AT&T ‘mobile cramming’ settlement nets refunds for Hoosiers

October 8, 2014

A $105 million settlement reached Wednesday with AT&T Mobility LLC means that nearly half a million Indiana residents may be eligible for refunds for unauthorized charges on their cell phone bills.

Indiana Attorney General Greg Zoeller said Wednesday that the settlement resolves allegations the company used a practice known as “mobile cramming” to charge customers for services they didn’t sign up for, such as horoscopes or sports scores. The customers complained about the charges, typically $9.99 a month and classified as “premium” text message subscription services.

The action was brought by attorneys general of all 50 states and the District of Columbia, the Federal Trade Commission and the Federal Communications Commission.  

AT&T Mobility is the first mobile telephone provider to enter into a national settlement to resolve allegations of cramming. The company, along with Verizon, Sprint and T-Mobile, announced they would cease billing customers for premium service last fall.

More information about the settlement, which Zoeller said could impact as many as 460,000 Hoosiers, is available at http://www.ftc.gov/att.


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