AT&T To Pay $105 Million Settlement For 'Cramming' Unauthorized Charges
DETROIT (WWJ) - It's the largest cramming settlement in history," said Federal Communications Commission Chairman Tom Wheeler. "It's the largest FCC enforcement action in history."
And now you could be in for a refund on your cell phone bill if you're a past or current AT&T Mobility customer.
AT&T has agreed to pay $105 million to settle claims that it allowed third-party companies to bill subscribers for millions of dollars in unauthorized charges, in a practice called cramming.
Federal Trade Commission chairwoman Edith Ramirez announced the settlement over those monthly charges on consumer phone bills for services that were never ordered.
"Typically, these charges were $9.99 a month to receive text messages with content - such as horoscopes, celebrity gossip or fun facts," said Ramirez. "Consumers must not be charged for goods and services that they didn't authorize."
The FCC states that AT&T kept about 35 percent of the cramming income. [Check here to find if you are eligible for a refund].
"It's estimated that $20 users a year are caught in this kind of trap," said Wheeler.
AT&T will pay $80 million to refund money to current and former AT&T customers who were hit with unauthorized charges. States participating in the settlement agreement will get $20 million from AT&T to settle the allegations and the federal government will get $5 million.
Current and former AT&T customers who paid for unauthorized third-party charges after January 1, 2009 may apply for refunds notes the AT&T website. You can also call the Claims Administrator at 1-877-819-9692 for more information.