Sprint, AT&T to Pay About $1.5 Million for Unfair Credit Practices

Sprint Corp. and AT&T Corp. have agreed to pay a total of nearly $1.5 million to settle government charges that they denied or limited phone service to hundreds of thousands of customers they considered credit risks without notifying the consumers of their rights.

While it is permissible to deny or restrict service because of credit concerns, the Federal Trade Commission said neither company gave affected consumers an opportunity to obtain a free credit report and/or challenge its accuracy.

"Most consumers don't know they are entitled to this notice when conditions are placed on their service," FTC attorney Ron Isaac said. The conditions included requiring deposits or limiting the amount of calls a consumer could make.

Sprint has agreed to pay a penalty of $1.1 million, and AT&T will pay $365,000. The money will go to the government; there is no redress for consumers.

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