New Class Action Suits Filed Against Sprint and Verizon

Here we go again. It seems that class action suits are once again targeting wireless carriers. I have made several post that documented the disputes between carriers and customers over wireless contracts and other aspect of consumer-seller relationship. Let's take a look at the case filed against Sprint.

Sprint has been the subject of numerous class action suits and this time the mobile phone carrier has been accused of charging subscribers for unauthorized mobile content. A similar complaint was hurled against Alltel more than a month ago in Illinois federal court.

Subscribers have accused Sprint of billing customers of unauthorized charges that are caused by collaboration between wireless carriers and aggregators that represent premium mobile content providers. The lawsuit that began in state court before being moved to federal court in Kansas states:

“Sprint has for years been systematically, repeatedly and without authorization, billing its customers for purchases of products and services not agreed to by those customers. Sprint and third-party service providers have, on information and belief, profited significantly through this practice.”

In response to this accusation, Sprint emphasized that they are adhering to standard industry practices. A spokesman commented that "we adhere to the Mobile Marketing Association guidelines which emphasize the need for subscriber consent before third-party content is delivered to a handset.”

Sprint's wireless contract devotes a paragraph to third party-content. Here is a part of that paragraph

To protect our network, Services, or for other reasons, we may place restrictions on accessing certain Data Content (such as certain websites, applications, etc.), impose separate charges, limit throughput or the amount of data you can transfer, or otherwise limit or terminate Services. If we provide you storage for Data Content you have purchased, we may delete the Data Content with notice or place restrictions/limits on the use of storage areas. You may not be able to make or receive voice calls while using data Services.

Let's now look at the class action suit launched against Verizon Wireless. The wireless carrier is once again being accused of violating the Fair Credit Reporting Act. The complaint filed inn Alabama federal court claims that TransUnion L.L.C. and Verizon are ruining the credit of a wireless subscriber. Verizon Wireless and Alltel Communications L.L.C.. were also accused of violating FCRA laws in Pennsylvania and Georgia federal courts because of alleged breaches of credit privacy.

According to the plaintiff, Verizon Wireless is continuously trying to collect more than $1,000 from him. He feels that this is unlawful because The carrier falsely reported the disputed debt on his credit reports. The plaintiff claims to have followed Verizon Wireless’ instructions with regards to dealing with possible identity theft by filing l out a police report and sending a copy to the carrier.

Unfortunately, the problem remained even though, a collection agency later received the police report. The plaintiff was forced to contact TransUnion L.L.C. and Equifax because the overdue account remained on his credit reports. Equifax responded by removing the account but TransUnion allegedly did not do the same.

Verizon declined to release any statements in response to this accusations. Here is a part of Verizon's wireless contract statements on credit information,

You’ve authorized us to investigate your credit history at any time and to share credit information about you with credit reporting agencies and our affiliates. If you ask, we’ll tell you the name and address of any credit agency that gives us a credit report about you. It’s illegal for unauthorized people to intercept your calls, but such interceptions can occur. For training or quality assurance, we may also monitor or record our calls with you.

I hope that both parties can sort out their differences and reach a settlement. Of course, it would be naive to think that wireless contract disputes and other problems will cease.The mobile phone industry is among the leader at customer complaints so it's unlikely that customers will stop filing complaints against their service providers.

Two Carriers Defy Class-Action Suit over Credit Privacy

I've blogged about disputes and conflicts between customers and Mobile Phone carriers in this wireless contract info blog. Most of these disputes originate from problems over wireless contract polices.

Now it seems that plaintiffs’ lawyers have found a new weapon to pursue class-action consumer litigation against the mobile-phone industry. It's known as the "Fair Credit Reporting Act". After doing a bit of research I found out that the Fair Credit Reporting Act is an American federal law that regulates the collection, dissemination, and use of consumer credit information.

Amendments made to the FCRA about five years ago, orders that account information on printed receipts given to customers should be significantly limited by businesses that accept credit cards or debit cards for payment. This new guidelines have been imposed by early December 2006.

Recently, class-action lawsuits have been filed against Verizon Wireless and Alltel Corp. because of alleged noncompliance with the law. The financial implications of the class-action suits are potentially massive because both companies have millions of subscribers.

If a court finds willful noncompliance with the law, then the consumer is entitled to a maximum of $1,000 in statutory damages, plus actual damages, punitive damages and reasonable attorney’s fees and costs.

The lawsuit against Alltel states that:

“Although defendants had up to three years to comply, defendants have willfully violated this law and failed to protect plaintiff and others similarly situated against identity theft and credit card and debit card fraud by continuing to print more than the last five digits of the card number and/or the expiration date on receipts provided to debit card and credit card cardholders transacting business with defendants,

In court filings, Alltel and Verizon Wireless have denied allegations in the lawsuits. Let's see the wireless contract policies of both carriers when it comes to credit information. I have posted on this topic before but this should refresh you minds.

