Comment Double Double Fees (Score 1) 319
These termination fees don't apply just to the whole contract. If you add a family member in for the $9.99/mo, they get their own phone number (duh), which is effectively another contract. If that family member leaves before the end of the contract, they own the remaining balance on the termination fee. The primary holder on the account can also be hit for the remaining balance of the termination fee if they cancel early too.
So, if you subscribe your wife and/or girlfriend on to the plan 18 months into a 24 month plan, they charge you $9.99 a month. I don't remember if they charge a fee to set up the phone, but the cynical side of me says that they probably do. If your significant other dumps you in the 23rd month of the contract, they can prorate the termination fee any way they want. They may take their $175 prorated to remove (23-18=) 5 months and you owe the rest. Then, when that is done making you mad and you decide to leave a month early, they'll hit your side of the contract with the prorated termination fee too.
Oh. Did I forget to mention this: when your significant other left you in month 23 and you canceled her phone, you automatically signed yourself up for a different plan. So, if you go to leave at the end of month 24, they find a way to prorate the termination fee because you are leaving the new plan early.
This is insane, you say? Then go to a pay-as-you-go plan where the profits are really juicy. Go ahead. I dare you.
I'm just glad none of these fuzzballs got bailout money. Or at least I'm hoping they didn't.