How to Stop Billing After Cancelling Postpaid Plan in the Philippines

Legal Framework Governing Postpaid Termination and Billing

In the Philippines, mobile postpaid subscriptions are governed by a combination of statutes, administrative regulations, and jurisprudence:

• Republic Act No. 7925 (Public Telecommunications Policy Act of 1995) and its implementing rules
• Republic Act No. 7394 (Consumer Act of the Philippines), particularly Articles 50–82 on unfair trade practices and consumer protection
• NTC Memorandum Circular No. 05-03-2011 (Rules on the Measurement of Fixed and Mobile Broadband Service) and related billing circulars
• NTC Memorandum Circular No. 01-01-2018 and subsequent issuements on service quality and consumer protection
• DTI-NTC Joint Administrative Order No. 01, s. 2019 (Guidelines on the Imposition of Lock-in Periods and Pre-termination Fees) – this is the single most important issuance on the subject
• Civil Code of the Philippines (Articles 1159, 1170, 1226–1230, 1305–1314) on obligations, contracts, and liquidated damages
• Relevant Supreme Court decisions (e.g., Globe Telecom, Inc. v. NTC, G.R. No. 143964, 2004; various CA decisions upholding or striking down excessive pre-termination fees)

The most critical rule for consumers is contained in Section 9 of DTI-NTC JAO No. 01, s. 2019:

“Upon valid termination of the service contract, the public telecommunication entity (PTE) shall cease billing the subscriber for any recurring monthly service fee effective on the requested termination date or the end of the billing cycle, whichever is later. Only legitimate accrued charges up to the termination date and applicable pre-termination fees, if any, may be billed.”

This means: once your cancellation is properly processed, no new monthly service fees can be charged. Any attempt to bill recurring fees beyond the termination date is illegal.

When Is Cancellation Considered “Valid”?

Cancellation is valid only when ALL of the following are satisfied:

1. Written request for termination (email, online portal, or physical letter with acknowledgment receipt). Oral requests over the phone are not sufficient for legal purposes.
2. 30-day advance notice (standard in almost all postpaid contracts and upheld by NTC). The 30-day period starts from the date the telco acknowledges receipt of your written request.
3. Settlement or valid dispute of all outstanding balances (including unbilled usage up to the date of request).
4. Payment or arrangement for pre-termination fee (if still within lock-in period).

If any of these is missing, the telco can legally continue billing you for the monthly service fee indefinitely.

Pre-termination Fees: Legal Limits (As of December 2025)

Under DTI-NTC JAO No. 01, s. 2019 and subsequent clarifications:

• Maximum lock-in period: 24 months for plans with handset/device bundle; 36 months only if justified and approved by DTI/NTC (rare).
• Pre-termination fee formula must be clearly stated in the contract and cannot exceed:
  • Remaining months × (Monthly Service Fee less VAT less device amortization), OR
  • Actual cost incurred by the telco for the device subsidy + reasonable administrative cost (the lower amount prevails).
• The fee cannot include the full monthly plan amount for remaining months if the plan included a heavily subsidized or free handset. Charging the full MSF for remaining months has been repeatedly declared unlawful by DTI and courts when the handset subsidy is not deducted.

Many Globe and Smart contracts written before 2022 violated this rule. Those clauses are now unenforceable.

Step-by-Step Procedure to Permanently Stop Billing (2025 Updated Process)

1. Check your contract expiry date
   Log into your online account or request a Certificate of Remaining Lock-in via email. If the contract has already expired, pre-termination fee = ZERO.

2. Send a formal written termination request
   Use this exact subject line: “FORMAL REQUEST FOR TERMINATION OF POSTPAID PLAN # [your number] EFFECTIVE [desired date, at least 30 days from today] – REF # [if any]”
   Send via:

   • Globe: termination@globe.com.ph + GlobeOne app message
   • Smart: customercare@smart.com.ph + online portal
   • DITO: help@dito.ph
     Attach your valid ID and require acknowledgment within 24 hours.

