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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54 thoughts onT-Mobile Class Action Says ‘No Contract’ Plans Have Hidden Fees
Listen, David…when the “New” Jump plan came around, I happened to be ‘jumping’ (on the previous jump plan). The clerk, or should I say ‘unscrupulous salesperson’, explained that we qualified for the ‘new & better jump plan’. I knew on the current plan I was going to have to pay somewhere around $350 to get the new phone [#2]-she explained with the new plan, I would only have to pay tax on the new phone[#2], of course-i needed to turn in my current phone[#1]…and even better than that…on this plan you were allowed to jump 3 times in 18 months, pay tax only on the new one [i.e. #4] and turn in [#3] making 18 monthly payments (instead of 24) on the phone [#4] you jumped to. One of those three phones [3, 4,or 5] if you chose to jump three times you would need to keep and pay off sometime during the 18 months or at the end. You could decide you needed phone #6, however, you would have to pay off phone #3. Because I knew I would definitely would be happy with the phone I was getting that day and knew I could keep it for 18 months, or at the very least-if they came out with a newer version…get that, keep it and make the 18 monthly payments.
It all sounds perfect right. I wonder, David, are you a salesperson for T-Mobile? Something tell me you are…because there is a script…I’m certain of it. They are licking their chops when they see someone coming in 2 hours or less before closing. There is no time to read the contract…this program hasn’t been in existence before, T Mobile hadn’t screwed me before this. I trusted this…what a fool. By the time the statement came we were long past the 14 day return period.
So here’s the real deal with the ‘new jump program’: Phone #1, when I got #2 and paid tax only, the statement came-they billed the entire amount due on the contract for phone #1…emerge, they took #1…they said that’s the way it works. Additionally, at the end of the 18 months, when you decide to keep phones #3,4,5…you will have to pay an amount somewhere in the $400-600 range- they say they may be able to work out a payment plan to split it into 2 monthly payments.
This information was given to me by the 800 number not by the store…no-the store employees were concerned about commissions and store sales…not about customers and doing the right thing.
So, Dave, I think customers I not looking for something for nothing but to get exactly what they were told and promised. We want a statement to reflect the amount you told us it would be and not blame it on fees and taxes.
I thought Verizon was bad, but T-Mobile has out done them. I mean stooping to strealing from us, their customers. As soon as I have about $2,500 to cover the three smart phones my family has that TMobile will hunt me down for…I am leaving and never looking back-
I still wonder who you are, Dave sticking up for a company like this one…don’t hide, reveal yourself.
This is the lie they tell to get your business and they always have the $0.00 for phones. Then the assoscate tells they have to run a soft credit check?? You have to pay depoist which is half of the 1st months bill and phone??? Where do I sign up?
How do I join the class-action against T-Mobile?
How do I sign up?
T-mobile had hit us with ridiculous fees done in an arbitrary way without warning of any changes, completely lied to get us signed up since we are eligible for a 15% discount through our jobs, after the fact they said oh we would have to change to a more expensive plan because we already have a good deal……well uh, thats not my problem that was the sale at the time and we were and are supposed to of received 15% off monthly bill. This was after a call to find out why we have not had our discount yet where we were told oh yes we need to send it to be added up of how much we need to credit. It was when I called back after of course never receiving a call back as promised that they then had the lame excuse that we would have to change our plan to a more expensive one. We are supposed to get our discount regardless of what plan we signed up for which was unlimited data and 2 phone lines for 120 a month. In fact it was a supervisor that said go ahead and give the discount so they could get our sale I guess.They completely lie, have bad business and deceptive practices to gouge you for more money where they think they will get away with it. You pay a month in advance basically and i swear every 2 weeks Id be paying another month worth of bill and you would not even be through the month of what they want paid in advance, you may be two weeks into the month and they suddenly shut your phone off and say oh a machine decides that and we have no way of knowing. So you turn your phone back on and pay a ridiculous bill so you should be good at least for 2 weeks before another bill comes out since you have pre paid the time…again…but no, you pay your bill then suddenly you owe again …..I guess you get to pay as much as they trick you into with their deceptive billing and confusing charges. then the phones you have been paying with your bill for over a year suddenly all become due without warning even though you are completely current and they send an email canceling then uncancelling, sending a return package then not sending a return package. ( have yet to see these return packages) I am definitely reporting this company and having someone look into our billing and everything we have paid, our first bill was over 500. for a month by month billing..and everytime I turned around we owed another 200…. when your basically paying a month in advance. it seemed like I am paying 200 almost every 2 weeks for what should be a month. T-mobile does not have service worth a crap to even think they should play games with customers just because they think ……..oh we can change up our contract anytime so we can screw over as many customers out of their money as possible. We were lied to, cheated and deceived and are still being lied to. I was told everything was okay and our bill would be normal…now they are forcing us and expedited the rest of our phone charges of 900 that we had financed with our phone bill. These people gave no warning nor indication, account paid up to current…..heaven forbid if we actually got to use the service before we had to pay for it and we cant afford to suddenly pay 1000 more dollars just because t-mobile feels like doing whatever the heck they want. I really feel they have performed some bad practices in our case and I definitely think I am not the only one, just most people dont end up doing anything about it, or dont think they can, well I pray to God some good attorneys will get all up in T-mobiles business and tear it apart and charge the crap out of them and teach them the right way to bill and charge customers appropriately without deceptions and also they can be taught a lesson of what it feels like to be forced to pay fines, fees and everything unrighteous taken from customers in a short unforgiving timeline, let it be done to them without notice where they have to pay out more suddenly without warning because of some change or policy that no one can tell will take effect until it does so you can try to prevent any negative impact of your finances. T-mobile will look pretty stupid when a judge sees all my emails of their stupidity that makes no sense. I have been injured on the job as a letter carrier, we can not afford to just cough up the extra 1000 phone money and with the weird the same bill cost with the payment arrangement agreement with it just because and without warning. Horrible company, we never had this problem with wireless att, even if we got a month or two behind for some reason we may of had a small late fee understandibly but we just got it paid and never had a problem. T-mobile charges a small late fee, then rushes to charge more hidden fees, unpredictable suspensions just because you are two weeks in the month ahead payment they are charging you for? T-mobile owes us money, it is unethical they find a way to punish, gauge, trick with fees or hidden and unknown fees, lie to get customers and have the poorest cell service Ive encountered yet. T-mobile…….with all the insane stuff you have done recently with us, your not going to get away with what you do to people, what a sham of a company, Id love an attorney to look at all the emails and weird stuff they did and look into the charges and Im sure they violated more than just hidden fees & lying about the 15% off which I fully intend on getting for the whole time of service. As soon as we are done paying our phones, bye t-mobile and they are going to need some downright unethical nasty attorneys to help that lost cause of a business, it the only way they might scrape by still in business.. I pray no customer be deceived and stolen from by T-mobile any longer. We just wanted to try it for a change, wow what a mistake believing a company would honor truth.
