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Sprint will pay almost $ 3 million in civil penalties tied to his handling of the program, which charges an additional fee to customers with low credit ratings, the Federal Trade Commission said today.
establishes Sprint account spending limit for clients with bad credit history, limiting how much they can increase their monthly bill. If the limit is exceeded, the company said, “outgoing phone calls will be routed to our financial group to pay.” To limit how much a buyer can spend, the company is worth $ 8 per month.
This fee can be waived if customers sign up automatic bill payment. But according to the FTC, Sprint was able to tell consumers about the “key factors” that are detrimental to their honor – as required by law – which makes it more difficult for customers to know how to improve your score and to avoid additional monthly fee. Sprint also allegedly waited to tell some clients that they were in the $ 8-a-month program, until it was too late to cancel without paying the early termination fee, said the FTC.
Holding dates back at least November 2013 and continued at least June 2014, said the FTC. Users will not receive compensation under the settlement, but Sprint will be required to notify customers of their enrollment in the program of ASL within five days of the signing of the service, or date, allowing them to avoid duplicate charges.
The penalty associated with a “risk-based pricing rules,” the FTC implemented in 2011, which requires companies to notify consumers when they use information in their credit reports to give them financially worse conditions than in Most other clients. (As many have noted, it is expensive to be poor in America.)
Time Warner has been fined $ 1.9 million to the FTC in late 2013 for to properly inform customers that were required pay fees or prepayment bill the first month, based on a less than favorable credit reports.
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“decisions about pricing on the basis of the credit history of consumers may have a significant impact on consumers who may have already faced financial problems,” said Malini Mithal, Acting Associate Director in the FTC’s division of financial practices, on-call with reporters today.
FTC “requires certain specific explanation in a particular format to be provided by the letters ASL clients and applicants,” said a spokesman for Sprint, which do not recognize or deny any of the statements of the FTC. “FTC agreed that we were including almost all of the relevant information in our ASL letters, but asked us to change the format of the letter,” said a spokesman, adding that he has “already implemented the changes requested.”