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Sprint is tricking customers into phone lease agreements that see them trapped into paying much more than their devices are worth, a new nationwide class action lawsuit alleges.
Plaintiffs Teresa Gutierrez and Michael Camou filed the complaint against Sprint Corporation in a California federal court Thursday, alleging the telco company has committed fraud and violated state consumer protection laws with its Flex Lease Agreement program.
The program claims it offers customers options to get phones at a supposedly low monthly cost, the class action alleges, through monthly payments and the ability to cancel the contracts after a set time period.
In reality, consumers end up paying significantly more than the value of the device due to Sprint’s ongoing monthly charges after the lease terms end, the claim contends.
In some cases, consumers have been forced to make additional payments at the end of the initial lease term in order to own their devices, or are even unable to cancel the program after the termination of the lease period despite trying to do so.
“Without a realistically available option to own their Devices or cancel their leases, customers are left paying to lease their Devices indefinitely,” the class action states.
Gutierrez said she leased two 64GB iPhone 8s through Sprint’s Flex Lease program in 2017.
For 18 months, she paid $36.76 per month for each device for a total payment of $661.68 for each phone. The class action says she understood that after she made 18 monthly payments, the payments would represent the value of the iPhones, and that she would own both of them outright.
However, when she contacted Sprint, it told her she had to pay an extra lump sum of $199.87, or six monthly payments of $33.31 per month on top of the lease amount. Not wanting to pay more than the value of the phone, she continued making just the monthly lease payments.
“As a result of Sprint’s unconscionable Flex Lease program, Plaintiff Gutierrez has been harmed and suffered damages, including, but not limited to overpayments for Device leases, excessive purchase prices for Devices, termination fees, and inconvenience,” the class action states.
Camou had a similar experience, leasing a Samsung Galaxy S10E through Sprint’s Flex Lease program in 2019. Over 18 months, he paid $33.52 monthly for a total payment of $603.36 for the phone. However, when he finished paying the installments, Sprint allegedly said he couldn’t own the phone until he completed an additional nine monthly payments of $20.84, or $187.56 total.
The class action also alleges customers were not told when they were nearing the ends of their plans, leaving them to continue making monthly payments indefinitely. It says customers who tried to cancel their contracts by returning their phones found their efforts intentionally frustrated by confusing website links, odd emails, promised call backs that never came, and long wait times on chats.
Some people also allegedly had their devices refused for return, even if they had minimal wear, or were told that they were ineligible for the buyout option.
The consumers are looking to represent anyone who purchased or leased one or more devices under the Sprint Flex Lease Program, plus a California subclass. The class action is suing under California’s Unfair Competition Law California’s Consumer Legal Remedies Act and is seeking recovery for common law fraud, conversion and unjust enrichment.
Gutierrez and Samou are seeking certification of the Class, damages, interest, fees, an injunction and a jury trial.
Meanwhile, a $7.6 million settlement agreement has been proposed to resolve a case filed by several retail workers against Sprint, alleging it may have violated the Fair Labor Standards Act in addition to other worker protection laws.
What do you think of Sprint’s phone lease contracts? Let us know in the comments!
The plaintiffs are represented by Alison M. Bernal of Nye, Stirling, Hale & Miller, LLP and Joseph G. Sauder, Lori G. Kier and Davina C. Okonkwo of Sauder Schelkopf LLC.
The Sprint Phone Lease Class Action Lawsuit is Teresa Gutierrez and Michael Camou, et al., v. Sprint Corporation, Case No. 2:21-cv-03865, in the U.S. District Court Central District of California.
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1,267 thoughts onSprint Phone Lease Plans Trap Customers in Endless Contracts, Class Action Alleges
How would one become a participant in this class action lawsuit??? I filed a dispute in July when I found out I was on a “forever lease”. I paid for my phone and a phone line I asked to be canceled for 2 years!!! Which adds up to a grand total of over $2000.00!!! They had been cutting off my service, but when I called, would turn it back on, until this evening. Now they have terminated my line AND my access to mySprint!!!According to them, I owed them a little over $400 because I’ve been trying to get answers since JULY, but like I told them, I REFUSE to give someone that owes me over $2000 anymore money until the issue is resolved. I have detailed notes regarding every interaction I have had with “customer service” (and I use that term VERY loosely) agent including most employee names and ID numbers. Some refused to give me their information which only makes them look more guily!!! And just to add insult to injury, when you look at the dispute form, it states you need to fill it out and returned within 30 DAYS of filing the dispute for them to investigate. Guess that’s why ⁸they kept putting me off and turning my line back on. They are LITERALLY going to kill me! My blood pressure was 170/123 with a pulse rate of 113 by the time I got off the phone!!! Please, please, PLEASE allow me to become an active participant with this!!!
Did you ever find out about the class action lawsuit? My stepmother paid $3,000 over 10 years for an iPhone 8!
I’m going through the same thing right now. I’m at my 18 month mark and I went online today to my account it said the purchase option of phone is $207 but the next line said own it today for $477. WTF… They are a bunch of crooks. I’ve been with them for 12 years but not anymore. And also they make you pay the taxes on the full price of the phone when you sign the lease but when trying to purchase at the end of lease they are trying to charge taxes on the remaining balance. I’d like in on this lawsuit.
I’m also a victim of this forever lease. The salesperson told me make the lease payments you will own your phone after 18 months and not be charged a lease payment. I was not paying attention to my automatic payment didn’t remember my passwords finally after 3.5 years I discovered I’ve paid over $2500.00 for this phone. After contacting sprint T-Mobile they offered me a buyout of $160.00 which I reluctantly paid only to get away from there company now they are refusing to unlock my phone. I’m a very pissed off consumer I’ll figure out how to get my voice heard. What a scum bag ripoff company!
My credit has been affected by Sprint saying that I owe, when my phone and iPad no longer worked months ago and I called cancelling them. I am cancelled. Yet I owe on defunct products, long paid off and month to month? Unacceptable. Add me to lawsuit.
I’ve had the exact same experience with two different phones. Please add me to the class action.
Please add me. I have been trying to get out of this lease for the last 2 years. When we purchased the phones from sprint they told us the phones would be paid off in 18 months. What they did not tell us was that we would have to pay $199.00 per line (we had 5 lines our oldest son brought his line out) after we had already paid for these phones for 18 months. Please help!
What else can we do? The holidays are approaching.
Have you contacted someone for legal advice
Same thing happening to me. Add me. Sprint is getting over on millions of people.
Same thing happening to me. Add me.
Please add me.. same exact issue with several phones
I have been paying a lease payment for 47 months that ended during COVID-19 2020. While I was leaving for deployment this contract ended and I’ve been paying an outrageous bill ever since.
Please add me. I traded in an old phone receiving a $300 credit sign an 18 month contract pay off the balance I’ve been leasing back my phone for several months they owe me hundreds of dollars I get the runaround every time I call I need to have this remedy thank you
Kathleenfox819@gmail.com