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
T-Mobile promised to pay off my phone with Verizon. That never happened and when asked they said they can be a bit slow and would take care of me. It never happened. Then took them the bill and they again said they would take care of me. Another lie. I get 4 to 10 called each day from Verizon wanting their money for the phone that T-Mobile said they would pay off. It’s been taken up the chain of command and yet I’m still being harassed by Verizon as my phone that T-Mobile has in their possession has never been paid off as promised in the contract.
This isnt just a T-Mobile thing other cell carriers do the same thing. Thats why there’s the buy out your contract deals carriers offer that pay off the remaining balance of the phone(s) you have from your current provider.
Tmobile lied to us too. They told use we could get 4 lines for 120.00 a month now they are charging me 20 per line how do I get help I’m paying for 2 lines more that I don’t need. Help.
me too! then they take stuff off and you think its ok —but every month!
They did the same thing to me.. Trying to start a class action!!
Hi. I just got taken for a lot of money by them too. Not only lied but conveniently did not give all the information. I opt out of arbatration and would like to know if there are any class action suits out there to take part in. Any help is appreciated
I Would be interested to join with one also.
Can anyone tell me how I can join the class action suit against T mobile. I live in Florida. Thanks, Rosalind [email protected]
BEWARE T-MOBILE Customers!! If you leave T-Mobile you will pay for it! I left t-mobile because of the cost and switched to straight talk. I had tree lines with them. Before we left we called T-Mobile to make arrangements for final bill which was only two days of the new cycle and transferred a device balance to our daughter. Everything was signed to transfer to her own account and the T-Mobile rep said we had 0 balance and everything was taking care of. Then I start receiving a bill for 943.44 shortly after. They have sent me to collections because I refuse to pay it. We spoke to 2 other reps before we left to make sure everything was final. All three reps told us that we have no balance and everything was good. Now they want 943.44! I’m getting harassing phone calls from collections agencies. If you are a T-Mobile customer I would leave them for their crooked tactics but beware when you do!!!!!!!!!!!!!!!!
How do I join the class-action against T-Mobile? I live in Maryland and I am going through the same deal, T-Mobile knows they were charging fees that was not right to their customers with out telling them. I just left services with them because unexplained cost. Also, I was wondering about payment late fees ? I don’t have service with them and just got hit a huge bill that can’t be explain where the cost come from. T-Mobile doesn’t offer any way to return the phones or devices after the 14 or 30 day testing period for credit. But they lock the devices down so you cannot use them with any other carrier. I was with them when they were Voice Stream before becoming T-Mobile, I stayed that long. Now I’m being hounded each day about paying a ballooned bill.
How to join this class action? Who can help me. ANd I need to open e new class action with them.
and who is webbank, that is not mentioned in literature?
A T-mobile rep in Alabama OUTRIGHT lied to me to make a sale, I cleaned up the mess, now it’s on my credit report. I had a sticker shock when I was in Texas and they flipped my plan causing me to lose my service. Now I am home in California, and would like to get a case going against T-mobile in the Federal courts, I’m not really interested in any kind of Cash Settlement. The clowns at T-mobile need to be prosecuted in the US supreme court and loads of National Media Coverage about the defeat. What loser would work for this joke of a company? Not only that, they have the WORST SERVICE COVERAGE IN THE INDUSTRY.
My identity got stolen from T-mobile database. I had several phones stolen and added on my account. On 2 of my accounts money has been stolen from tmobile database which they decline. 3 different names been added to my account which they cannot tell me how it was added. I have dealt with every high Office in T-mobile yet for all no help. I tried several attornies to help handle my case.