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Home › Pay › Nickel-and-dime tactics › Exit fees
Less for your money

Fees just to leave: the price of walking away

Some of the costliest fees show up when you try to leave. Early termination fees, unreturned equipment charges, account closing fees and transfer fees can make switching feel too expensive. Often they cost the company little, but they work well at keeping customers from shopping around. Knowing them in advance is the best defense.

Where you’ll see it

Early termination fees on contractsSome internet, phone, alarm and gym contracts charge a fee if you cancel before the term ends, sometimes a flat amount and sometimes the rest of the monthly payments.
Unreturned equipment chargesCable and internet providers often bill a large fee if a modem, router or cable box is not returned on time, even when the customer says it was dropped off.
Account closing feesSome banks and brokerages charge a fee to close an account, especially within a few months of opening it, which can eat into a sign-up bonus.
Transfer-out feesSome investment and retirement account providers charge a fee to move your money to another company, even though the transfer is a routine electronic process.
Phone balances that come dueWhen you leave some wireless carriers, any remaining device payments and lost promotional credits can become due at once, so switching costs much more than expected.
Notice periods and final monthsSome memberships and leases require written notice weeks in advance, or bill a final month after you cancel, making it costly to leave on short notice.

What it really costs them

Closing an account or moving money to another firm is mostly paperwork and a few computer steps, so many exit fees are far higher than the work involved. Their main job is to make you think twice about leaving.

To be fair, some exit costs have a reason. A company may have given you a discounted phone or waived setup fees in return for a contract, and lost equipment does cost money to replace. The issue is when these costs are not made clear up front, are larger than the real loss, or are charged in error.

How to spot it

  • The sales pitch mentions a contract or term commitment.
  • A low price depends on staying a set number of months.
  • Equipment is rented, not owned, and must be returned.
  • The fee schedule lists closing, transfer or termination fees.
  • Device credits are spread out over many months of bills.
  • Cancellation requires written notice or a phone call.

What you can do

  1. Ask about every exit fee before signing, and get it in writing or on the label.
  2. Choose no-contract plans when the price difference is small.
  3. Return equipment in person and keep a dated receipt, or ship it with tracking.
  4. Ask your new provider or bank if it will cover transfer or termination fees.
  5. Dispute an exit fee you were not told about, first with the company, then your card issuer.
  6. Report unfair exit fees to the FCC for phone and internet, or the FTC or your state attorney general.
Things you can say:
  • “What would it cost me to cancel early, in dollars?”
  • “Can I get a receipt showing I returned the equipment?”
  • “Will you waive the fee if I stay with a different plan?”

Rules and your rights

Exit fees are generally legal if they are disclosed. For home and mobile internet, FCC rules require providers to show a broadband label for each plan listing price, fees and contract terms, and phone sales staff must summarize early termination fees if they apply. The FCC streamlined some label rules in 2026, but labels are still required. For other services, there is no general federal limit on these fees. Undisclosed or misleading fees can be reported to the FCC, the FTC or your state attorney general.

Related common problems

Related guides

Common questions

Can I get out of an early termination fee?

Sometimes. Ask the company to waive it, especially if service was poor, you are moving somewhere it does not serve, or the fee was not explained. Some new providers offer credits to cover a switching fee. Check your contract for exceptions such as moving or military service.

What if I am charged for equipment I returned?

Contact the company with your return receipt or tracking number and ask them to remove the charge. If they refuse, dispute it with your card issuer and file a complaint with the FCC for phone or internet service. Always keep proof when you return equipment.

Why do banks charge a fee to close an account?

Some banks charge if you close an account soon after opening it, partly to discourage people from opening accounts just for a bonus. Read the fee schedule before opening, and ask if the fee applies after a set number of days, so you can time your exit.

Had this happen? Sharing what you were charged helps others spot it.

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Sources: PBS NewsHour/AP: Internet providers must now be more transparent about fees and pricing, FCC says (2024) ↗ · FCC order revising broadband label rules (FCC 26-48, July 2026) ↗

General consumer information, not legal or financial advice. Practices and prices change; check the business’s current terms. AblePro has no relationship with any company named here.