AT&T will be issuing $88 million to 2.7 million subscribers. The Federal Trade Commission will be implementing the refunds within the next 3 months. The settlement is due to AT&T's unauthorized charges.
Customers Will Be Getting An Average Of $31 For The Refunds
The network service provider has been charging customers up to $9.99 every month. In a report by Silive, 300 thousand of AT&T's former customers will also receive the refunds. The compensation will average $31 for those affected with the cramming case.
Cramming is the practice of placing unauthorized charges on phone bills. It has been a known problem in network operators in the US.
In FTC's statement, charges appeared on customer phone bills without their agreement. The refunds will come down as the biggest settlement ever in a cramming case. More than any than the Federal Trade Commission's previous cases.
It is part of a joint cooperation between the Federal Communications Commission and attorneys general in the US. It covers all 50 states with the District of Columbia's help in cracking down mobile cramming.
Subscribers that are looking for a refund will get a message from Epiq Systems. FTC has reported checks and bill credits began on December 8. FTC has also posted a number to which customers can inquire about the refund process. Subscribers can call 1-877-819-9692 to know about your refund status. The news of the settlement adds another dimension to AT&T's growing problems.
AT&T's DirecTV Now Is A Major Failure?
In other news, AT&T's DirecTV now is failing to provide subscribers of its promise. In a previous report, the streaming service has so far failed in many aspects. Customers have complained of streaming service's buggy mobile application. Several others have also described DirecTV Now's inability to stream to different media devices.
AT&T's struggle has reached a new high. An underwhelming DirecTV Now and an $88 million settlement has plagued the company's service. The network service provider is also active in pursuing a merger between Time Warner. There has been no official statement coming from AT&T as of the moment. Stay tuned for more updates.