Investigation Finding Report

After analyzing the information and evidence from both parties, we determined that the service provider reasonably performed its obligations towards the customer and found no error in its handling of the issues brought forth.

Issue 1: The customer’s complaint is that the service provider incorrectly charged the customer an early cancellation fee to cancel their service.

• The customer’s complaint is that they were charged early cancellation fees when they cancelled their Apple Watch and a wireless phone line on December 21, 2024, earlier than the two-year commitment period on their contracts. The customer alleges they were not informed that they would be charged early cancellation fees, and they dispute the legitimacy of these fees.
• The customer has another phone line, which is not in dispute.
• We reviewed the service provider’s Terms of Service and confirmed the following:
  • When a customer cancels their service before the end of their commitment period, the customer is responsible for all remaining charges, including device balances, up to the time the service is cancelled.
  • Any recurring charges that were billed at the beginning of the billing cycle will be partially refunded, so the customer will be charged only for the time their service was active.
  • The customer had a 15-day trial period during which, if they were dissatisfied, they could return the phone for a full refund or cancel the service with no cancellation fees.
• We reviewed the customer’s two contracts and confirmed:
  • The Apple Watch contract included:
    • A two-year commitment ending on October 30, 2026.
    • A tab balance of $240.00 as well as a starting tab bonus of $240.00, both of which would be reduced each month by $10.00 until the end of the two-year commitment period on October 30, 2026, at which point the balance would be $0.00.
  • The customer’s phone contract included:
    • A two-year commitment period ending on July 31, 2026, for a Samsung Galaxy Z Flip6 256 GB 5G Android smartphone, with a tab balance of $1,226.00. This balance would be reduced each month by $51.09 before taxes until it reached $0.00.
    • A starting tab balance of $360.00, which would be reduced by $15.00 per month until the two-year commitment period ended on July 31, 2026.
    • Monthly service charges of $74.97.
• We reviewed the account notes and confirmed:
  • On December 21, 2024, the customer and their partner were at a store and ported out their Apple Watch and their phone number to a different service provider under a subsidiary company.
  • On January 15, 16, and 18, 2025, the customer called and stated that they had transferred the Apple Watch and their phone number to another service provider (a subsidiary) and that they did not want to pay the early cancellation fees. The service provider suggested the customer port the Apple Watch and the phone number back to them and return the new phone that they had bought. The service provider confirmed this would void the early cancellation fees on the customer’s account. The customer declined the offer.
  • On February 4 and 17, 2025, the service provider offered the customer the same option to port the Apple Watch and the phone line back to the service provider and return the new phone, which would remove all early cancellation fees from the account. The customer declined the offer, stating they had bought accessories for the new phone and wanted to be reimbursed for them.
• Next, we reviewed the customer’s January and February 2025 invoices and confirmed:
  • The January 7, 2025, invoice included the following charges:
    • The watch line included charges of $220.00 for the tab bonus and $220.00 for early cancellation, before taxes, for a total of $506.00 after taxes.
    • The phone line included charges of $970.55 for the remaining phone balance and $285.00 for early cancellation, before taxes, for a total of $1444.23 after taxes.
    • Total early cancellation fees were $1999.79 (taxes included); including the balance forward from December 2024, the total invoice was $2,058.09.
  • The February 2025 invoice included:
    • A balance forward of $2,058.09.
    • New charges, including $59.89 (late fees) and service charges for the phone not in dispute. The total balance on the account was $2162.68.
• The customer claimed that they might have other evidence from the service provider, such as personal notes or SMS chats to share. However, while we requested the information, the customer was not able to provide any additional information to the CCTS. As such, our investigation relies on the evidence available.
• In addition, we must note that conversations between in-store representatives and customers are not recorded and, as such, we are not able to confirm with certainty whether the customer was or was not informed about early cancellation fees on December 21, 2024, when they ported out their phone and their Apple Watch earlier than their two-year commitment end dates.
• The service provider confirmed in an email to the CCTS that the customer’s account has not been sent to collections for the outstanding early cancellation fees applied to their account; currently there is a collections hold on the account pending the outcome of the investigation.
• After a review of the account notes, contracts, invoices and Terms of Service, we find that the customer ought to have been aware that there would be an early cancellation fee applied to their account when they cancelled their phone and Apple Watch lines earlier than the commitment date. Also, as noted earlier, we cannot confirm with certainty what transpired at the service provider’s store on December 21, 2024, when the customer ported out their watch and phone.
• Further, we also acknowledge that the customer declined the service provider’s offer to reduce the customer’s balance to zero if they ported back their devices and returned the new phone to their subsidiary company.
• Therefore, given that the early cancellation fees are outlined in the Terms of Service and the contracts, we find that the provider reasonably fulfilled its obligations.