In with the new, out with the old.
With the new decade in its infancy, who wouldn't want to start afresh?
But if out with the old means terminating a cellphone contract, Car Lease or gym membership early, be prepared to pay for the privilege. Depending on the contract holder, it can cost hundreds or even thousands of dollars to pull out of a deal.
Most consumers associate leases with automobile or apartment leases contracts. But the gym membership you signed up for or the contract you negotiated with a cellphone company is actually a lease agreement, and breaking it is a breach of contract. In most cases, the law favors the lessor, the person or company providing the lease.
"There are certain obligations and expectations that take place on both sides of the fence — consumers are one side, companies on the other," said John Sternal, vice president of marketing and communications for Leasetrader.com.
"You've got to read your contracts," said Sternal, who acknowledged that they are often confusing and difficult to understand. And then there's the tendency to assume the best. "It's human nature to say everything is going to be all right," he said.
Cellphones
Verizon Wireless recently announced that it planned to impose a $350 fee on subscribers with BlackBerrys and other smart phones who opt out of their contract early.
"We increased the early-termination fee for advanced devices to reflect the higher costs associated with offering those particular devices to consumers at attractive prices and investing in our network to support these devices," Ken Muche, a spokesman for Verizon Wireless, told the Los Angeles Times last month.
"The majority of cellular providers impose some type of fee for breaking the contract before it is complete," Sternal said.
Early-termination fees can cost hundreds of dollars per line, "and that's just from the carrier. ... If you signed up through certain dealers, such as a kiosk in a mall, it's possible they have an additional early-termination fee," said David Wood at ConsumerAffairs.org.
What can you do?: Take your time before you sign. Don't be pressured into making any purchase or signing a contract. Resist the temptation to give in to "one-day-only" offers, the Better Business Bureau advises.
Read the fine print. More than ever, terms and conditions can contain important information regarding cancellation or early termination fees.
If you don't understand the contract or the provision on early-termination fees, ask a company representative.
Get all verbal promises in writing. Make sure a final contract contains all verbal promises made by a salesperson. It is up to you to make sure you understand all provisions of a contract before signing it.
If you want to opt out of a cellphone contract and possibly avoid early-termination fees, list your cellphone contract at websites such as celltradeusa.com, which matches buyers to sellers.
The cost of listing a cellphone contract is about $20. Buyers can search for free.
Auto Leases
If you read only two contracts, read your mortgage contract and your auto lease agreement, said Sternal.
If you terminate a lease before it expires, you can be charged thousands of dollars in early- termination fees. Not even the loss of a job or death is a mitigating factor.
"We've seen a lot of cases in which someone who's leasing a vehicle dies, and the leasing company contacts the family for the payment," said Sternal.
Even if you relinquish the vehicle, you're still on the line for the balance. You may be able to afford a snazzier car if you lease, but additional fees for excess miles or any dings and dents you incur can make a lease deal less attractive. For a list of the pros and cons of leasing, provided by Consumer Reports, go to tinyurl.com/82qz2o. What can you do?: If you want to get out of a Car Lease, try listing your vehicle at a lease-trading site such as www.swapalease.com or www.leasetrader.com in hopes of finding someone willing to assume your lease.
LeaseTrader charges $79 to list a vehicle and a $150 transfer fee. The company also can arrange to have the car shipped
Before listing your leased vehicle on either site, check with your finance company. Not all companies will allow you to transfer a lease, and while many finance companies will approve of such a the transfer by adding the new lessee to your account, they'll still list you as the guarantor, LeaseTrader advises.
Apartment Or Home Lease
If you signed a fixed-term lease (for example, for one year), you're obligated to pay rent for the whole term. Breaking a lease is a breach of contract. If you do so, be prepared to pay the balance.
There are a few exceptions. Members of the armed services who are called to active duty may terminate a lease before it's expiration date.
If the dwelling becomes uninhabitable through no fault of your own, you may terminate the lease before it expires, according to about.com. In some cases, about.com says, you can break "your lease if you become very sick or injured, or if you need to move to an assisted-living facility."
What can you do?: If you're looking to break a lease because you're going through a divorce, lost your job or need to take a job elsewhere, contact your landlord. Some landlords may allow you to sublet the property.
Gym And Club Memberships
If your workout at a club or gym doesn't work out, it can be difficult breaking the contract. Before diving in, check if the facility offers a trial membership or a month-to-month membership. Because many clubs offer various types of memberships, read the fine print to verify that you're not signing up for more than you need, said Jerry Farrell Jr., state consumer protection commissioner.
You may want to sign up for the shortest possible club membership until you get a better feel for the facility and your actual use of it, he said.
"You have the right to cancel within three business days of signing a membership contract with a health club if you change your mind," Farrell said. "You also have a right to cancel the contract and receive a prorated refund if the club moves or closes down, if you become disabled, or if you move more than 25 miles away from the facility.
If the club closes its doors, and you don't get your money back, the consumer protection agency may be able to reimburse you from Connecticut's Health Club Guaranty Fund.
Funds are provided from a portion of the licensing fees paid by health clubs. Consumers have six months from the date of a club's closing to submit an application to the state Department of Consumer Protection. Keep your receipts and membership cards. Consumers who can prove they were members may be able to get a healthy chunk of their membership investment returned, Farrell said.
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com