Sprint to pay $2.95 million Fair Credit penalty this week

A federal judge issued a $2.95 million civil penalty judgment and stipulated order against Sprint Corp., which the wireless carrier had consented to amid charges it violated the Fair Credit Reporting Act.

Overland Park-based Sprint and the Federal Trade Commission had agreed the settlement in October. The Jan. 8 order gave Sprint seven days to make the payment to the U.S. Treasury.

The FTC had said Sprint added $7.99 monthly fees to the bills of customers with lower credit scores whom Sprint in its Account Spending Limit program because of information on their credit report. The company also failed to tell customers why they were placed in the more costly program., an FTC official said.

The order requires Sprint to provide a copy of the order to key employees for the next five years, submit compliance reports for the next 10 years and maintain records pertaining to the business practices for 10 years.

This story was originally published January 11, 2016 at 10:32 AM with the headline "Sprint to pay $2.95 million Fair Credit penalty this week."