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 AT&T Residential Internet Billing Class Action Lawsuit

By Matt O’Donnell


AT&TAT&T customers have filed a class action lawsuit against the company to stop its “unlawful practice of systematically overcharging customers for residential Internet service” by promoting plans for $19.95 a month, but then charging them $40 a month for either the entire year or a portion thereof.


“AT&T advertises many promotional plans at reduced rates for residential Internet service and then bills those who sign up for the promotions at the standard higher rates,” claims the AT&T Internet class action lawsuit. “Unfortunately, AT&T has breached its contracts with its customers of AT&T Residential Internet service by failing to live up to the terms offered and accepted.”


The crux of the problem, the class action lawsuit says, stems from AT&T not applying the bill credit within the first two billing cycles and then either not apply the credit at all, thus forcing the consumer to pay the standard rate for the entire duration of the contract, or applying the bill credit for only a portion of the contract duration, thus forcing the consumer to pay the higher standard rate for some of the months.


“As a result, consumers only receive the promotional pricing for 0 to 11 of the first 12 months of service, rather than 12 of the first 12 months, even though they contracted to receive the promotional pricing for 12 of the first 12 months of service,” the class action lawsuit states.


The AT&T Internet plan class action lawsuit is brought on behalf of anyone in the U.S., and a subclass of individuals who live in Illinois, that signed up for a promotional rate plan for residential Internet service with AT&T but were charged the standard rate for all or part of the duration of the promotional rate period between July 26, 2007 and the present. It is seeking economic, monetary, actual, consequential and compensatory damages in addition to other relief for alleged Breach of Contract, Violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, and Unjust Enrichment.


A copy of the AT&T Residential Internet Class Action Lawsuit can be read here.


The case is Richard Sherman v. AT&T, Inc., Case No. 11CH26265, Circuit Court of Cook County, Illinois. 


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Updated August 3rd, 2011


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  • Anonymous August 15, 2011

    I have a bill now where they are charging me 40.00 insted of 19.00.

  • Anonymous August 16, 2011

    When I originally signed on I was told that I would get a rate at 14.95 and it would never go up… its more than doubled!

  • Anonymous August 16, 2011

    I have had various difficulties throughout the yrs. of service with this company!
    I wish someone would bring a class suit against them for issuing a bad credit mark to customers who on principle refused to pay the bill because it was incorrect. Once I did not rec.d a bill for over a year, I called them every month & every month they said the problem would be corrected that month. Of course it wasn’t. When i finally got a bill it had recent calls to Alaska & other continents that I knew no one from. The itemized calls were only a months worth but the bill was for the full yr. When I said how do I know it’s correct when latest bill is really incorrect & just whacky. Their reply was= We’re sorry we can only go back with itemization on calls for 3 months? But they wanted me to just pay a random amount over $700.00 because they said it was due??????? The same thing happened to my Aunt in VT. only she never got a bill in over three years??? Customer service is non-existent in this company I have found.

  • Anonymous August 16, 2011

    I want to also know what happened to the class action suit to which I was a party for charging for a higher internet speed when they delivered a lower internet speed. Actually, I have the same problem now.

    Some morally bankrupt (but probably not economically bankrupt now!) judge put the whammy on that suit I believe.

  • Anonymous August 18, 2011

    This is a common practice by AT&T with their billing and I had to stay on top of these idiots every billing period.I experienced at least a dozen occasions where they didn’t credit their promotion and made different excuses every time I called. Now lets talk about their advertised and crappy delivered DSL speeds…

  • Anonymous August 19, 2011

    When I order ATT residential Internet service I was told ATT will charges me $19.95. However, I have been paying $40.00. I contact ATT, but they didn’t change the amount of the biil. I filled out a complain through the BBB, and they even tried to make any arrangement, or in some way tryed to fix the situation. So, I have been overcharged by ATT since I ordered the service, around one year ago.
    I live in Chicago, IL

  • Anonymous August 24, 2011

    I have the same exact problem At&t has been billing me $40. a month for a year they say they credit me then the new bill $40. again. I live in California. Please Help

  • Anonymous August 26, 2011

    i was told when i joined i would get 14.95 a month then they upped it to 19.95 a month….SO WRONG!!…and i hope they change it!

