DirectTV Contracts: Your Options
DirectTV is one of the biggest TV providers in the United States that provides satellite TV packages to millions of houses. Also, every time you apply for a DirectTV service you are expected to commit to a two-year agreement to enjoy promotional prices on the equipment and service packages. But despite the increased flexibility, life situations may occur within that 24-month period that force one to adjust or even cancel TV service earlier. This article will outline information about DirectTV contracts, fees, and legal ways to modify a contract before its term is up.
The DirectTV Contract Commitment
Originally, the basic DirectTV package subscriptions were normally for two years, and the standard cable packages were for 24 months. This agreement binds you to maintain a minimum television package for that term length to have easier access to equipment, installation, and channel pricing at a lower rate than usual. Direct TV satellite TV packages involve the installation of a satellite at your home besides having receivers to receive the channels together with the DVRs.
When you sign up for the two-year subscription DirectTV presents massively reduced initial pricing for installation services and equipment which they could not offer given the prevailing market prices. If you cancel the contract before the stipulated 24 months, it is a clear sign that you have not honored your side of the bargain.
Early Termination Fees
In the event that you terminate DirectTV service before completion of the required contract term or if for some reason, you are unable to pay your bill on time and get disconnected, you will incur an early termination fee. This fee is $10 monthly continuing with the remaining months of your 24-month contract to a maximum of $480. The fee will offset the promotional pricing and subsidies DirectTV gave at the time of installation and is customary in most companies with contracts involving cable/satellite TV.
For instance, if you terminate your DirectTV subscription with 6 months left to the contract’s two-year subscription, you will be charged a fee of $60 for early termination since each month costs $10. Should you terminate early with six months left, which is the maximum allowed, then you will be charged a termination fee of $480.
How Does It Work If You Move or Have a Valid Reason for Cancellation?
Early termination fees are normal in DirectTV and customers are supposed to pay the remaining balance even when they have not used the services of DirectTV but some legal reasons can make a customer terminate early and avoid paying this fee. These include:
It results in switching to an area where DirectTV services are not accessible.
DirectTV should not cancel your contract if they cannot service your new address; in this case, you can show a letter from your former residence to prove that you have moved and should not be charged this fee.
Being out of work or losing a job and being in extreme poverty.
If you lose your job, become disabled, or experience a similar situation that leads to a massive loss of income and cannot pay even the cheapest DirectTV package, you might be entitled to cancel the contract minus termination fees. Other compelling reasons might include severe illnesses, military commitments, or any other emergency that would warrant a possibility of a waiver for the fees if well substantiated.
Unpredictable service quality that is worse when it is expected to be the best
If you continuously get poor signals and technical problems with your DirectTV service and equipment, which has not been resolved for over six months while you have contacted customer service, then you want whose contract terms allow you to cancel without paying any fees. Indeed, the majority of the states have laid down the minimum quality standards that TV providers are expected to adhere to at all times.
The issues to be highlighted are that the cancellation must be accompanied by a clear reason, YOU need to ask for the termination fee to be waived by the DirectTV customer service, and one has to be assertive if the first agent does not agree to the request. To be able to counter any early termination fees or even collections actions, it is VERY important if you have it in writing or from technical staff.
The idea of the paper is to analyze how the DirectTV Customer Agreement Guarantee can be effectively employed.
There is one decision that most clients ignore and this is the fact that DirectTV offers a Customer Agreement Guarantee for all contracts signed. This guarantee ensures that you get a hundred percent reimbursement of early termination fees IF you terminate the service within one month of subscribing to the DirectTV package.
Therefore if for any cause you feel that the service is not for you in the first month of its subscription then you should disconnect and ask for a refund on any fee charged under the 30-day money-back guarantee. Nevertheless, DirectTV will still request you to pay for any equipment that is not returned in good condition as well as any bill balance that you may have, but early termination fees are covered under this guarantee.
