Can a Buggy Software Upgrade Free a Customer from a Wireless Contract?

The current trend in mobile phones indicates a transformation from feature phones to smartphones. Consumers are now more able to purchase smartphones while the smart handsets are beginning to offer high-end consumer features. However, this trend also comes with an implication that is related to mobile phone contracts.

Smartphones require software updates that are supposed to keep them up to date with the latest technology, fix bugs and add enhancements. However, new versions of software can be buggy and break things that worked perfectly well with the previous version of software. This can be a problem for smartphone owners since the next software upgrade can take several months before release.

So can a problematic software upgrade free one from a smartphone contract?

Well, it's unlikely. The a buggy software update is not covered by the relevant section of most carrier's terms and conditions. This means that you can terminate your contract but you will be required to pay an early termination fee.

Finding ways to fix the bugs might be a cheaper choice than terminating a contract.

Since most of the ETF offered by carrier are pro-rated there's a chance that you wont pay a high fee as long as you do not have a ot of time left in our contract.

That's it for this week. Tune in for more mobile phone contract news and updates.

T-Mobile 'Unlimited' Data Plan Results in Class-action Lawsuit

Here's a wireless contract dispute that involves T-Mobile USA. A consumer from California has filed a class action lawsuit against the 4th largest US wireless carrier for offering unlimited data but imposing caps data use once consumers are locked into a wireless contract.

The class action lawsuit against T-Mobile was brought in Superior Court in Yolo County, California.

The complainant, Trent Alvarez, alleges that advertisements for T-Mobile's “Unlimited Web & E-mail” plans falsely offer promise the consumer access to an “unlimited” amount of data.

Alvarez received a message that stated: “Your data usage in this billing cycle has exceeded 10GB; Data throughput [speed] for the remainder of the cycle may be reduced to 50kbps or less.” He was unable to do anything with his handsets except make or receive phone calls and text messages.

This cap on T-Mobile's 'Unlimited' Data Plan was only mentioned on a statement “on the very last page of the carrier's brochure. It was reportedly buried in minuscule type barely readable and states: 'Your data session may be slowed, suspended, terminated, or restricted if you use your service in a way that interferes with or impacts our network or ability to provide quality service to other users …'”

Well, this isn't the first time that a US carrier hit with a class action suit based on false advertising of its 'Unlimited' Data Plan. Other complainants have filed cases against other carrier's as well.

That's it for this wireless contract news. Tune in for more information, news and updates on mobile phone contracts.

Benefits of Settlement Agreements on Mobile Phone Contract Disputes

Many consumers turn to class action suits in times of disputes over violations of a mobile phone contracts. Many hope to win a settlement agreement with a wirless carrier who has violated terms of a contract. but what are the benefits of seeking a settlement agreement over a wireless contract dispute?

Well, the benefits of wimming a settlement is varied. Monetary compensation is a common reward for a class member and will be awarded o those who have fulfilled the requirements. This usually includes an Approved Claim Form. Of course, you have to be qualified to be included in the complaint.

Another common benefit offered by a settlement agreement is a phone card that provides a few hundred minutes of state-to-state calling.

Keep it mind that you may only receive one benefit per line.

That's it for this quick post on settlement agreements of wireless contracts. Tune in next week for more info, news and updates on wireless contracts.

Settlement Proposal for AT&T Wireless Contract-related Lawsuits

AT&T has proposed some benefits as settlement for wireless contract-related lawsuits. Perhaps after witnessing Verizon paying a substantial sum to a class action suit, the carrier has decided to take pro active actions.

This proposal was made to consumers who sued AT&T for unfair billing practices. A hearing to consider the fairness of the proposed settlement will be held Nov. 15.

AT&T Wireless customers who signed wireless contracts after March 1, 1999 and who submit the appropriate forms may be eligible for the following benefits:

• $8 for mMode data service
• $10 for ENH Discount International Dial
• $8 or a 250 minute AT&T phone card for out of cycle billing
• $7 for Universal Connectivity Charge.

If you wish to participate in this settlement, then you must mail or submit a claim form by Feb. 13, 2011.

Click Here to get more info on settlements with AT&T.

That's it for this post. Tune in to this wireless contract blog to get more news and updates on related topics.

