Verizon Wireless has agreed to pay $21 million to settle a lawsuit filed by customers in California that involved the company’s early termination fees. At press time, the details of the settlement had not been finalized. The settlement will have to be approved by the Alameda County Superior Court. Those customers who paid fees to end their contracts early will be entitled to payment from the settlement.
Telecommunications companies charge early termination fees that can range from $150 to $225 when customers cancel their service contracts before they expire. Wireless companies have said they must charge the fees so as to recover the cost of cellphones, which they subsidize when they sign up customers for long-term service contracts. Customers of six companies sued the carriers in 2006 in Alameda County Superior Court, saying that the fees violated California law.
Source: Associated Press
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