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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’m currently dealing with Sprint and this exact situation. Please add me.
Add me… This was my problem with them. Many more but definitely went through this.
Add me
Add me to the law suit. I had the same experience where my lease ended, I paid the phones off and they will not honor their end of the bargain and wanted me to make 6 more additional payments on 2 phones and I paid the $199 for the one they let me keep.
Please add me its happened to all my lines.
Please add me
I have had Sprint for many years with five phone leases at a time. This happened many times! Please add me.
Sprint lease is such a rip off. After you pay the lease for 18 or 24 months the phone is still not your phone. They will continue to charge you, when really you will have to upgrade because it makes no since to keep paying for an old phone that will never be your phone, and on top of that, THEY WANT THE. OTHER PHONE BACK!!!!!!! WHEN IT REALLY SHOULD BE YOUR PHONE
As a never ending cycle. I have been trying to get out if my Sprint plan but refuse to pay the outrageous fees. I have 3 phones and 2 years after the initial 18 months and monthly payments I paid one of my 3 phones off. I have a grandfathered plan and the push for change only increases my bill. As a long time customer you would think that there would be better service. Bit there isn’t. They just continue to take money. I’d gladly be apart of this.
I just finished paying my 18th month and now I’m being told that before I can upgrade I have to pay 87.91 to own the phone and that it can be paid over the next 6 months. I live in Mobile, Alabama