Since July, T-Mobile customers have been stuck in frustration, primarily about price hikes on older plans like ONE, Magenta, and Simple Choice, with monthly increases of $2 to $5. The company broke their Un-Contract promises, which initially guaranteed lifetime rates for these plans.
Then their decision to end reduced fees for temporarily suspending a line sparked widespread backlash. Customers who used to pay just $10 during a suspension now have to pay their full monthly plan price, even when the line is inactive.
These are only a few patterns of disappointing changes since the Sprint merger. Combined with scandals involving hacked data, phone recalls, and questionable in-store practices, the company’s reputation has taken quite a hit and customers are now dragging them to court.
T-Mobile sued over hidden fees as earlier threatened
T-Mobile is facing a class-action lawsuit filed by 23 customers who claim the company is misleading people. They called a fee a government charge when it’s not. The Regulatory Programs and Telco Recovery (RPTR) fee is added to their bills and is grouped with real government taxes. It was last increased in 2022, with the amounts being $3.49 for each voice line and $1.40 for each data line.
However, customers argue that it’s not required by the government and is just a way for T-Mobile to make more money. The fee has been around since 2004, but the plaintiffs don’t care anymore. T-Mobile should’ve indicated that it isn’t a government tax. Basically, you are paying for T-Mobile’s compliance-related costs.
Customers also say T-Mobile refused to resolve the issue through arbitration. Ironically, it’s in their terms and conditions. These customers are required to give up their right to join class action lawsuits or have a jury trial if there’s a dispute. Arbitration is the recommended solution, which T-Mobile itself has broken. Instead of going to trial, both parties would have agreed to present their case to an impartial third party who would listen to and decide rather than involve the court.
Everyone’s doing it, says T-Mobile
In its defense, T-Mobile said that the RPTR is a common industry charge, and other companies like Verizon have similar fees. It seems like an attempt to deflect some of the focus from its own issues, which is a classical move. If everyone’s doing it, why target them?
Yes, Verizon did have a similar situation in 2023, where it charged people Administrative and Telco Recovery fees. But the result ended up being the same—Verizon was sued. The company settled the lawsuit for $100 million, admitting no wrongdoing but choosing to avoid a lengthy court battle. Despite the settlement, Verizon continued to raise the fee, causing more customer backlash and leading to further legal challenges.
The bottom line is that people are angry and want their money back. They have asked the jury for a trial to decide the case. Hopefully, this lawsuit breaks a vicious cycle of companies imposing unnecessary and shady charges on consumers without proper disclosure, and holding them accountable for their unfair practices.
