Sprint sends Early Termination Fee Legal Notice to subscribers

Posted on August 11, 2009

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If you are a Sprint customer, you likely received an email about a legal notice involving the early termination fee on your cell phone contract.

Here is the .jpg of the legal notice:

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The detail on the settlement can be found here: http://www.sprintetfsettlement.com/php/home.php

I am still reading the document, but it looks like Sprint Nextel has agreed to pay $14 million in cash and $3.5 million in Non-Cash Benefits to different categories of users: People who paid a flat-rate ETFs to leave their contracts, People who were charged a flat-rate ETF but did not pay it, and individuals now or in the next two years who claim to be harmed by flat-rate ETFs.

Information about the settlement for individuals who fall into each category can be found in the Long Form Notice.

But do not expect a big check from Sprint to appear in your mailbox (unless you were a lawyer on the case and will get $4.6 million dollars, according to the Long Form).

Another quick note from the document was this statement on the bottom of the notice:

Sprint Nextel has agreed to not insert a flat-rate ETF provision into its consumer service agreement for personal Wireless Service Accounts in the United States for 24 months. Sprint Nextel consumer agreements, initiated after November 3, 2008 have pro-rated ETFs, and the settlement does not require Sprint Nextel to modify those contracts or pro-rate policy.

I am not a lawyer, but that tells me that Sprint agreed to have pro-rated ETFs for two years. Afterwards, they have the option to go back to flat-rate ETFs. When they do go back to flat-rate ETFs, subscribers can not sue Sprint in the future. Basically, it’s a two-year timeout before they go back to flat-rates.

More on this as I keep reading and watching the internets for their thoughts on the announcement.

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Posted in: Cell Phones