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Exit fee freedom!

Realtor Mark Zipperer enrolled with Liberty Power as the electricity supplier for his office.  When he found a better deal, he cancelled his contract.

What should have been a smooth process ended up a nightmare.  Zipperer was slapped with a $900 exit fee for leaving the contract early.

Fortunately, Zipperer thought to contact CUB. Consumer Advocacy Director Sandra Marcelin-Reme helped the realtor negotiate with the electric company.  Liberty reversed the exit charge and gave his office an additional $500 refund to match what he would have paid with the regulated utility.

While Zipperer’s case had a happy ending, CUB has seen too many customers slapped with egregious exit fees (as high as $200 for residential customers!).  But hopefully, that has all changed.

Legislators passed a bill this spring that would cap exit fees at $50 for residential customers with alternative electric suppliers and $150 for small commercial customers. The legislation, which passed unanimously amid Springfield gridlock, is awaiting the governor’s signature, after which the cap will immediately take effect.

After seeing cases like Zipperer’s, we consider this a huge victory!

To learn more, check out the full report from ABC 7.