Here is Verizon Wireless contract policy on customer credit information.

Further, you’ve authorized us to investigate your credit history at any time and to share credit information about you with credit reporting agencies and our affiliates. If you ask, we’ll tell you the name and address of any credit agency that gives us a credit report about you.

This is a very interesting piece of news because of its possible impact. Verizon has a lot of customers so this may be a big blow for them. The same goes for Alltel. It's a smaller company so it would be interesting to see how they handle themselves if the court rules for the plaintiffs.

Roaming Policies In Wireless Contracts part 1

Roaming is an important aspect of using a mobile phone. Since roaming can add more charges to your monthly bill, it would be a good idea to know what your wireless contract states about it. But for the benefit of those who are unfamiliar about this term or for those who never cared before, let me give a brief explanation.

In the wireless telecommunications industry, roaming is a general term that to refers to the extending of connectivity service in a location that is different from the home location where the service was registered. This means that you are "roaming" if you use your mobile phone on a network that is outside the home service area of your carrier. More importantly, you might be charged for "roaming".

Let us look at the roaming policies of different mobile phone networks so that you will have an idea of the charges that you might incur. These policies are often stated on their wireless contracts or terms and conditions so let us tackle them individually.

Let's being with Alltel Wireless' roaming policy as that on their wireless contract. The Charges for Services and Equipment section of Alltel's Terms and Conditions states that,

"You may incur additional charges for roaming or long distance calls. Rates and charges while roaming outside of your local Alltel service area may be different from your Alltel service area rates."

This statement clearly express that an Alltel customer may suffer from additional charges if he or she makes calls outside Alltel's home service area. They also make it clear that the charges incurred while roaming may not be the same as the rates in their service area.

However, there is something very important that you need to remember if you are an Alltel customer. You should never abuse roaming because Alltel may limit, interrupt, terminate or refuse to provide service if "the majority of your Service is used roaming on a network not owned or operated by Alltel."

Let's proceed with AT&T's policy on roaming. The Roaming section of the terms and Conditions of this network states that

Roaming charges for wireless data or voice service may be charged with some plans when outside AT&T's wireless network. Display on your device will not indicate whether you will incur roaming charges. Services originated or received while outside your plan's included coverage area are subject to roaming charges. Use of Services when roaming is dependent upon roaming carrier's support of applicable network technology and functionality. Check with roaming carriers individually for support and coverage details. Billing for domestic and international roaming usage may be delayed up to three billing cycles due to reporting between carriers. If your usage of the Services on other carriers' wireless networks ("offnet usage") during any two consecutive months exceeds your offnet usage allowance, AT&T may at its option terminate your wireless service or access to data Services, deny your continued use of other carriers' coverage, or change your plan to one imposing usage charges for offnet usage. Your offnet usage allowance is equal to the lesser of 6 megabytes or 20% of the kilobytes included with your plan and for messaging plans the lesser of 3000 messages or 50% of the messages included with your plan. AT&T will provide notice that it intends to take any of the above actions and you may terminate your agreement. You may be required to (1) use a device programmed with AT&T's preferred roaming database; and (2) have a mailing address and live in the United States, Puerto Rico or the U.S. Virgin Islands.

Well, that was quite a handful. Customers that have signed up for some AT&T wireless plans may be charged if they use their phone beyond the scope of AT&T's network. A mobile phone will not be able to inform a customer that he is "roaming" while making a call. You will also suffer penalties including the termination of your services if your offnet usage exceeds your roaming usage allowance during any two consecutive months. AT&T subscribers should read their contracts carefully.

Let us now check out Sprint Nextel's take on roaming. Their roaming policy as found on their Terms and Condition states that,

"Roaming" typically refers to coverage on another carrier's network that we make available to you based on our agreements with other carriers. These agreements may change from time to time and roaming coverage is subject to change. Your ability to receive roaming coverage depends on the radio transmissions your Device can pick up. You can pick up roaming coverage both within and outside our network coverage areas. Your Device will generally indicate when you're roaming. Depending on your Services, separate charges or limits on the amount of minutes used while roaming may apply. Certain Services may not be available or work the same when roaming (including data Services, voicemail, call waiting, etc.)

Sprint explains that roaming coverage is dependent on the agreements they have with other wireless networks. They also emphasize that these agreements may undergo change at anytime. A Sprint mobile phone will also indicate if the owner is outside their home coverage area. They may charge separately for roaming calls and limits the minutes that may be spent roaming. However, Sprint does not indicate any penalty for excessive roaming calls unlike AT&T and Alltel.

