Cell Phone Contract (not fulfilling obligations)

[simonvee]

Hi,

I have 2 years remaining on my cell phone contract. What if I go back home to Australia without paying them for the unused years of usage. What actions can they take?

 

[Leon]

Why did you make a contract when you didn't know if you'd stay?

Most likely nothing much will happen except that you get a bad credit rating. Most debts in Canada are written off after 6 years unless possibly there was some kind of fraud involved like getting an expensive phone on a 3 yr. contract and then skipping the country as soon as you got it.

That said, not paying your debts is dishonest. Talk to the provider about cancelling early. You will have to pay a fee but you will leave Canada without debt and with a clear conscience.

 

[simonvee]

Many contracts are 3 years. I have already used up one year. The decision to leave was abrupt. I will negotiate with them regarding this matter.
I personally think phone bills should be like rent, you pay for what you used. No harm done to anyone.

 

[Leon]

I personally think phone bills should be like rent, you pay for what you used. No harm done to anyone.

Yes, you can get that in Canada too. It's called prepaid.

 

[scylla]

Yes, you can get that in Canada too. It's called prepaid.

Agreed. There are already many cell phone plan options where no contract needs to be signed.

However if you selected a plan with a contract and leave without paying or making some kind of arrangements with the phone company - I agree that your credit rating will definitely take a hit. You should try to avoid this if at all possible.

 

[Joker777]

Try to post an ad on Kijiji or craigslist to see if there will be someone to take over your plan.

 

[amikety]

Many contracts are 3 years. I have already used up one year. The decision to leave was abrupt. I will negotiate with them regarding this matter.
I personally think phone bills should be like rent, you pay for what you used. No harm done to anyone.

3 year contracts subsidize the cost of the phone. They give you the phone at a discount based on a promise of your business for 3 years.

Next time, you can get a used phone or buy a new one for full price, then pay-as-you-go.

 

[marsiangal]

You can cancel the contract and pay for the remaining months which I think is 20/ month. With a maximum of 200 dollars. Atleast that is what was on my Rogers contract. Probably similar for other companies.
That is is you can afford it. When you pay this early cancellation fee they will let you out of the contract.

Otherwise it'll be a bad idea to just leave it cause you will get a delinquent report on your Canadian credit file.

Might not seem important now but, it is up to you if you ever plan on going back to Canada at all or not.