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Cellphones The Almighty Buck The Courts

T-Mobile To Pay $90M For Unauthorized Charges On Customers' Bills 51

itwbennett writes T-Mobile US will pay at least $90 million to settle a Federal Communications Commission (FCC) suit that alleged it looked the other way while third parties charged T-Mobile subscribers for services they didn't want. The settlement is the second largest ever for so-called 'cramming,' following one that the FCC reached with AT&T in October. It came just two days after the Consumer Financial Protection Bureau sued Sprint for the same practice.
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T-Mobile To Pay $90M For Unauthorized Charges On Customers' Bills

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  • by NeverVotedBush ( 1041088 ) on Friday December 19, 2014 @07:19PM (#48638913)
    I started getting text messages on some celebrity quiz game but was just deleting them until I finally got tired of them. I looked the company up online and saw where people were complaining about getting slammed and charges showing up. I checked my bill and sure enough - there were the charges. I hadn't noticed them because they were down a couple of extra layers under something like "miscellaneous charges". I called T-Mobile to stop it and get the charges refunded but they had me contact the charging company to dispute and the charging company would only refund a couple of months. This had been going on for about 5 months. I called T-Mobile and insisted on total refunds and just got a runaround. I called my Senator and told his staff about it. They intervened and T-Mobile contacted me and gave me a full refund. The Senator's staff contacted me again and asked if I minded if my case data was used in their investigation and I told them not at all. Looks like it has all finally bore fruit.

    The company - I would have to check my files for the name - said I had visited some web site and signed up for their celibrity quiz game. I had a static IP address at the time and sure as shit, they had it. I had apparently visited a site that was simply harvesting IP addresses, or somehow they associated my IP with my name. I would never sign up for some celebrity quiz. It was a simple slam.

    Glad they all got nailed!
    • by rsborg ( 111459 )

      I called my Senator and told his staff about it. They intervened and T-Mobile contacted me and gave me a full refund. The Senator's staff contacted me again and asked if I minded if my case data was used in their investigation and I told them not at all. Looks like it has all finally bore fruit.

      I salute you sir for your efforts. May I kindly ask who your Senator was at the time?

    • Comment removed based on user account deletion
    • There is no hope of halting these practices without fines that take far more than the crime generated. The courts have enabled white collar crime by allowing these companies to steal and pay less than the sum stolen in fines. We should also consider a seizure of company assets and a forced shut down of the enterprise as it was an ongoing criminal conspiracy and the RICO Acts should be in play.
  • Thanks, Obama (Score:3, Informative)

    by Ralph Wiggam ( 22354 ) on Friday December 19, 2014 @07:26PM (#48638937) Homepage

    Remember when the Republicans in Congress fought against the creation of the Consumer Financial Protection Bureau? This is why.

    The CFPB was actually proposed by Elizabeth Warren, then still at Harvard. She was Obama's first choice for its Director, but her appointment was blocked.

    • I thank everyone involved in making these guys pay for this stuff. It was a scam top to bottom. I changed carriers as soon as I got my refund.
    • Which "crams" its $500 million budget onto taxpayers payroll deductions every year, good luck getting your money's worth
  • by Anonymous Coward

    T-Mobile's big mama, the Deutsche Telekom AG (DTAG) has been doing
    this for years in Germany. First they themselves invented charges to put
    on people's bills until there was enough backlash and they got fined for it.
    Then .. they got smarter about it and let third parties do the the fantasy
    billing.

    I am so not surprised to see T-Mobile USA do the same thing. They must
    figure what works in Germany works just as well in the USA.

    What they the "Telekoms" need for them to stop this pattern of ripping people off (on t

    • by rsborg ( 111459 )

      T-Mobile's big mama, the Deutsche Telekom AG (DTAG) has been doing
      this for years in Germany.

