UCAN Victory! Sprint customers receive $531,000 in refunds plus additional credits as a result of UCAN lawsuit
Yesterday, the California Public Utilities Commission (CPUC) approved a settlement in a case UCAN brought against Sprint for a number of problems with its Sprint Pioneer wireless phone plans.
We filed a complaint with the CPUC in August 2008, to correct Sprint's various billing errors including the following.
1. Charging an administrative and regulatory fee on Pioneer plans which have no monthly fee
2. Charging Early Termination Fees in error
3. Long distance service billing errors
4. Charging Reconnection and Reactivation fees in error
5. Call Rounding billing errors
The case resulted in credits and refunds of $531,000, additional free usage credits to all Sprint Pioneer credits, and important fixes to the Sprint billing system. The benefits will largely go to San Diego area customers, who "pioneered" (anyone?) digital wireless service for Sprint.
From decision, as drafted by Judge Maribeth Bushey:
"As set forth in the settlement agreement, Sprint agrees to address various billing errors that occurred for its Pioneer Plan customers by:
1. correcting the errors,
2. crediting or refunding those customers who received unauthorized charges due to billing errors, with total estimated credits and refunds estimated at $521,281.67,
3. providing notice to customers of the corrections,
4. offering customers an opportunity to reactivate accounts that were terminated, and
5. allowing dissatisfied customers to change or terminate plans without incurring an early termination fee."
Sprint Pioneer customers, which pay per minute, will also receive 25 minutes of free usage per month for 12 months. The result is likely to be hundreds of thousands of dollars of additional compensation to Sprint Pioneer customers for Sprint's errors.
"The settlement is reasonable in light of the whole record. The Parties worked together for 18 months fully analyzing Sprint’s Pioneer program’s billing issues and carefully developed a comprehensive plan to address those issues. The five minor modifications shown in the amended settlement agreement are clear evidence of the parties’ attention to detail and commitment to customers’ interests.
We, therefore, conclude that the settlement agreement is reasonable in light of the record...
Approving the settlement agreement is in the public interest because it will bring prompt refunds to customers and allow customers to change plans without incurring additional fees. Furthermore, the Settlement Agreement serves the public interest by expeditiously resolving issues that otherwise would have been litigated. The parties should be commended for their skillful efforts in resolving this matter. Based on the foregoing evaluation criteria, the settlement agreement meets the applicable legal standards."
The entire UCAN staff deserves credit for this victory, particularly Fraud Squad staff member Sue Macomber, former Fraud Squad member Sandy Young, and then interns Mike Scott and Jessica Stone. Executive Director Michael Shames and myself served as attorneys on the case.
I also want to thank Professor Fred Zacharias, long time constitutional law professor at University of San Diego School of Law. While Fred passed away this past fall, he provided important details which helped us understand and correct the problems at Sprint. As a professor, Fred Zacharias was a visionary in advocating the concept that attorneys must recognize other duties in addition to solely narrow advocacy to their client, including duties to the public interest. Professor Zacharias was my law professor, and someone for whom I held the utmost respect. I will miss him.
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| CPUC decision in approving Sprint Pioneer Settlement 08-08-026.pdf | 72.16 KB |
| Sprint Pioneer 08-08-026 Settlement.pdf | 330.14 KB |
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Sprint is at it again - administrative and regulatory fees
I have two Sprint Pioneer Program phones, and starting last January 2011, they have been charging me $2.78 for the administrative and regulatory fee each month. As stated above in the lawsuit, that was to be eliminated.
I have called them twice and still have not received a credit. They told me that they charge every plan for this. But I have to reminded them of the above lawsuit. This time I will bookmark this page to read it to them. I have no other phones plans with them. The 1st level of support doesn't know anything about this, and trying to get a hold of a supervisor is even harder.
Sprint is still charging my account.
I called Sprint and finally they reversed the charges in May. Now 2 months later, my current bill has the charges again. After talking on the phone and telling the level 1 tech support person that this needs to be elevated. My 16 minute call gets me to one of the upper management support that zeroed out my balance. I told them about this web site to find the information about the law suit. Hopefully, others will get their credits without the need for a phone call.
-- Bry
Sprint Pioneer member
I'm happy that someone stood up to Sprint and took them to court, but I'm not happy with the settlement whatsoever. The 25 free minutes per month are worthless to me. Because they charge 35 cents/minute on my Pioneer line, I have another line that I use and have one of the unlimited calls, internet, texting plans. If Sprint really cared about the Pioneer members, I wouldn't have been forced to buy a separate phone and add another plan. It's all about money to them and they aren't even honorable or fair about it.
