Sprint Fee Can Set You Free

Tuesday, October 03, 2006

Since August, Sprint has been sending out notices that, as of Oct. 1, it is hiking its text message fees to 15¢ and that it will charge “$0.03/KB for casual data usage.” View notice online.

Sprint’s terms and conditions clearly state that the company may change the terms of your contract at any time—but when it does, subscribers may cancel agreements without penalty.

We may change the Agreement at any time with notice. Any changes to the Agreement are effective when we publish them. If you use our Services or make any payment to us on or after the effective date of the changes, you accept the changes. If we change a material term of the Agreement and that change has a material adverse effect on you, you may terminate the Agreement without an Early Termination Fee by calling 888-567-5528 within 30 days after the changes go into effect.

Last summer, Verizon imposed 40¢ fee it dubbed an “Administrative Fee.” Following the notice, subscribers were able to cancel without penalty. After T-Mobile doubled its fees for text messages in January, users could cancel service without an early termination fee.

Anyone who is unhappy with Sprint service and wants out of the agreement now has that chance if they act within the time limits—and if they don't pay a bill with the new charges, which may signal they “agree” to the changes. We've heard from some people who have already called to cancel—some have been successful, some have been stonewalled, and others have been offered a compromise of free extra features or free text messages. If you are stonewalled, consider filing a complaint with your state public utilities commission, which may give your request added clout.

If the company refuses, what are your rights? This is something of a gray area. Sprint, like most wireless companies and credit card companies, uses an alternative to the courts system called mandatory binding arbitration. Basically, it means you give up your right to go to court and that your dispute must be handled by a private arbitration body. Many arbitration panels are made up of industry-chosen members that often rule against consumers. So if you want out of your Sprint contract, a duel with customer service is likely your best shot.

Do you have a juicy Fee of the Week? We'd like to hear about it. Click here to e-mail us at the Hotline.