With Time Warner Cable having recently announced a new $3.95 rental fees for cable modems, a number of infuriated Time Warner customers have taken the legal route against the bigwig cable company by filing class action lawsuits in the State courts of New York and New Jersey.

According to the information shared by Steve Wittels, the leading attorney in the class action lawsuits against Time Warner, the cable company apparently failed to refer to its own customer agreements before announcing the new rental fees for cable modems.

Wittels further elaborated - citing a precise quote from the customer agreements - that Time Warner has clearly mentioned in the agreements that "if you are going to have to replace your modem, the company will do it at no charge."

About the new $3.95 charge that Time Warner has imposed on the lease of cable modems, Wittels and the other attorneys alleged that the cable firm was clearly engaging in "a hi-tech fraud." The attorneys also added that the $3.95 new fee for all Time Warner customers added up to a total of nearly $500 million per year.

With Time Warner officials telling the customers that the monthly modem charges can be avoided if they use their own modems, Wittels clarified that Time Warner has not informed the users that if they have got digital phone service, they cannot use their modem; and added: "The companies are not making modems that support the Time Warner service."