Gov't: AT&T To Pay $105M For 'Cramming' Charges
PITTSBURGH (KDKA) - Subscribers of AT&T Mobile who were the victims of something called "cramming" may be in for a piece of a $105 million settlement with the Federal Trade Commission and the attorneys general of every state.
"Cramming is placing charges on consumers' mobile phone bills for third party subscriptions or services that they did not authorize," FTC attorney Katie Worthman told KDKA money editor Jon Delano on Wednesday.
Worthman says it happens a lot and comes in various forms usually costing consumers $9.99 a month for ring tones, love tips, horoscopes and various fun facts they never ordered.
Under the agreement announced in Washington, AT&T will pay $25 million in fees and penalties -- and $80 million to reimburse AT&T users who were crammed.
That could be as many as 920,000 consumers in Pennsylvania.
Those users simply go to the FTC website here, and fill out a very simple form with an email and cellphone number.
But don't count on the money anytime soon.
"You should not expect to receive your refund for at least nine months, but certainly it will be as quickly as possible," said Worthman.
Now suppose you've been crammed by another cell phone provider?
"We do think this has been a growing problem. We've also been very concerned about it," noted Worthman.
The nation's top five cellular providers are Verizon Wireless, AT&T, Sprint, T-Mobile and U.S. Cellular.
While the government has reached an agreement with AT&T, it has ongoing litigation against T-Mobile over cramming, and Worthman would not disclose pending actions against the other providers.
But the FTC does want to hear from consumers no matter who is cramming them.
"We absolutely suggest that consumers file complaints with the FTC if they feel they've been charged for something they never authorized."
Check the FTC's website here: www.ftcsettlementatt.com/Claim
You May Also Be Interested In These Latest News Stories
Join The Conversation On The KDKA Facebook Page
Stay Up To Date, Follow KDKA On Twitter
