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Sprint defectors to be reminded of leasing obligations

Sprint said it will start sending text message reminders to consumers looking to leave the carrier of their device leasing obligations

Device leasing programs have become a popular option from Sprint and T-Mobile US, though consumers still seem a bit perplexed on just how those programs work as highlighted by Sprint’s plans to remind consumers they don’t actually own those leased devices.

Sprint said it plans to start sending text message reminders to consumers on device leasing programs of their obligations should they look to port service to a rival carrier and take advantage of device trade-in programs. It appears consumers are forgetting the leasing program means they don’t actually own the device until they pay for that device in full.

“Like leased cars, when the lease term expires, leased phones must be returned to the company that leased the device,” Sprint noted in a statement. “Just as you wouldn’t rent a car from Avis and sell it to Hertz, you would not sell or trade in a phone leased from Sprint to another carrier. … Sprint respects the right of its customers to switch carriers, but we want them to make informed decisions. Starting April 4, the company will begin notifying those customers via text message of their lease obligations when they move to a different carrier.”

Sprint said the message reminder will read: “Notice-Sprint is processing your number porting request. Per your lease, return the device to Sprint or pay the full balance before selling or trading.”

Most wireless carriers now offer customers from rival operators the ability to trade in their device for a credit towards a new device from their new operator. That credit is often part of the $650 credit promotion often highlighted by operators.

Sprint said nearly half of its customers are currently selecting a device leasing option, like its iPhone Forever and more recently launched Galaxy Forever programs. These options allow customers to make monthly payments on those devices, with the option of turning them in on a new version of the device aligned with the typical yearly refresh cycle from the device makers.

T-Mobile US launched its own device leasing program last summer, but has not promoted the offer as enthusiastically as its rival, instead steering consumers towards its equipment installment program in which customers make monthly payments on a device tied to a two-year time frame.

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