  • Anonymous August 30, 2011

    Hi Everyone. I signed up for $14.95 per month for internet but the order summary says $43/month + connection charge. I never agreed to this. Can someone email me at I feel so alone on this.

    It’s hard to contact them. I work 8-5. I call and get put on hold for a long time!

  • Anonymous August 30, 2011

    I also signed up to pay 14.95 and received the same treatment. WTH is going with AT&T………

  • Anonymous September 12, 2011

    so how exactly do i join this law suite???

    • jay thompson November 8, 2014

      every time i try to cancel my account they say my contract is not up and I will have to pay $180 cancelation charge.

  • Anonymous September 29, 2011

    I believe i join this suit early last year or this year ,but i did receive a ltter and i,ve heard nothing since,my address has change and so has my email .

  • Anonymous October 31, 2011

    My fiance and I signed up with at&t last year for 14.95/ mth. were told we would get a free modem and 100 dollar visa gift card. within the first 3 months we paid $180.00 we never got a free modem and after we called and fought with them we finally got a 75 dollar visa card. EVERY MONTH WE HAVE CALLED THEM AND ARGUED WITH THEM OVER OUR BILL. Every phone call we make to that company they tell us something different. The employees have no idea what they are talking about. they never corrected our bill…

  • Anonymous October 31, 2011

    … but eventually gave us a credit. however we still paid much more than we should have. Also, we moved recently and tried to hook up new internet there with them since we had no way to look up a different service. THEY COULD NEVER FIGURE OUT HOW TO HOOK US UP WITH INTERNET! (after 6 hours on the phone with them over a three day period) they wanted to send a technician out and charge us $100 for him to take a look when it was their problem. they also just sent me a bill for $117.25. on this bill they are charging me much more than the promotional rate they quoted me with. I have already canceled that account within the first 30 days of ordering it and was told i would not be charged anything. Trying to send back modems is a headache also as they tell you to go to ups when you are supposed to go to usps and they don’t send a shipping label!

  • Anonymous October 31, 2011

    then you have to be on the phone at an at&t store for another hour just to get them to e-mail you a shipping label. they only give you ten days to figure all this out, so if you have a job and no internet it’s quite an accomplishment to get it done on time. oh and did i mention my final bill from my other address is $125? they are charging me $100 for a modem i already paid for after they told me it was free to begin with!!!!!! never again will i do business with this company for anything…just being near that company, store, ad, anything, raises my blood pressure. and this is the short version of the story….my fiance almost made an at&t halloween costume!

  • Anonymous October 31, 2011

    Oh and YES my fiance and I want to be a part of this lawsuit!!!! Please send info to my e-mail about it. We quickly learned to keep notes and write down all the information we could every month…might be missing some details but we have been preparing for this!

  • Anonymous November 21, 2011

    AT&T offered me Internet service for $14.95. They later changed it to $19.95 per month. However, they have never billed me at that rate. My monthly Internet bills from AT&T are all different and way over the amount we agreed upon. I have spent approximately 12 hous on the phone trying to straighten this out. Everyone tells me it’s resolved. One employee said I owed $11.00 since I overpaid the bill by $100.00 to restore service. Another very rude employee said my rate is $29.99/month & that there was never an offer of $14.95/month and that I owed $49.00. One told me the first bill is always $65.00 for the first month & that I was informed of this fact. However, I was never told such a thing. The bills never reflect these amounts they claim I owe & are usually over $200.00. I do not know what to do about this situation. AT&T is going to ruin my credit rating. I would like to join the class action suit.

