Leaders of the nation's
consumer and public interest organizations want the heads of the wireless industry to immediately suspend charging
early termination fees (ETF's) on any subscriber who loses a
job.
Due to high unemployment rates, consumer and public interest
leaders, in a
letter to the wireless industry, urged the wireless
industry to take the pro-consumer step of allowing subscribers
who have become unemployed to cancel their service contracts
without incurring penalties that could add to their financial
burdens.
The letter was signed by Consumer Action, the Maryland Consumer Rights Coalition, Media Access Project and the National Consumers League.
ETF's vary by carrier but can cost consumers upwards of $150 per line of service. For consumers on multiple-line "family" plans, being unable to pay for a service plan can threaten them with ETF's of several hundred dollars or more.
The consumer and public interest leaders noted that wireless devices can be essential links for unemployed and underemployed to their support networks and prospective employers. As such, they further urged the wireless industry leaders to allow subscribers who request it to migrate from unaffordable service plans to plans with lower monthly service fees or prepaid plans, again without incurring ETF's.
As the unemployment rate approaches ten percent, millions of
consumers need to find ways to save money due to job loss or
having their working hours reduced," said Sally Greenberg,
National Consumers League Executive Director. "For many of these
consumers, a big expense is wireless phone service.
Unfortunately they are often locked in to expensive services
that they can't afford to keep, but also can't afford to cancel
due to hefty early termination fees. The wireless industry can
help such consumers by allowing them to cancel their contracts
without incurring the financial burden of ETF's."
"With this small change in policies, wireless phone carriers
could offer big help to struggling households reeling from job
losses," said Linda Sherry, director of national priorities,
Consumer Action. "It is also a positive public relations move
that will build customer loyalty in the long run. It is
surprising the companies didn't think of it first."
"Cell phones can play a vital role in people's lives, but
consumers who are in perilous financial situations should not be
penalized for their efforts to trim their expenses and get their
household budgets in line," said Charles Shafer, president of
the Maryland Consumer Rights Coalition. "We urge the wireless
industry to waive the ETF's for those who have lost their jobs."
For the letter, click
here
(PDF format).