DES MOINES, Iowa – AT&T customers may be in for a windfall after the company settled with state and federal agencies, it was announced Wednesday.
AT&T has agreed to pay $105 million for “cramming” unauthorized charges on the monthly bills of its wireless customers, including up to 200,000 in Iowa.
The charges, typically $9.99 per month, came from third-party services for things like trivia, horoscopes and love tips. AT&T is accused of keeping at least 35% of the fees, as well as obscuring the charges on bills and preventing customers from securing full refunds.
“This will do a lot to resolve a widespread, frustrating fraud problem that Iowans have complained about for years,” Iowa Attorney General Tom Miller said. “We’re pleased that we have resolved this with AT&T and look forward to reaching more settlements with other carriers.”
Miller added, “What’s most important is that we have put a stop to a persistent and unfair billing practice, and Iowans will rightly receive refunds.”
$80 million is set to be refunded to customers nationally with the rest going to state and federal agencies.
You can check on whether you were affected and apply for a refund on the FTC’s website.
CNN contributed to this report.