  • Anonymous December 14, 2011

    I signed up for service in GA and they have told me lie after lie after lie. Does anyone know if they have a class action lawsuit there? I signed up for the $19.99 and have yet to see that on the bill. It’s been 3 months now.
    I called in August 2011 for the service. I was told that if I paid $30 extra then service would be connected sooner rather than later. Lie…Service wasn’t connected until mid September. I was told that I would be given a $100 gift card for the lies/trouble – Lie. That never happened and was told by one rep that they don’t issue gift cards for that reason. I guess they would go broke. I was told that the special rate would appear on the 3rd bill – Lie…The 3rd bill still had the inflated rate.
    Basically every time I call them it is something new…Another lie is told…No rep can see the notes from my other calls…I HATE THEM!

  • Anonymous February 3, 2012

    Same happened with my account. Cancelled the account and set the date of cancellation out by 5 days. ATT cancelled my account early, then set it to “unrecoverable”. When I called and complained they started a new account without my permission to try to get my internet back up and running. I called another time and was informed of this by an employee and was given 100 in credit and was told the account was cancelled. After 2 months go by, I get a letter in the mail stating I owe for an account that I never signed up for. Today I got a call from collections dept telling me that I owe money and the bill isn’t even past due. When I inquired about this, I was told that they had no idea why it was in collections yet and that I needed to call ATT to find out. I have created and still have the paper trail, recordings, as well as all documentation and account confirmation numbers to corroborate my story. Any suggestions of what to do?

  • Anonymous February 3, 2012

    File a complaint with the California Public Utilities Commission. Immediately, I was contacted by somebody from their Presidential Executive Customer Care Department. She handled my situation within a few weeks and problem resolved for the past six months. No billing issues… Until today.

  • Anonymous May 7, 2012

    I have a bill for $136 for the first 2 months of 6MB DSL that should be 19.99 per month.

  • Anonymous May 8, 2012

    Anything lawsuit wise going on in Texas??? This family can only take so much of the lies coming out of AT&T’s mouth! We sooooooo want to switch to another provider – but they are the only game in town.

  • Anonymous June 5, 2012

    Our story is exactly like so many others I’ve read on this site. We ordered service for one year advertised by mail at $19.95, were “bumped” to $24.95 because “that offer has expired”. The first 4 moinths were billed and paid at full rare $37.95, and after many calls to CS $13 credits began to appear each month in October. After one year from orig date of service, we ordered a cancellation, but were told by CS we had to continue to Sept — or 12 months of lower rate. This seems to a classic “bait and switch”. Please add me to your class action lawsuit. Full name, address, copies of bills plus noteswashope void provided upon request.

  • Anonymous June 23, 2012

    For the second time in four months I received a bill for internet in the amount of $43.00 despite my contract for 19.95. I again called them, and this time let them have it! They again gave me some ridiculous excuse that the timing of my previous payment (which was well before the deadline), caused the system to bill at a higher rate. I told the customer service person I was sick and tired of AT&T’s predatory billing practices, as I am sure there are many people who go ahead and pay the billed amount. This company needs to be put out of business!

  • Anonymous July 17, 2012

    I have been dealing with this billing issue now for 3 years. I was told $14.95 and they are trying to charge me 48.00. then I moved and did the bundle deal with at&t and direct tv. They told me I would get the $14.95 for one year. Well, I am still having to call them EVERY month to straighten out the bill. I have talked to everyone from Calif., Texas, Virginia, etc. I get told a different story everytime and the last time I was told I was speaking to a manager and that he fixed the problem. Well, now I have a bill for $277.74.!!!!!!!!!!!!! I am so over this and now I have to spend another hour and a half on the phone again…

  • Anonymous October 5, 2012

    A T and T gets you with the NO CONTRACT. They can charge you whatever they like.If you don’t have a Written Contract you can’t take them to Court.You might as well be getting Internet Service off of Craig List. I fell for the 14.95 a Month and I am going through what everyone else is going through.The Government should look into this and shut this down.I am leaving A T and T U Verse Internet this Month.The Nightmare is finally over.

  • Anonymous November 2, 2012

    I too fell for the $14.95 SCAM!

  • Anonymous November 21, 2012

    Here it is late Nov. 2012 and the same problems persist. Someone is handing someone money to stay out of court. I have had the same problem with speed being so slow, etc. Why not a class action lawsuit for slow internet speed even though you’ve upgraded twice to a faster speed. They are horrible! It’s just a waste of time calling tier I, II or any tier. No good support that I can’t understand.

