Leave a comment

AT&T’s huge fine for alleged billing cheats: See how to get your refund

AT&T’s huge fine for alleged billing cheats: See how to get your refund
Rob Wilson / Shutterstock.com

Big news in the cellular world! The federal government is forcing AT&T to pay out $105 million for "cramming."

Cramming is when a carrier adds unauthorized third-party charges to a mobile phone bill. These charges are usually for subscriptions and premium text-messaging services - ringtones, horoscopes, gossip, etc. - that the customer didn't ask for or realize they were signing up for. T-Mobile got in trouble a few months ago for the same thing.

I've talked about cramming before, specifically how to spot and avoid it so you don't waste money. Click here to learn more about cramming.

In AT&T's case, it started this practice back in 2009 and it kept 35% of the hundreds of millions of dollars customers paid. The Federal Trade Commission finally stepped in to put a stop to it this last year.

As a part of the settlement, AT&T will pay $25 million in penalties to the state and Federal Communications Commission. The other $80 million, however, goes to the FTC to reimburse AT&T customers.

Next page: Find out if you're eligible for a refund
Dirt cheap: $20 smartphone bill – but with a catch!
Previous Happening Now

Dirt cheap: $20 smartphone bill – but with a catch!

Apple’s big announcement next Thursday: What’s next? iPads, TV, more?
Next Happening Now

Apple’s big announcement next Thursday: What’s next? iPads, TV, more?

View Comments ()