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Lawsuit Against T-Mobile's Early Termination Fee Gets Go-Ahead
| July 12, 2007. By Heidi Turner |
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Oakland, CA: Plaintiffs in a class action lawsuit against T-Mobile have been given the go-head to continue with a lawsuit after a California court found an arbitration agreement customers had with T-Mobile was unconscionable and unenforceable. The suit alleges that T-Mobile's rules surrounding early termination fees and cell phone locking constituted unfair business practices.
 A major complaint against the early termination fee is that a flat rate of $200 was applied even with customers who made numerous good-faith attempts to correct problems with their service. The lawsuit also argues that the flat fee for early termination constituted "an unlawful penalty under Civil Code section 1671, subdivision (d), is unlawful under the unfair competition law and is unconscionable under the Consumers Legal Remedies Act." The suit seeks an injunction preventing T-Mobile from enforcing the early termination fee and restitution for members of the class.
T-Mobile tried to force the plaintiffs to go through arbitration but both a trial court and appeals court denied the request. In handing down its decision, the appeals court stated, "...we reject T-Mobile's contention that the Federal Arbitration Act preempts any rule that class action waivers are unconscionable under California law." Many cell phone companies have an arbitration requirement written into their contracts. The arbitration requirement means that customers cannot sue or file class action lawsuits against their cell phone carrier even if they have a legitimate complaint.
The judges' decision in this case may mean that customers of other cell phone companies can file lawsuits against their carriers rather than being forced to go through arbitration.
Customers are becoming more and more frustrated by early termination fees especially those that are not pro-rated, meaning a customer who cancels close to the end of his contract pays the same fee as someone canceling near the start of his contract. Early termination fees are also often charged even if a customer has a legitimate service complaint against his cell phone carrier that the carrier cannot properly resolve.
Cell Phone Companies Legal Help If you were unfairly charged an early termination fee, actually paid the fee, and complained about the quality of service but got no satisfaction, please contact a lawyer involved in a possible [Cell Phone Companies Lawsuit] who will review your case at no cost or obligation.
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