Heads up to anyone thinking about signing a new plan or equipment contract with Verizon in the near future, it just tweaked its early termination fee (ETF) policy. Spotted by DroidLife, the policy makes it more expensive to cancel your contract with the carrier during the first 8 months.
Previously, Verizon’s ETF with a 2-year contract would decline $10 for each month of the term you completed, so after 8 months your ETF would be 80$ cheaper. But under the new policy, until you complete the 8th month of service, you’d be stuck paying the full $350 ETF for canceling.
There’s a bit more to it, so here is the full text of the new ETF policy:
“If you cancel a line of Service, or if we cancel it for good cause, during its contract term, you’ll have to pay an early termination fee. If your contract term results from your purchase of an advanced device on or after November 14, 2014, your early termination fee will be $350, which will decline by: $10 per month in months 8–18, $20 per month in months 19–23, and $60 in the final month of your contract term. For other contract terms entered into on or after November 14, 2014, your early termination fee will be $175, which will decline by: $5 per month in months 8–18, $10 per month in months 19–23, and $30 in the final month of your contract term. If your contract results from your purchase of an advanced device prior to November 14, 2014, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. For other contract terms entered into prior to November 14, 2014, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete.”
Verizon hasn’t said why it decided to change things up, but it’s not hard to speculate. By delaying the monthly discount on its ETF, the carrier makes it more expensive for T-Mobile and other competitors to buy out contracts. It could also be a ploy to push more customers over to its Edge program.
The new policy only applies to anyone who signs a contract on or after November 14.