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Re: paying termination fee and upgrading phone
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The logic is that is their policy. You return within the 60-90 day of cancellation they refund the ETF and restart the old contract. So no they won't get paid for the old phone.
Your choices are add additional line or purchase the phone at full retail price.
I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.