Legal Question in Consumer Law in North Carolina

I do have a contract with T-mobile which I want to cancel, they are changing the terms and conditions of the agreement but they didn't sent a notification yet, today is 07/04/2010 and the new terms will be effective on 07/18/2010. Can I cancel the contract because they changed the terms and conditions of the agreement? I mean I signed a contract a few years ago, can a contract be changed by one part without the consent of the other part?. I read the contract and it doesn't say that they have the right to change the terms. I spoke with customer service and I said that this change was materially adverse as is specified in one of their terms and she said that "material term" means price and the price of the plan didn't changed. Can you please read the term and let me know if a have the right to cancel the contract based on the fact that they changed the terms in the agreement. Thanks.

Here is the term:

Changes to the Agreement or Charges. EXCEPT TO THE EXTENT PROHIBITED BY LAW, IF WE: (A) INCREASE THE CHARGES INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN, OR (B) MODIFY A MATERIAL TERM OF OUR AGREEMENT WITH YOU AND THE MODIFICATION WOULD BE MATERIALLY ADVERSE TO YOU, WE WILL NOTIFY YOU OF THE INCREASE OR MODIFICATION AND YOU CAN CANCEL THAT SERVICE WITHOUT PAYING A CANCELLATION FEE (WHICH IS YOUR ONLY REMEDY) BY FOLLOWING THE CANCELLATION INSTRUCTIONS IN THE NOTICE. IF YOU DO NOT CANCEL YOUR SERVICE BY FOLLOWING THOSE INSTRUCTIONS, OR YOU OTHERWISE ACCEPT THE CHANGE, THEN YOU AGREE TO THE INCREASE OR MODIFICATION, EVEN IF YOU PAID FOR SERVICE IN ADVANCE. IF THE NOTICE DOES NOT SAY HOW LONG YOU HAVE TO CANCEL, THEN IT IS WITHIN 14 DAYS AFTER THE DATE OF THE NOTICE, UNLESS A LONGER PERIOD IS REQUIRED BY LAW. EXCEPT TO THE EXTENT PROHIBITED BY LAW, CHARGES FOR PRODUCTS, SERVICES, OPTIONAL SERVICES, OR ANY OTHER CHARGES THAT ARE NOT INCLUDED IN YOUR MONTHLY RECURRING ACCESS RATE PLAN (SUCH AS DIRECTORY ASSISTANCE, ROAMING, DOWNLOADS, AND THIRD-PARTY CONTENT) ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE, AND IF YOU CONTINUE TO USE THOSE SERVICES, OR YOU OTHERWISE AGREE TO THE CHANGES, THEN YOU AGREE TO THE NEW CHARGES. VISIT OUR WEB SITE, RETAIL LOCATIONS, OR CALL CUSTOMER CARE FOR CURRENT CHARGES.


Asked on 7/04/10, 10:18 am

1 Answer from Attorneys
Rachel Hunter

No, you cannot break the contract generally. If you do not agree, then break the contract and pay the termination fee. In the alternative, when your contract ends, make sure that you cancel at that time.

What is being changed? It sounds like you can break the contract in 2 limited situations: (1) if the monthly recurring access rate increases (this sounds like what you pay per month, but you need to read the contract to see how this term is defined); or (2) if a material term is modified and the change is detrimental to you. Again, read the contract to see how it defines material terms. Material generally means "essential" to the contract. For example, a monthly rate that you pay would be material; charging for their made up junk fee for 911 access may not be material.

If I were you, wait for the notice and see if you get notice that you can cancel. If so, immediately follow the instructions if you want to cancel. If there is no cancellation notice and the charges relate to things like roaming, downloading a ringtone or something, then don't use those services if you disagree with the rate hike. Or, cancel and pay the termination fee.

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Answered on 7/05/10, 2:20 pm


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