1400 Bremer Tower
445 Minnesota Street
St. Paul, MN 55101
(651) 296-3353
(800) 657-3787
TTY:(651) 297-7206
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Press Release
November 16, 2009
ATTORNEY GENERAL SWANSON AND SPRINT NEXTEL
AGREE TO RESTITUTION ORDER
Consumers May File Claims for Monetary Relief Through March 15, 2010
Minnesota consumers who believe that Sprint Nextel extended their cell phone contracts without their permission or did not disclose either the length of the contract or the applicable penalties for early termination may file a claim for monetary relief under a consent judgment between Minnesota Attorney General Lori Swanson and Sprint Nextel.
Sprint Nextel requested that at least 439,000 Minnesota residents pay early termination penalties between July, 1999 and December, 2008. An additional 450,000 customers are currently under contracts with Sprint Nextel which contain early termination penalties, and those customers would be eligible to file claims if their contracts were extended without permission or full disclosure.
Attorney General Swanson filed a lawsuit against Sprint Nextel in September, 2007 alleging that the company often extended consumers’ existing contracts for up to two years without their permission when they made small changes to their wireless phone service, such as adding or decreasing minutes or adding or dropping a family member. The lawsuit alleged that Sprint Nextel charged penalties of up to $200 per line if the consumer cancelled the extended contracts. In a January, 2008 Consumer Report survey, customers listed “mandatory contract extensions” as “one of the top two [cell phone] complaints” and found that mandatory contract extensions were most frequent among Sprint customers.
“Sprint Nextel customers whose contracts were secretly extended when they made small changes to their plans or who were charged hidden early termination penalties now have a way to request their money back or for the penalties to be waived,” said Attorney General Swanson.
Minnesotans who became customers of Sprint Nextel after September 26, 2001 may submit a claim to the Attorney General’s Office if they believe that:
- Sprint Nextel enrolled them in a contract or extended their contract without their authorization or knowledge; or
- Sprint Nextel did not adequately disclose the length of the wireless contract or contract extension or the early termination fees that applied.
Applicable relief may include, among other things:
- A refund of the early termination fees and any related taxes and fees the consumer paid as a result of terminating the contract.
- A reversal of any early termination fees and any related taxes and fees that the consumer was charged but did not pay, including the reversal of any adverse reporting to any credit reporting agency.
- A release of the consumer from the terms of their current wireless contract without penalty.
Consumers may submit claims to the Attorney General’s Office through March 15, 2010 using a claim form available by calling the office at 1-800-657-3787 or 651-296-3353 or online at www.ag.state.mn.us.
Under the claims process set forth in the consent judgment, Sprint Nextel must liberally construe all facts and circumstances supporting all claims in favor of the consumer. A third party reviewer will be available to resolve any disputed claims that Sprint Nextel does not pay. The third party reviewer, whose decision is binding on Sprint Nextel, must liberally construe all facts and circumstances in favor of the consumer.
The consent judgment bans Sprint Nextel from extending consumers’ wireless contracts without their consent and requires the company to make clear and conspicuous disclosures about contract lengths and applicable early termination penalties and to document the consumer’s consent to the new contract.
Individuals who wish to file a claim may contact the Minnesota Attorney General's Office by calling 1-800-657-3787 or 651-296-3353. Consumers may also download a Claim Form from by clicking here and mail the completed form to the Attorney General's Office at: 1400 Bremer Tower, 445 Minnesota Street, St. Paul, MN 55101-2131.
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