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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.
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34 thoughts onFTC To Issue $88M in Refunds Over AT&T Mobile Cramming Charges
Sad thing is that the government is being bought by AT&T and other businesses and now that Trump is in the white house this will happen more often.
I don’t think so, trump is getting rid of the same people in government and replacing with new. It’s time for change in the government- we Americans are so tired of the crap that goes on with the same old government year after year after year. Give trump a chance, before u feel ill about him!
I told them to cancel my service and they did not. I would not pay and they reported to credit agencies. I sent a letter stating that there practices are unethical and there should be a class action lawsuit against them. They then decided that they would remove from my credit report. The government should not allow them to operate this way.
I was robbed by AT&T for 6 1/2 years how do I get a refund I want to be involved in the action lawsuit
Never knew about this claim and I have 4 phones. They are forever charging unauthorized charges. Example, the buy 1 get one, they keep charging me every month for EACH phone. I spend almost 2 hours every month for just this. They tell you at one point they fixed it, then, you owe about 3.00 for that free phone every month, then it’s only suppose to charged for 3 months, another call every month and you can pay it then they will credit, so you pay they hold your money but that 3.00 you keep owing. It is a viscous circle. Then I had to open an account to get the NOT so called free phone.. the phone they put it on is not the correct phone and they will not fix it, cause I want to shut that one off.
How many are having the same problem with this SO CALLED FREE PHONE. This should be gotten after them
I have At&t on my credit report also ..it says I owe them money when I don’t..they owe me money ..
anyone as of late 2016 who is still paying on a mobile phone by the month is a fool, you save over 95% by buying a prepaid phone and just using minutes as you need them, only a idiot would sign up for Unlimited plans, geezus all that radiation next to your ear will fry your brain like a xmas turkey
I received a check for $9.99 today from the cramming settlement.
Mine came today for $36.08.
Claude, that must be the going rate for refund because I rec’d the same amount.
I have had at&t on my credit report since they close account. I was in dispute with them but I was making payments.I was in contact with them. I even filed a complaint with the FCC.
Had bundle with home phone, cell phones and satellite tv. Cancelled home phone and the satellite tv. They started double billing me for the cell phones said that bill was never paid. Turned a $500 bill over to collections and it is on my credit report as not being paid. The kicker was I had active service with the same cell phone numbers that was paid every month until my contract expired. They refused to make it right no matter how many hours I spent explaining to 25+ customer service representatives.
Same here. They say you get a discount when bundle I never received any. Then lady says she will do it and I get charged double $800 in one month. They just say sorry no one told you lol. Att is a joke!
I received a check in the amount of $15.20 in Ohio.