This is the simplest way to cancel without the penalty within the least amount of time possible. However, you do lose any promotional prices and will be charged the full network retail prices for equipment in case you have a launch offer when joining the network. This means that if during the 4-5 months of your contract, the price of equipment has changed, then in the event you returned your leased equipment such as receivers and DVRs, you would have to pay more than what you were charged initially.
Transfer Your Contract to New Resident
Should you be in a position where you would like to discontinue your directTV contract early, there is an option of legally transferring the contract if you are going to a place that is not covered by DirectTV. If the new resident wants to take over your contract from DirectTV and agrees to assume the remaining term length, then no termination fees should apply.
This also will help not be put into the situation of having to return leased equipment and pay the retail price as well, since your service is not disconnecting it technically but transferring ownership with equipment remaining in place. But, you will still be bound to lose any promotional price cuts on the programming and will be required to pay for balances. But, converting your entire account can help avert the early termination fees for contracts in case the new customer qualifies for it.
Negotiating a Compromise
If none of the above exemptions fully fit your cancellation scenario AND if you want to avoid early disconnection, another strategy is to attempt to negotiate the fees with the DirectTV customer loyalty employees. The frontline customer service is limited on the option to cancel contracts or offer waivers on the related fees, whereas the ‘loyalty/win-back’ divisions have a broader executive discretion regarding the offer and programming credits.
The main thing is to navigate yourself politely but consistently and ask to connect with the loyalty/win-back managers. Mention that you have been a client for X years, but because of [cause] you have to apologize for having to terminate the connection although you wanted to continue usage. Be polite to ask IF there is any way to minimize or have the early termination fees waived given your longevity as a customer. It is uncertain and depends on how long you’ve been with the company or the quality of the card, existing offers, and the agent involved. But stating your issues and saying that you need to have a balanced approach to keep everyone happy and have a creditable amount will be helpful to you and DirectTV may help in reducing the fee or offering a transition package that provides temporary coverage service at a much lower rate.
Considering the Potential Expenses Related to Early Termination
Therefore, before canceling the DirectTV contract for any reason, the individual should consider the overall costs of disconnection in order to determine the most fiscally responsible course of action, inclusive of paying the early termination fee. As outlined above, you will be liable to pay for: As outlined above, you will be liable to pay for:
- A list of the remaining monthly service charges is provided below
- Early Termination Fee of $10/month so long as 1yr of contract remains and $480 max.
- Unreturned Equipment Fees that include money for the equipment at full price not the initial offer price or promotional price that you paid when you signed up with the service provider.
- Outstanding Account Balances
Because of the specific packages offered by DirectTV, monthly fees, the number of receivers/DVRs leased, and the remaining months on your contract — in some situations, it can cost MORE to terminate your account early than to maintain at least the base package active until the final day of your 24-month commitment if money is a determining factor. Sometimes it is better to go with your head instead of your heart, especially when it comes to spending money.
Closing Summary
Terms of the DirectTV contracts are two years for their satellite television service packages in exchange for offering other facilities they could not afford to offer to customers at cheaper prices for equipment, installation, and programming. It is of course possible that the client will cancel early due to a change in circumstances, however, this does generally come with a financial cost as most companies charge a penalty fee in the form of early termination fees as well as requiring the return of the equipment at its full retail price.
Yet it is important to note that customers do have the right to legally cancel contracts without penalties under specific exemptions such as when moving, being in a financially difficult position, if the company has a poor record of providing quality services, or if they have not or are not using the 30-day satisfaction guarantee period allowed. Also, porting your account to another qualified customer who desires to be responsible for the particular contract term may help erase the fees. And finally, if all else fails, calmly approaching members of the customer loyalty team and stating politely that you have been a long-term customer, and that this is your situation may sometimes be able to find compromise solutions, waive some charges, or offer short-term transitional packages.
It is always wise to have full knowledge of all the charges you will incur in the case of early termination, look for all the possible options you can take, and make sure to write down all your situations before arriving at the final decision so that you make the best decision. As far as DirectTV is concerned, it seeks to retain all the satisfied customers; thus, when addressing the limitations, one should do it politely and clearly, while seeking solutions, which would be beneficial to all sides.
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