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CRTC launches review of cellphone financing to probe fees by telecoms

CRTC asked wireless companies to stop offering device financing plans that last more than two years

Canada’s telecom watchdog has launched a review of new cellphone financing plans to ensure they comply with an industry code of conduct.

The Canadian Radio-television and Telecommunications Commission says it is reviewing device financing plans to see if when customers cancel their phone plans they are forced to pay a penalty or fee for any remaining balance on their device.

Earlier this month, the CRTC asked wireless companies to stop offering device financing plans that last more than two years until the watchdog finishes a planned review of the practice.

The CRTC says it is seeking views on the matter by Oct. 15.

ALSO READ: CRTC to bring in ‘code of conduct’ for internet providers

If it finds some of these plans do not comply with its wireless code it may prohibit such plans.

The CRTC revised the code in 2017 in an effort to help Canadians better understand their cellular contracts, prevent bill shock and switch service providers with ease.

The Canadian Press

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