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T-Mobile faces $11.5M settlement in ETF class action
T-Mobile USA may settle class-action litigation over its early termination fees. The carrier was sued in the U.S. District Court for the District of New Jersey for allegedly violating state and federal laws by charging subscribers flat-rate ETFs. The court has yet to confirm the settlement.
T-Mobile subscribers who were charged a flat-rate ETF from July 23, 1999, to Feb. 19, 2009, are eligible to be part of the class action suit. If the settlement is approved, T-Mobile will pay $11.5 million to members of the lawsuit who paid an ETF or were charged but did not pay an ETF. Customers will be able to get up to $125 each or a "non-cash" item such as extra minutes, text messages or a pro-rated ETF.
T-Mobile began pro-rating its ETFs in 2008.
A T-Mobile spokesperson said in a statement that the carrier was pleased to put this litigation behind it, and would continue to focus on delivering wireless service options with "unsurpassed flexibility and choice."
Early termination fees have generated a notable amount of activity within the wireless industry. Following a hue and cry from various public-interest groups over the past few years, the nation's Tier 1 carriers began implementing pro-rated ETFs, whereby customers pay less as they progress through the duration of their contract. The latest dust-up on the issue, though, involves ETFs for customers who have recently been laid off from their job; carriers generally argue that they already offer contingencies for such situations.
For more:
- see this settlement link
Related Articles:
Carriers urged to drop ETFs for the newly jobless
Sprint reveals new early termination fee details
Sprint to pay $17.5M ETF settlement
Sprint to cut early termination fees
FCC may cap early termination fees
T-Mobile USA to pro-rate ETFs, too
Would the elimination of ETFs make customers any happier?
Comments
I HAVE TO PAID $400.00 FOR CANCELLING TWO LINES IN MARCH, 14TH 2007. WHAT HAPPENING WITH ME? TWO WEEKS AGO T-MOBILE OFFERRED ME AN UNLIMITED FREE MINUTES AND TEXT MESSAGES. IS THIS RESOLVING MY ISSUE?
I paid T-Mobile 200 dollar early termination fee because i had problem with the service so i no longer wanted the phone and i had to pay them. I also felt like that was unfair
Unauthorized Charges on Your Local Phone - Utility Bill?
How to Find Them, Eliminate Them & Get Your Money Back!
If your business still gets its phone service through the old "AT&T and Verizon, etc" local phone company (as opposed to one of the newer competitive phone providers) then you need to double check your phone bill each and every month for charges you did not authorize. You may not know it but the local phone company allows other companies to bill you through your local phone bill. And while the local phone company allows other businesses to bill you through your local phone bill, the local phone company does not verify that the charges being billed to you by the other company are valid. When these unauthorized charges fraudulently appear on your phone bill it's called "cramming". Unfortunately you as the business owner or manager are the only one that can spot the unauthorized charges and if you don't comb over your bill every month to spot these unauthorized charges - you'll pay for them.
Why does the local phone company allow other companies to pass charges onto your phone bill? "Third-party billing" is supposedly a great convenience in that you only have to pay one bill instead of separate bills for obvious authorized phone related charges like yellow-page advertising in the "real yellow pages", 411 information calls and long-distance calls from your chosen long distance carrier. Over the years though, some less-than-scrupulous companies have realized that most businesses rarely scrutinize their local-phone bills. To take advantage of this, these companies have come up with elaborate schemes to place
unauthorized charges on your phone bill that you'll end up paying for without even thinking. Unauthorized
charges you can end up paying for include charges for unwanted (and unused) email accounts, web sites,
directory information calls, directory advertising in obscure publications, voice mail accounts and other
services.
In theory, before these charges can be placed on your phone bill, the company that is originating the third-party billed charges is supposed to have a verification of the order like a voice recording. In reality though,
all the company needs to do to initiate the charge is submit your name and phone number to the billing
entity. The verifications are only required to be produced if a complaint is filed.
To prevent these charges from appearing on you business phone bill it's helpful to understand the four
parties that make unauthorized third party phone charges a costly reality. Party number one is any
employee who can answer your business phones. The unauthorized charge is rarely random and it usually
happens after one of your company employees gets a telemarketing call. Employees should be instructed to
document and report any overly aggressive telemarketing calls they receive. Party number two is the
telemarketing company that originates the unauthorized charges by trying to get your employee to accept
some service for which you'll be billed through your local phone bill. Party number three is the third-party
billing company that has billing agreements with your local phone company. The name of the third-party
billing is the one that is prominently displayed on your phone bill. After the third-party billing company's
name is the name of the company that is originating the unwanted charges. Party number four is your "former Ma Bell" local phone company that collects the unwanted charges (keeps a share for "Ma") and then passes the rest to the third-party billing company (who keeps a big share) and then passes the balance on to the company that initiated the unwanted charge.
