LITTLE ROCK – Attorney General Dustin McDaniel announced today that he and 50 other attorneys general, the Federal Trade Commission and the Federal Communications Commission reached settlements with T-Mobile USA, Inc. over “mobile cramming” allegations.
“Cramming” is when a company places charges for third-party services on mobile phone bills that were not authorized by the consumer.
The settlement includes at least $90 million in payments to affected consumers. T-Mobile customers have complained about charges, typically $9.99 per month, for “premium” text message subscription services that they did not request.
“Consumers should not have to unwittingly pay higher cell-phone bills due to cramming,” McDaniel said. “This settlement is part of our ongoing effort to stop these unauthorized charges. This is also a good opportunity to remind consumers to always review their monthly telephone bills thoroughly.”
Under the terms of the settlement, T-Mobile must provide each victim of cramming who files a claim under its Premium SMS Refund Program an opportunity for a full refund. The settlement terms require that T-Mobile pay at least $90 million. At least $67.5 million of those funds must be paid to consumers, a portion of which may be paid by forgiving debts consumers may owe T-Mobile. T-Mobile will also pay $18 million to the attorneys general and $4.5 million to the Federal Communications Commission.
Arkansas received $230,550.95 for its participation in the settlement.
Consumers can submit claims under the program by visiting http://www.t-mobilerefund.com. On that website, consumers can submit a claim, find information about refund eligibility and how to obtain a refund, and can request a free account summary that details PSMS purchases on their accounts. Consumers who have questions about the program can visit the program website or call the refund administrator at (855) 382-6403.
Arkansas consumers may also call the Attorney General’s Consumer Protection Hotline at (800) 482-8982.
“Cramming” is when a company places charges for third-party services on mobile phone bills that were not authorized by the consumer.
The settlement includes at least $90 million in payments to affected consumers. T-Mobile customers have complained about charges, typically $9.99 per month, for “premium” text message subscription services that they did not request.
“Consumers should not have to unwittingly pay higher cell-phone bills due to cramming,” McDaniel said. “This settlement is part of our ongoing effort to stop these unauthorized charges. This is also a good opportunity to remind consumers to always review their monthly telephone bills thoroughly.”
Under the terms of the settlement, T-Mobile must provide each victim of cramming who files a claim under its Premium SMS Refund Program an opportunity for a full refund. The settlement terms require that T-Mobile pay at least $90 million. At least $67.5 million of those funds must be paid to consumers, a portion of which may be paid by forgiving debts consumers may owe T-Mobile. T-Mobile will also pay $18 million to the attorneys general and $4.5 million to the Federal Communications Commission.
Arkansas received $230,550.95 for its participation in the settlement.
Consumers can submit claims under the program by visiting http://www.t-mobilerefund.com. On that website, consumers can submit a claim, find information about refund eligibility and how to obtain a refund, and can request a free account summary that details PSMS purchases on their accounts. Consumers who have questions about the program can visit the program website or call the refund administrator at (855) 382-6403.
Arkansas consumers may also call the Attorney General’s Consumer Protection Hotline at (800) 482-8982.
