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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
I have had the same exact issues, they are trying to rip me off by over $1500 please help as ive had a spinal injury and this is really affecting me with my health i really need help please contact me.
Same happened to me. In my eyes they owe me hundreds!
I am in the same situation as everyone else. Had same phone since 2018. Never upgraded. Was paying $238 per month for two IPhone XS (10). I knew my lease was up and my phones were paid. I calculated how much that is and over four years I have paid them over $11,000! I went to switch to Optimum, Optimum said my number was clear, they ported the phone but at the very end, said it was locked and I had to call Sprint customer service. I called and they said that because I didn’t sign some paper when the plan was over saying I wanted to buy out my phone, THEY automatically entered me into a Forever lease program and I’ve been paying 42$ per month per phone that I have long paid for in full. Who are they to make that decision? AND, to get them to unlock my phones, I either have to send phones back or pay $250 fee per phone to break a lease I never agreed to. So incredibly frustrated over this. I haven’t had a phone in over a week and I’m pissed! So I’m left to buy another new phone from a different carrier bc I have to turn mine in. Such scammers. It’s literally disgusting. I told the customer service rep that I think Sprint is repulsive, unscrupulous and make it absolutely impossible to leave them and go somewhere else. I also would like to be entered into the Class Action Lawsuit.
I’m dealing with this same issue also. I just recently switched services after paying on my phone for 4 years $155/month for just me, and they said I have to pay $274 to own the phone or return it. After paying that much for 4 years , I assumed I owned the phone. Turns out they had been scamming us all with this flex lease plan , WAY overpayed on that one. This can’t be legal. I was shocked when I got the email saying my service is canceled but I still owe $274 in order to own the phone. None of that was made clear when they put me on that plan. I don’t think anyone in the right mind would sign up for a plan where they don’t own the phone after 4 or more years. Really hope something can be done about this.
I am also being scammed currently by sprints flex lease plan. I have been over charged $525 for a phone and still have to pay $350 to own it.
please add me. Sprint has over charged me $1000 with my flex lease, and will not return my money.
I’m in the same situation. My phone was paid of august 27 of 2020 and been over paying sense for a lease when I shouldn’t be
I’ve been part of sprint for over four years when I went into T-Mobile I have ongoing charges that are unexplained and I’ll look at my contract and it will say one price one day in the very next day it will say more after I paid the bill, and I brought that up to them at customer service and basically they had nothing to say about it I’d like to join the class action suit
I am also having this issue paying for phones that are no longer activated as old as an iPhone 6 being charged 25 each month and being told I can’t do anything about it. All together it’s $100 each months for phones that had been paid of a long time ago
I am also stuck in one of these forever/never getting our lease arrangements.