TUAW has discussed the no-contract Simple Choice plans previously. A T-Mobile iPhone 5 can be purchased for a $99.99 down payment plus $20 monthly payments for 24 months, or a customer can choose to purchase the phone outright for $579.99 (for a 16 GB iPhone 5). Only if a customer has paid for the phone up front can they just walk away from T-Mobile's plan without any form of cancellation fee.
Ferguson's complaint has had a positive impact on Bellevue, Washington-based T-Mobile USA. The company has agreed to warn customers across the USA about the lump-sum phone purchase payments since they can end up being higher than the early termination fees charged by other carriers for cancellation. In addition, T-Mobile USA has agreed to issue full refunds upon request to any customer in the country who bought a phone from the carrier between March 26 and yesterday.