Cancellation Indemnity

[kav2001c]

Hi, just wanted some clarification on how the cancellation indemnity works. Tried to search site and message board but not clear to me.

So as an example choosing a high end cell phone such as Samsung Galaxy S8

http://www.videotron.com/residential/mobile/devices-and-accessories/phones/galaxy-s8#/order/info

It lists $1029.95 as cash price

$249.95 as cost for a 24M plan at $79.95

$149.95 as cost for a 24M plan at $89.95

Assuming I had signed the 24 month contract and asked Videotron to cancel early, how is cancellation fee calculated?

[YannickD · Accepted solution]

Hello,

The cancellation fee is calculated according to the remaining number of months on the 24 months contract. For example, if you get a $780 rebate on the retail price of the device with the $79.95 monthly plan and decide to cancel the service after 12 months, you will have to reimburse $390. If you only downgrade your mobile plan and still reach one of the monthly minimum required, you will be charged for the portion of the rebate linked to the minimum you no longer reach. 

For example, if you initially took a monthly plan of at least $89.95 before taxes and decided to downgrade to $79.95 after 12 months, you would be charged $50.

Have a great evening!

- Yannick

[Slemo123]

Is the penalty to cancel mobile contract based on the value left to pay on the cell phone in question, or is there another penalty for cancelling early?

[BB-8]

It’s based on the amount you received on the beginning of your contract

Example ; you get a 1000 phone and you pay it 500$ On October 2019 and you want to break it today ;

The rebate was ; 500$

Now to see what is the penality here the math :

500/24 month*12month = 250$