Washington AG slaps T-Mobile USA for new plans

(AP)—Washington state's chief prosecutor says there's a catch to T-Mobile's new cellphone plans, which replace the traditional two-year service contract with an installment plan for phone buyers.

One of the benefits of the new plan is that buyers can cancel their service at any time. But Washington Attorney General Bob Ferguson says the company hasn't told customers that they have to pay the full remaining cost of the phone if they cancel service; they can't remain on the installment plan.

Ferguson says T-Mobile has agreed to make that clearer. He says customers nationwide who bought T-Mobile phones from March 26, when the plan was introduced, to Thursday can get a full refund.

T-Mobile says it believes its advertising was "truthful and appropriate."