Forum Discussion

jerryhayden's avatar
jerryhayden
New Poster
6 years ago

Trying to understand the termination fee

I have read this in several posts: "For the first 90 days after service installation, you pay $400 to break the contract. After that, the amount goes down by $15 every month ($385, $370, etc.)."   ...
Early Termination Fee
  • GabeU's avatar
    GabeU
    6 years ago

    jerryhayden 

     

    The Early Termination Fee is just like you read.  It's $400 for the first 90 days, then $15 less each month thereafter.  The contract is for 24 months. 

     

    The problem is you're working it down to the last month having an ETF of $15.  It doesn't.  The 24th month's Early Termination Fee would be something like $85.  After that 24th month the contract is over, and you can cancel with no ETF. 

     

    Edit:  I forgot to add that only the reps can tell you the exact amount for your ETF right now, but it's most likely somewhere around $265.  

GabeU's avatar
GabeU
Distinguished Professor IV

jerryhayden 

 

The Early Termination Fee is just like you read.  It's $400 for the first 90 days, then $15 less each month thereafter.  The contract is for 24 months. 

 

The problem is you're working it down to the last month having an ETF of $15.  It doesn't.  The 24th month's Early Termination Fee would be something like $85.  After that 24th month the contract is over, and you can cancel with no ETF. 

 

Edit:  I forgot to add that only the reps can tell you the exact amount for your ETF right now, but it's most likely somewhere around $265.  

jerryhayden's avatar
jerryhayden
New Poster
6 years ago

Thanks. Makes perfect sense now.

 

Jerry

 

  • GabeU's avatar
    GabeU
    Distinguished Professor IV
    6 years ago

    jerryhayden 

     

    You're very welcome.  :)  

  • Liz's avatar
    Liz
    Moderator
    6 years ago

    Hi Jerry!

     

    Welcome to the community, thanks for posting. Gabe's explanation is correct! The 24th month's ETF is $85, but once you're beyond 24 months, there is no ETF. If you have any other questions or concerns, let us know, we're here to help.