Now That You Mention It, We Do Charge Early Termination Penalties... Posted by Bob at 04/18/07 01:15 PM

Sometimes it isn't enough for consumers to just read the fine print. Sometimes a needle-in-a-haystack search is required just to find the right fine print to read.

(Interested in what your broadband provider is doing on early termination penalties?)

To wit: Our blog item from last week on high-speed Internet providers increasingly imposing early termination penalties to keep their customers from straying away for a better deal somewhere else.

We went to great lengths to contact the country's top high-speed Internet providers and ask them what we believed was a fairly straightforward question: Do you impose early termination penalties on your high-speed Internet customers?

Several providers -- including cable giant Comcast -- assured us that they did not impose early termination fees, which we reported as part of our blog item.

So imagine our surprise when someone sent us a copy of a recent Comcast memo to a county official in Virginia about a looming rate increase, which, way down at the end, in a footnote, contained the following:

"Two year term agreement required. $150 early termination fee applies if any service is cancelled or downgraded during the 2 year period."

We called Comcast and talked to spokesperson Jenni Moyer, the same person who had told us last week the company didn't impose early termination fees.

She explained the early termination fee referred to in the memo only applies to customers signing up for Comcast's so-called "Triple Play," which is a bundle of phone, Internet and cable television service.

She then said that while certain local Comcast systems (in this case the Spotsylvania County in Virginia) do impose the early termination fees on their Triple Play bundles, the company generally sells its services on a month-by-month basis -- with no long-term contract requirements or early termination penalties.

Indeed, that is what we found when we checked the "Terms and Conditions" section on Comcast's main web site. You can read them for yourself here.

Moyers says Comcast is completely up front with customers about the early termination penalties.

"The customer knows going in what the situation is," said Moyer. "It's all spelled out in the contract."

Yup. In the case of the memo to Spotsylvania County memo, it is spelled out at the bottom of page five of the six page document, in type so small that it is nearly unreadable.

You can read the entire Comcast memo to Spotsylvania County here. We suggest using the "zoom-in" feature on your Acrobat Reader.

And before actually signing up, we suggest you demand a complete contract from your local system and you read all the fine print, including the footnotes at the end.

Are you as frustrated? Do something about it! Tell the FCC to stop broadband companies from charging early termination fees!

comments (69)

1 Posted by Valerie Randolph at 04/29/07 09:55 AM

Whatever happened to "consumer shopping?" This great USA is becoming more and more of a dictatorship between the "big" people and the "little" people (big companies and big government vs. controlled citizens)! Businesses making people stay with them and not giving the "freedom of choice" anymore, no more unions, no more pensions, ridiculous consumer interest rates, no more job security due to outsourcing, consumer price gouging, unaffordable housing, severe lack of medical benefits for all in need, unaffordable education, "freedom of speech" slowly dissipating......shall I go on; it is a sad case of events!

2 Posted by Dennis at 04/29/07 05:12 PM

Your suggestion that the FCC will step in and give the consumer some relief is laughable. The FCC is staffed by members who have ties to the telecommunications industry. They are not interested in passing real reforms that might rock their (gravy) boat. In my area, SBC, Insight, and Comcast are in a 3-way tie to get our business, but all of them have hidden fees and poor service. They are becoming a bigger monopoly than ma bell was before the '84 breakup. Remember money=power in Washington.

3 Posted by Lilly at 04/29/07 05:37 PM

For those of you in Ohio, SBC bought AT&T... not the other way around. SBC now uses the name "The New AT&T". It's a nice trick, allowed them to almost double prices...

I suggest you try First Communications for your landline, and ToastNet for your Internet. Neither
charge a termination fee, both have worked perfectly for me for many years, and part of SBC being allowed to purchase AT&T was that they could no longer have a monopoly on DSL service.
www.toast.net/start or (419)292-2200. Do not put up with the latest round of crap from SBC!

First Communications was formerly ACCERIS.

4 Posted by Kimberly at 05/01/07 08:02 AM

I'd like to mention another practice that Comcast does to its customers that is completely unfair. I live in Georgia. I called on a Friday to have my cable turned on a Monday (that's when the technician arrived) and they began charging me for my bundled service Saturday instead of Monday! When I called they had claimed that they told me this over the phone when I first called to have it set up. They in fact hadn't, told me that this is a common practice and they would NOT credit me the two days. I'd like to see this practice uncovered and have all those that were charged unfairly repaid. If there is ever a class action suit, contact me!

5 Posted by Christine at 05/01/07 10:59 PM

In Rhode Island there is only 1 cable/broadband company, Cox Communications. Until 2004, it was a publicly held company until the owners, Cox Enterprises, decided it should go private (again). CoxComm went public in 1995 when it decided to grow and expand fiber optics in its footprint.
That growth is over, now it is private again to protect it from consumer groups watching its appetite to raise rates.
Please remember the only cable rates that are regulated by the FCC are the basic tier (local network and access tv) and installation charges.
Internet is not regulated, digital tv, hdtv, premium movies and on-demand is not regulated, so the Broadband/Communications companies are able to charge at will.
The teaser of having a bundle service (cable, internet and phone) is laughable because this offer is determined by the company, not the consumer's needs. If you don't need a higher broadband speed for internet you will pay the full rate for the lower speed; if you don't need all the bells and whistles with universal phone too bad.
The consumer is not a customer in the Cable world.

