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"Material Adverse" Clauses in Cell Phone Contracts
Each carrier takes a different stance on what is materially adverse, who can get out (Cingular for instance has eliminated language in some contracts that claims that text messages for instance are an "optional service"). You usually (except for Verizon which does offer 60 day period to call and claim materially adverse) only have a short time to claim a change as materially adverse, sometimes less than 14 days. Listen to UCAN attorney Art Neill's tips to cancelling your contract here.
Cingular
Sprint/Nextel
T-Mobile
Verizon
CTIA-International Association for Wireless Telecommunications
CINGULAR
Changes to the terms and conditions: These terms and conditions may be changed from time-to-time. Cingular will post the most current version of these terms and conditions on the MEdia Net web site (www.cingular.com/medianet) or other appropriate location. Please check these regularly to inform yourself about changes to the terms and conditions, policies, news, etc.
SPRINT/NEXTEL
When You Don't Have To Pay An Early Termination Fee
You aren't responsible for paying an Early Termination Fee when terminating Services: (a) provided on a month-to-month basis; (b) consistent with our published trial period return policy; or (c) in response to a materially adverse change we make to the Agreement as described directly below.
Our Right To Change The Agreement & Your Related Rights
We may change any part of the Agreement at any time including, but not limited to, rates, charges, how we calculate charges, or your terms of Service. We will provide you notice of changes that may impact you in a manner consistent with this Agreement (see "Providing Notice Under This Agreement" paragraph). Except as provided below, if a change we make to the Agreement is material and has a material adverse affect on you, you may terminate each line of Service materially affected without incurring an Early Termination Fee only if you: (a) call us within 30 days after the effective date of the change; and (b) specifically advise us that you wish to cancel Services because of a material change to the Agreement that we have made. If you do not cancel Service within 30 days of the change, an Early Termination Fee will apply if you terminate Services before the end of any applicable Term Commitment.
The following, without limitation, will generally not be considered changes to the Agreement as contemplated in this provision and will not result in the waiver of applicable Early Termination Fees: (a) changes to our Policies; (b) changes to rates or charges that are not a core part of the rate plan package for which you contracted - for example, incidental, occasional or casual use charges and other options that do not require a Term Commitment; (b) changes to Taxes & Government Fees; or (c) changes to Surcharges, including assessing new Surcharges.
Our Right To Suspend Or Terminate Services
We can, without notice, suspend or terminate any Service at any time for any reason, including, but not limited to: (a) late payment; (b) exceeding an Account Spending Limit ("ASL"); (c) harassing/threatening our employees or agents; (d) providing false information; (e) interfering with our operations; (f) using/suspicion of using Services in any manner restricted by or inconsistent with the Agreement; (g) breaching the Agreement, including our Policies; (h) providing false, inaccurate, dated or unverifiable identification or credit information, or becoming insolvent or bankrupt; (i) modifying a Device from its manufacturer specifications; or (j) if we believe the action protects our interests, any customer's interests or our network.
T-MOBILE
Changes to the Agreement or Charges. EXCEPT TO THE EXTENT PROHIBITED BY LAW, IF WE: (A) INCREASE THE CHARGES INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN, OR (B) MODIFY A MATERIAL TERM OF OUR AGREEMENT WITH YOU AND THE MODIFICATION WOULD BE MATERIALLY ADVERSE TO YOU, WE WILL NOTIFY YOU OF THE INCREASE OR MODIFICATION AND YOU CAN CANCEL THAT SERVICE WITHOUT PAYING A CANCELLATION FEE (WHICH IS YOUR ONLY REMEDY) BY FOLLOWING THE CANCELLATION INSTRUCTIONS IN THE NOTICE. IF YOU DO NOT CANCEL YOUR SERVICE BY FOLLOWING THOSE INSTRUCTIONS, OR YOU OTHERWISE ACCEPT THE CHANGE, THEN YOU AGREE TO THE INCREASE OR MODIFICATION, EVEN IF YOU PAID FOR SERVICE IN ADVANCE. IF THE NOTICE DOES NOT SAY HOW LONG YOU HAVE TO CANCEL, THEN IT IS WITHIN 14 DAYS AFTER THE DATE OF THE NOTICE, UNLESS A LONGER PERIOD IS REQUIRED BY LAW. EXCEPT TO THE EXTENT PROHIBITED BY LAW, CHARGES FOR PRODUCTS, SERVICES, OPTIONAL SERVICES, OR ANY OTHER CHARGES THAT ARE NOT INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN (SUCH AS DIRECTORY ASSISTANCE, ROAMING, DOWNLOADS, AND THIRD-PARTY CONTENT) ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE, AND IF YOU CONTINUE TO USE THOSE SERVICES, OR YOU OTHERWISE AGREE TO THE CHANGES, THEN YOU AGREE TO THE NEW CHARGES. VISIT OUR WEB SITE, RETAIL LOCATIONS, OR CALL CUSTOMER CARE FOR CURRENT CHARGES.