Following are some of the top third-party billing names and unauthorized charge originators you'll find on
your phone bill. If you see these names on your phone bill you'll want to call the toll free number listed next to the charge to confirm it's a charge that's been properly authorized to be placed on your bill. Following are actual examples that we've recently found while auditing business phone bills.
We recommend customers should review any utility bills issued by deregulated utility companies. (In most instances today, consumers are paying higher charges to the deregulated gas and electric supply companies).
All Utility - Energy, gas, electric and water bills should be reviewed for proper reading and tariff.
If you suspect that you have been overcharged ask for detailed explanation and or file a complaint with your State Utility Commission.
Jay Draiman, Utility Bills Auditor
I was very sad when I saw my bills grew higher and higher. I was thinking tht somethink was wrong. I paid all evrything just to have all behide .I din't want to argue with them because I knew I want win. At the end I lost my all data because of their negligance. I was very angry . I called them but they said that was done by their non profetionl person. I lost a lots of money . I remember I had very bad time with them. Finally I dicided to switch to Verizon.Prabobly thy charge me that 200$ fee for this.
We wre charged a termination fee of $200 when we canceled our service. We had been T Mobile customers for more than 2 years, but because we upgraded our service they billed us for the above mentioned fee. We regretably paid the fee.
We wre charged a termination fee of $200 when we canceled our service. We had been T Mobile customers for more than 2 years, but because we upgraded our service they billed us for the above mentioned fee. We regretably paid the fee.
i had t-mobile 3 lines.my bills was very high
i paid early terminal fee $200.00 dollars to canceled one line service. i called t-mobile customer service they explaned to me was very
CONFUSE. i was so disappoint.
T-Mobile's 'kiosk sellers' sold me a plan,$49.95 3000min,anytime includes long distance, no roaming!
Billing & "customer service" says no such plan,bills
me $144.plus long dist& roaming, offers me 1/2 of what I was promised for $10. more a month! That's
consumer fraud "bait & switch". It's SOP in the denver metro area. I quit them so now I'm waiting for an etf. oh boy!
I have been with T Mobile for over two years. I allowed my brother to get on the line, and he never paid his bill. I ask T mObile to suspend his line, they refuse they say I must pay $200 dollars on top of the amount I am already paying for his G1 that he never gave me back, and the two and a half months of service he never paid. I think it is highly unfair that I have to pay the $200 when I still have service with TMobile and I pay my monthly bill on line. What do I do?
I had T-Mobile for about 2 years, I liked that it was rather inexpensive. I live in a highly populated area and you figure the service would work just fine, but the reception most of the time was very poor. I had changed my plan with the purchase of a new phone just prior to two years. The phone was garbage, and I had it replaced twice within the first two months. My last bill was outrageous,$600.(I went way over my minutes and text, my fault) After that I demanded that they replaced my phone with another brand that works or I was cancelling, but they wouldn't do anything for me. So I paid the stupid ETF on top of my $600 bill. I was so dissatisfied with their customer service, they never did anything. I hope this thing goes through, it is unfair what the phone companies have been doing. Good luck everyone.
I have been with t- mobile for all most two years I lost my income, called t-mobile, asked to be let out of the contract because I didn't want to run up a bill I couldn't pay. They told me I would have to pay the $200 ETF fee. My daughter told me she would pay the phone bill until my 2 years were up. I dropped the phone on the side walk it broke in half I went to a t-mobile dealer purchased another phone, they had me to sign a paper stating I had a 2 year contract. I didn't read it I took her word for it. They charged me a $19.99 up grade fee, and the paper were for a new 2 year contract. I called t- mobile they cancelled the $19.99 up grade fee, but they are refusing to let my contract stand, because my old contract would have been up soon.
I had told them i didnt want the phone or service cuz of the truoble i had they refused to drop my service and told me it was the phone they gave me a different phone i still had trouble with it and i had to bith a fit than they charged me two fee and took it out of my bank account with over drew it. They left me in a hugh mess and they should have to clean it up
I had to pay $400.00 for two T-Mobile cell phones because we decided to cancel the phone service, which was the reason for the early termination fee in Aug. of 2007. The service was awful, most places we traveled to we could not get a signal for the phones. We didn't have to go very far for that to happen. We paid the fee but were not happy about doing so.
How do I go about getting a claim form?



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