Photo: Many city cell-phone customers may be eligible to receive up to hundreds of dollars each in refunds due to a multimillion dollar Federal Trade Commission settlement with major wireless carriers, who have been investigated for unfair billing practices. Courtesy of Carissa Rogers.
Many city cell-phone customers may be eligible to receive up to hundreds of dollars each in refunds due to a multimillion dollar Federal Trade Commission settlement with major wireless carriers, who have been investigated for unfair billing practices, according to U.S. Sen. Charles Schumer (D-N.Y.)
However, the senior senator said that many consumers are unaware of their entitled refunds. As a result, Schumer is urging the FTC to do further publicity about the availability of the refunds and work with the carriers to push back the upcoming deadlines—the first being this Friday, May 1—so consumers can have a shot at getting their money back.
In November 2013, after the FTC became involved, all major cell-phone carriers agreed to stop a billing practice that allowed third parties to bill customers with fees for ringtones, daily horoscopes, and other extraneous cellular subscriptions; the practice is known as “cramming.”
Schumer said consumers may have been billed hundreds of millions of dollars per year because of hidden and multiple unauthorized $9.99 per-month charges.
According to Schumer, AT&T has agreed to settle allegations of cramming for current and former AT&T customers who paid for unauthorized third-party charges after Jan. 1, 2009. The efforts between AT&T and the FTC have resulted in a $105 million settlement. However, the deadline to file a claim is May 1, 2015. T-Mobile has also agreed to settle allegations of cramming, paying at least $90 million. The deadline to file a claim for T-Mobile is June 30, 2015. Other major carriers like Verizon and Sprint are in talks right now with the FTC on reaching a settlement.
“I’m dialing up the FTC today urging them to provide consumers with more than just a busy signal, after being duped by their major wireless carriers,” Schumer said. “Consumers deserve ample opportunity to submit for these FTC settlement funds. The FTC should better publicize the practice of cramming and explain how consumers can apply for their well-deserved refunds.”
AT&T consumers can apply for a refund here: ftc.gov/enforcement/cases-proceedings/refunds/att-refunds and T-mobile customers can apply for a refund here: t-mobilerefund.com. Customers can also call: 1-877-819-9692.
By Michael V. Cusenza michael@theforumnewsgroup.com
