The cell phone companies have come to a $158 million federal settlement with FCC for accusations of mobile cramming, "an unscrupulous practice by phone companies and wireless carriers of allowing non-phone company charges to be added onto monthly bills without authorization by the customer and, in many cases, without the consumer receiving anything in return for those charges."
Some of those charges would be for things like horoscopes or astrology forecasts, and would be buried on your bill as a $9.90 per month charge.
T-Mobile previously settled with the FCC for $90 million in a similar case, and AT&T settled for $105 million.
All the money from those settlements is due to go to customers who were scammed. The deadline to apply is December 31.
"Consumers are owed millions from Sprint and Verizon for unauthorized and unscrupulous third-party charges forced on them without consent or even knowledge," Sen. Richard Blumenthal said. "This insidious practice will not be tolerated and carriers who continue to profit by allowing third-parties to deceive their customers through cramming must reform their practices immediately—or face harsh penalties."
Third-party charges have turned into a billion dollar industry, and mobile carriers get as much as 30 to 40 percent of the funds generated from those charges from the third-party vendors, according to a Senate report released after an investigation last year.
That report also indicated that cell companies allowed vendors known for participating in cramming to continue billing subscribers.
Verizon and Sprint, as well as the other companies, not only have to pay the customers who were defrauded back, but must now get expressed consent from customers for charges from third-party vendors; notify customers of upcoming charges; and provide information about how to block third-party charges.
If you think you qualify for a refund, you can visit:
- Sprint: www.sprintrefundpsms.com
- Verizon: www.cfpbsettlementverizon.com
