Settles phone-cramming suit for $90 Million
T-Mobile agrees to pay at least $90 million for allowing unauthorized charges to be placed and to remain on customer’s bills – a practice known as cramming. The services including things like horoscopes or celebrity gossip and ran up to $9.99 monthly. The charges, of which T-Mobile kept anywhere from 35% to 40%, often remained on the bill even after customers complained. Chief of the FCC Enforcement Bureau Travis LeBlanc:
T-Mobile was in bed with the crammers. Crammers are predators; they’re a threat to consumers everywhere. The FTC has received many thousands of complaints about cramming.