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Contract early termination fees, does this sound right?

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tasilva
New Member

Contract early termination fees, does this sound right?

Hi all.

 

I have talked to several people in regards to the early termination of my business class Comcast service.  I am closing my business and moving to an area where Comcast does not serve.

 

I have been told that if I cancel I will have to pay 75% of the balance left on my contract (around $3000).  

 

My question is this:  as I read the contract it reads nothing in regards to early termination fees in regards to Termination for Cause.  Section 5.2 of my contract reads:  "(c)A Service Order may be terminated by either party immediately upon notice if the other party has become insolvent or involved in liquidation or termination of its business, or adjudicated bankrupt, or been involved in an assignment for the benefit of its creditors."

 

It then goes on to state in Section 5.3 "5.3Effect of Expiration or Termination of the Agreement or a Service Order. Upon the expiration or termination of a Service Order for any reason: (i) Comcast may disconnect the applicable Service; (ii) Comcast may delete all applicable data, files, electronic messages, voicemail or other information stored on Comcast’s servers or systems; (iii) if Customer has terminated the Service Order prior to the expiration of the Service Term for convenience (my underline added), or if Comcast has terminated the Service Order prior to the expiration of the Service Term as a result of material breach by Customer, Comcast may assess and collect from Customer applicable Termination Charges; (iv) Customer shall, permit Comcast access to retrieve from the applicable Service Locations any and all Comcast Equipment (however, if Customer fails to permit access, or if the retrieved Comcast Equipment has been damaged and/or destroyed other than by Comcast or its agents, normal wear and tear excepted, Comcast may invoice Customer for the full replacement cost of the relevant Comcast Equipment, or in the event of minor damage to the retrieved Comcast Equipment, the cost of repair, which amounts shall be immediately due and payable); and (v) if used in conjunction with the terminated Service, Customer’s right to use applicable Licensed Software shall automatically terminate, and Customer shall be obligated to return the Licensed Software to Comcast."

 

These 2 sections lead me to believe that as I am terminating the contract for Cause, rather than convenience, the early termination fees should not apply.  However, I am being referred to subsection (d) of Section 5.2 which reads "

(d)Termination by either party of a Service Order does not waive any other rights or remedies that it may have under this Agreement." which they claim is where they have the authority to continue to charge me the 75% of the balance left on the contract.

 

Does anyone have any information on this?  I can prove going out of business as well as my move.  I just don't want to get stuck paying for service I no longer can use and I really don't have someone to refer to them or someone who can use the service that I want to pay for (their suggested other options).  

 

Thanks in advance.  I appreciate any help on this.

Accepted Solution

Re: Contract early termination fees, does this sound right?

Thanks for the post, and we’re sorry to hear you’re closing your business.  If you are going through bankruptcy, your trustee can send documentation to your local office as each state has different laws regarding payment for services during and after bankruptcy.  Moves out of area or closing a business for reasons other than bankruptcy are considered for convenience.  If you have further questions on contract interpretation, we suggest reaching out to your attorney.

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Accepted Solution

Re: Contract early termination fees, does this sound right?

Thank you for that clarification Julie.  

 

Is there somewhere in the contract that defines that?  All I can see is the section that reads:

"(c)A Service Order may be terminated by either party immediately upon notice if the other party has become insolvent or involved in liquidation or termination of its business, or adjudicated bankrupt, or been involved in an assignment for the benefit of its creditors."  it seems that "termination of its business" is not dependant solely on bankruptcy, that is listed after the comma.  I am not declaring bankruptcy.

 

This is how the contract defines Termination for Convenience, which is listed just before Termination for Cause: "5.1Termination for Convenience. Notwithstanding any other term or provision in this Agreement, Customer shall have the right to terminate a Service Order, or this Agreement in whole or part, at any time during the Service Term upon sixty (60) days prior notice to Comcast, and subject to payment to Comcast of all outstanding amounts due for the Services, any and all applicable Termination Charges, and the return of any and all Comcast Equipment."

 

As such, I believe I am right that I am not terminating for convenience, I am terminating for cause.  Since this is the case, I do not believe I should be assessed that 75% penalty.

 

In addition, what about the fact that even if I wanted to continue my service (for instance, at my home), I can prove I live in an unservicable area.  Does that not have any effect on the termination of the contract?

 

I truly appreciate your help.  

 

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Accepted Solution

Re: Contract early termination fees, does this sound right?

After many calls trying to transfer to the new location - it turns out the new location has no comcast service.

Then I was told I still need to pay termination fees - for services I will not receive.

 

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Accepted Solution

Re: Contract early termination fees, does this sound right?

