Plain-language definition
A cancellation fee is a charge for ending a service, contract, feature, or agreement before the provider's stated conditions are met.
Why it appears on a bill
It can appear when service is cancelled before a minimum term ends, when equipment is not returned, or when a plan has disclosed early termination rules.
What to check
- Review the cancellation date and contract terms.
- Confirm whether any fee waiver was promised.
- Check for equipment return requirements.
- Ask for a breakdown if the amount is not explained.