How Military Members Can Get Out of Cell Phone Contracts

by Ryan

If you are like me, you probably don’t like being stuck in a cell phone contract. Unfortunately, canceling your cell phone contract often comes with an early termination fee that can run as high as $200!

The good news is there are ways to get out of your contract without paying any fees. If you are a military member, there are a few extra clauses that allow you to cancel your cell phone contract without paying any early termination fees.

Cancel Your Cell Phone Contract When You PCS

One way to cancel your cell phone contract without early termination fees is when you PCS. You won’t be able to do this every time, but you should be able to cancel your contract if you PCS to a location where your current cell phone provider doesn’t have service, or if you PCS overseas. Be sure to show the cell phone provider a copy of your military ID card and a copy of your orders.

I’ve read about some cell phone providers trying to force military members to continue paying their contracts even when the PCS overseas, but you should insist that they allow you out of the contract.

Cancel Your Cell Phone Contract When You Deploy

Deployments are not always a guaranteed way to get out of your cell phone contract without paying early termination fees, but you may be able to do it. Be sure to take a copy of your military ID and orders with you, or you may be able to fax in a copy.

Your best bet to be able to cancel your contract is when your deployment is for longer than 6 months. If the cell phone provider will not cancel your contract for you, they will probably allow you to place your line on vacation status, which places your contract on hold until you return. You will be able to keep your phone number and will still remain on contract when you return from overseas.

Sell or Transfer Your Cell Phone Contract

If canceling your contract doesn’t work, you may be able to sell or transfer your cell phone contract and avoid early termination fees. You may be able to find a friend or relative willing to take over your contract. All you need to do is call the cell phone provider and do an assumption of liability transfer, which legally transfers your contract to another person – that way you won’t get stuck holding the bill.

If you need help finding someone interested in taking over your contract, you can try posting your phone on Craig’s List, or using a free service like Trade My Cellular, who will match you up with people around the US. You can also try Cell Swapper and Cell Trade USA which provide a similar service for a $20 fee, but seem to have more options.

You have enough to worry about when you serve our country. Hopefully your cell phone contract isn’t one of them.

Related posts:

  1. Servicemembers Civil Relief Act – Military Members Can Receive Reduced Interest Rates
  2. JetBlue Offers $1 Flights for Active Duty Military Members
  3. Why Military Members Should Open Roth IRAs
  4. Free Tax Deadline Extensions for Military Members
  5. Homeowners Assistance Program Helps Military Members Who Lost Money Due to PCS

{ 8 comments… read them below or add one }

Step3

When I went on deployment, I had a Verizon cell phone and a Sprint data card. Since I was only going for 6 months, I called them both and asked to put my accounts on hold. When I returned, I found that Sprint had continued to charge me during the entire time I was gone. I called and asked what happened, and they said that the “hold” only prevented people from using my line, it didn’t stop any payments. I was quite displeased. Now I stick solely with Verizon.

justme

We are currently going through this battle with AT and T wireless. My family PCSed to Germany in May and here it is JUly and they are still claiming that my contract is not terminated. THis after AT and T never gave us the 19 percent miitary discount we were promised (which was the only reason I switched providers) and after they started two lines for me instead of one when I first signed up for service.
The state of cellular phone service in the US is utterly disgraceful.

Ryan

Justme,

I’m sorry to hear about your issues with AT&T. It really is unfortunate because they shouldn’t hold you to a contract when you are not physically in the country. Have you considered going to your base legal office for assistance? They may be able to help. Telling AT&T you will contact the Better Business Bureau may also help.

Another idea is to tell your story to The Consumerist. They may print it which would bring a lot of bad press to AT&T (which they always want to avoid).

I wish you the best in getting the situation resolved.

Jeff

Get out of your cellular contract when you deploy by educating yourself. This is law as of 10/10/2008.

Text of S. 3023 [110th]: Veterans’ Benefits Improvement Act of 2008
Oct 10, 2008: Became Public Law No: 110-389

SEC. 805. TERMINATION OR SUSPENSION OF CONTRACTS FOR CELLULAR TELEPHONE SERVICE FOR CERTAIN SERVICEMEMBERS.

(a) In General- Title III of the Servicemembers Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended by inserting after section 305 the following new section:

SEC. 305A. TERMINATION OR SUSPENSION OF CONTRACTS FOR CELLULAR TELEPHONE SERVICE.

(a) In General- A servicemember who receives orders to deploy outside of the continental United States for not less than 90 days or for a permanent change of duty station within the United States may request the termination or suspension of any contract for cellular telephone service entered into by the servicemember before the date of the commencement of such deployment or permanent change if the servicemember’s ability to satisfy the contract or to utilize the service will be materially affected by such deployment or permanent change. The request shall include a copy of the servicemember’s military orders.

(b) Relief- Upon receiving the request of a servicemember under subsection (a), the cellular telephone service contractor concerned shall–
(1) grant the requested relief without imposition of an early termination fee for termination of the contract or a reactivation fee for suspension of the contract; or
(2) in the case that such servicemember is deployed outside the continental United States as described in subsection (a), permit the servicemember to suspend the contract at no charge until the end of the deployment without requiring, whether as a condition of suspension or otherwise, that the contract be extended.

(c) Cellular Telephone Service Defined- In this section, the term ‘cellular telephone service’ has the meaning given the term ‘commercial mobile service’ in section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)).

(b) Clerical Amendment- The table of contents for that Act is amended by inserting after the item relating to section 305 the following new item:

Sec. 305A. Termination or suspension of contracts for cellular telephone service.

Elizabeth

“(2) in the case that such servicemember is deployed outside the continental United States as described in subsection (a), permit the servicemember to suspend the contract at no charge until the end of the deployment without requiring, whether as a condition of suspension or otherwise, that the contract be extended.”

An explanation of the previous anyone? It says that “without requiring, whether as a condition of suspension or otherwise, that the contract be extended.” AT&T is saying that they will put it in a ‘military suspension’ for my 3 year tour in Belgium, but when I get back to the states, I’m obligated to maintain their company for the 6 months left on my contract right now. This seems asinine and against what was previously stated as a part of public law 110-389…

Ryan

Elizabeth, Try contacting their customer service department, getting a name and employee number of the person you talk to, and repeat the process while working your way higher up the chain. 3 years is unacceptable for something like this. You may also consider contacting your base legal office for more assistance.

Bryce

Not only do you have the law but also their website says:

Military Personnel Can Suspend Their Accounts
Military customers simply bring or send in a copy of their Military Orders. AT&T will hold the account and wireless number in suspended status so the customer can keep the same wireless number upon their return.

Military Cancellations
Military customers simply bring or send in a copy of the transfer documentation or deployment orders. AT&T will waive all early termination fees for those customers called to active duty and/or re-deployed to a non-AT&T service area. Service must be active for over 30 days to be eligible for a Military Cancellation.

Military personnel interested in this program should call 1-800-331-0500 or visit their local AT&T retail store.

Since youe are overseas, and cant receive service. You can cancel.

Erin

We PCS’d from Okinawa Japan 9/2009 the week prior I went into the store to give notice I will be canceling acct. but was told to come back when I want phone off. The day before leaving island I went into store to cancel acct. We left island at and in route I checked to see if my phone was cancelled it was still active. During lay over I contacted Docomo to cancel the phone I was told i had to come into store.

Now its April 2010, the acct is not cancelled. I still fight with them. I have turned in everything they requested. Only problem I no longer have our passports so they won’t cancel it. I also had friends in okinawa try to get this acct cancelled. Nothing is working. I will NEVER use docomo ever again..

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