Jacqueline Townsel v. Dish Network L.L.C

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ARGUED JANUARY 17, 2012–

Before EASTERBROOK, Chief Judge, and CUDAHY and HAMILTON, Circuit Judges.

Jacqueline Townsel signed up for satellite TV service from DISH Network. As with cell phones, the cost of equipment is amortized over two years through payments for the service; a cus- tomer who drops the service owes a termination fee to cover the unpaid portion of the equipment’s cost. Townsel agreed to pay a termination fee if she discon- tinued the service for any reason during the first two years, and she authorized DISH to charge her debit card should that occur. Before the two years were up, Townsel stopped paying the monthly service charge. DISH treated this as a discontinuation of service and collected the termination fee via the debit card. Townsel replied with this suit, which contends that DISH vio- lated 42 U.S.C. §407(a).

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