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T-Mobile was busted and will pay $90 million for cramming behavior

Time to pay up! T-Mobile will pay $90 million after caught cramming its subscribers bills with bogus charges
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Dec 19, 2014 10:44 pm

T-Mobile will have to fork over $90 million in refunds, fines and penalties for its longstanding "cramming" behavior, hitting its subscribers with unauthorized charges - and refusing to issue refunds when some subscribers found the charges.




"This is a major settlement that will put tens of millions of dollars back into the pockets of consumers," said Jessica Rich, director of the FTC Bureau of Consumer Protection, in a statement. "This case is about a core principle, that no business should bill a consumer for charges they did not authorize, period."


Cramming behavior seems to be quite popular among wireless carriers, and the most common type of cramming is premium Short Messaging Service (PSMS), normally focused on gossip and jokes of the day. AT&T and T-Mobile have already settled cramming cases, while Sprint is just beginning to face its own problems.


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