Newsroom
May 12, 2015
CFPB: Sprint, Verizon to refund $120M for 'mobile cramming'
CFPB on Tuesday announced settlements with Sprint and Verizon, which, if approved, will provide refunds totaling $120 million to consumers affected by the companies' unauthorized third-party charges on customers' mobile phone accounts. The companies will also pay $38 million in federal and state fines.
CFPB said Sprint and Verizon customers were victimized by clicking on ads for "free" digital content, including ring tones or daily horoscopes, and then were charged without their consent. The charges ranged from one-time fees of about 99 cents to $4.99, to monthly subscriptions costing $9.99 a month.
CFPB noted that the companies did little or nothing to stop these illegal fees, or "mobile cramming," and also failed to properly track and respond to consumer complaints about these charges. Sprint and Verizon received a 30 to 40 percent cut of every third-party charge, CFPB said.
Customers who think they were affected by the third-party charges can learn more at www.CFPBSettlementVerizon.com or www.SprintRefundPSMS.com.
CFPB said Sprint and Verizon customers were victimized by clicking on ads for "free" digital content, including ring tones or daily horoscopes, and then were charged without their consent. The charges ranged from one-time fees of about 99 cents to $4.99, to monthly subscriptions costing $9.99 a month.
CFPB noted that the companies did little or nothing to stop these illegal fees, or "mobile cramming," and also failed to properly track and respond to consumer complaints about these charges. Sprint and Verizon received a 30 to 40 percent cut of every third-party charge, CFPB said.
Customers who think they were affected by the third-party charges can learn more at www.CFPBSettlementVerizon.com or www.SprintRefundPSMS.com.
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