A T-Mobile customer has filed a law suit against them after claiming that the company’s no contract plans are deceptive. The mobile network have been in recent news for all of the right reasons, tempting consumers with their attractive offers such as unlimited streaming features including Music Freedom and Binge On and a great offering on prepaid packages. They have recently submitted their first quarterly earnings of 2016, with the results being successful as the carrier added 2.2 million total net subscribers and a 10.6% rise in quarterly revenue, thought to be down to heavy discounts. they are currently the no.3 wireless carrier. However, it is now emerging that their no-contract plan gives customers a little more than they bargained for.
The law suit filed by T-Mobile customer Moshe Farhi has been investigating that whether the claims, made by the no-contract plan advertisement which say there are no hidden charges, actually true. The lawsuit says that the no-contract plan has an early termination charge, which many customers have not been made aware of.
The lawsuit took place in Florida, where Farhi was asked to pay $2,270 after he attempted to cancel early the no-contract packages of four handsets. The discoveries of the lawsuit revealed that when a consumer joins the no-contract policy, they are entering into two deals. One agreement for the phone, and another for the service plan. Any attempt to cancel the service agreement means that T-Mobile still expect you to pay the full price of the handset that was purchased along with the service plan, no matter how soon you cancel or opt-out of the deal. T-Mobile has responded with their fine print that does in fact state that a consumer is responsible for the full price of the handset if they cancel their service agreement. Doesn’t exactly comply with their promises of no hidden charges, and the lawsuit has fought back claiming that T-mobile are going against Florida consumer-collection laws and the state’s deceptive and unfair trade act.
Farhi is not the first customer to be caught out by T-Mobile’s dodgy, sneaky advertisements and there have been investigations by Eric Schneider, the Attorney General of New York, into the legitimacy of T-Mobile’s adverts regarding the no-contract system, after several complaints.