Consumer Advocates Lodge Complaint Against T-Mobile
Several consumer protection advocates are asking the Consumer Financial Protection Bureau to investigate T-Mobile's business practices. In particular, the groups believe T-Mobile's "no-contract" advertising is deceptive, and its debt-collection policies are predatory. The groups say T-Mobile links month-to-month service with two-year equipment financing plans, which are, in effect, contracts that result in financial penalties if broken. Moreover, the groups say T-Mobile engages in an abusive pattern of debt-collection practices by providing customers with little or no warning before sending debt to collection agencies, and by providing inaccurate information to collection agencies. The groups also believe T-Mobile's arbitration clause exacerbates the issue by placing legal barriers in consumers' way when seeking redress. The groups include Change to Win, Color of Change, League of United Latin American Citizens (LULAC), U.S. Action, and Consumer Federation of California. "T-Mobile's unethical behavior is particularly troubling because the company's customer base is disproportionately made up of people of color, and Latino and African American consumers are more reliant on mobile for phone service and internet access," said Brent Wilkes, Executive Director of LULAC. T-Mobile CEO John Legere responded to the accusations via Twitter. In a since-deleted Tweet, Legere said, "We stand by our ads! We haven't been accused of false advertising by any regulatory body." The CFPB has not responded publicly to the groups' request.
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it' for dumb people
" T-Mobile links month-to-month service with two-year equipment financing plans, which are, in effec
None of them.
What carrier did it first?
What carrier claims this isn't a service contract?
Too Bad Ignorance Isn't Painful
I don't have T Mobile, but what they did made sense.
Paraphrased - "We will charge you a reasonable rate for service (not padded to offset your device subsidy).
No contract and you can either bring your own device that you already own, buy of ours outright, or buy a new device and we will bill you for the device autonomous of your service plan. -
>>You go to Best Buy and purchase a television on credit to be paid back on the terms of your cardholders agreement.
Then you call up Comcast to establish programming services for this device you bought autonomous of Com...
Sweet, screw it up for everybody Deep Thinkers...
Wait, I mean its a scam, the man is taking advantage of me, trying to make me pay for that thing I signed that legally binding piece of paper saying I would pay for. And now you won't let me use that phone I technically stole from you? I should file a class action.
I hope this lawsuit gets body slammed and then elbow dropped in court, of course customer direct financing makes the carrier more profit in the end and of course it passes the financial liability for the cost of the handset to the custom...
-Any major carrier have device plans. As for T-Mobile, the customer is actually given an option to get the phone he/she likes through installments without paying any large amount upfront. If he/she cancels his/her account, she will only have to pay the total remaining installments on the phone's price. Nothing much, nothing more. That is not a financial penalty.
>>>>>Moreover, the groups say T-Mobile engages in an abusive pattern of debt-collection practices by providing customers with little or no warning before sending debt to collection agencies, and by provid...
Oh, and also the Jump on Demand leasing program is only 18 months, not 24 (2 years).
legal wise their marketing is technically correct because they advertise no "service agreement", but it is kind of deceptive because the Jump On Demand is a lease contract t...
You hit the nail on the head. It's a contract... which wouldn't be a problem if they didn't advertise, "No Contract." This is exactly the sort of thing false...