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July 30, 2008

Sprint Nextel may repay customers for early termination fees

SprintA California judge has issued a tentative ruling ordering Sprint to repay $18.3 million to customers who sued over early termination fees, as well as credit an additional $54.8 million to those who were charged but did not pay the fees, according to the Associated Press.

The ruling comes weeks after Verizon settled a similar class action lawsuit with consumers who had been burned by the fees charged for canceling a contract early.

As these lawsuits were underway, three of the four major providers have established gradually decreasing early termination fees --- Sprint promises to get theirs together by the end of this year.

Still no word yet, however, from the FCC on regulation of early termination fees. Spokesmen for the four major carriers have said that federal regulation would be preferable to a patchwork of rules among the 50 states. But consumer advocates such as those at HearUsNow.org, a project of the Consumers Union, worried that such regulation would limit the ability of states to protect consumers.

(photo: JB Reed/Bloomberg News) 

 

 


Posted by Liz Kay at 2:24 PM | | Comments (0)
Categories: Cellular/Landline/Voice over Internet
        

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