  • Anonymous November 29, 2012

    is there any part of this suit, or another law suit, that addresses the issue of AT&T taking money out of my bank account for services I cancelled? and then it takes them 14 days to return the money?

    I don’t understand how this is legal?

  • Felicia December 30, 2012

    I had to call at&t every month about overcharging me for internet and phones service and kept every bill. What is the status of this lawsuit?

  • Mary Otero January 1, 2013

    I received your card and would like to file for a claim please let me know .

  • Raymona January 4, 2013

    I received the notice of proposed settlement and would
    like to submit my claim..

  • Raymona January 4, 2013

    I received the notice for proposed settlement and would like to submit my claim.

  • Raymona January 4, 2013

    I’m responding to the class action suit. Please direct me to the claim form.

  • Vickie January 12, 2013

    I have gone through this madness for the last 3 years. 14.95 became 19.95 became 29.95 became ….. I dispute, then pay to have service restored and so on. I was even told it’s up to me to keep track of DSL speed.
    I am having trouble with my direct tv through AT&T also for 11/2 years.
    I have had enough. This has become CRIMMINAL!!

  • Terri January 13, 2013

    I called last year and filed regarding this law suit and have not heard anything since. Have they settled and what do we have to do now?

  • Marietta Eichorn January 15, 2013

    I have to pay 30.00 for lite speed ,because I cancelled my landline phone with them,AT&T,is their anthing I can do? Its usually 19.99

  • April January 15, 2013

    I have had DSL service with At&T for about 3 years, bill was always $34.95 a month..UNTIL September 2012. I received a letter from them stating that I am not even getting the speed that I have been paying for and I will see a reduction in my bill starting in November., The new amount is $29.95 That’s all well and good, but what about the last 3 years that I have been paying $34.95? That $5.00 difference may not seem like much, but when you calculate $5 x 36 months it adds up. We even called to try to our service upgraded numerous times over the years and were always told that we were getting the fastest speed possible. The more that I think about this the more I feel really ripped off.

  • April January 15, 2013

    Ii have had DSL service with At&T for about 3 years, bill was always $34.95 a month..UNTIL September 2012. I received a letter from them stating that I am not even getting the speed that I have been paying for and I will see a reduction in my bill starting in November., The new amount is $29.95 That’s all well and good, but what about the last 3 years that I have been paying $34.95? That $5.00 difference may not seem like much, but when you calculate $5 x 36 months it adds up. We even called to try to our service upgraded numerous times over the years and were always told that we were getting the fastest speed possible. The more that I think about this the more I feel really ripped off.

  • pauline goodman February 9, 2013

    i would like to be apart of this claim and get some of my money back

  • LONNIE GOODMAN February 9, 2013


  • Denise February 12, 2013

    I would like to get some of my money back. My bill was 34.95 they where to bundle it with direct so then it would be 24.95 which they never have done it. Many phone calls made kept ok we will take care of this still nothing. Now my bill jumped up to 50.95 I have called and they have no explanation why it’s this high. I live in a rural area and there is no other service out here so I’m stuck with being robbed by AT&T. Thank you

  • Sharon March 12, 2013

    please can you send me a sigh in sheet I have been an Att customer for phone and internet for 15 years at my home in area of chicago. and paid charges from
    1999 to 2013 still paying over priced fees.
    to them

  • Delma Portocarrero April 11, 2013

    Hello, i have been AT&T customer for many years. I currently have a problem with Att. Last year i realized that i had been charged for internet in the same house with two accounts. I called customer service and they were going to write off the balance and send me a refund check, however i had a call from collection last year on september 2012, so i called ATT to clarify this and they said that i did not owe anything, then on 04-10-13 i received a collection call again i called att and wasted time again and said that it was written off. I am afraid that they won’t do anything and i will be unfairly sent to collection and mess up my credit because they did not do their job. Please add me to the claim!

