Contract Termination

[BT6LW]

Can someone explain to me why - when I want to terminate a contract

I have 5 months left on the contract - at a fee of R270 a month
I wanted to pay for it upfront - so no more debits of my account / and effectively not making use of it anymore whatsoever -

I phoned nashua mobile who informed me I have to pay R4218 to terminate the contract early.

Now obviously I can just pay the contract monthly - and not make use of the sim (already destroyed-) but why the hell do they charge you that much more?

 

[sly]

includes the phone they gave u..

 

[LandyMan]

Because you suck?
j/k
Most contracts have an early termination penalty clause ... cars/bonds/etc ... It is worked out based on the interest (or in your case phone calls) they will loose out on if you pay it up now

 

[BT6LW]

sly that makes ****all sense -

If I pay the contract in full R270 a month for 5 months I will only pay R1350.
If they terminate it early - ad they save money - I will have to pay R4218

 

[BT6LW]

landyman - I am under no contractual obligation to make calls on the sim card - so binning it saves me / them money

 

[sn3rd]

sly that makes ****all sense -

If I pay the contract in full R270 a month for 5 months I will only pay R1350.
If they terminate it early - ad they save money - I will have to pay R4218

In the terms and conditions, there's usually a clause that mentions a penalty for early termination. It doesn't make a whole lot of sense, but at the end of the day, that's how they do it

Maybe think about opening another account, dumping cash in there and switching your billing over to that account while you just put the sim card in the back of a cupboard somewhere?

 

[BT6LW]

Well, i've already destroyed the sim card -

Oh well - I think it's unethical - but anyway - maybe someone more knowledgable and wise than me can explain it to me

 

[dhez]

thats bs u only owe thelm the remainder of the ct

 

[sly]

sly that makes ****all sense -

If I pay the contract in full R270 a month for 5 months I will only pay R1350.
If they terminate it early - ad they save money - I will have to pay R4218

There is some clause with mtn contracts ....termination fee + cost of the phone = final termination cost. i was in similar situation.. i threw the thing in the bin..
ASK them what extra cost is....

 

[Piesang]

Just be sure to write them a letter stating that you are going to cancel the contract after the 24months and do it early. If you wait too long that 24 months will quickly be 26 or 28 months.

Just remember one thing. They always win.

 

[TKD01]

I had the same situation with TWO contracts... They got you by the b@lls and nothing you can do - man I HATE SA corporates these days...

Do what I did (going overseas so I had to make plan):

I opened another account and left the correct amount in there and changed the debit details to go off the new account... Now the contracts can simply go on without Nashua getting the satisfaction of "cancellation / termination / because we can spit in your face" fees... O ja make sure you ask for a "receipt of termination request" letter where they confirm that you did indeed ask for termination - otherwise they just keep on billing and billing and billing.....