How much is the customer going to be charged if he fails to send in his device for an Early Upgrade transaction?

• A. The device full price
• B. The remaining balance of the device
• C. No charge
• D. A late fee

Answer: (B)

Early Upgrade is tied to a financing arrangement for the device. The customer has already been paying off part of the device, and the remaining portion of that financing is still owed if they don’t send the device back. So when the device isn’t returned, the company collects the remaining balance to settle what’s left on the original device financing. It isn’t the full device price up front, and it isn’t a no-charge situation, since the financing obligation remains. It also isn’t a late fee, which is charged for overdue payments, not for failing to return the device. That’s why the remaining balance is what gets charged.