CONSUMER NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS  


Complain about a product or service

Small Claims Guide | Class Actions | Lemon Law | FAQ | Resources | Newsletters | Spanish
Automotive    Education    Electronics    Family    Finance    Health    Homeowners    Shopping    Travel   
NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

Class Action Challenges Cell Phone "Insurance"





April 8, 2005
A class-action lawsuit filed in federal court in Miami charges that cell phone insurance is a rip-off, pushed by cell phone equipment insurers using "deceptive and outrageous" practices.

Cell phone insurance typically costs the consumer $4 or $5 per month to replace lost, damaged or stolen phones, but usually with a deductible of $35 to $100. Thus, a consumer could easily pay $120 over two years and, with a $100 deductible, pay more than a new phone would cost.

Even worse, the suit charges, is that phones are replaced with cheap, used or refurbished phones, further reducing the value of the insurance.

The insurers are being sued for unfair trade practices and other violations for "falsely representing that the purchase of wireless phone protection provides a benefit."

The complaint names three big insurers -- Asurion Insurance Services in Nashville, Tenn., Lock/Line LLC in Kansas City, Mo., and Signal Holdings in Wayne, Pa. -- which offer coverage through the country's major cell phone service providers.

The suit, filed on behalf of a Dade County resident, is seeking class-action status covering consumers in Florida who bought insurance from any of the three defendants from July 1, 2001 to the present, and consumers nationwide who purchased insurance during the same period from Lock/Line, which provides coverage to customers of AT&T Wireless and Cingular.

The complaint against Lock/Line covers more consumers because the law in Missouri, where Lock/Line is based, is more easily applied nationwide, attorneys said.

The complaint also charges that the monthly premiums are deceptive because they don't actually insure property in the event of a loss.

"These premium payments do nothing more than create a right to have the opportunity to pay additional monies in the form of the so-called 'deductible' in order to receive a refurbished phone worth less than the deductible alone," the suit says.

The suit also accuses the insurers of imposing unlawful and unfair conditions for filing a claim, including requiring a police report even if a phone is lost instead of stolen.

The lawsuit asks that consumers receive refunds for monthly premiums in addition to any deductibles they paid greater than the actual cost of replacement phones, plus interest, costs and attorney fees.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.


Consumer News

May 17 2008

Recent Recalls & Safety Alerts

READER SERVICES

Print, Email & More

Subscribe

Free consumer newsletters
Sign up now!





Back to the top |

Advertisement


Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search | Video | FAQ |
Consumer Resources | Small Claims Guide | Lemon Law | Newsletter | Contact Us
Advertise With Us | Testimonials | Newsroom | RSS Feeds | Radio | Job Postings




Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2008 ConsumerAffairs.com Inc.  All Rights Reserved.