Blumenthal Urges AT&T Customers to Claim Their Share of $105 Million Settlement Before Friday Deadline

(Hartford, CT) – U.S. Senator Richard Blumenthal (D-Conn.) is urging current and former AT&T customers to claim their share of a $105 million settlement regarding mobile cramming before the deadline this Friday, May 1.

“Cramming” refers to the unscrupulous practice by phone companies and wireless carriers of allowing non-phone company charges to be added onto monthly bills without authorization by the consumer and, in many cases, without the consumer receiving anything in return for those charges.

Last October, the Federal Communication Commission, Federal Trade Commission and 50 states reached a $105 million settlement with AT&T to provide restitution for consumers subjected to unlawful mobile charges. But consumers must apply for those refunds by this Friday, May 1. So far, 4.9 million people have applied nationwide for refunds.

“These unlawful charges were forced on consumers without their consent or even knowledge, and refunds must be issued. Unauthorized and unscrupulous third-charges—hidden in bills through vague and deceptive language—robbed consumers and they deserve their money back. The procedure to apply is simple and quick, and consumers should apply immediately to ensure they receive what they are rightfully owed,” Blumenthal said.

This action by the FCC and FTC not only refunded consumers the money they were scammed out of, it required AT&T to change its practices going forward to ensure this does not happen again. The company must get expressed consent from their subscribers before placing charges on their bills, ensure consumers are notified before the charges appear, and provide information about how to block third-party charges should consumers choose to do so.

In December, the FCC, FTC and all 50 states reached a similar settlement with T-Mobile for $90 million. The deadline to claim refunds in that case is June 30. Negotiations are ongoing with other major mobile carriers.

To apply for a refund, AT&T customers should click here. T-Mobile customers can click here or call 877-819-9692.

Last year, Blumenthal chaired a hearing during which the Senate Commerce Committee released a damning report exposing cramming practices in the mobile industry.

The investigation and report by the Senate Commerce Committee, on which Blumenthal serves, provided overwhelming evidence that cramming on wireless phones has now become widespread and caused consumers substantial harm. Specifically, this report issued in July found that third-party wireless billing has been a billion dollar industry that has yielded tremendous profits for the four largest wireless carriers, AT&T, Sprint, T-Mobile, and Verizon. The cut that these carriers received was often 30%-40% of each vendor’s charge. What’s more is that the wireless industry was on notice about significant wireless cramming problems by the late 2000’s, yet they let the abuses continue. Documents obtained by the Committee show carriers allowed vendors with repeatedly high monthly consumer fraud rates – where refund requests often topped 50 percent of monthly revenues – to continue to bill their subscribers.