verizon wireless

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.

[DroidLife]

  • NeftyCorrea

    Verizon sucks ass

  • Montgomery Tyler

    still trying to eat peoples wallets!!!!

  • William Melendez

    Then AT&T follows this ! I swear those two companies are run by greety son of a ******

    • Mike

      I think it’s a safe bet to say that the greed goes much farther then just Verizon and AT&T

      • William Melendez

        True

  • nonchalont

    Damn Verizon. Why does your coverage have to be so damn good. I feel like Tina Turner and Verizon is like Ike. They abuse me yet I can’t leave them.

  • john diaz

    Strategy marketing !

  • Tom

    At least tmobile pays your etf

  • Jeff

    Damn these phone companies. They are as bad as cable providers. They are turning into car dealers..I am still grandfathered into the unlimited plan because I pay cash for retail price. Forget those 2 year slave contracts.

  • xSeriouSx

    Breaking News: I found all those 9 people that had that good old non-issue (http://bit ly/1sQlf29)…turns out, about 13 out of 9 of them work in tech blogs.

    • Hoho, interesting enough, not all Apple stores are replacing the premium device for free (http://bit ly/1tSZ6Au)…this non-issue just keeps getting more and more interesting.

  • Gleesh

    Verizon and @ar72014 suck ass!

    • Jeremy

      Here’s a butt made out of straws so both of them cAN SUCK MY ASS

  • Paymon John Vafa

    I wonder what the FCC will say about this.

  • JulianZH

    Thank god I left couple years ago

  • gittlopctbi

    I guess I’m not understanding–are the one’s complaining here angry because they planned on cancelling within the first 8 months? If not, then why would this make you angry? And what reason would you want to cancel Verizon within the first 8 months, anyway? I’m curious because I’m not on contract. And are they really doing this because they are “greedy” or because they need to recoup costs of subsidizing your phone?

  • pnh

    The only reason they’re doing this is to piss off T-Mobile who has been paying off a lot of ETFs lately.

  • Scott

    I can’t stand cell phone providers, but frankly, the phones are getting more expensive and requiring someone to stay 8 months when not buying a phone outright with a subsidized phone doesn’t seem unreasonable. If the other company wants your business they can pay the fee.