R.I. to receive $198K in settlement with T-Mobile

PROVIDENCE – Attorney General Peter F. Kilmartin said that the state of Rhode Island will receive $198,000 through a settlement with T-Mobile over “mobile cramming,” in which charges for third-party services on consumers’ mobile telephone bills that had not been authorized by the consumer are included.

This is the second such settlement in recent months. In October, Kilmartin announced a settlement with AT&T over the same issue.

Kilmartin announced the T-Mobile settlement in a press release Friday. In addition to the R.I. Office of the Attorney General, the Attorneys General of the other 49 states and the District of Columbia, the Federal Trade Commission and the Federal Communications Commission all reached settlements with T-Mobile that includes at least $90 million in payments and resolves the “mobile cramming” allegations.
Kilmartin, in a press release, said that consumers who have been “crammed” often complain about charges, typically $9.99 per month, for “premium” text message subscription services such as horoscopes, trivia and sports scores, that the consumers have never heard of or requested.
The attorneys general and federal regulators allege that “cramming” occurred when T-Mobile placed charges from third parties on consumers’ mobile telephone bills without the consumers’ knowledge or consent.
Under the settlement terms, T-Mobile must provide each victim 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; of this sum, at least $67.5 million 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 FCC.
“The practice of cramming by mobile carriers relied on consumers not checking their monthly bills closely for hidden fees and charges. Companies that work hard to attract customers, especially in the highly competitive wireless communication industry, should be more mindful of how they treat the customers,” Kilmartin said.
Consumers can submit claims under the Program by visiting . Consumers who have questions about the Program can visit the Program website or call the Refund Administrator at (855) 382-6403.
As a result of the settlement, T-Mobile must obtain a consumers’ consent before billing them for third-party charges.

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