Trying to understand the termination fee

[jerryhayden]

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.)."

If the termination fee doesn't start decreasing until the 4th month and it takes 26 months to work it down, then including the first 3 months that would be 29 to 30 months total.

I understood I was under a contract for 24 months then I could leave. How does this all work out? I had the Gen5 upgrade done on 6-6-18 so where does that put me at for an early termination fee?

Thanks,

Jerry

[GabeU · Accepted solution]

@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]

Thanks. Makes perfect sense now.

Jerry

[GabeU]

@jerryhayden 

You're very welcome.    

[Liz]

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.