Verizon Wireless to Pay $21 Million for Wireless Contract ETF Settlement

Here's a great update for those who have a score to settle with Verizon Wireless. The nation's largest wireless carrier will pay for a class action lawsuit in California over early termination fees. Verizon Wireless will pay a total of $21 million to the 175,000 members of the class.

Each person in the class-action claim is estimated to receive $87.50 after challenging the carrier's practice of charging a $175 fee for breaking a wireless-service contract early.

The carrier will be made to pay after appeals court in California ruled that the class-action settlement should be upheld.

This Verizon Wireless contract settlement ends all litigation over how early termination fees were applied. However, this should not be applies to its current early termination fee policy. Verizon Wireless has increased ETF from $175 to a pro-rated $350 for "advanced devices" like smartphones and netbooks.

Scott Bursor, the lead attorney for the plaintiffs in the case commented,

"Yesterday's ruling by the Court of Appeal confirms that this is a terrific settlement for Verizon Wireless customers, and now more than 175,000 of those customers will get a substantial refund"

This case was filed in 1999 and centered on a flat $175 ETF.

Tune in for more details on this wireless contract news and update.

News: Class Action Against Verizon has been Certified

I found an interesting article concerning Verizon Wireless today.

Apparently, a huge class action against the wireless network has been certified by an arbitrator. How huge? Well, the RCR News article says that Verizon may be forced to pay nearly a billion bucks in refunds for the early termination fees they have charged over the years.

This article caught my interest because Verizon wireless as well as other mobile phone carriers have class action policies stated in their wireless contracts or terms and conditions. Here's the statement from the wireless contract or terms and conditions of Verizon:

THIS AGREEMENT DOESN'T PERMIT CLASS ARBITRATIONS EVEN IF THOSE PROCEDURES OR RULES WOULD. IN EXCHANGE FOR YOUR AGREEMENT TO ARBITRATE ON AN INDIVIDUAL BASIS, WE'RE PROVIDING YOU A FREE INTERNAL MEDIATION PROGRAM. MEDIATION IS A PROCESS FOR MUTUALLY RESOLVING DISPUTES. A MEDIATOR CAN HELP PARTIES REACH AGREEMENT, BUT DOESN'T DECIDE THEIR ISSUES. IN OUR MEDIATION PROGRAM, WE'LL ASSIGN SOMEONE (WHO MAY BE FROM OUR COMPANY) NOT DIRECTLY INVOLVED IN THE DISPUTE TO MEDIATE. THAT PERSON WILL HAVE ALL THE RIGHTS AND PROTECTIONS OF A MEDIATOR. NOTHING SAID IN THE MEDIATION CAN BE USED IN A LATER ARBITRATION OR LAWSUIT.

Well, I'm not really an expert in law but it seems that the fact that this arbitration has been certified is not favorable to the beleaguered wireless network.

The arbitrator who made the decision is Eugene I. Farber, a former federal judge and senior arbitrator-mediator for the American Arbitration Association in White Plains, N.Y. He explained his decision in this statement,

“I find the claimants have complied with the criteria for class certification. My decision is also motivated by my conclusion that as a matter of equity and fairness, millions of class members are entitled to adjudication of the central common questions of fact or law in this arbitration related to whether the $175 early termination fee imposed by respondents Cellco Partnership d/b/a Verizon Wireless … is based upon an unenforceable liquidated damage clause.”

Farber's decision to certify the class action has historical significance as well as financial implications. Financial because the refunds that Verizon make hand out is estimated to be worth nearly a billion bucks. Historical because with approximately 70 million members of the subscriber class it is the largest class ever certified in arbitration. This class action suit is also the largest class ever certified on a contested motion in any type of forum, litigation or arbitration.

The implementation of early termination fees have always been a controversial issue. Consumer groups and customers have complained that it is an unfair practice and they have succeeded in forcing some carriers to make their ETFs pro-rated. In fact, Verizon Wireless was the first carrier to announce that their ETF will be prorated.

If this class action suit succeeds then Verizon Wireless consumers will gain a great advantage. They will be able to seek a refund worth nearly a billion dollars. And maybe this ruling will also trigger similar suits in other wireless networks because they too have been imposing early termination fees on their consumers. It may also change some of the statements in the wireless contracts and terms and conditions that will be signed by subscribers.

I'll continue to monitor the progress of this development. I'll also make sure that I post any updates of this class action suit as well as other related incidents in this blog.