in this case
- A customer cancels his DirecTV service and gets a refund, only to be hit with a $40 “early termination fee” 10 months later.
- DirecTV blames a “system delay” for the surprise charge and threatens to send the bill to a collection agency.
- Find out why DirecTV should have disclosed the fee at cancellation and how the customer got the charge reversed by escalating to executives.
George Cleveland cancels DirecTV, but it hits him with a $40 fee 10 months later. Can a company charge you for a fee it never mentioned?
Question
I canceled my DirecTV service and even received a refund for overpayment. But 10 months later, the company emailed, demanding $40 for an “early termination fee.”
No one mentioned an early termination fee when I canceled. DirecTV threatened to refer me to a collection agency if I don’t pay.
I called DirecTV, and a representative confirmed the charge, blaming a system delay.
How can they spring a surprise fee almost a year later? I’ve emailed their collections team and sent a certified letter to an executive, but this feels predatory. Can they legally do this? — George Cleveland, El Sobrante, Calif.
Your voice matters
George Cleveland thought he was done with DirecTV after canceling his service. But 10 months later, the company hit him with a surprise $40 early termination fee and threatened to send him to collections. This “system delay” excuse feels predatory. We want to hear your thoughts.
- Should a company be allowed to charge a termination fee almost a year after you’ve canceled service?
- Have you ever been hit with a “zombie” fee or a surprise bill from a company long after you closed your account?
- What’s the most effective way to fight a collection threat when you know the original charge is unfair?
Answer
DirecTV should have disclosed any termination fees upfront when you canceled — not ambushed you months later. The threat to refer you to a collections agency was particularly offensive. The company didn’t give you much of an opportunity to contest the charge.
It looks like you signed a 24-month contract with DirecTV but had two months to go on that contract. The company charged you $20 for each remaining month on your contract. DirecTV discloses these charges in its contract and on its website.
If a company is going to charge early cancellation fees, then it needs to do so at the time of cancellation. No company should be billing any customer, current or former, months later, for any reason. A 90-day window for transaction billings after the transaction takes place might be reasonable, but 10 months later is ridiculous.
Read more insightful reader feedback. See all comments.
But that’s not all. DirecTV should have disclosed any fees you owed at the time of your cancellation. Ideally, it would have taken the early termination fee out of your refund to avoid this situation. And even if it was less than clear, DirecTV should have promptly billed you for any remaining charges instead of waiting almost a year.
Bottom line: While DirecTV has the right to bill you an early termination fee, it waived that right by mishandling your case. (And while we’re on the subject of early termination fees, let me say that I strongly disagree with them. These types of fees are really nothing more than a money grab by big companies.)
I like the way you kept a meticulous paper trail of the correspondence between you and DirecTV. That’s an essential part of the resolution. The emails prove you did everything you could to resolve this and work through the system. One item you overlooked: As soon as you canceled your account, you should have asked for verification that DirecTV terminated your account and that your bills were paid up. That would have sealed the deal. If the company refuses, escalate to executives like DirecTV’s leadership team. I publish their names, numbers and email addresses on my consumer advocacy site, Elliott.org. I shared these names with you after multiple efforts to get this resolved, including contacting the BBB, failed.
After you contacted the DirecTV executives I listed on my site, you received an email from the company saying that it had reversed its early termination fee. Nice job advocating this case yourself!
How to fight an unfair subscription fee
Facing a surprise charge long after you thought you canceled a service? DirecTV tried to hit a customer with a $40 “early termination fee” 10 months later. Here’s how to prevent and dispute these frustrating “zombie” fees.
Demand confirmation of cancellation
Always ask for written proof that your service is fully terminated and that all bills are paid. This creates an essential paper trail for any future disputes.
Document everything meticulously
Keep records of all communication: dates, times, names of representatives, and what was discussed. This evidence is crucial if you need to escalate.
Escalate to executives if necessary
If frontline customer service cannot resolve the issue, find the names and contact information for executives. Often, their intervention can lead to a quick resolution.
Challenge the legality and fairness
While contracts may permit certain fees, companies often waive their right to collect if they fail to disclose charges or bill you in a timely manner. Argue for fairness.
Key takeaways
- Always get written confirmation of service cancellation.
- Meticulously document all interactions.
- Escalate to executive contacts when frontline support fails.
- Challenge the fairness and timeliness of late charges.
Executive Contacts
Hit with a surprise fee from DirecTV? If customer service won’t resolve it, take your complaint straight to the top. Here are the executives who can help.
What you’re saying
The consensus is split. While most readers agree the 10-month delay is inexcusable, many argue the fee itself was valid. The top comment from JenniferFinger insists that if a fee isn’t billed at cancellation, the company forfeits the right to collect it later.
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The contract is the contract
Many readers, including Berkinet and OnePersonOrAnother, argue that early termination fees are legitimate, not “junk,” to cover installation costs. They say the customer “knew or should have known he owed” the $40, as sister7 notes, “It was the CONTRACT he signed.”
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This is a “zombie fee”
The main outrage is the 10-month delay. Top commenter JenniferFinger says the fee should be billed at cancellation, and 10 months is “ridiculous.” Jennifer calls these “zombie fees,” while George Schulman notes the company’s error put the burden on the customer, who may have already “tossed whatever documents he had.”
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Make them work for it
BKMatthew, an accountant, suggests a strategy: “endeavor to make the company…incur administrative costs…that exceed the amount claimed.” This, he argues, is the only way to make companies “change their tune” about nuisance fees.
