Preliminary Settlement Could Mean Millions for Wireless Customers

By Jennifer Griffith

Published on February 05, 2007

There may be as many as 13 million wireless customers eligible for a refund.

Asurion and Lock/line, the defendants in the suit, are two of the largest cell phone insurers in the country. The companies failed to provide adequate information about their insurance policies to customers, according to the suit.

For $4.99 per month, the companies offered protection against lost, stolen, or damaged cell phones. Allegedly, they did not sufficiently inform customers that replacement phones may be refurbished phones—not new—and that a $50 deductible must be paid prior to receiving the replacement phone. The lawsuit claims that often the replacement phone is actually worth less than the deductible.

According to the settlement, Asurion and Lock/line will have to disclose the terms of their policies in all marketing materials from now on. The lawsuit also involves refunds to wireless customers who bought cell phone insurance between January 20, 2004 and January 26, 2007.

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