VERIZON
Our Rights To Make Changes
Your service is
subject to our business policies, practices, and procedures, which we
can change without notice. UNLESS OTHERWISE PROHIBITED BY LAW, WE CAN
ALSO CHANGE PRICES AND ANY OTHER CONDITIONS IN THIS AGREEMENT AT ANY
TIME BY SENDING YOU WRITTEN NOTICE PRIOR TO THE BILLING PERIOD IN WHICH
THE CHANGES WOULD GO INTO EFFECT. IF YOU CHOOSE TO USE YOUR SERVICE
AFTER THAT POINT, YOU'RE ACCEPTING THE CHANGES. IF THE CHANGES HAVE A
MATERIAL ADVERSE EFFECT ON YOU, HOWEVER, YOU CAN END THE AFFECTED
SERVICE, WITHOUT ANY EARLY TERMINATION FEE, JUST BY CALLING US WITHIN
60 DAYS AFTER WE SEND NOTICE OF THE CHANGE.
CTIA CONSUMER CODE
Provide Customers the Right to Terminate Service for Changes to Contract Terms
Carriers will not modify the material terms of their subscribers' contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee.
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Utility Consumers' Action Network
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Canceling my Sprint plan
On Sept 1st I purchased a new phone with Sprint and extended my contract for another 2 years. Less than 24 hrs after the purchase, I saw the same phone advertised by Sprint as "buy one get one free." Sprint refuses to honor their ad and give me another phone. Can I bring back the new phone and cancel the contract, or am I out of luck because it wasn't a new contract, but an extension of my previous contract? I've been a loyal, paying customer since 1995, and this is the way they treat me for 13 years of loyalty?
Alltel is Unfair also
My phones were going out on me and I had less then 45 days on my contract left. So I called them and talked for about 90 minutes. After discussing that I needed phone service but would not buy new phones since that would lock me into another 2 year contract, I decided to say good bye to them. After changing my rate to minimum and paying them for another month of service, I told them, I was willing to pay at that time the rest of the monthly fees for my contract, (11 days) which they said I couldn't pay a partial month and they could not accept my money for the last month because the bill has not been figured out yet. But I made it clear I needed phone service and would have to goto someone else. They still put on an early termination fee of $200 each line and $36 tax even though I paid the last month of service putting me over 2 years of paid service just because I ported my numbers over a few days early. This is defiantly against what is right. What happened to loyalty of companies who you give your hard earned money to for 6 years? Now I am getting harrassed multiple times a day by them because I refuse to pay them this early cancellation fee. The idea of the early cancellation fee is to make sure the company doesn't lose money when they give you the equipment for free or at a significantly reduced cost. I paid for 2 years of service, whether I used it or not should not make a difference.
"Material Adverse" Clauses - Temination of Services
After bit of a hassle and requesting to talk to a manager I was able to walk away from a Sprnt contract and the subsequent $400.00 termination fee for two lines of service. The rationale was based on the increase of text message minutes.
I've been notified by my new carrier, US Cellular, that they intend to increase Text Message minutes, and plan to walk away from the contract for a 2nd time.
sprint roaming rate change effective 8/1/07
http://consumerist.com/consumer/cellphones/cancel-sprint-without-early-t...
It looks like sprint customers with roaming have an out : )
RE:Get out of a cell phone contract early with celltradeusa.com
FYI: I learned of celltradeusa.com from your page and I wanted to let you know that I had success getting out of my contract early without paying the early termination fee...
Thank You :-)
verizon changing roaming coverage
verizon is changing the roaming coverage in mexico which is part of my North American callinf plan. They said that their partner in Mexico is disassembling their network and its not their fault. I want to cancel my plan without a cancellation fee and they have refused. I have called for the last 3 days in a row to no avail.
I talked to customer service every day for the past three days and every call they come up with some feeble excuse why the won't abide by their contract.
Customer service rejections.
supervisors,
Corby Ext # 4308
Leslie Est# 7188
John Ext# 2706
reply: cancelling verizon contract due to mexico roaming changes
Sorry to hear your cancellation attempts have been unsuccesful. I was thinking of trying the same as I could not be more dissatisfied with verizons service. However, I have the Americas choice family share plan and not the North american calling plan so I am not sure if I would have even enough leverage to negotiate.
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