For years I've been asking Sprint about my phone upgrades, invitations to corporate meetings where I can give my input, and emergency handset replacement. Not only do I get no acceptable answers, but I get pure ignorance of the subject. Not one Sprint rep has known what a Pioneer member is, and they talk down to me and say they don't have that plan anymore.
I was late on my bill(my unlimited use line) one time, and Sprint shut down all my lines, including my "free" Pioneer line, and then had the nerve to charge me a late fee and reconnection fee. I know that stuff like this was the basis for the big lawsuit, but I'm hoping that I can still take them to small claims court personally. Also, to add insult to injury, after shutting off my original dinosaur of a phone(Sony Qualcom antique), they weren't able to restart it. They made me come to a Sprint store and waste hours trying. Instead of just admitting that the technology is too old and that their system couldn't figure it out, they tried to say the phone was mysteriously "broken". They replaced it with the cheesiest of cheese, Nokia(I've never seen one so cheap and I like Nokia's).
So considering I spent $199 on a Sprint phone back in 1996 and was promised all kinds of special treatment, I'll pass on their settlement offer of 25 free calls a month on a line I haven't used in years. It's a slap in the face.
Regarding free lifetime phone upgrades
I am one of the Pioneer program members who suffered through the spotty coverage while Sprint built their network thinking that the payoff would be lifetime sservice at the fixed rate and free lifetime phone upgrades. Well apparently even though I have it in writing Sprint has denied me the upgrades stating the fact that I purchased one of the new Sprint phones myself instead of waiting for the free upgrade which by the way hadn't been offered for at least a year if not two form the date of my orginal sign up. Correct me if I am wrong but since I saved them money by purchasing one of their phones on my own I have forfeited my right to the lifetime new upgrades?
I appriciate the settlement and am now benefiting from the 25 minutes free a month for a year but still it seems to me they won. It's not like Sprint is in finacial difficulty on the contrary! This is typical of why we are in such a finacial crisis in this country plan and simple greed!
Thanks for your efforts they are appricated.
Mike
more sprint trickery?
So I'm one of those so-called "preferred customers" of Sprint. Given that I get $150 "upgrade discount" toward the purchase of a new phone. So here's where I'm confused and think Sprint really isn't "giving" it's preferred customers anything.
We'll use the new HTC EVO 4 as an example.
Online Sprint Price = $449.99
24 month contract
$150 Upgrade Discount - (150.00)
Subtotal -$299.99
$100.00 mail in rebate.
So after I send in my mail-in rebate I technically pay $199.99 for the phone.
However, I can go to Best Buy, Wal Mart, etc. and buy the same said phone for $199.99 without having to deal with a rebate. For the "pleasure" of dealing with Sprint directly, I get the same price as going to a big box retailer and am supposed to feel good about getting my $150 "upgrade discount"?
While I understand phone subsidies and the like, I'm sure Walmart and the other retailers aren't "eating" the subsidy to sell the phone. So why does this smell so "stinky" from Sprint? They are willing to eat the subsidy when sold through a 3rd party but aren't willing to eat it when they deal with their own current customer.
Feel free to contact me and/or re-post my comments elsewhere.
David
Thank you UCAN staff
Great job UCAN staff for this victory. Now, if we can only out-muscle Big Oil to stop manipulating the market.....:)
Sprint-Pioneer Credits & Refunds
Good afternoon,
Has Sprint given any indication as to when the refunds will be sent and the when the credits are to be put in place.
Thanks for all hard work on the Pioneer Program issues.
I just received a letter from
I just received a letter from Sprint today (5/15). The old Pioneer program is referred to as the Free and Clear 0 (FC0) plan. The monthly credit for 12 months oddly started actually on 5/8, one week before the letter was received (letter was not postmarked but supposedly sent from Overland Park, KS).
Sprint Pioneer Win
UCAN----your attorney, Director, legal staff and your staff are well worth supporting. You don't help and win for us all based on political bias or obviously for the big bucks you earn at a not-for-profit. We're truly lucky to have a group like UCAN.
I'm a fan and want you to know how much my family and I appreciate your efforts on our behalf. We've never been disappointed in all the years we've made donations to UCAN.
Sprint Pioneer Program
Good Afternoon,
This is in regard to the Sprint Pioneer Program. I've been a Sprint customer for over 14 years, and still have my Pioneer program active.
Question: How do I find out if I might be affected? Will Sprint contact me directly?
You will receive notice
Hi David, You can expect to receive notice from Sprint. That said, if you are a current Sprint customer, the settlement likely affects you. The good news is that the key credits and refunds will come to you without a need for any affirmative action on your part.
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