Sprint Loses Early Termination Fees Lawsuit in California

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Sprint Loses Early Termination Fees Lawsuit in California

July 29, 2008 6:53 PM | Sprint Nextel | Comments (7)

Sprint took a blow today in a California courtroom when a judge ordered the company to pay $18.3 million to customers who sued over fees charged to break service contracts. Sprint also has to pay $54.8 million to customers who were charged but did not pay the fees. Sprint tried to argue that the state court had no business deciding an issue considered to be a federal issue.

Alameda County Superior Court Judge Bonnie Sabraw is also considering other lawsuits against telecommunications companies over their early termination fees, which can range from $150 to $225. This month Verizon Wireless agreed to pay $21 million to settle an identical lawsuit.

While the ruling isn't legal outside California, it opens up more ongoing debate in other states and in Washington, D.C., over the fairness of the fees.


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Comments

I love it when people tell you to "read your contract" like there is no such thing as an unfair bargaining advantage. In the US when a giant corporation (such as Sprint or Verizon) makes a deal with a customer, they ask them to sign a contract form, in which the customer has little to no chance to change or alter the conditions of the contract, and that is NOT looked upon favorably in court. This is why, regardless of the supposedly "validity" that even other American consumers are willing to claim of the contract, court systems are over-turning these contracts on the basis of unconscionability, and rewarding the plaintiffs. I encourage "Tha (as opposed to the) Rep U Spoke With" to review UCC code 1-207 before making statements about legal matters. Of course, if that person truly is a "rep" for a cell phone company, then it only goes to prove my point about the types of people they are willing to hire and the information with which they are working. I encourage EVERYONE who owns a cell phone to review their bill every month and to become educated about the facts. When you are met with a sales agent or customer service representative (and I use the term "service" loosely) don't bargain, write a certified letter explaining your case, and send it to the customer service address on your company's website. If they refuse to assist you, you have a paper trail to help you when it comes time to take them to court. Hope this helps...wish me luck...I just paid a $50 deductible for a lost cell phone (after 6 months of $10 premiums) that only cost Verizon approximately $12, and was told that I was getting a "good deal" because the phone normally "retails" for $200. Gag me. Another key point: UCC code 2-302. :) MEMORIZE THEM.

Posted by: Kimberly Daly | February 16, 2009 1:22 PM

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I have been a Sprint costomer for a long time and I kind of overlooked some of the problems I have had with costomer service in the pastbut sprint has overcharged me several times and it takes forever to get it resolved...basicaly they are just hoping you will just pay it rather than being shuffled around from rep to rep and being on the phone..."MOSTELY ON HOLD" for hours....it's good someone has finally done something about the way wireless carriers rip people off...and to the sprint reps comment its a tennative decision....better read the state constitution again pal...the decision may be tennative outside California but unless sprint plans on changing the law...its binding here.

Posted by: Robert | September 11, 2008 7:58 PM

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I have been with sprint for 14 years. they used to be the best in my opinion. Maybe all cell companies are the same. while sprint is continually adding things on my bill they are more than willing to remove them if I am willing to fight the system. spend frustrating hours on the phone. Se routed to the Philippines ~~ India ~~ and occasionally the US where I am currently contracted with. some months I will have over charges of a few dollars while other month 100's of dollars. In April I was over charges 370.00 and it took me 2 months to fight and get that removed. My time is valuable and it is frustrating to say the least. I have a list a mile long of the screw ups in my bill the last few years. As I talk with others like my best friend I find that she has been having some of the same issues as I. I think Sprint is banking on a number of people not checking the bill and just paying it. I have asked to get out of my contract and been told the same thing. We settled every dispute you have had. While yes they have it has taken hours of my time and energy to do it. Very frustrating to say the least. It is a crime that cellular companies are not regulated. A real crime.. Sandy

Posted by: Sandy | September 4, 2008 10:57 AM

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I am in a dispute right now with Sprint .... since MAY they have double charged me and triple charged me, and won't let me out of my contract unless I pay the $200 per phone line, early termination fee!! They have you over a barrel, and stick it to you hard. You can't get out of their contracts even if THEY ARE SCREWING UP month after month after month. This is UNFAIR business practice with mafia type methods of extracting money from you. SCREW THE CUSTOMER. Sprint doesn't have to uphold their end of the contract or deal at all! AND YES, Aug 22/08 commenter, I DID read my contract. A contract does no good, if Sprint won't uphold THEIR end of it, however!!!!

Posted by: Ripped by Spring | August 26, 2008 11:41 AM

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Maybe u people should start reading your "original terms & agreements"..it isnt just that piece of paper that came with the phone!!..sprint isnt robbing you.. this whole thing is ignorant...but hey its america rite??..everyone wants free money & why turn it down.. maybe if people would try to do more for themselves you all wouldnt be lookin for a quick come up... anywayz da lawsuit hasnt even been finalized..ever heard of a "tentative decision??".. if not... then thats what this is.. GOOD LUCK GETTIN UR FREE MONEY U LAZY...LAZY..BASTARDS!!

Posted by: Tha Rep U Spoke With... | August 22, 2008 3:10 PM

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The Sprint rep with whom I signed did not disclose the per-line ETF here in VA. Has anyone else experienced this surprise?

Posted by: Jesse | August 21, 2008 10:22 AM

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so what should we do if we currently have a ETF on our bill? Ignore it?

Posted by: headset | August 4, 2008 3:39 PM

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Sprint Loses Early Termination Fees Lawsuit in California

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