T-Mobile Refunds ‘No-Contract’ Plans

by Christopher Freeburn | April 30, 2013 12:15 pm

T-Mobile Refunds ‘No-Contract’ Plans

T Mobile storefront 630 300x225 T Mobile Refunds No Contract Plans[1]T-Mobile, the U.S. wireless operation of Germany’s Deutsche Telekom (PINK:DTEGY[2]), is offering refunds to customers[3] who recently purchased mobile devices under its Equipment Installment Plans.

The refunds are part of settlement with Washington state’s attorney general, who sued the wireless carrier over misleading advertising of the plans. In addition to the refunds, T-Mobile will pay the Washington attorney general’s office $26,046 to cover its fees and costs, ABC News noted.

Customers who purchased equipment and service plans between March 26 and April 25 may be eligible for a full refund.

Bob Ferguson, the attorney general for Washington state, filed suit against the wireless provider over its failure to mention fees and costs tied to its “un-carrier” plans in ads. The plans were promoted as not featuring annual contracts[4], in contrast to rival wireless carriers like AT&T (NYSE:T[5]) and Sprint (NYSE:S[6]), which usually require a two-year service contract for subsidized phone purchases.

However, the plans’ fine print included terms that required customers to repay the full outstanding balance on their mobile devices if they cancelled the service plans before the devices were paid off[7]. Ferguson described the practice as “deceptive” and ordered T-Mobile to alter its advertising.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/T-Mobile-storefront-630.jpg
  2. DTEGY: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTEGY
  3. offering refunds to customers: http://abcnews.go.com/blogs/business/2013/04/t-mobile-offer-refunds-for-no-contract-plans/
  4. as not featuring annual contracts: http://investorplace.com/2013/03/pricing-revealed-for-t-mobiles-new-contract-free-plans/
  5. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  6. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  7. required customers to repay the full outstanding balance on their mobile devices if they cancelled the service plans before the devices were paid off: http://investorplace.com/2013/04/t-mobiles-no-contract-ads-under-fire/

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