      Got a cite for that? I can't find anyone complaining about DT and slamming or inapprporiate charges on their account. If you do find such an example (assuming such an example exists), would you be so kind as to update Wikipedia?

      https://en.wikipedia.org/wiki/... [wikipedia.org]

  • by Cutting_Crew ( 708624 ) on Friday December 19, 2014 @07:53PM (#48639061)
    Why not fine them as well for illegal charging people when they didnt consent??
    • by dfm3 ( 830843 )
      I would suspect that many of them are shady, fly-by-night operations based out of a PO box somewhere, and that the people responsible tend to be near impossible to track down. By the time the legal system gets around to them, they are long gone with the money and have closed down their "business" only to start up another one under a different name/address.
    • by MrL0G1C ( 867445 )

      Fine!! It's criminal fraud, nothing civil about it, people should go to prison*

      *for a short period in a non-pound-em-in-the-ass prison, US has too many people in prison, you all need to calm down with that.

    • by RyoShin ( 610051 )

      Even if the third parties were the ones doing the charging, T-Mobile was the enabler. From the fine article:

      T-Mobile let third parties continue billing its subscribers for services they never approved, even when as many as half the people getting billed for a service had complained to T-Mobile, said Travis LeBlanc, the FCC’s enforcement chief. The carrier had a policy of investigating any service with a complaint rate higher than 15 percent, yet it let many of those companies keep putting their charge

  • by jenningsthecat ( 1525947 ) on Friday December 19, 2014 @08:01PM (#48639135)

    A penalty that stands a chance of getting the offender's attention, rather than one that's considered simply a cost of doing business. The fine should have been higher though - perhaps an additional $90M as purely punitive damages. Companies need to learn that wilfully screwing over their customers really, really hurts their bottom line. Also, an award approaching a fifth of a billion would likely piss off enough shareholders that several heads would roll.

    • T-Mobile's market capitalization is $21.35 Billion. A $90 million fine is a joke.They spend more then this for office supplies. And they won't have to pay nearly $90 million, because they will game the system so that very few people get the refund. The corrupt asshats who are responsible went home this weekend, had a drink and laughed the heads off over how useless the FCC is. It is a near certainty that they still came out ahead on the deal.

      You want a fine that will make them take notice? Fines for compan

      • There will be ways to game the system. Look at Hollywood, for example: The reason you see films given as 'making $X on a budget of $Y' is that no film, no matter how successful, ever turns a profit on paper. No profit, nothing to tax.

  • by Anonymous Coward

    And I haven't received my $250 yet. It's been a year. Good luck.

    • by Khyber ( 864651 )

      You fucking idiot, at this point and time you're supposed to file a lien on their property.

      That you haven't done so is a statement of your idiocy and ignorance of the law.

  • I call BS...

    I realize the story is specifically about T-Mobile, but overall it's about the "mysterious" charges that end up on peoples bills across all carriers.

    I worked in Sprint's billing department (hell on earth, yes), and I dealt with these calls about 25% of my day. I was personally allotted $15 per call, that's per customer to refund these charges, explain how they got there, personally block them from happening again wherever possible, and then give a long lecture on how to prevent this sort of th
  • T-mobile says here [t-mobile.com] it is possible for the customers to block ALL third party service provider billing.

    Third-party service provider billing Certain third-party charges (games, apps, ringtones, etc.) may be included on your T-Mobile bill. If you want to block those third-party charges from being included on your T-Mobile bill, you may do so at no charge by visiting www.my.T-Mobile.com or calling T-Mobile Customer Service.

    I have used it and I have not seen any such slammed bills over a number of years. But one constant complaint I have is that, every time I go to Niagara Falls, (I am an Indian American, all my relatives and friends from India insist on visiting Niagara when they come here. I have gone there some 35 times, might qualify as a guide too ;-)), my T-mobile phone would connect to Rogers Wireless and they will bi

    • T-mobile says here [t-mobile.com] it is possible for the customers to block ALL third party service provider billing.

      I'm not sure about T-mobile, but Verizon has various flags which cause this to get turned back on, such as getting a new phone, signing a new contract, changing your rate plan, etc.

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