November 16, 2009 | by Andrew Kameka
I hope anyone considering purchasing a Motorola Droid or HTC Eris falls in love with the phone because ending your contract on Verizon will cost as much as $350. The exorbitant Early Termination Fee (ETF) rumored to be added to the terms of each Verizon contract is very real, meaning anyone who cancels their Verizon contract on “advanced” phones (read: all smartphones, including the Droid and Eris, among others) will have to pay a hefty termination fee. The ETF will drop $10 each month for the length of the contract, but that means it would still cost at least $120 to leave a Verizon contract the month before it expires.
If you purchased a Droid or Eris prior to November 15, you are still under the terms of the previous contract, so this high ETF will not apply to you. Anyone else considering getting an Android phone on Verizon will not be so lucky so they better be sure that it’s a phone they’ll cherish for 2 years. Here’s the text pulled directly from Verizon’s website:
What Happens if My Service Is Canceled Before the End of My Contract Term?
You’re agreeing to subscribe to a line of Service either on a month–to–month basis or for a minimum contract term, as shown on your receipt or order confirmation. (If your Service is suspended without billing, that time doesn’t count toward completing your contract term.) Once you’ve completed your contract term, you’ll automatically become a customer on a month–to–month basis for that line of Service. 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 after November 14, 2009, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. (For a complete list of advanced devices, check verizonwireless.com/advanceddevices.) Otherwise, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete. Cancellations will become effective on the last day of that month’s billing cycle, and you are responsible for all charges incurred until then. Also, if you bought your wireless device from an authorized agent or third–party vendor, you should check if they charge a separate termination fee.
Thanks, Jeff! v