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New trial ordered in lawsuit over Sprint fees for early contract terminations

January 30, 2009

The battle will continue over $300 million that Sprint Nextel charged customers who prematurely canceled their calling contracts.

 

A California judge issued a new ruling this week ordering a new trial in the class-action case. The former Sprint customers were challenging the company’s ability to charge so-called early-termination fees of as much as $200 each if they scrapped service before the expiration of their calling contract. Sprint is challenging the new ruling.

 

Cell phone companies say they resort to such fees to protect their ability to recover subsidies that allowed patrons to receive free or reduced-price phones. But customers sometimes say that the quality of service degrades long before contracts are up and that they want other options. Or they would like to sign up for better offers with other companies.

 

Read Article: Kansas City Star

 

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