Attack of the Killer Fees!

They hide in the small print or on the back page--anywhere there's money to be made. Here's how not to get stung.

by Teri Cettina

TECHNOLOGY

STINGER: Mobile phone contract termination fees

How they swarm: If your mobile phone provider offers bad customer service or charges you a premium rate for each minute that exceeds your calling plan, or your reception is continually bad, you may want to take your business elsewhere. Problem is, you're probably locked into a contract (two years is typical). To break free, you'll have to pay contract termination fee -- average cost $170 - to move on.

How not to get stung: Read the contract carefully. You may find provisions that allow you to cancel your contract penalty-free if the provider makes “material changes” to your service after you signed your contract. Examples include changes to the provider's calling or coverage area, rate hikes, or changes to add-on fees, such as text messaging, according to Kent German, senior editor at CNET.com. “You may have to argue with them a little about what is considered a ‘material’ change, but it could be worth it,” he says. Another option: Legally swap contracts with another cell owner who wants to change providers. Companies like celltradeusa.com serve as intermediaries.

STINGER: Cable TV, phone & Internet charges

How they swarm: That bundled phone, Internet and cable package price looks great. But if the low price is only for an initial promotional period, you'll get a big surprise when your monthly price soars.

How not to get stung: “Make sure you know what the non-promotional price will be before you sign up for that great deal today,” advises Bob Sullivan, MSNBC.com reporter, USAA member and author of Gotcha Capitalism: How Hidden Fees Rip You Off Every Day—and What You Can Do About It. Also, keep track of when your promotional fee period ends: A few weeks before it’s over, call and ask your cable company to extend your deal. They might—if they think they’ll lose you as a customer. Another “gotcha fee”: “‘Free’ installation isn’t always free, particularly now that many folks have complex digital and high-definition setups at home,” says Sullivan.

BANKING

STINGER: Bank ATM fees

How they swarm: Fees to withdraw cash from an ATM not owned by the bank you do business with are at an all-time high—averaging $1.78 per transaction, according to Greg McBride, senior analyst for Bankrate.com.

How not to get stung: These are avoidable charges. Use your own bank or credit union’s ATM whenever possible. If you’re traveling, ask your financial institution to provide you with a list of non-fee ATM locations. Better yet, pick a bank such as USAA that will reimburse you for ATM fees. Then, wherever you are, you can avoid these fees. USAA does not charge for the first 10 ATM withdrawals and refunds up to $15 in other banks' ATM fees each month.

Full article text available to editors upon request.

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