Owning a cell phone can be expensive. For instance, a service provider can charge you several types of fees in addition to the cost of your monthly plan. However, some services are free! Before paying any extra fees, it’s good to check whether the service provider is allowed to charge them. This article explains which fees are illegal and how to challenge them.


The topics covered in this article: |
Conditions to be met for charging fees
A service provider must meet certain conditions when charging fees. It’s important to make sure all the fees you’re being charged meet these requirements:
- They are clearly explained in the contract.
- They are reasonable and not abusive.
A service provider must ensure these conditions are met when billing you for fees, including roaming charges, data overage charges, and cancellation fees. Otherwise, these fees could be illegal, and you can challenge them.
Roaming fees in Canada and outside the country
Service providers aren’t allowed to charge you more than $100 per billing period for using your cell phone services outside Quebec unless you have clearly agreed to pay more. These charges are called “roaming fees.”
A service provider can charge you roaming fees if they are clearly explained in your contract. However, they can’t charge roaming fees if you use your cell phone services in an area covered by your plan. For example, your provider can’t charge you roaming fees for sending or receiving text messages in Ontario if your plan allows you to use your cell phone services across Canada.
If you believe your service provider has overcharged you for roaming fees, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
You might be able to get some money back through a class action if you paid abusive fees for using the Internet outside Canada after January 8, 2010 or for receiving text messages outside Canada after January 9, 2012. You can visit the website of the law firm representing members of this class action to learn more about the class action on Internet usage fees and the class action on fees for receiving text messages.
Data overage charges
Service providers aren’t allowed to bill you more than $50 in data overage charges per billing period except if you have clearly agreed to pay more.
Unless your contract provides for unlimited data, a service provider is allowed to bill you for using additional data (data overage charges) after you reach the limit provided in your contract.
If you believe your service provider has overcharged you for data, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
Cancellation fees
You can cancel your cell phone contract at any time. To do this, you must send a cancellation notice to your service provider.
If your contract has an end date, you must usually pay a cancellation fee if you want to end the contract before this date. The amount of the cancellation fee depends on the rebate you received when you bought the phone, and the end date of your contract.
Important!You have the right to cancel your contract free of charge in certain situations. Please see Free Services below for more information. |
If you received a rebate on the purchase price of your phone, the service provider must apply this formula:
Rebate – (Rebate x (Number of months since you entered the contract ÷ Length of contract) = Maximum cancellation
Example 1: You signed a two-year contract and received a $400 rebate on the purchase price of your phone. You have five months left on your contract. If you cancel your contract today, your maximum cancellation fee is $83.33:($400 – [$400 x (19 ÷ 24)] = $83.33. |
What happens if you didn’t receive a rebate on the purchase price of your phone? The service provider can charge you either $50 or 10% of the cost of the services left under your contract –whichever is less.
Example 2: You signed a two-year contract but didn’t receive a rebate on the purchase price of your phone. Your monthly service fee is $50, and you have five months left on your contract. The remaining value under your contract is $250 (that is, 5 X $50). If you cancel today, you must pay a $25 cancellation fee (10 % of $250) because this amount is less than $50. |
If you believe your service provider has overcharged you for cancellation fees, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
Free services
A service provider must offer you some services for free under your cell phone contract, including cancelling your contract in certain cases, unlocking your phone, and transferring your phone number. A service provider isn’t allowed to charge you for these services. In other words, fees for these services are illegal, and you can challenge them.
Cancelling your contract free of charge . . . in some case
Here are five situations where you can cancel your cell phone contract without paying any fees. However, you must remember to send a cancellation notice to your service provider.
You can refuse a change that is disadvantageous to you. To do this, you must cancel your contract. The service provider isn’t allowed to charge you a cancellation fee in this case. You must send a cancellation notice to your service provider no later than 30 days after the change takes effect.
If you believe your service provider has charged you for cancellation fees in this situation, consult the website of the Office de la protection du consommateur (OPC or consumer protection office) to learn about your recourses.
If you believe your service provider has charged you for cancellation fees in this situation, consult the website of the Office de la protection du consommateur (OPC or consumer protection office) learn about your recourses.
The law gives you additional protections if you made your cell phone contract over the Internet or by phone, rather than in person. Here are some examples:
- You can cancel up to 30 days after signing if the service provider doesn’t send you a copy of the contract within 15 days.
- You can cancel any time before you have access to the cell phone services if the service provider takes more than 30 days to provide this access.
If you believe your service provider has charged you for cancellation fees in this situation, consult the website of the Office de la protection du consommateur (OPC or consumer protection office) learn about your recourses.
The usual trial period for a cell phone is 15 days. People living with a disability have 30 days.
If you believe your service provider charged you cancellation fees in this situation, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
If you were charged cancellation fees in this situation, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
What happens if you want to do business with another service provider but your phone is locked?
No problem! Fees for unlocking a phone are illegal. The service provider that sold you your phone must unlock your phone or have it unlocked for free.
If you were charged a fee to unlock your phone, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
If you paid to have your phone unlocked between 2014 and 2017, you could receive compensation through a class action. Visit the website of the law firm representing members of this class action to learn more.
Transferring your phone number free of charge
You can keep the same phone number if you want to switch to a different service provider. This is also free!
Service providers aren’t allowed to charge fees for transferring your phone number.
If you were charged a fee to transfer your phone number, consult the websites of the Office de la protection du consommateur (OPC or consumer protection office) and the Commission for Complaints for Telecom-Television Services (CCTS) to learn about your recourses.
How to challenge illegal fees
If you believe a service provider has overcharged you or charged you illegal fees, you can follow these steps to enforce your rights and challenge the fees:
- Try to settle the problem directly with the service provider. The Office de la protection du consommateur (OPC or consumer protection office) provides suggestions on how to negotiate with a service provider.
- Pay the illegal fees if you can’t reach an agreement with the service provider. This will protect your credit score. You’ll still be able to challenge the illegal fees afterward.
- File a complaint against your service provider with an organization that handles complaints about cell phone contracts: Office de la protection du consommateur (OPC) or the Commission for Complaints for Telecom-Television Services (CCTS).
- You can send a formal notice to the service provider and take legal action against it in Small Claims Court to recover illegal fees you have paid. The maximum claim that the Small Claims Court allows is $15,000.