract scot-free 2 months in without paying the early termination fee? Abuses like this result in the rest of us paying higher monthly fees to offset carrier losses.

[Asher @ Dec 19th 2005 2:38AM]

To #26: There's nothing illegal about the fees, just like there's nothing illegal about Credit Card companies charging you 22% finance charges. The early termination fees are well publicized, and no one holds a gun to your head to make you sign the agreement.

[Mxx @ Dec 19th 2005 2:38AM]

#26, that's not true.
any terms of a contract become legal/valid if it's properly described/documented and most importantly, you agreed to those terms.
you might as well sign contract saying that on the 12th month of your service you must pay $900/month.
it's not law's place to decide if the deal you got fair or not.

Caveat emptor

[Dave @ Dec 19th 2005 2:38AM]

Explain that the service isn't up to par (rarely a stretch), and offer to return the cellphone and pay for any accessories at list price. Then file complaints with the BBB, FCC, FTC, state attorney general in your state, the company's headquarters state, and the state where their billing address is done.

Do not make stuff up, simply state that the service is not satisfactory and you have asked for a fair settlement and none has been offered.

When their "settlement group" calls, be polite and cheerful, don't make crap up (again), and simply ask if you can drop the contract. Since it costs many hundreds of dollars to pay for the follow-up, you will likely find that they are amenable.

This does not mean you can skip the final bill; you do have to pay it when it is due, but it's very likely that you can get a credit for the termination amount.

[John Espana @ Dec 19th 2005 2:38AM]

Re: #26 having AT&T Wireless and wanting to upgrade to Cingular and not being able to because he hasn't completed his contract. Yes if you go to a store or call sales they typically will tell you you are not eligible for an upgrade until you are within 3 months of your contract expiring. The way to get around that is to call customer service and say you want to CANCEL YOUR SERVICE, the call will be escalated to the Blue Loyalty Team who will do everything they can to keep you from cancelling. They should be able to override the fact that the contract terms have not been met and migrate your number over to Cingular Wireless and send you out a new discounted phone with a 2yr contract. Hopes this helps other former AT&T Wireless customers who are being told that can't migrate yet.

[terra @ Dec 19th 2005 2:38AM]

Honesty is the best policy. Really, why are you trying to get out of your contract? Is it because of bad coverage or network issues? Or is it because you have a plan that you can't afford? Be straight up and tell the representatives that, I'd like to think that they'd work with you to get a resolution.

[Matt @ Dec 19th 2005 2:38AM]

In the UK, I've got out of contracts by just asking for my "PAC code" (Port Authority Code erm, code). This is the special code used by service providers that you have to use to port your number to another provider.

Seems that as soon as you ask for, and use, your PAC code, your existing contract is instantly terminated by your old provider. haven't done this in a year or two now though so not sure if that loophole is still open, but seems like most providers now will bend over backwards as well as giving you a new handset and other free goodies/credit if you even mention you might leave. I guess thats what you get in a country where the market is pretty much saturated.

[HigherBeing @ Dec 19th 2005 2:38AM]

ABOUT AT&T CUSTOMERS

I work for cingular... They changed the migration policies starting December 1st that you can migrate over to Cingular no matter how long you have been in your contract... So if you have AT&T i HIGHLY suggest switching over ASAP before they change those policies again..

[HigherBeing @ Dec 19th 2005 2:38AM]

To post #31

here in the United States that will give you an early termination fee... Porting your number automatically terminates your contract prematurely and you will receive an early termination fee.

[Nick @ Dec 19th 2005 2:38AM]

Or you could live in japan, where the service cancellation charge is a paltry 4000 yen (~$35). I actually laughed out loud when they warned me about it in the store, considering that I was signing up for a 12,000 yen/month plan :)

[Hase @ Dec 19th 2005 2:38AM]

To #29, there are certain things you cannot contract to or at least a court will not enforce due to unconscionability. Has anyone looked into caselaw regarding termination fees or should I?