6 Posted by Deborah Anderson at 05/03/07 02:49 PM

Since Comcast DOES charge early termination fees, why isn't this reflected in your article linked to ? Readers who read the overview of all companies, but not the update, will be mislead by the original.

7 Posted by Dave at 05/04/07 09:42 AM

I live in Arizona, and I use Qwest for phone and internet; believe me these people are no better than Comcast! In fact, If you call Qwest, and complain about the telephone service; they will send a tech out to find the problem, but if the "problem" is on YOUR end, they charge you $85.00. And you will NEVER know if the tech ACTUALLY came out! You must take they're word for it! And they have an "early termination" fee!
Do not do business with Qwest if another choice is available.

8 Posted by Karen Mendheim at 05/06/07 02:54 PM

I recently signed up with "The New AT&T" for their bundled package of ultra high-speed DSL, long distance, and DIRECT TV. I only wanted the DSL, but thought I had to buy the whole deal to get it. Because the Direct TV offer was being touted by AT&T, I thought the Direct TV charges were part of the $117 monthly charges. Also, AT&T was going to charge me an additional $5 for an additional room for DIrect TV. When I received my first Direct TV bill I stupidly ignored it, thinking it was an error. When I got the second bill, I called AT&T to cancel the bundled package. AT&T SORE they had told me I would be billed separately. My sister had gotten the same spiel, and she understood it the same way I did. When I called Direct TV to cancel their service, I was told I would have to pay $125 in early cancellation charges. I am angry at AT&T for not making it clear that I would pay two separate bills. I stayed with AT&T because they are my landline phone, but I will not get anything more from them.

9 Posted by Walt-Bethlehem, PA at 05/08/07 12:51 PM

I am very upset with our situation here in Bethlehem, PA. We have (1) cable, internet and telphone company (RCN) for our locality and that's the only choice we have! Unbelievable...no competition and rate increases almost at will. Direct TV is an option but telephone and internet are not. HELP!!

10 Posted by Jason at 05/08/07 02:57 PM

I just wanted to say that I've had Comcast internet at three different locations (including two simultaneously right now). The simple fact is that they offer a very fast connection compared to other broadband ISPs I've had or heard about.

But that's only when everything is going fine. Any time I've needed any kind of support from them, from billing or technical issues, it's been a complete struggle. The billing department was applying our payments to the wrong address at one point through no fault of mine, and it took over a dozen calls to get them to fix it, even though they repeatedly said they had (they even disconnect our service twice and then admitted they shouldn't have). Also I had to live with extreme packet loss popping up intermittently (making the connection nearly unusable for hours at a time) for over three months at one point.

I repair computers for a living and likely know more about networking protocols than 95% of the techs at Comcast. And every time I've had to call them for a technical problem, I tried to insure I could prove it was their fault, because it's usually a fight to get them to fix any issue that isn't readily obvious and in whatever little manual they no doubt follow.

11 Posted by Norm at 05/13/07 06:49 PM

I'm mad as hell and not going to take it any more. Phone Companies, internet services, credit card companies and corporations in general are squeezing the life out of middle class Americans who are being screwed by greedy corporation in the name of higher profits. I blame the Bush Administration and their terrible leadership that has brought "Our Nation" to Hell in a Handbasket. This bunch of self-centered, arrogant nit wits has enabled this kind of business to become fair game in America. Since the President chooses to support the interest of Corporations over the Constitution (We the People), now is the time for Congress to act, particularly now that it no longer has Republican majority rubber stamp that lines the pocket of the wealthy and greedy.

12 Posted by Bev. at 05/14/07 11:29 PM

We switched from AOL to Netzero 3 years ago. I've thought of going high speed, I have it at work, but we've been using dial up since 1996 and we're used to the slowness of it. Netzero is far better than AOL. I really don't like dealing with Comcast. I have basic basic cable with them, the only reason I have it is for PBS & CBC. They are constantly changing the line up, and downgrading services, and now beginning in July it will cost $1.99 to pay the bill in person at my local office. Their customer service is terrible, and they don't respond to emails. There's now point contacting the BBB with your complaints about any of these companies as they are in the pocket of big business and the Republican Party. Your best bet is to contact your State Att. General, if you have a good one, or the Bad Business Bureau. I've found the Bad Business Bureau to be most helpful with information on corporations to look out for.

13 Posted by Sally at 05/16/07 09:24 AM

In our previous home we had Comcast & it was great. I was dying for Comcast's buyout of Adelphia to be put in place for the past 2 years! Last week I called Comcast to upgrade my service to get the sports package for my teenage son. I was also gung-ho to get Comcast Digital Voice for my home landlines (2) to cut my costs (compared to Verizon) on these seldom-used but essential numbers. Two days, 3 managers, a tech housecall, and 6 hours of wait time on the phone (both me and their own tech!), I finally have the sports package and an above-ground cable running through my yard, and I had to cancel the installation of the Digital Voice to get even that in place! Apparently there is no "Chinese wall" between the Digital Voice & the horrendous TV cable divisions, so the two orders were tied together, keeping me from getting a simple channel turn-on until I got the phones! Cancelling even a pending order is next-to-impossible. And who knows when they'll actually get out to my yard to bury the new cable since they claim the original one was too old & causing a weak signal. I think the lawn service will have lots of fun mowing around this one for the summer... For the record, I am no longer a fan of Comcast and will never give them my phone service.

