Mobile Carriers Verizon and Sprint Agree to Pay $158 Million Settlement

Mobile Carriers Verizon and Sprint Agree to Pay $158 Million Settlement
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Action against cell phone providers Verizon Wireless and Sprint will provide a combined $158 million in restitution for customers duped by the 2 mobile carriers for fraudulently billing customers for millions of dollars. On Monday May 12th the FCC (Federal Communication Commission) announced a settlement with Sprint and Verizon over a practice referred to as “cramming”. The FCC states mobile providers partnered with third party venders to charge the customers a subscription fee for ringtones, text messages and other services that the customer never agreed to.

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In 2014 AT&T and T-Mobile both settled with the FCC for $195 million, AT&T settled for a whopping $105 million, and T-Mobile settled for $90 million according to Reuters.

Government officials claim the carriers would keep between 30% and 35% of each sale. The Verge state,s “Verizon and Sprint are now no longer allowed to charge consumers for premium text messages. They will also now have to implement systems to ensure they obtain a customer’s informed consent before allowing third-party charges.”

FCC officials say a majority of the fines will be given to customers as restitution for being overcharged. No less than $50 million of Sprints settlement and $70 million of Verizon’s will be returned directly to the customers.

Verizon customers that were victims of cramming can click “Verizon Settlement”. Sprint customers that fell victim to balloon charges and click here “Sprint Customer Cramming Settlement” or contact the FCC at 1-888-726-7063 for Verizon and 877-389-8787 for Sprint.

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