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Verizon Wireless Changes Contract Policy

Congress, FCC mulling new rules that would limit early termination fees

By Truman Lewis
ConsumerAffairs.com

October 2, 2007 

Starting October 7, new and existing customers will have the option to change their voice and data calling plans -- selecting current plans with different minute allowances or text messaging and data use options -- without changing the end date of their contract.

Verizon says the new policy is part of the Verizon Wireless "Worry Free Guarantee."

Both the FCC and members of Congress have announced intentions to limit the termination fees wireless carriers charge subscribers who want out of their contracts early. In addition, FCC chairman Kevin Martin says he wants the commission to investigate similar fees for cable, Internet and landline contracts.

Last year, Verizon Wireless became the first major carrier to pro-rate its termination fees.

Two Senators have introduced a bill that would require that carriers prorate termination fees, to be reduced by 50 percent after the first year of a two-year contract.

The bill would also prevent wireless carriers from charging fees for service beyond those expressly required by local, state, or federal law, and to expressly notify customers if any service request or upgrade would trigger a contract renewal, as well as giving customers 30 days' notice to cancel the contract.

Test Drive

Verizon says the new policy is part of the company's Test Drive offer, which allows new customers to try the Verizon Wireless network for 30 days with the ability to cancel if they don’t want to continue.

In touting its “customer friendly” marketing position, Verizon also reminded customers that it parted company with the industry by refusing to participate in a wireless directory when customers said they didn't want one. Verizon says its unwillingness to go along effectively killed that project.

“Our commitment to our customers is why we lead the industry in customer loyalty and why more customers use the Verizon Wireless brand than any other,” said Jack Plating, executive vice president and chief operating officer of Verizon Wireless.

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