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If you’re a long-time T-Mobile subscriber in the US, you may be entitled to cash back.
New York Attorney General Letitia James’s Office has published a press release detailing its findings that T-Mobile’s "Price Guarantee Plans" assurances were allegedly deceptive and broken.
The settlement with the major carrier is expected to reimburse impacted wireless customers in the state and offer up to $38 million in total value.
New York finds T-Mobile misled its customers
Between January 2017 and April 2019, T-Mobile ran an aggressive nationwide marketing campaign for Price Guarantee Plans across its T-Mobile One, Simple Choice, and Magenta packages.
The carrier pitched these tiers with a lifetime guarantee, claiming subscribers would never see price hikes as long as they remained on the line.
In mid-2024, however, T-Mobile unexpectedly raised rates by roughly $5 per line for these subscribers. And in New York alone, 252,957 accounts were affected.
The NYAG’s office launched an official inquiry following widespread consumer backlash. It concluded its investigation this month, as Phone Arena reported, and reached an agreed settlement with T-Mobile.
“New Yorkers deserve clear and honest prices, not misleading offers with hidden fine print,” Attorney General Letitia James said in the release.
“T-Mobile misled hundreds of thousands of New Yorkers by promising that it would never raise prices on their cellphone plans, only to do exactly that just a few years later. Consumers shouldn’t have to pay the price for a misleading sale. My office is getting New Yorkers their money back,” she added.
T-Mobile users can claim a refund or a free handset
Affected customers will receive official relief, including direct reimbursements and account credits.
Customers on legacy T-Mobile One 4G plans, including those who upgraded to 5G, can cancel their service outright and get their final month’s fee refunded alongside an extra $25 credit.
Alternatively, they can upgrade to a $250 5G smartphone for free or claim a $150 credit for devices with a retail price over $250.
The total compensation is estimated at around $38 million, and T-Mobile must also pay $38,000 directly to the state of New York.
The resolution also imposes a legally binding rate freeze on these plans through at least 2029.
T-Mobile has not yet released official guidance on how it will notify impacted customers or how they can request reimbursement.
What subscribers outside New York can expect
This resolution benefits only subscribers in New York, so if you signed up for the promotional plans elsewhere, it doesn't provide direct relief.
While multiple legal filings initially pushed for a nationwide class action lawsuit, a federal court in Seattle ruled in T-Mobile's favor in 2025, ordering that consumers pursue claims through individual or mass arbitration instead.
Active mass arbitration efforts are currently moving forward against T-Mobile, encouraging customers who signed up between 2017 and 2022 under the "Price Guarantee" and "Un-carrier" plans.
We reached out to T-Mobile for comment, and we will update this story as soon as the carrier responds.