Attorney General’s Office investigation leads to $90 million “cramming” payout from T-Mobile

Friday, December 19, 2014

Attorney General Bob Ferguson announced a $90 million nationwide agreement with T-Mobile, resolving allegations the company placed unauthorized third-party service charges on subscribers’ telephone bills.

Consumer victims of this practice, called “cramming,” are socked with charges, typically $9.99 per month, for “premium” text message services (PSMS) — such as horoscopes, trivia, and sports scores — that they have never requested or even heard of. 

“I will not tolerate deceptive billing practices,” Ferguson said. “My office will hold any company accountable that tries to hide unauthorized charges in the fine print of a consumer’s bill.”

Under the agreement, T-Mobile will pay at least $67.5 million in restitution to consumers around the country in the form of refunds or debt forgiveness.  Consumers must contact T-Mobile to request a refund.

According to T-Mobile’s records, an estimated 230,754 Washington customers may be eligible for restitution. 

The Attorney General’s Consumer Protection Division worked with the attorneys general of all 49 other states and the District of Columbia as well as the Federal Communications Commission and the Federal Trade Commission to bring about today’s resolution.

T-Mobile is the second mobile telephone provider to enter into a nationwide settlement which Washington has helped to lead to resolve allegations regarding cramming. Attorney General Ferguson announced a similar, $105 million settlement with AT&T in October of this year. T-Mobile and AT&T were among the four major mobile carriers — in addition to Verizon and Sprint — that announced they would stop billing customers for commercial PSMS charges in the fall of 2013.

The agreement requires T-Mobile to stay out of the PSMS business, which law enforcement agencies believe represents the lion’s share of the cramming problem. 

Beginning now, eligible current or former T-Mobile customers should submit claims to the T-Mobile cramming refund program by visiting the refund website.

On that website, consumers can submit a claim, find information about refund eligibility and how to obtain a refund, and can request a free account summary that details PSMS purchases on their accounts. 

Consumers who have questions about the program can visit the program website or call the Refund Administrator at (855) 382-6403.


1 comments:

Greg Logan,  December 20, 2014 at 6:48 AM  

Thanks for posting this - interesting!

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