T-Mobile USA Inc. has been hit with a class action lawsuit that alleges it misrepresented its “no contract” service plans and illegally charged customers a termination fee when they leave T-Mobile, in violation of Florida consumer protection laws.
“T-Mobile attracts customers by touting ‘no contract’ cell phone service plans without any hidden fees,” the T-Mobile class action lawsuit states. “In addition to service contracts, customers typically have a device contract for the financing of the cellular device. When a customer leaves T-Mobile, T-Mobile has a practice of unlawfully seeking the entire amount under the device contract as immediately due.”
Plaintiff Moshe Farhi claims that this practice is essentially an unlawful termination fee that violates the device contract. The class action lawsuit asserts that T-Mobile’s attempts to collect this fee from its customers are in violation of the Florida Deceptive and Unfair Trade Practices Act and the Florida Consumer Collection Practices Act.
According to the T-Mobile class action lawsuit, T-Mobile launched a media campaign that promises to do away with lengthy cell phone contracts and termination fees. However, the company allegedly misrepresents these “no contract” plans and charges termination fees when a customer chooses to leave T-Mobile.
The T-Mobile hidden fees class action lawsuit states that consumers who purchase the service are entering into two agreements: to purchase the actual device by paying for it in installments and to use the phone by selecting a service plan.
Farhi claims that T-Mobile does not prevent customers from leaving it for other providers, as it has promised in its advertisements. However, once a customer chooses to leave T-Mobile, the company sends bills for the entire amount of the device, even though the agreement allows customers to pay in installments.
“When T-Mobile attempts to recover the entire accelerated amount, it knows it has no right to seek this amount,” the T-Mobile class action lawsuit states. “Thus, T-Mobile has a practice of illegally accelerating contracts and attempting to collect illegal charges from consumers that are not owed.”
According to the T-Mobile hidden fees class action lawsuit, Farhi purchased four iPhones in June 2015 for personal and family use. Farhi entered into a device agreement with WebBank, borrowing a total of about $2,600 for the phones, payable in 24 monthly installments. WebBank immediately assigned its rights to T-Mobile, which claimed that no changes would be made to the terms of the loan. Farhi also entered into a month-to-month service agreement with T-Mobile.
Farhi cancelled his service after about two months because he was not satisfied with the cell phone service. T-Mobile subsequently sent him a letter seeking a payment of $2,271.52, the entire amount owed under the device agreement. Farhi never agreed to this accelerated payment plan, and asserts in the class action lawsuit that T-Mobile is leveraging the device agreement to “essentially penalize” Farhi for terminating his service agreement.
The T-Mobile class action lawsuit was filed on behalf of Farhi and a proposed Class of Florida residents from whom T-Mobile attempted to collect an accelerated amount due under an equipment installment plan loan agreement that was not actually owed.
Farhi is represented by James. L. Kauffman of Bailey & Glasser LLP and J. Dennis Card Jr. and Darren Newhart of Hicks Motto & Erlich PA.
The T-Mobile Hidden Fees Class Action Lawsuit is Moshe Farhi, et al. v. T-Mobile USA Inc., Case No. 9:16-cv-80580, in the U.S. District Court for the Southern District of Florida.
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51 thoughts onT-Mobile Class Action Says ‘No Contract’ Plans Have Hidden Fees
T mobile service carrier has continued to change my phone plans without authorization amounting to double what the normal is and then tacks on late fees for non payment on erroneous charges. They charge me for a phone that I already had previously and only used a SIM card from them. They have credited me twice because of their errors but keep continuing to do it and every time the charges are getting higher in amount. They shut my service off and caused me to lose important phone calls from employers that were trying to hire me for a position. That was the last straw for me. I have printed bills for everything and I hope someone will help me.
Can I join the class action law suit?
As many have reported, T=Mobile lied. They ae attempting to hold m e to a “contract” about which I was never appraised, never saw, which was never mentioned, and which I DID NOT SIGN. When I objected to a senior rep, she told me, “you should have known there was an agreement…”
We got t moble last April and their price lock grantee at $159.52 and my bill goes up every month. T-mobile is now demanding $217.94
Please add me to this suit
Hello I am with TMobile and they advertised the sync up device in which the advertisement was for road side assistance and per the agreement there was no limit and. I mention of service credits per yearly Use. I even requested this info in writing which I received. I found out that all of the services I am used they did not pay for any of them but they ran them through m you to allstate insurance policy that I happen to have and now I have several claims and these are over the years and the vehicles I be used the sync app o no is not the vehicle I have insured and these vehicles were not covered by me my insurance policy and it now looks like I was using my Allstate roadside assistance policy on vehicles I do not even have insured I just discovered this a few days ago. This is when I also noticed where they want to charge for use of roadside asst which they said was part of the sync up plan. They totally lied regarding the plan as it has all these hidden fees. Just like their advertisement for the older plans which I have where they say you get unlimited data but not true you get 3g then is slows down to a less favorable data plan. And lastly the 5g data that they said I would get I do not get as my wifi rolls over to less inferior company that TMobile partners with and it’s 3g even though they told me I would have 5g service it is not true
Add me
Been with Tmobile for years and it seems like my bill constantly goes up for no real reason.
ADD ME PLEASE!!! T-Mobile promised to pay off both of our Sprint accounts for switching our service over to T-Mobile and NEVER did. Sprint turned us over to collections, which is ironic considering Sprint was in the process of being absorbed by T-Mobile at that time. We have one of those “no contract” accounts as well as the lease to purchase all three phones. T-Mobile’s service as far as dropped calls and no internet connection is just as bad, if not worse, than Sprint’s was and I was a Sprint customer for 12 years. T-Mobile’s Scam Shield is a joke!!! It let’s calls through that should be blocked and blocks calls from people in my contacts!
Ported from T-Mobile to Sprint and was still charged two months of service. Definitely a scam. So glad they are gone.
Add me to this suit. I’m locked in a contract when I was told there would be none and my bill is different every single month even though I was quoted one price.