WIS News 10 - Columbia, South Carolina | Careful with your cell phone contract

Careful with your cell phone contract

(Columbia) May 2, 2003 - More than 135 million Americans now own cell phones, but not everyone is hanging up happy. The Utility Consumer Action Network (UCAN) complain that cell phone contracts are so strict, it's almost impossible to break a deal.

Experts like Harvey Rosenfield with the Foundation for Taxpayer and Consumer Rights say you may be stuck if you move and can't get service or even if the company moves its towers, leaving you in a dead zone. The only way to get out: fork over an early termination penalty, "We've heard of termination penalties for cell phone contracts that are as high as $500."

Rosenfield says, in some cases, charging any fee is outrageously unfair, "People who die, people who leave the neighborhood, people who leave the service area cannot reasonably be expected to continue to use a cell phone that they can't use."

Cheryl Walker says she was expected to do just that. She signed up for a plan right before she moved into a new apartment. She was assured her cell phone would work, but when she moved: no signal, "I was furious." She says the company told her a contract was a contract - period. Eventually, with the help of a consumer advocate, she fought back and broke free, "I just want a phone that works."

Michael Shames is with UCAN, the group that helped Cheryl. He says the iron-clad contracts are complex for a reason, "These contracts are largely intimidation tactics. They try to discourage a customer from asserting their rights."

Travis Larson with the Cellular Telecommunication and Internet Association (CTIA) says the contracts aren't a slap to consumers, but simply a way to make other benefits possible, "Cell phone contracts have early termination fees or penalties because the consumers oftentimes get the phones for free in the beginning, so it's important that the cell phone company be able to recoup that cost."

According to the Telecommunications Research and Action Center (TRAC), Verizon, AT&T Wireless, Sprint, Nextel and Cingular are the top five wireless companies. They all have a grace period that ranges from two weeks to a month and an early termination penalty between $150 and $200, but there are some differences between the plans as Larson notes, "It's important to shop around. There are all kinds of offers out there."

One company says it's launching a new service, without a long-term contract. Another says if a customer moves, it will transfer service. Larson says no matter what plan you choose, don't just go for the glitzy phone, "It's not about the actual phone itself. It's the contract that you're buying."

Once you do sign up, if there's a problem, what can you do? Rosenfield says rule number one, "Don't take no for an answer." Demand action from your wireless company and, if that doesn't work, contact your public utility commission or state lawmakers for help. It could pay off.

The Better Business Bureau also says cell phones topped the list of the most complained about industries for the first time ever last year. The complaints were for all aspects of cell phone use and not just contract issues.

Reported by Susan Aude
Posted 10:19pm by BrettWitt