  • Erica Taybron June 22, 2013

    I received a small party card in the mail with my at&t account number on itstaying that I had been over charged by them. But my card has gotten misplaced what do I need to do to get my portion of the settlement

  • Charles Tonkin July 2, 2013

    I have been dealing with this billing issue now for 1 1/2 years. I was told $14.95 and they are trying to charge me 48.00. then I moved and did the bundle deal with at&t and direct tv. They told me I would get the $14.95 for one year. Well, I am still having to call them EVERY month to straighten out the bill. Then they credit my account send me debit card for the mistake and then we start the whole thing over again. I have talked to everyone from Calif., Texas, Virginia, etc. I get told a different story everytime and the last time I was told I was speaking to a manager and that he fixed the problem. I have conformation numbers, supervisors numbers of the people I have talked with and stating that I am paid in full. This was last August 2012 Well, now I have a bill for $116.00.!!!!!!! !!!!!! and now in June of 2013 they turned me into a collection and it is on my credit report. I am so over this WHAT CAN ANY ONE DO??????..

  • Shunta August 7, 2013

    Experiencing same issue. They purposely leave out information that is pertient to the cliam. When the representative is suppose to be notating the appriopriate notes provided by customer.

    I signed up for the Internet for $25.00 + $10.00 divided over three months for router. The “promotion” that was never presented to me in this manner or basically presented to me as if this was what my plan would for the remainder of my duration with At&t $25.00 thereafter.

    I spoke with Miranda out of the Kentucky office who stated “the promotions are stated verbally”, and I quote. Therefore, signed up in June 2012 and now my bill has changed to $50 unexpectedly. This is another kicker, representative stated it was a promotion that lasted for six months and now its up, but I signed up in June 2012. You do the math.

    They are able to get away with this because they are sending out in writting or what it appears they don’t have to of what an individual’s agreement holds. They simply state its in the terms and conditions. Well guess what it is not since I actually started reading. They say this too because we really don’t read it and expect what the sales rep is saying is true.

    Something really needs to be done.

  • Caroline Han September 5, 2013

    having same issues now

  • nina redfearn September 28, 2013

    i had the same issue with AT&T .The Uverse some salesmen came to my door promising a good deal. I was approved. so I took the deal .Not knowing that the second month bill would double and so on.I had to cancle my credit card,just so that they couldn’t take all my money..need so help.

  • michelle holz October 22, 2013

    interested in paperwork for third party billing to att and uverce since 2005 to 1013

  • D Ellis R. McCammon November 3, 2013

    AT&T charged my Chase account FOUR times in a thirty day billing cycle. Chase paid close to $300.00 for such. Both deny the fraud. A.G. of Ohio and CFPB have done NOTHING to rectify the situation.
    Ohioans “seem” to be helping both companies.

    AT&T’s Dalia Lopez found the billing problem, but was silenced. ( A glitch was found in that the SYSOP didn’t correct for the adjustment of the ATOMIC CLOCK in 2012. Therefore the time signitures were wrong.)

  • Bessie Todd November 14, 2013

    I have been without internet service for over two years. I am still being charge as if I still have DSL. I cancelled my internet service last year.

  • judy beaver February 20, 2014

    I have been having trouble with my phone lines for a week, I thought the issue would clear up, thought it was because of the rain we had…..I called this past Monday, just to find out you do not get to talk to a REAL LIVE HUMAN BEING, you push buttons…I was informed by AT&T’s recorded message that they would be out tomorrow which was the very next day….being I did not know if the repairman had to enter my home, we do not have family, no neighbors, I took the day off, just incase he did have to come into our home to do repairs…did the repair service show up NO, did they call me to inform me, they had to cancel?? NO, did I get an email…? NO…I then had to call them again, this time I was on hold for 1/2 hour…..I get a phone call, Wednesday asking how happy we were with their repair service…UM WHAT? I told her nobody has been out to fix our phones…so now we move to Thursday, another call from AT&T, “We have a repairman coming to fix your phone lines”…I asked her “Who is the guy that has been up the telephone pole for the last 2 hours then?” You will love this one…she asked me to please go check…I did he was gone, the phones were still not working….she said,
    I am going to get more information, call you back”…I said “Sure why not its only been 5 days now, what’s a few more hours?”….After she hung up I get another call, “Hello ma’m AT&T here, I am heading down to your area, to repair your phone lines”…I say “Well, I hope both of you can fit on the pole at the same time”…”What, someone is already there, nobody informed me”…..I told him “Don’t feel left out”….What in the hell is with AT&T, I looked up class action lawsuits…..OH, I see.

