A nationwide settlement that included Hawaii - and more than 61,000 customers statewide - will offer compensation to T-Mobile customers victimized by mobile cramming - the placing of unauthorized charges for third-party services on consumers.
All states and the District of Columbia, the Federal Trade Commission and the Federal Communications Commission reached settlements Friday with T-Mobile USA for $90 million in payments.
Under the terms of the settlements, T-Mobile must provide each victim of cramming who files a claim under its Premium SMS Refund Program an opportunity for a full refund, said a news release from the state Department of Commerce and Consumer Affairs Office of Consumer Protection.
The settlement terms require that T-Mobile pay at least $90 million. Of that total, 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 also will pay $18 million to the states - Hawaii will receive $203,000 - and $4.5 million to the FCC.
The Consumer Protection Office said that more than 61,000 T-Mobile customers in Hawaii are believed to have incurred unauthorized cramming charges.
Consumers who have been "crammed" often complain about charges, typically $9.99 per month, for "premium" text message subscription services (also known as PSMS subscriptions), such as horoscopes, trivia and sports scores, that consumers never heard of or requested.
State and federal regulators allege that cramming occurred when T-Mobile placed charges from third parties on consumers' mobile telephone bills without the consumer's knowledge or consent.
T-Mobile is the second mobile telephone provider to enter into a nationwide settlement to resolve allegations regarding cramming; the Consumer Protection Office announced a similar, $105 million settlement with AT&T in October.
T-Mobile and AT&T were among the four major mobile carriers - in addition to Verizon and Sprint - that announced they would cease billing customers for commercial PSMS in the fall of 2013.
Consumers may submit claims under the program by going to the website http://ift.tt/1xw7kGz. On that website, consumers can submit a claim, find information about refund eligibility and how to obtain a refund, and can request a free account summary that details PSMS purchases on their accounts. Consumers who have questions about the program also may call the refund administrator at (855) 382-6403.
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