Sprint was recently caught by the Government for improperly charging its customers fees based on their credit score.
As Jessica Rich, director of the FTC’s Bureau of Consumer Protection explains, “Sprint failed to give many consumers required information about why they were placed in a more costly program, and when they did, the notice often came too late for consumers to choose another mobile carrier.” Sprint’s failure to provide this information to its customers was in violation of the Risk Based Pricing Rule of the Fair Credit Reporting Act.
The law requires companies that offer less favorable pricing to customers, based on their credit score, to provide those same customers with notice of the decision and help them understand the information on their credit reports.
Sprint’s program, known as Account Spending Limit (ASL), failed to provide users with all of the disclosures in the required notice, omitting information that would help consumers understand the information in their credit reports, and that may have alerted them to possible errors that caused them to receive less favorable terms.
Even when Sprint finally gave its customers the proper notice, it was usually after the window for cancelling the service had closed, so customers either had to pay a costly early termination fee or continue paying the ASL fee until the contract ended.
Davis & Norris is currently investigating Sprint for unfair practices, like these and others, that cost customers time and money.
If you believe you have a claim against Sprint, contact us to request a free consultation. We do not charge a fee unless we recover for you.