  • robert rottman March 5, 2014

    i too been had by AT&T ( bait and switch) we sighned up for the promotion they had and all of a sudden we get a increase in our bill.

    i made this short because i’m sure you had other explain it.

  • kim brwn March 27, 2014

    is it to late to file a claim, how do i do that

    • Anonymous December 23, 2014

      I have been charged incorrectly for years. Who do I talked to or is it to late to be added to the AT&T
      Residential internet Billing lass Action Lawauit

      7t Class Action Law

  • Jet April 17, 2014

    Is this lawsuit only good for Illinois residents? I live in San Diego California and each of the last 4 times I’ve renewed my service they’ve quoted a rate and not once have they billed me correctly. I always have to call them and fight for what they promised me on the phone.

    This is no accident..this is criminal behavior…and it needs to be stopped.

    What is the status of the class action lawsuit.


    • Judy Overcash December 29, 2015

      If you will notice AT&T will not communicate ANY promise in writing… Just try to get them to email you… I am in NC

  • joseph March 27, 2015

    I have used AT&T DSL for several years now signed up for a promotion with no contract for 6 months after the six month my bill increased from 27.00 to 54.00 monthly and in Feb of this year I was billed 184.00 for one month when i called AT&T i spoke with tech support they immediately told me that my DSL signal was intermittent and weak so i ran a speed test and was not getting the 6 Mb speed i was paying for instead i was getting speeds that were a merely 390 to 537 Mb. when i spoke with a supervisor who was stumped about my bill and rather than admit to an error she said i was being charged for data overages which i never knew anything about my usage hadn’t changed in years but she could not offer any other explanation . I feel that AT&T has done a great disservice to its customers and should be called thieves over charging customers with hidden or made up costs i always paid a monthly bill as it was explained to me that i never had a cap on usage then all of a sudden my account was charged 184.00 for one month of internet service. i also had my account removed form auto bill pay and she again had no answer as to why my account was being charged for auto pay but then offered to remove it that day .

  • Dianna July 11, 2015

    Not only out of state has been lied 2. San Diego CA. Stores and locations need 2 be investigated also!!!! Who can I contact? Address, name, and number please if anyone can help greatly appreciated!!!!!!

  • kelly bailey November 20, 2015

    I do not see where to sign up/into this particular suit. Has the time passed to be included? I too was told 14.95 a mo. for my internet then the bill went to 40.00! I hope it is not too late for this!

  • Judy Overcash December 29, 2015

    They think they are too big to worry about the consumer. I was promised a 1 year contract and another full year of same prices I signed up for. I was fine with that, I moved from my house and because my new house was not ready to move into, I was basically homeless for 50 days. I called AT&T and asked them to disconnect the because I was not able to use services but that I would be moving the services with me. The original 1 year contract had been finished on June 14 and I moved out of my house on June 30. Anyway – I gave them my new address and they said they could not use it – they would have to wait till the service was moved… They continued sending full bill for both of those months and I called and complained both times…I talked to agents all over the country and was promised each time that adjustments would be made No adjustments were made…. and when I got moved I on August 8th, middle of billing cycle, they charged me $95.00 from middle of billing cycle and 1 agent even said that was the adjustment. I normally paid $138. (+/-) for a month of internet, home phone and tv package. From here it only gets worse… I want to be a part of the Class Action Lawsuit that will hopefull make others aware that they do not have to put up with AT&Ts crap

  • Harold Sharrow July 6, 2016

    At&t is still doing the same thing. I was quoted $19.95 per month for Internet. I am and have been being charged $49.00 per month. This month they are charging me $84.79. This has to stop. Is there anything I can do?

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