AT&T Cheats Customers out of Millions, Agrees to Pay it Back

If you’ve received spam text messages, ring tones or other third-party content on the AT&T network over the past six years and were billed for it without authorization, you may now have the ability to get those funds reimbursed, following a multi-state investigation into the cell service provider’s “cramming” practices.

Fifty states and the District of Columbia had been investigating the wireless provider due to allegations nationwide of continued unauthorized charges to customer’s bills made without their knowledge or consent, a Texas Attorney General’s Office press release states.

Following an investigation conducted by seven attorneys general, AT&T and the states reached a resolution on Oct. 8, in which AT&T agreed to a nationwide payment of $105 million, the release states.

Of the money agreed upon, $80 million will be indirectly fed back to the consumers who fell victim to AT&T’s nefarious billing practices. As per the agreement, AT&T will pay the funds to the Federal Trade Commission, and those consumers who have been inappropriately billed can submit claims for refunds.

The agreement provides customers who dispute third-party charges not older than six years with a full refund—if not previously reimbursed—or access to the customer’s express consent of the charges, the release states.

In addition, AT&T is now required to clearly disclose the ability to block all third-party charges; to notify customers when a third-party is charging their account; to implement a new tracking system to monitor customer disputes; and cooperate with future multistate investigations. The billing must be clear and itemized, with third-party charges on a dedicated line.

The remaining $25 million assessed in the agreement will be divided up among the states. Texas is to receive the largest slice of the deal at approximately $1.17 million, one-third of which will go to cover the state’s legal fees and the remainder disbursed as civil penalties to the Texas Judicial Access Fund, the release states. The Federal Communications Commission will receive $5 million.

To file a claim under the FTC’s refund program, visit the FTC website or call (877) 819-9692.

More information on the investigation may be found on the Texas Attorney General’s website.