Those are the roaming policies of a few mobile phone networks as stated on their wireless contracts. I will blog about the roaming policies of other networks on the second part of this series. I hope the info on this post will prove useful to you.

Wireless Contracts and Credit Ratings part. 1

Do you have a bad credit rating?

In this modern world, an undesirable credit history can make life difficult. You will find it hard to take out a loan or be approved for a credit card application if your credit rating is terrible. Now, the effect of bad credit also extends to the mobile phone industry.

The wireless contracts of many cellphone networks have certain policies when it comes to dealing with customers with bad credit. Some contracts may ask for a considerable down payment or other kinds of penalties from a customer. Wireless phone service providers may also demand a credit check to ensure that their customers maintain good credit.

Let us take a look at the contracts of some cellphone service providers to see what they say about the credit history of potential customers. Let us begin with Alltel, one of the top mobile phone carriers.

The Credits and Deposits section of Alltel's Terms and Conditions states that,

You authorize us to ask credit-reporting agencies for credit information about you. We may, in our discretion, require you to submit a deposit as security for payment of charges. An additional deposit may be required if either the amount or number of Services is increased or your credit rating changes. Simple interest will be paid on the cash deposit for the period it is held by us and will be refunded if satisfactory credit has been established or upon termination of service. We reserve the right to apply the deposit to any amount due and unpaid. We may require a guarantee of payment by an individual or entity approved by us.

As you can clearly see by this statement, having a good credit rating is a great advantage when getting a plan from Alltel. You will need to authorize them to access your credit records before you can use their services. They may also ask you for an additional deposit if your credit rating changes or if the amount of services you use increases.

Let's check out Sprint's policy on credit rating. Their online Terms and Conditions states that,

We agree to provide you Services on the condition you have and maintain satisfactory credit according to our standards and policies. You agree to provide information we may request or complete any applications we may provide you to facilitate our review. We rely on the credit information you furnish, credit bureau reports or other data available from commercial credit reference services, and other information (such as payment history with us) to determine whether to provide or continue to provide you Services. The Services we offer you can vary based on your credit history. We may at any time, based on your credit history, withdraw or change Services, or place limits or conditions on the use of our Services. You agree to provide us updated credit information upon request. We may provide your payment history and other account billing/charge information to any credit reporting agency or industry clearinghouse.

Sprint makes it clear that unless a customer maintain a rating that satisfies their standards, they will not provide services. You have also to provide them with the required credit information so that they can decide whether they will allow you to use their services.

Sprint customers will also be required to provide updated credit information when their carriers request for it. The company may also provide credit reporting agencies or industry clearinghouses with your payment history so you have to keep up with your bills.

That's it for this post. I will tackle the credit rating policies of other wireless carriers on my next post so that my current post will not bore you. I hope that this blog post has provided valuable information and that your credit history will improve or remain immaculate.

Complaints on Wireless Phone Carriers' Texting Policies

It seems that the texting policies of mobile phone carriers have caught the attention of Public interest and consumer groups. Recently, these groups have requested that mobile-phone operators should not be allowed to make discriminatory interference with text messaging.

They have made this request to the FCC. Public Knowledge, Consumer Federation of America, Consumers Union, EDUCAUSE, Free Press, Media Access Project, New America Foundation and U.S. PIRG are behind the petition for declaratory ruling.

The petition states that,

“Mobile carriers currently can and do arbitrarily decide what customers to serve and which speech to allow on text messages, refusing to serve those that they find controversial or that compete with the mobile carriers’ services. This type of discrimination would be unthinkable and illegal in the world of voice communications, and it should be so in the world of text messaging as well.”

Gigi Sohn, president and co-founder of Public Knowledge, explains their request,For many people, texting has replaced calling as a way of keeping in touch. The FCC should make certain that text messages, and the short codes used to dial them, are protected from interference from telephone companies.”

There have also been other complaints made to mobile phone carriers made by these groups. For instance, NARAL Pro-Choice America had a run-in with Verizon Wireless. The complaint was about a short code that the carrier wanted to use to send wireless alerts to supporters. Verizon had no choice but to reversecourse and give the abortion-rights organization access to its network in the face of the controversy gaining the attention of the national media.

Also, a Voice over Internet Protocol (VoIP) firm called Rebtel has not fared as well in efforts to secure short code-enabled text message rights from Verizon Wireless, Alltel Corp. and T-Mobile USA Inc. Rebtel offers low-cost international calling on mobile phones. Verizon responded that it is standard practice to reject short codes from companies with whom it competes.