What an absolute crock of sh*t. There is no way that T-Mobile is charging you every two weeks. I am so tired of these Bernie Sanders supporters trying to scam companies for free stuff.
No in this case the reps scammed us, failed to give what was promised and and yes read agreement……..they charged us late fees that were illegitimate and we couldn’t figure out how we were late after ensuring yet again everything was in order with a rep, we were paid completely up to date, in fact paid even more because they kept saying they sent out a return kit for cell spot…never showed up, then was supposed to replace them and supposedly sent out new ones as they sent labels for a return kit….all we got was a surprise almost 500 extra charge. paid 630 for the 2 months and 148 for a cell spot we were not supposed to be charged for then for so really paid almost 3 months but that aside I pay the 630 prior to the next bill and it immediately said we were 400 behind……cell spot strikes again? after we received about 10 or so emails saying activated not activated ect ect……sounds David like you might be a manager or business owner, if not just wants to get a rise…whatever floats your dung boat…. and I agree there may not be merit to someone who totally cancels their service and then wants to sue because t mobile wants the equipment money now…..but we have been lied to and lied to and lied to and we tried working with t-mobile, lied to some more and really the service sucks, we were lied to, we probably were owed a decent credit after like 6-8 months of that 15% off we were supposed t have but then told suddenly oh nope……not with your plan and we were guaranteed that at sign up plus we work for the post office and own a business that originally jump was supposed to be free for us as well……train your dang reps to stop lying and tell the truth and maybe you wont have ticked off customers that feel gyped because the bills are like deciphering code every month to figure out what then heck did I get charged extra for now, and why did my bill suddenly change online……different from the last one for same date rage? actually they went through and changed a few…………hmmmmmm. The contract rules can change at anytime yes I know, but seriously, this day and age people ask for an alert then they just change it up and have no way of finding out if hey next time something goes wrong am I going to have to pay an extra 50 bucks just because my bank changed my card or Im not perfect that day? A rep really cant see what s in the system or what would or when a suspension or disconnection would be triggered by an event or series of events *cough* BULL!!!! Im not stupid…I know dang well anything can be looked up and anything can be foretold unless their is an actual glitch once in a while. Thats called, we know but would rather collect free money from you when sometimes you really dont deserve it! I believe in truth, integrity and honesty, mercy and compassion, i get there are some people that just want free crap and will sue for the hell of it and think they have a right to this free and that, but you Donald trump lovers r a bunch of hypocrites that make government a joke and even business owners cringe at the devastation that mockery of a candidate would be if elected president…..heck if he gets on the platform Id have to say the Antichrist is now on the throne better hope Jesus already took us home because Satan has stepped up for his time on the plate. Heck, I almost hope I can stay with the power of God as others come to Christ once they realize that red hair aint just his hair color it represents. Its also horrid of especially of big companies that think they can just do whatever they want and get away with it forever just cuz they throw in there…..oh we can do what we want without notice…..well there isn’t ftc, consumer affairs, business law ethics and practices just because a group of power tripping money hungry board member’s or investors ceo or whoever is up there acting like their crap doesn’t stink and is the best poo poo platter available so they can change the price anytime and screw over who they want cuz we all know….big businesses those pennies, dimes, dollars add up when you have a few million people being stolen from unrighteously and usually unknowingly. so if I say as soon as we would pay our bill within 2 weeks we had another month bill it happened, just like it happened we paid everything on time….ahead of time then within 2 days we had a bill showing we were 2 months past due even though we definitely were not. So clean up your language, be a big boy and stop thinking that everyone is out to get the business peeps, get rid of your load of crap cuz i just took of my wading boots stomping through your huge pile of dung statement.
Did you even read the paperwork that you signed?
Does this apply to New York State?? I have had TMobile for over 15 years and finally dropped them because they have charged me close to $1.800. Please someone let me know if this also applied to NY. TMobile is a total RIP OFF!!
Where do I sign up because T-Mobile know they was charges fees that was not rights. I just left services with them because unexplained cost. I don’t have service with them and just got hit a huge bill that cant be explain where the cost come from.
Same as above AT&T, T Mobile, sprint
I have paid for all my bills and keep getting told that if I leave because I feel my bill is to high I need to pay off the phones I have but it says we dont have a contract so I should be able to walk away
I switched from At&t and went to t-mobile. T-mobile was supposed to buy them out. needless to say im stuck with a 1,000 plus bill because they failed as a company to do what they had to do
yea……they will change your bill and history too to make themselves look legit…print that as soon as it comes up…..Im reporting to BBB