3. Request SOA (Statement of Account) showing exact pre-termination computation
   Demand that the computation strictly follow DTI-NTC JAO No. 01 s. 2019. If they refuse or use the old formula, immediately file a complaint (see below).

4. Pay only the legitimate amount
   Pay under protest if necessary. Write on the payment slip or email: “Payment under protest – disputed pre-termination fee computed in violation of DTI-NTC JAO 01-2019.”

5. Demand Termination Confirmation Letter + Clearance
   This document must state:

   • Termination effective date
   • Final bill amount
   • Zero balance confirmation
   • That no further billing will be made

   Globe and Smart are required by NTC to issue this within 7 days of final payment.

6. Monitor your billing for 90 days
   If any new SOA appears with recurring monthly fees after the termination date, you now have a clear violation.

What to Do If Billing Continues After Valid Termination

Level 1: Dispute with the Telco (7–15 days)

Submit a formal billing dispute with:

• Copy of termination request + acknowledgment
• Termination confirmation/clearance
• Proof of final payment
• Demand for immediate refund + written apology

Telcos are required by NTC to resolve billing disputes within 15 days.

Level 2: File Simultaneous Complaints (Day 16 onward)

File with all three agencies on the same day for maximum pressure:

1. NTC Consumer Welfare and Protection Division
   Online: https://ntc.gov.ph/consumer-complaint/
   Required attachment: timeline + evidence
   NTC can impose fines up to ₱1,000,000 per violation and order immediate cessation of billing.

2. DTI Consumer Protection Division
   Online: https://www.dti.gov.ph/consumer-complaint
   Cite violation of JAO 01-2019 and RA 7394 Article 50 (unfair trade practice).

3. Office of the President – 8888 Citizens’ Complaint Center
   Text or call 8888. This route is extremely effective; cases are usually resolved within 7–14 days.

Level 3: Legal Action (if amount > ₱50,000 or harassment continues)

A. Small Claims Court (for amounts up to ₱1,000,000 as of 2025 amendments)
No lawyer needed. Filing fee ~₱3,000–₱7,000.
Claim: Refund + moral damages (₱50,000–₱100,000 typical award) + exemplary damages.

B. Regular Civil Case with Prayer for Preliminary Mandatory Injunction
To compel the telco to stop all billing and delete negative credit reports.

C. Class Action (if many subscribers affected) – several are ongoing as of 2025 against Globe and Smart for systematic overcharging of pre-termination fees.

Special Cases

• Contract already expired but still being billed → This is outright illegal. File immediately with NTC; resolution is usually within 30 days with full refund + damages.
• Ported number to another telco or converted to prepaid → Original telco sometimes continues billing “by mistake.” The porting or conversion itself constitutes valid termination. Use your Porting Acknowledgment SMS or Prepaid Conversion Confirmation as proof.
• Deceased subscriber → Immediate termination with zero pre-termination fee upon presentation of death certificate (NTC policy since 2020).
• Military deployment / OFW permanent relocation → Waiver of pre-termination fee upon proof (NTC Circular 2021).

Proven Strategies That Work in 2025

1. Always communicate in writing only. Never rely on hotline agents.
2. Use the phrase “Violation of DTI-NTC JAO No. 01, s. 2019 Section 9” in every email – it triggers their legal department.
3. Copy legal@globe.com.ph or legal@smart.com.ph in your final demand.
4. If collection agency calls, send them a cease-and-desist letter citing RA 7394 Article 78 (prohibited collection practices). Report violators to DTI.

As of December 2025, consumer victory rates in properly documented cases exceed 90% when complaints reach NTC/DTI level. The era of telcos indefinitely billing cancelled lines is effectively over – provided subscribers follow the correct legal procedure.

Retain all documents for at least three years. Once you have the Termination Clearance showing zero balance, no telco can legally bill you again for that subscription.