Sprint will pay $2.95 million in penalties to settle Federal Trade Commission charges that it didn’t give a notice to consumers who were charged an extra monthly fee because they had lower credit scores.
In its lawsuit, the FTC alleges that Sprint placed consumers with lower credit scores in an Account Spending Limit program. The program requires consumers to pay $7.99 a month in addition to the charges for cell phone and data services.
“Sprint failed to give many consumers required information about why they were placed in a more costly program, and when they did, the notice often came too late for consumers to choose another mobile carrier,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said Wednesday. “Companies must follow the law when it comes to the way they use consumer credit reports and scores.”