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Early Contract Cancellation Fees for Cell phones and Smartphones

Posted on August 23rd, 2009Yale Holder
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Locked in by cell phone contract fees

Understanding contract cancellation fees in Canada

In Canada, many people sign contracts without being fully aware of the fees associated with breaking that contract. These fees can be staggering, in some instances more than $50o if you have a smartphone contract and you cancel within the first year.

So, to shed some light on early cancellation fees or TLCs (Termination Liability Charges) here is the low down on these fees:

For Rogers here are the key items you need to know if you are going to cancel your contract early:

- There is a $20 per month fee for each month remaining on your contract to a max of $400, with a minimum of $100 if you break your contract with less than 5 months.  This is called the  ECF or Early Cancellation Fee.

- If you purchased a Smartphone, however, you would be required to commit to a data term as well, and the data early cancellation fee (DECF) is $5 for every month remaining to a maximum of $100 or a minimum of $25.

- And to top it off 30 days’ notice is required for every cancellation, so be prepared for another 30 days of charges on your phone bill.

Bell and TELUS also have similar terms in their TLCs:

  • Both have the $20 per month fee for each remaining month on your contract to a maximum of $400.
  • If you have a smartphone with TELUS then there is a $100 fee for cancelling within the first year of your contract, Bell has a “data Service Price Adjustment” charge of $200 for early cancellations of data devices like smartphones.
  • Each one has a minimum of $100 to cancel your cell phone contracts

If you bought a smartphone on a 3 year contract with a $45 monthly plan and wish to cancel your contract after 6 months of usage, then your cancellation charges will be:

  • For TELUS:  $400 (early termination charge) + $100 (data early cancellation fee) + $45 (one month of cancellation charges) = $545
  • For Rogers:  that’s $400 (early termination charge) + $100 (data early cancellation fee) + $45 (one month of cancellation charges) = $545
  • For Bell: $400 + $200 (data service price adjustment) + $45 = $645

It seems that the best time to cancel your contract is with 5 months remaining, since the minimum applies of $100 + $25 (if on a data plan with Rogers) = $125, providing that you give 30 days notice of course.  These fees are staggering and ridiculous!

13 comments Cell Phone Bills, Industry News, The Cell Phone Blog , , ,
  • Samantha

    This is a great blog. Do you know when these fees came into play? I signed a new deal in Dec of 2007 and I better not be looking at extra fees because i am looking forward to canceling with Rogers.

  • Mel

    FYI…I checked with TELUS recently and they have aligned with Bell/Rogers and now carry a maximum cancellation fee of $400…

  • admin

    Hi Mel,

    Thanks for sharing.
    We will update this blog to reflect this news.
    Take care and talk soon.

    Kye

  • Johanne

    Apparently they have now in quebec, when canceling a cell phone plan they cannot charge those extra fees.

  • mike

    i had a phone with rogers and i called them wanting to recieve the lowest plan possible because i had lost my job and did not want to not pay my bill. their answer was i would have to pay 89$ a month regardless. I than stated i wanted to cancel my plan. They than stated i would have to pay 500$ to cancel. Here`s what i learn’t. Does anybody know about roger`s 10$ a month emergency plan.
    I didn’t and a very good source of mine inside rogers corporate confirmed with me last month that it does exist. Hmmmmm i wonder why nobody takes each president of a telecommunications company and sit them down around a table of hard working Canadians and explain how they live with themselves knowing that they are creating the financial problems in this country by behaving like fu%%ing crooks and they probably should meet the faith of a 16th century thief….off with their heads. Figuratively speaking. One day maybe our government will care about our pocket books and not the thick sickening wallet of rogers, telus or bell. I wonder if they worry about their bills when they go to bed.

  • Benoit

    The problem with cell phone companies is that they ask for a 3 year contract yet the smartphones rarely last more than 1 1/2 years. As a Real Estate Broker in a large agency, I hear this complaint over and over again.

    I am currently doing ”battle ” with Telus. Articles 34 and 35 of the Quebec Consumer Act says that they must provide equipment that will last according to the terms of the contract.

    They have until next Friday to comply or they will find themselves in Small Claims Court- and I will win- free phone.

  • admin

    Good luck.
    Very interested in learning the outcome so keep us posted.
    MCMT Team

  • Luke

    I’m not a fan of Bell but if you sign a year/multi-year contract with a company it is not unreasonable to be charged a fee for canceling if you are still under the contract.

    I’m being charged a Termination Liability Charge for changing to Telus but I am not under contract with Bell and I am having a hell of a time trying to get that charge reversed.

  • Blahblah

    Typical Quebecois entitlement. I’m from Quebec you should give me everything and expect nothing in return.

  • guest

    I just cancelled my Rogers cell account for a smart phone with no cancellation fees at all. How did I do it? I moved. Not really…but as we own property in the Yukon, and Rogers does not have any coverage in the north, I was able to cancel my plan by telling them I was moving north. I gave them an address to check the coverage there and presto..cancelled for NO FEES! How can you do this…find a house for sale in the north (NWT, Yukon, Nun.) copy down the street address, call Rogers and go straight to Tech Support. Tell them you are moving to the address you copied, they check for coverage there, find there isn’t any and then transfer you to cancellations who will be very helpful and cancel for no fees. I had just under 2 years left on my contract.

  • FrackMeister2000

    Advice to anyone on here: Avoid Rogers.

    My credit was impeccable. I qualified for 10+ phones, and spent on average $300/month for my two phone small business. They would not give me a break anywhere. So I went to WIND.

    Details: $40/month/phone for unlimited voice, data and text. Long distance calling as long as in myWind zone (don’t let the big guys scare you about coverage – they do it because they want to keep ripping you off).

    So now, my cell bill is $80 per month vs. $300+. I had to pay $300 per phone to break early, but worth every penny and I will soon reclaim.

    I am now 100% Rogers free!!!!!! Join me….

  • Timetofly945

    I found a great way to get out of my cell phone contract. Tell the Service Rep the you never signed up for the Term that they say and demand that they show you the Contract with your signature… The Cell companies are so screwed up that it take them forever to find the Contract so they will often settle.

  • dweezil boyle

    organized crime!!!