Same problem here. Closing my small home office business and since I'm not going through bankruptcy and have no assets to report to IRS they won't waive the ETF. Added on that I'm moving to an RV park they can't deliver service too (park won't allow it). While these fees don't hurt large corporations, they kill small sole owner businesses that sign up in good faith.

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Accepted Solution

Re: Contract early termination fees, does this sound right?


Comcast_Julie wrote:

Thanks for the post, and we’re sorry to hear you’re closing your business.  If you are going through bankruptcy, your trustee can send documentation to your local office as each state has different laws regarding payment for services during and after bankruptcy.  Moves out of area or closing a business for reasons other than bankruptcy are considered for convenience.  If you have further questions on contract interpretation, we suggest reaching out to your attorney.


You can consider them whatever you want, the terms of service specifically state that termination with cause applies in the case of termination of business. In the document (Section 5.2)  they are separated by a comma meaning each is an individual reason for termination with cause by the customer which is specifically waived from the ARTICLE 1 Definition of Termination Fees. There is NO verbage that states specifically that termination of business is considered termination for convenience and further in the case of abiguity the contract writer must concede.

 

I have consulted legal counsel and termination of business is sufficient under the terms and conditions we all have agreed to  via the SOA. Both in this case and my own Comcast is obligated and bound by the T&C to waive ETF for termination of business.

 

Greg

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6 REPLIES
Official Employee

Re: Contract early termination fees, does this sound right?

Thanks for the post, and we’re sorry to hear you’re closing your business.  If you are going through bankruptcy, your trustee can send documentation to your local office as each state has different laws regarding payment for services during and after bankruptcy.  Moves out of area or closing a business for reasons other than bankruptcy are considered for convenience.  If you have further questions on contract interpretation, we suggest reaching out to your attorney.

tasilva
New Member

Re: Contract early termination fees, does this sound right?

Thank you for that clarification Julie.  

 

Is there somewhere in the contract that defines that?  All I can see is the section that reads:

"(c)A Service Order may be terminated by either party immediately upon notice if the other party has become insolvent or involved in liquidation or termination of its business, or adjudicated bankrupt, or been involved in an assignment for the benefit of its creditors."  it seems that "termination of its business" is not dependant solely on bankruptcy, that is listed after the comma.  I am not declaring bankruptcy.

 

This is how the contract defines Termination for Convenience, which is listed just before Termination for Cause: "5.1Termination for Convenience. Notwithstanding any other term or provision in this Agreement, Customer shall have the right to terminate a Service Order, or this Agreement in whole or part, at any time during the Service Term upon sixty (60) days prior notice to Comcast, and subject to payment to Comcast of all outstanding amounts due for the Services, any and all applicable Termination Charges, and the return of any and all Comcast Equipment."

 

As such, I believe I am right that I am not terminating for convenience, I am terminating for cause.  Since this is the case, I do not believe I should be assessed that 75% penalty.

 

In addition, what about the fact that even if I wanted to continue my service (for instance, at my home), I can prove I live in an unservicable area.  Does that not have any effect on the termination of the contract?

 

I truly appreciate your help.  

 

jianjun396
New Member

Re: Contract early termination fees, does this sound right?

Same problem and question here.

jianjun396
New Member

Re: Contract early termination fees, does this sound right?

After many calls trying to transfer to the new location - it turns out the new location has no comcast service.

Then I was told I still need to pay termination fees - for services I will not receive.

 

omnidynmc
Visitor

Re: Contract early termination fees, does this sound right?

Same problem here. Closing my small home office business and since I'm not going through bankruptcy and have no assets to report to IRS they won't waive the ETF. Added on that I'm moving to an RV park they can't deliver service too (park won't allow it). While these fees don't hurt large corporations, they kill small sole owner businesses that sign up in good faith.

omnidynmc
Visitor

Re: Contract early termination fees, does this sound right?


Comcast_Julie wrote:

Thanks for the post, and we’re sorry to hear you’re closing your business.  If you are going through bankruptcy, your trustee can send documentation to your local office as each state has different laws regarding payment for services during and after bankruptcy.  Moves out of area or closing a business for reasons other than bankruptcy are considered for convenience.  If you have further questions on contract interpretation, we suggest reaching out to your attorney.


You can consider them whatever you want, the terms of service specifically state that termination with cause applies in the case of termination of business. In the document (Section 5.2)  they are separated by a comma meaning each is an individual reason for termination with cause by the customer which is specifically waived from the ARTICLE 1 Definition of Termination Fees. There is NO verbage that states specifically that termination of business is considered termination for convenience and further in the case of abiguity the contract writer must concede.

 

I have consulted legal counsel and termination of business is sufficient under the terms and conditions we all have agreed to  via the SOA. Both in this case and my own Comcast is obligated and bound by the T&C to waive ETF for termination of business.

 

Greg

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