October 13, 2016
Consumer Advisory – Understanding the New Credit and Debit Card Billing Provision
Sprint is implementing a new payment process for cancelled accounts with amounts dueAt Sprint, we’re committed to providing the best possible wireless experience for our customers. That includes offering convenient, economical ways to obtain the latest devices, competitive rate plans and an award-winning network to connect our customers to the people and things they care about most. Sprint offers many great options for new or existing customers who wish to acquire a new device, including:
- Sprint Lease: This industry-first option that gives customers the flexibility to lease select smartphones and tablets for a lower monthly cost versus purchasing the device. A lease is different in that Sprint owns the device. At the end of the lease term, customers can purchase the device and own it outright, or return it to Sprint and upgrade to the latest device.
- Sprint Easy Pay (installment billing): Monthly installments are an affordable option to pay for a phone, tablet or mobile broadband device over time. Customers simply purchase an eligible device with a variable down payment, depending on device, and agree to monthly installment payments for the device. If a customer on an Installment Agreement cancels service prior to completing their device payments, the remaining unpaid balance on the device will be due on customer's next invoice.Sprint believes in being honest and transparent with our customers and has taken action to ensure that customers understand their financial obligations when entering into a Sprint Agreement. While mobile phone users have a right to change to whichever wireless carrier is best for them, some users are inadvertently defaulting on their agreements when switching to a new provider.
Like leased cars, when the lease term expires, leased phones must be paid for in full or returned to the company that leased the device. Just as you wouldn’t rent a car from Avis and sell it to Hertz, you would not return a phone leased from Sprint to another carrier. Additionally, if a customer chooses to acquire a device through installment billing, they are responsible for paying off the remaining balance of the device if they choose to switch carriers.
It is imperative to our business that Sprint is paid for the products and services we provide. This ensures that we can continue to deliver a best-in-class wireless experience for our customers. For this reason, Sprint recently updated its Terms & Conditions with a new provision. If a customer cancels their service and has an outstanding balance or does not return their leased equipment, Sprint may charge the amount owed to a credit or debit card on file.
Sprint is not the first company to implement this kind of provision – many leaders in the travel and tourism industries follow similar practices. This is an important and necessary step for Sprint, and we appreciate our customers’ understanding and cooperation during this transition.