If you’re a long-time T-Mobile subscriber in New York, 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 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 , , 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. James's office issued a press release regarding the settlement, stating:

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.

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. When we reached out to T-Mobile, a spokesperson for the carrier added additional context:

The $38 million cited in the press release is an estimate of potential benefits that a group of long-standing T-Mobile customers may choose to take advantage of, not the amount in refunds or payments. The agreement provides for approximately $98,000 paid to the state and a range of optional customer benefits. We’re glad to have this matter resolved and remain focused on delivering value to our customers.

The resolution also imposes a legally binding rate freeze on these plans through at least 2029.

What subscribers outside New York can expect

This resolution only benefits subscribers in New York state, so if you signed up for the promotional plans elsewhere, the settlement 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 , encouraging customers who signed up between 2017 and 2022 under the "Price Guarantee" and "Un-carrier" plans.

Update: 26 October 2026 at 14: 30 ET – Steven Winkelman

This post was updated to add a statement from T-Mobile that clarifies details of its settlement with the New York Attorney General's Office.