Calfiornia Courts Find Early Termination Fees Illegal

Superior courts in California made a ruling on the practice of early termination fees for customers wanting to end their contract early on a carriers network illegal this week. The court ordered Sprint-Nextel to pay back $18 million to reimburse customers and stop collecting another $54 million from other customers who were charged because of the fees. With levying of early termination fees, experts say that with judgments like this in place, carriers will lose the power to keep customer locked into their contracts for multiple years at a time. The FCC is looking into the policy to keep early termination fees or terminating them.