FTC To Issue $88M in Refunds Over AT&T Mobile Cramming Charges

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The Federal Trade Commission announced that it will provide around $88 million in refunds to more than 2.7 million AT&T Mobility LLC customers who were charged for premium text message services without their consent.

According to the FTC, the average AT&T refund amount will be $31. About 2.5 million AT&T customers will get a credit on their bill while more than 300,000 former AT&T customers will receive a check in the mail.

The FTC lawsuit against AT&T took issue with the practice of “mobile cramming,” in which third-party charges are added to customers’ cell phone bills without their consent. According to the FTC, this AT&T refund is the largest amount of money returned to consumers in a case involving mobile cramming.

“AT&T received a high volume of complaints related to mobile cramming prior to the FTC and other federal and state agencies stepping in on consumers’ behalf,” FTC Chairwoman Edith Ramirez said regarding the refund. “I am pleased that consumers are now being refunded their money and that AT&T has changed its mobile billing practices.”

The FTC’s mobile cramming lawsuit alleged that AT&T placed unauthorized third-party charges, usually for $9.99 per month, on customers’ phone bills. These charges were reportedly for ringtones and text messages that contained horoscopes, “fun facts,” celebrity gossip and love tips. Many customers were unaware that they were being charged for these text messages, ringtones or wallpaper that appeared on their phones.

AT&T allegedly made it difficult for consumers to understand the nature of these unauthorized charges. The company reportedly lumped all of the charges together to make it appear as if they were related to AT&T’s mobile phone services. Even customers who diligently checked their phone bill each month were unaware that they had been subjected to these charges for unauthorized third-party services, the FTC lawsuit alleged.

As part of AT&T’s settlement with the FTC, AT&T has agreed to make sure it has customers’ consent before billing them for third-party charges. Further, AT&T will provide refunds to consumers who complain about unauthorized third-party charges unless the company has information to show that they consented to the charge. AT&T also will continue to offer its customers free third-party blocking services.

According to the FTC, AT&T kept as much as 35 percent of these unauthorized charges.

The deadline to file a claim for the AT&T mobile cramming settlement passed on May 1, 2015.

The FTC issued a press release dated Dec. 8, 2016 to inform AT&T customers that their refund payments are on their way. Current AT&T customers will receive a credit on their bill within the next 75 days. If you receive an AT&T refund check, you must cash it within 60 days or it will become void.

If you have questions about the AT&T mobile cramming refund, the FTC states that you can call the refund contractor at 1-877-819-9692.

The AT&T Mobile Cramming Lawsuit is Federal Trade Commission v. AT&T Mobility LLC, Case No. 1:14-cv-03227-HLM, in the U.S. District Court for the Northern District of Georgia.

UPDATE: On Dec. 16, 2016, Top Class Actions viewers started receiving FTC refund checks worth as much as $41. Congratulations to everyone who filed a claim and got PAID!

UPDATE 2: February 2017, the FTC announced they sent out another 360,000 refund checks to AT&T customers affected by the mobile cramming charges.