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Consumer Alert

Satellite subscribers face stiff penalties for early cancellation

By Mitch Lipka
Globe Correspondent / August 29, 2010

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Among the persistent themes in the world of consumers over the years has been the steady barrage of complaints against satellite TV companies. People are forever beefing about their relationships with the providers after learning the hard way that they handle cancellations the same way that cellphone providers do — with penalties.

The thing is, most consumers seem to be aware of the penalties for the early cancellation of a cellphone contract. Quite a few don’t seem to have a clue about that clause in their satellite TV contracts.

The Better Business Bureau, which collects complaints from consumers, said its offices have received 53,000 complaints against the satellite companies over the past three years. Even though they have many millions of subscribers, that’s still an awful lot of complaints.

“Many complaints to the BBB about satellite providers stem from steep cancellation fees,’’ said Nancy B. Cahalen, chief executive of the Worcester-based BBB of Central New England. “If customers aren’t satisfied with their service or they can’t afford the cost after the introductory period, it isn’t that easy to cancel because the early termination fees can run into the hundreds of dollars.’’

The companies maintain that they are straight with their customers and make an investment in starting new service by delivering costly equipment and setting it up.

OK, so now what? Well, if you haven’t already signed up for the service, pay attention to the little writing if you decide to get satellite service. If you have already signed up, you should go back and check your contract if you’re thinking about quitting so you can decide if you really ought to do that given the costs.

Also, be aware that just because a sales clerk told you that you won’t face any early cancellation penalties, it doesn’t mean that’s true. Sales people sell. And many of the complaints from satellite TV customers to the BBB involve consumers saying they were misled by the person who sold them on the service.

Always read what you’re agreeing to. In the end, if you signed a piece of paper that says you agree to pay a charge if you cancel — regardless of whether it’s over your displeasure with the service you’re receiving — you’re going to be on the hook.

Mitch Lipka is the Consumer Ally for AOL’s WalletPop.com and lives in Worcester. He can be reached at ConsumerNews@Aol.com.