Sprint, Verizon Customers Face Deadline To Apply For 'Cramming' Refunds
HARTFORD, Conn. (CBS/AP) — Consumers are facing a deadline to claim refunds from a $158 million federal settlement with Sprint and Verizon over unauthorized charges placed on wireless phone bills.
The practice is known as cramming. U.S. Sen. Richard Blumenthal, a member of the Senate Commerce Committee, said the practice has become widespread and causes substantial financial harm to subscribers.
CBS News reports that the carriers took as much as a 40 percent cut from the charges between 2004 and 2013.
"Well before any government action, Verizon Wireless stopped allowing companies to place charges for premium text message services on customers' bills," spokeswoman Debra Lewis said in a statement to CBS News."Customers who believe they were billed improperly for these services may seek a refund."
Sprint said in a statement that the company "returned tens of millions of dollars long before the government initiated its investigation of our industry."
Websites have been set up for Sprint and Verizon customers so they can seek restitution. The deadline to apply for a refund is Dec. 31. Claims can be made online or mailed.
Both companies agreed to settle allegations that customers may have been charged for unauthorized third-party services on their bills by companies providing services such as ringtones, horoscopes and celebrity gossip. Customers are eligible for full refunds of the unauthorized charges.
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