Verizon, Sprint to Give $120M Back to ‘Crammed’ Consumers
May 13th, 2015
On the same day Verizon announced its massive merger with AOL, the Consumer Financial Protection Bureau (CFPB) on Tuesday filed a proposed consent order against the wireless carrier to settle allegations that it charged customers hundreds of millions of dollars for services they never requested in a practice called cramming.
The CFPB took similar action against Sprint, which is expected to refund its wireless customers $50 million. The two companies will also pony up $38 million in federal and state fines under the proposals.
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If the proposed consent orders are approved by the court, it would mean that all four major mobile carriers are on the hook to refund consumers following cramming charges. T-Mobile and AT&T have already had to answer to unauthorized billing allegations from the FTC, with T-Mobile agreeing to pay out $90 million in refunds and AT&T $80 million.
All told, that’s $290 million going back to wireless consumers for hidden charges regulators said the carriers placed on their accounts. Verizon customers can submit claims for a refund here and Sprint customers here.
Find more of our coverage on cramming here.
The practice of charging customers for cell phone services that they did not request or approve.