T-Mobile USA gets sued for early termination fees

Nov 15 2006 - 03:55 PM ET | T-Mobile

t-mobile tT-Mobile USA has been hit with a class action lawsuit over its early termination fee policy. T-Mobile charges customers $200 if they leave before the end of their service contract. Service contracts are typically 2-years, though until recently T-Mobile used 1-year contracts.

The suit, filed in an Idaho federal court, said T-Mobile USA’s practice of charging subscribers $200 for cancelling service before the end of their contract violates as many as 13 state consumer protections laws because no allowance is given for how long the consumer has been with the mobile phone carrier or for the quality of service they receive.

The suit covers over 100 people and asks for over $5 million. T-Mobile does not comment on pending litigation.