Early Termination Fees are part of the wireless industry. These companies invest quite a bit of hope that you’re going to sign that two-year contract and actually stick to your word, so they can continue to reap the benefits of your monthly payments. But, if you choose to drop out of your contract early, they need to recoup some of that money — hence an ETF. At least, that’s the story. But unfortunately, Verizon’s previous flat-rate $175 ETF situation wasn’t the best, and customers demanded action.
The lawsuit has been making its way around the court system since 2008. And while the main lawsuit was settled out of court pretty much right off the bat, that didn’t take care of everything. Appeals were still tainting the procedure, but they’re finalized now. Unfortunately for Verizon, it means they’re about to spend a tidy sum to put all of this mess behind them.
Customers caught up in the lawsuit will be paid out $87.50, and when added up for all of those involved, that equals $21 million in total out-of-pocket payments. No word on when the payout will be finalized and monies shipped out to their rightful owners, but it probably won’t take too long.
[via Mobile Burn]