14 Posted by Rob at 05/17/07 11:17 AM

I live in southwestern Pennsylvania and have only my ISP with ATLANTIC BROADBAND(formerly Charter Communications). I have not had any problems getting technical suppport from them and was considering looking into the newly touted Verizon "fios" bundle of phone, internet and cableTV, but reading the above postings has made me think if the "dollar" deal is too good to be true. I think I will keep with Atlanticbb.net for my internet service and Verizon for my telephone, separately. Thank you for the information.

15 Posted by Richard at 05/21/07 02:04 PM

We live in rural Illinois, with lots of small towns. Cass Cable is the only game in town and they know it. I subscribed to their high-speed internet only to find out by using a "ping" program that their service during peak user times was worse than the dial-up speeds I had given up. Packet loss was horrific and staying online was nearly impossible. They don't mind charging full high speed rates for their ancient and ridiculously overburdened decrepit equipment. I changed to DSL with another company, and it is swift compared to to anything Cass Cable has to offer.

16 Posted by Patrick Dacey at 05/25/07 06:04 PM

The only thing wrong with "cable" are the scrooges running it and charging for "tiers" of service, in lieu of, a channel by channel selection by the customer,via "a la carte", like that's ever going to happen!

17 Posted by Pete at 05/26/07 01:10 AM

This topic has hit a sore spot. When choosing an internet or phone provider, it's a matter of picking the least of the evils, and it seems they are ALL striving to become the worst. Here in northern N.J. we have Patriot Media cable, Verizon phone, and Verizon Wireless. I swore I'd cut the cable when it went above $50, and now we're over $120 - granted, that is partly due to having added broadband. (Dial-up in our area is terrible from any ISP because of the poor condition of the Verizon infrastructure). When your younger son moved out, we turned-in our 3rd cable box, expecting reduction in our monthly bill. SURPRISE! It went WAY UP. Simultaneously, our one-year broadband contract had ended, and they took that as an opportunity to put the screws to us. To add insult to injury, they have a new T.V. ad campaign in which they've REDUCED the monthly rate from $29.95 to $19.95 - FOR NEW SUBSCRIBERS! Verizon is currently deploying FIOS, but it is not yet available in our area, so we are stuck with PatMedia and NO COMPETITION. But, we've also had bad experiences with Verizon/Verizon Wireless, so...
It's discouraging to hear in another post that the FCC has no teeth. In my experience with the BBB, they were worse than useless (when we had a serious problem with a homebuilder). Does that mean that the policies of the communications industry are totally unregulated?
My solution? I'll be moving to Montana as soon as logistically possible. The services out there are certain to be better - or the providers will have to deal with me and the new shotgun I plan on purchasing (as protection from any aggressive grizzly - I'm normally very easy going)!

18 Posted by Philip Brenner at 06/24/07 09:35 PM

I've subscribed to directv since 1/04.when I called to cancelled my service on 6/07 I was informed that there was a $100.00 early termination fee because one of my receivers had to be replaced a few months ago,according to directv because of that a one year service commitment was required. I am going to dispute this charge with Discover and see what happens.

19 Posted by Caroline McKinnon at 09/14/07 12:27 PM

In May 2007 I informed AT&T of my move to another location and wanted to transfer my landline and high speed internet service. They said sure, then informed me they did not provide service at the new location !! They have the nerve to expect me to pay them an early termination fee of $99 because THEY are unable to keep their end of the contract. What???? I informed them verbally and also in writing that I wished to continue to have their service, and to please provide it at my new address. Why is their refusal still a license to collect $99 from me? I received a Collection Agency demand for said $99. So now what? Sending copies of my formal complaint to the FCC and the State Atty General's office ain't gonna cut ice with them, no doubt. So I am blackmailed, essentially, into paying the greedy sods $99, right? Way to go America. You may guess I am an expat from the UK who is appalled, enraged and disgusted with what this country allows the socalled free market to impose on its poor old citizens, and non citizens alike. Equal opportunity ripoffs I suppose.

20 Posted by Derek BUrris at 12/08/07 01:05 AM

This is typical all over the place. The fact is companies can get away with it because you have no other choice, the government allows these small monopolies due to the fact that the logistics of having several communications grids lying on top of each other is way too expensive and very cluttered. I mean if you think about it, if you have 5 companies that offer you cable, they either have to A) share the equipment used to transport the data or B) have 5 different communications Grids lying on top of each other. Now there is competition over regions that these companies are allowed to provide service too. Normally I’m not too into government involvement in business, but i think if they are going to allow these miniature monopolies to exist, there need to be stricter regulations and guidelines, along with closer monitoring. Just a thought.