Getting out of your cellphone contract without paying the cancellation fee

Posted Nov 29, 2006 by Victoria Lim

Updated Nov 29, 2006 at 05:34 PM

Celltradeusa is a “matchmaking” website for consumers and their cellphone services.  It can help you avoid the $150+ fee you’ll have to pay to get out of your contract early.

This is an option we already have, but the common problem is finding someone to assume the remainder of a contract.  Assuming the remainder of another person’s contract can be more attractive than going the pre-paid route because typically with longer term contracts, you get more minutes and better phones at cheaper rates.

Here’s how the website works: consumers who want to get out of the contract and get in on the contract submit their information for free.  The consumer who holds the contract pays the site $20 to get their “matches’” information.  The site also provides information on the type of paperwork you need to ask for from the service providers to make the transfer of liability.

Make sure you trust the person who will assume your contract.  If he/she doesn’t pay the bill, it could ultimately come back on you and your credit.

If you want to keep your number, you can, thanks to the portability law.  Make sure you arrange that with your new service.

To make your contract more attractive when you post on Celltradeusa, founder Eric Wurtenberg suggests you include incentives like your phone and accessories for free.

The consumer leaving a cell phone service provider must leave the account in good standing; and the consumer willing to pick up the contract must pass a credit check.