T-Mobile has made a lot of headlines over the past year with deals and plans that can save customers money. But, it turns out the company could have been costing you a lot of extra dough, too, by illegally "cramming" extra charges onto cellphone bills. Now, T-Mobile has agreed to pay out $90 million in refunds to make up for its bad behavior.
Mobile cramming occurs when service providers add extra fees from third-party companies onto your phone bills for services you didn't ask for. The companies claim the fees are for premium services, but they usually amount to nothing more than text message spam. This tactic isn't new - AT&T got caught doing the same thing earlier this year.
While most of the charges go to the third-party company, cramming helps out the service providers, too. T-Mobile took 40% of every cramming charge added to customer accounts. That's why it's now paying $90 million to consumer and millions more to federal and state governments. And, it's not alone. Another major provider could be forced to pay up soon, too.