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Cancelling preexisting contract

Elenacoudreau
Great Neighbour / Super Voisin

I have a preexisting contract with another mobile company. I would like to switch to Public Mobile, but there will be a penalty fee to break the contract with my previous company. I heard that Public Mobile will cancel the previous plan, but how does it work in my case?  

3 REPLIES 3

RavingRaven
Model Citizen / Citoyen Modèle

@Elenacoudreau 

Generally speaking the ECF (early cancellation fee) for breaking your contract before 24 months is based on your device subsidy. If you port out in any month before the 24th month begins you will owe the remaining months device subsidy+taxes on the full retail price of the device set by the provider. You would also want to review your contract to see if you also forfeit any "gifts" or other incentives you may have recieved when you agreed to the contract (such as gift cards or points).

The only time that breaking your contract is advantageous to you is in the final month (24th) of your contract. Once you pay your 23rd month's bill in full and if you port out in the first couple of days of your final month then the plan portion of your bill is pro-rated.

(If you port out on day 2 and your plan is $60/month then $60÷30 days=$2/day×2 days=$4 plan costs).

The WCC considers any portion of a device subsidy for a month a full month's payment so if you port out on day 2 of your final month the pro-rated device subsidy is sufficient to pay off the device subsidy for the entire 24 month contract.

(Porting out on day 2 with a $30/month device subsidy=$30÷30 days=$1/day×2 days=$2)

With this example your final pro-rated bill for your 24th and final month of your contract would be $4+$2=$6+tax and any additional charges such as long distance calls etc...


@Elenacoudreau wrote:

I have a preexisting contract with another mobile company. I would like to switch to Public Mobile, but there will be a penalty fee to break the contract with my previous company. I heard that Public Mobile will cancel the previous plan, but how does it work in my case?  


For anything that you owe to the previous carrier, this is a quetsion best directed to them.  Public Mobile cannot asssist with billing matters for another company.  Keep in mind that when contacting your old carrrier to discuss how much will be owed, they will likely attempt to try to convince you to stay with them.

hairbag1
Mayor / Maire

@Elenacoudreau 

once you activate your new PM account AND port your number in, you're old account will close. You'll still be on the hook for whatever costs are for premature departure. You could activate a new PM account and just take a random number for now until you're free of the old contract.

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