Let us hope that this petition would resolve the issue and a solution that is favorable to both parties will be reached.

Early Termination Fees of Wireless Phone Contracts

Service industries such as mobile phone phone service and subscription television commonly have termination fees or early termination fees (ETFs) as they are more commonly known. However, the imposition of these fees have been criticized by consumer interest groups. These fees prevent users from migrating to superior services so they are labeled as being anti-competitive.

The process usually works this way. A person purchases cellular phone service from a particular wireless carrier. He or she might be required to sign a two-year contract in order to avail of the service. Now that contract might stipulate a $200 fee in the event that the customer breaks the contract or wants to opt out of it.

The clamor and the disputes about the unfairness of early termination fees in wireless phone contracts have lead to positive changes. Verizon wireless was the first carrier to give in when it announced that it will prorate it's early termination fee. AT&T followed Verizon's lead and other carriers namely, T-Mobile and Sprint, have also decided that they would begin prorating their ETF in the first half of next year.

Now, what does a prorated early termination fee entail? The customer will still have a to pay a fee for ending the contract abruptly. However, the amount will decrease as the decision to end the contract early gets closer to the contract end date. This means that a customer will no longer be forced to pay the original fee if he decides to end the contract.

Here's a list of the current termination fee for each major wireless carrier:

Alltel: $200 per phone line

AT&T: Prorated

Sprint: $200 per phone line (to be prorated next year)

T-Mobile: $200 per phone line (to be prorated next year)

Verizon: Prorated

So far, Alltel has not made any announcements on making it's ETF prorated. However, it may lose customers if it remains as the only carrier to have a non prorated early termination fee next year. It would be logical to assume that the company will also follow the examples of other wireless networks to keep their consumers happy.

Wireless Binding Contract Length and Freebies

Wireless carriers often offer long term contracts to their customers. They are commonly 1 or two years long. Some carriers do not require their customers contracts as needed to get their services. They may offer rebates in the place of contracts to persuade potential customers. The range of rebates for a two year agreement is usually between $30 to $330. If you get a one year contract then you may be able to get greater rebates.

If you sign a contract with some carriers, then you may be able to get some freebies. For instance, AT&T subscribers have the option of a dozen free phones to choose from. Just another promotion technique to draw customers.

If you want to go with Verizon Wireless, then you have to accept the mandatory one year minimum contract. You can also benefit from being able to choose between four free phones and substantial rebate discounts, if you sign a two year contract with Verizon.

You can also sign with Sprint for a two year contract and purchase online and gaining the option of only one free phone. Sprint has very expensive phones so it may not be good for them to offer more.

Wireless carrier, T-Mobile requires customers to sign a two year contract if they want to avail of their “My Faves” packages. Unfortunately, customers cannot benefit from the insignificant differences in the cell phone rebates between one or two year contracts.

You should not go with ALLTEL if you have a thing for free phones. This carrier does not offer any free phones as contract bait. But then again, free phones are technically not really free. Fortunately, this carrier offer three phones with their two year contract that will cost customers only a few bucks due to the discounts and rebates.

Unlimited Nights Time Frame of Top Wireless Carriers

The top wireless carriers offer unlimited night minutes to attract and gain more customers. This offer is indeed tempting because a caller can make unlimited calls during this period. However, there is still a need to exercise care when using this feature because every carrier has a different time frame for nights that is stated in their contract.

The last thing you want is to be charged for a call that you thought to be within the nights period. You should read the time frame for nights on the contract or terms and conditions of your carrier before you start making calls. Let me give some information on the nights time frame of various wireless carriers as stated on their contract.


You can avail of AT&'s unlimited nights minutes at 9 p.m. You can choose the option of changing that to 7p.m. by spending $9 more per month.


If you bought the "Power Pack" wireless plan of Sprint, then you should know that you can avail of unlimited nights starting at 7 p.m. You can make "night" an hour earlier or 6 p.m. by paying an extra $5 every month.


T-Mobile's unlimited nights begin at 9 p.m. and cannot be lowered by paying an extra fee.



Alltel’s “National Freedom” plan offers nights beginning at 9p.m., but its “Smart Choice Packs” have nights beginning at 7p.m.


Your unlimited nighttime minutes will commence at 9p.m. if you have purchased 450 minutes from US Cellular. You can avail of unlimited nights and weekends two hours earlier if you buy 900 minutes.



Verizon Wireless offer unlimited night minutes from 9 p.m. and no offers are made to extend this period.


Just by looking at these offers, it's clear that Sprint has the best nights policy because a subscriber can enjoy limited nights as early as 7 p.m with out paying any extra fee. This means that if you do most of your calls from 7 p.m. then Sprint may be the the best choice for you.