AT&T sent me a notice detailing that the old ETF is no longer in effect. If you remember, AT&T charges an early termination fee (ETF) of $175 if one cancels the 1-year or 2-year contract with them which was initially used to get a larger subsidy on the cost of the phone. For people who have paid full price for the phone, like me, this was never a good idea and one of the reasons AT&T managed to keep their tentacles hooked into me.
According to the notice, AT&T wireless and Cingular customers who’ve had service any time after January 1, 1998 may be in line for their share of a $18 million cash and “cash benefit” settlement. AT&T also notes that this settlement is for their “old” ETF program, and not for the new pro-rated ETFs that they introduced in 2008.
“We strongly deny any wrongdoing, and no court has found AT&T Mobility committed any wrongdoing regarding these fees. However, we have agreed to settle to avoid the burden and cost of further litigation.
It’s important to note that the litigation involves old early termination fee policies of the old AT&T Wireless and Cingular. In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF if you are a new or renewing wireless customer who enters a one- or two-year service agreement.”
With AT&T’s shoddy coverage in the San Francisco area, I am seriously considering breaking my contract and going towards greener pastures.