[Hase @ Dec 19th 2005 2:38AM]

Here it is as appears in Chandler v. AT&T (2004 U.S. Dist. LEXIS 14884):
"This case is similar to Redfern v. AT&T Wireless Services, Inc., 2003 U.S. Dist. LEXIS 25745, Civil No. 03-CV-206-GPM (S.D. Ill. June 16, 2003). There, the defendant argued that the early termination fee was an essential component of the rates charged for its mobile services. In support of its contention, the defendant explained that lower rates are offered on term plans because the early termination fee accounts for planned future earnings. On the other hand, plans with no expiration date charge higher rates because there is no early termination fee."

Others have fought this saying that it is more of a penalty than a security of future earnings because the fee doesn't decrease as the term's end draws near. However several courts have refused to hear this argument out, saying, "It seems clear that the ECF [(Early Cancellation Fee)] is directly connected to the rates charged for mobile services, and any challenge to such a fee is preempted by federal law [47 U.S.C. � 332(c)(3)(A)]."

That was only a quick search but it seems pretty settled until 47 U.S.C. � 332(c)(3)(A) is defeated or worked around.

[Nick @ Dec 19th 2005 2:38AM]

One way to get out of contract, with Sprint and Verizon at least, is to go to an AFFILIATE STORE (not a corporate store), that is out of your local market, change phone numbers to that affiliates local number. This lets them treat you like a new customer, which means a new 14 day trial period. Just keep the phone for one day, and then take it back and cancel. This does work, I just did it last week for my Verizon contract cause I work for Sprint now and have free service. It is best to go to the little places in the mall. They never really know what they are doing most of the time so when you bring it back they just cancel it all out and you are good to go.

[Jason Hazel @ Dec 19th 2005 2:38AM]

once the sprint/nextel merger was completed i decided to switch to nextel. since i was basically sticking with the same company they looked past the $150 cancelation but i would have to pay $150 deposit. after a couple of days of calling the billing department directly (i managed to get to a very nice lady named helen who gave me a direct number to her) i had the $150 deposit waived and can even add 2 additional lines now without a deposit.

after a day my phone was shut off and i was told i owed $250 since i got the 2year price with only a 1 year contract. after getting pretty heated, and calming back down, i managed to get all of that waived.

i managed to talk my way out of over $400 in a matter of a few days... and then a few weeks later i recieved a $100 check from sprint (on my old plan). i never called to find out why, just in case it was a mistake.

[theguvna @ Dec 19th 2005 2:38AM]

Don't forget about the secondary contracts that many dealers (not corporate stores) also make you sign. These fees usually are deducted directly from your credit card. Even if the service provider waives your contract you will be charged by the dealer. BEWARE

[Russ @ Dec 19th 2005 2:38AM]

I'm leaving the country in 6 months (Peace Corps). Can I get a new cellphone and a new plan, pay my $40/month, and then just cancel when I leave the country without a fee? Cause if I can, the Treos are on me, boys.

[Pouya @ Dec 19th 2005 2:38AM]

The real question is how to get out of your contract and keeping your existing number when you switch carriers.

[Gunnar @ Dec 19th 2005 2:38AM]

Only way to get out of contract without early termination fee is if the service provider changes the terms of agreement.
I think this happened with Verizon or Cingular recently and people were able to get out of their contract without paying the early termination fee (I don't know about the fee regarding the phone)

[canyouhearmeow @ Jan 4th 2006 3:37AM]

Here's how to do just that #44. I'm going to summarize what I read in a post by "Blue" on Dec 7, 2005 here:

http://www.geek.com/news/geeknews/2004Feb/bpd20040218023917.htm



Buy or borrow a cingular phone. If buying make sure it can be returned. Do not have it activated. Do not mention you are an existing customer.



Go elsewhere to a different Cingular company store and migrate over using your exisiting equipment, ie, the phone you just bought. DO NOT take any plans discounts or promotions. Do not take the mobile to mobile promo.



And voila you are a Cingular customer with NO contract. Feel free to call verizon, t-mobile, whomever else and have that number ported with no ETF!



Woo hoo!!