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Trying to understand the termination fee

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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.)."

 

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

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Distinguished Professor IV

Re: Trying to understand the termination fee

@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.  


AMD FX-6100 | Samsung 250GB 840 EVO SSD | Western Digital Blue 500GB HDD | 16GB DDR3-1866 | EVGA Geforce GTX 550ti | Windows 10 Pro 64-bit

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4 REPLIES 4
Distinguished Professor IV

Re: Trying to understand the termination fee

@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.  


AMD FX-6100 | Samsung 250GB 840 EVO SSD | Western Digital Blue 500GB HDD | 16GB DDR3-1866 | EVGA Geforce GTX 550ti | Windows 10 Pro 64-bit

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New Poster

Re: Trying to understand the termination fee

Thanks. Makes perfect sense now.

 

Jerry

 

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Distinguished Professor IV

Re: Trying to understand the termination fee

@jerryhayden 

 

You're very welcome.  Smiley Happy  


AMD FX-6100 | Samsung 250GB 840 EVO SSD | Western Digital Blue 500GB HDD | 16GB DDR3-1866 | EVGA Geforce GTX 550ti | Windows 10 Pro 64-bit
Moderator
Moderator

Re: Trying to understand the termination fee

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.

 

Thanks,
Liz

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