Cell phones can be tricky business. Although there are some companies that offer contract-free services, they are typically very limited in nature. For those of us looking for a national service plan or a technologically advanced phone, our only option is to go with a big name company and sign their lengthy service contract. As we all well know, getting out of a cell phone contract is nearly impossible, or expensive at best.
Backing Out Of Business
When debts get accumulated and the contract defaults, the consequences can be quite steep. Cell phone companies usually waste no time calling in the debt collectors. You may find yourself on the top of debt collection calls, with damaged credit and even being denied for a new contract with another company. However, there are ways to fight the debts if you feel you aren’t liable for the debt or were not in violation of the contract agreement that do not include the need for bankruptcy.
If there are questions about debt liability, the first step would be to request debt verification. By law, companies are required to provide you with proof of the debt liability. Typically, the company has 55 days to provide proof of debt liability, otherwise their claim may be invalid. If the company cannot provide you with this information, you may have legal grounds to fight the debt. Assuming the debts are verified to be yours you must resolve the debts in order to prevent credit damage and move forward. However, you may be able to negotiate a payment schedule that fits your budget.
If there are questions about violating the contract agreement, request a copy of your original contract agreement. Most companies hold 2 year agreements on their terms of services. If you signed the contract agreeing to the two years and cancelled prior to this date, you will be responsible for the debt. However, check the language of the contract terms carefully as there may not be any specified contract length or outlined penalty for default.