T-Mobile settles ‘mobile cramming’ suit

December 19, 2014

For the second time in three months, Hoosiers who have a mobile phone may be eligible for a refund after T-Mobile USA Inc. settled a national lawsuit over “cramming” practices.

T-Mobile agreed to a $90 million settlement with all 50 states and the District of Columbia over the practice of allegedly placing unauthorized charges on customers’ cell phone bills. ATT reached a $105 million settlement in October.

Indiana Attorney General Greg Zoeller says an estimated 115,000 Hoosiers may be eligible for refunds that could exceed $70 million nationally.

Consumers often complained about these charges for “premium” text message subscription services or PSMS subscriptions, such as trivia and sports scores, that they never requested.
Under the terms of the settlements, T-Mobile must provide each victim of cramming who files a claim under its Premium SMS Refund Program an opportunity for a full refund. The settlement terms require that T-Mobile pay at least $90 million; of this sum, at least $67.5 million must be paid to consumers. T-Mobile will also pay $18 million to the states and $4.5 million to the Federal Communications Commission.  

Indiana received $292,241.80 for its participation in the settlement to be deposited in the Consumer Protection fund for future use.



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