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Telus Updates Cancellation Policy Effective November 21, 2010

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In other Telus news, this week the wireless company has updated their Early Cancellation Fee policy effective November 21, 2010. The new policy applies to Telus clients who activated or renewed their account on or after November 21, 2010.

The new policy is based on three areas of Telus and your account:

  • The amount of your original hardware discount at the beginning of your current contract.
  • The number of months remaining in your current contract term.
  • A $50.00 administration fee (does not apply in Quebec)

Let’s take a look at an example:

At original activation, a client received a $490.00 discount on a 36 month contract term. After 15 months their cancellation fee will be:

  • Monthly pro-rated discount = $490 / 36 months = $13.61
  • Remaining discount = $490 – ($13.61 x 21 months) = $204.19
  • Cancellation fee = $204.19 + $50.00 Admin fee = $254.19 (in Quebec, exclude the $50 administration fee)

In the example above, the Telus customer would have paid $204.19 to cancel their contract. In contrast, before this policy, that customer would have paid $420.00 ($20.00 x 21 months) but the cap is $400.00.

This new policy does make sense in that customers pay a cancellation fee based on the original hardware discount. Previously, paying the $20.00 per month, did not make sense if, like in the above example, your hardware discount was $490 making your monthly cancellation fee $13.61 instead of $20.00.

Note: Customers who activated or renewed their contract before November 21, 2010 will continue to pay the regular cancellation fee of $20.00 x the months remaining on the contract.

What do you think of this change?

Ed. Note: I find it humorous that Telus charges a $35.00 fee to simply start an account and then a $50.00 fee to end that same account.

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