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T-Mobile, FTC in settlement talks over cramming charges

T-Mobile is in talks with the FTC to settle the cramming charges.
By
October 21, 2014
FTC Building

Several months ago, we reported on the Federal Trade Commission (FTC) officially filing a complaint alleging that T-Mobile was involved in the practice of “cramming”, which generally involves third-parties billing customers for Premium SMS services and handing over a portion of that money to the wireless carriers.

Specifically, the FTC alleges that T-Mobile received anywhere from 35 to 40 percent of the total amount charged to consumers. In some cases, T-Mobile continued billing customers even AFTER becoming aware that the charges were fraudulent, dating back to 2012.

Now, T-Mobile seems to be caving a bit to the FTC. According to the Seattle Times, T-Mobile is in talks with the FTC to settle the cramming charges. In papers filed Monday in Seattle federal court, the FTC and T-Mobile both asked the court to put on hold the lawsuit for 90 days while they work out a deal.

 

“The parties are engaged in substantive settlement talks that they believe would resolve this matter and eliminate the need for further litigation,” lawyers for T-Mobile and the FTC said in the filing. – Seattle Times

The Seattle Times tried contacting T-Mobile but did not get a response.