T-Mobile faces class action suit — contract “unconscionable”

Prepaid users, take solace: contract subscribers aren’t exactly happy with their service. After all, being locked in a contract means more than a commitment to use the service. It means abiding by any and all of the provisions set forth by the cellular carrier. This includes early termination fees and other dubious provisions — some of which may not be legal under state law. A class action suit against T-Mobile may change some of that.

Legal blog TortDeform explains his own frustration with his cell phone company:

And just when you think you’ve hit that boiling point and are ready to call it quits, it’s-not-you-it’s-me-style, the voice of wisdom tauntingly reminds you: “It’s cheaper to keep’er.”

Aaah!!!

There’s the early termination fees (ETFs); then there’s the fact that you might have to purchase a new phone to get new service; and then there’s the fact that switching to a new carrier is essentially a stab in the dark anyway. Who knows if the new company will provide better, worse, or equally bad service as who you’re with now?

With this class action suit, though, that might change. The allegations are that early termination fees and phone locking are unfair business practices. This is compounded by the mandatory arbitration agreements, which force a hearing between the provider and the company before the subscriber can take further legal action. California courts have deemed arbitration unnecessary in this case, calling the T-Mobile contract “unconscionable” and “unenforceable.”

Imagine if consumers win and T-Mobile is forced to pro-rate their early termination fees and issue unlocked phones. That will be a great victory, because the decision will set a precedent. This will surely lead to similar actions against the other major carriers. Can you say “unlocked iPhone”?

[TortDeform] [Consumerist]

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4 Responses

1. Another victory in court for cell subscribers | Prepaid Reviews Says
   

   [...] appeals hearing that ruled the “mandatory arbitration” clause in cell phone contracts “unconscionable” and “unenforceable.” It was a victory for consumers everywhere, since class action suits win significantly more than [...]

   
   Posted on July 30th, 2007 at 10:01 am
2. Another ruling against mandatory arbitration clauses | Prepaid Reviews Says
   

   [...] last month, a judge ruled that the provision in T-Mobile’s contract that mandated arbitration was “unconscionable” and “unenforceable.” Last week, a judge ruled [...]

   
   Posted on August 20th, 2007 at 10:30 am
3. Unlocked: T-Mobile headed to court over fees, phones | Prepaid Reviews Says
   

   [...] begins service. However, if you’ll remember back this summer, that agreement was ruled “unconscionable and unenforceable”. Uh oh. Looks like this might be a long winter for [...]

   
   Posted on October 12th, 2007 at 9:02 am
4. PEG Says
   

   T-MOBILE HAS BEEN OVER CHARGING ME FOR MONTHS. EACH TIME I’D CONTACT THEM ABOUT THE OVERSIZED BILL T- MOBILE WOULD CONSECUTIVELY RECOMMEND A NEW PLAN. IT NEVER WORKED. December 24, 2008, MY CELL PHONE BILL BEGAN AT $55.00 @ MONTH . APPROXIMATELY, 30 DAYS IT DOUBLED. UNTIL IT REACH $300.00.AND CONTINOUSLY KEPT GROWING EVENTHOUGH I HAD OBTAINED UNLIMITED SRVICE PLAN. EACH TIME I’D CONTACT THEM ABOUT THE OVERSIZED BILL THEY WOULD STILL FIND SOME WAY TO INFLATE MY MONTHY BILL.I DID BUY THE CELL PHONE FOR DAUGHTER WHO IS A COLLEGE S. WAIT A MINUTE! SHE RECEIVED HONORS AND AWARDS. SHE LIVES AT HOME. THERE IS NO WAY SHE COULD HAVE THE PHONE ATTACHED TO HER EAR THROUGHOUT HER CLASS TIME. THERE WAS NO BLUETOOTH.
   FINALLY, I REALIZED THAT CHARGES WERE BEING ATTACHED TO MY T-MOBILE CELL PHONE BILL THROUHOUT ALL HER CLASSES EVERYDAY THROUGH THE SEMESTERS AND EVEN WHILE SHE WAS ASLEEP, AND WOULD BE GETTING DRESSED FOR CLASS. IRONICALLY, THE MOST CONVERSATIONS SHE HAD WAS FAMILY AND WHO HAD SAME PLAN AND WAS NOT SUBJECTED TO THOSE DAILY EXTREME CHARGES. WHILE SHE WAS SITTING IN CLASS THEY CHARGED HER FOR A CALL TO CHINA TO A STUDENT WHO WAS SITTING RIGHT NEXT HER. HELP , PLEASE STOP THE MADNESS!

   
   Posted on October 10th, 2009 at 3:50 pm

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