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Wireless consumers are facing a deadline to receive their "cramming" claims for refunds following a settlement with Verizon and Sprint. The funds are from a $158 million federal settlement with the two major telecoms over unauthorized charges added to wireless phone bills. Cramming is a practice that has become widespread and causes great financial harm to wireless subscribers.
Customers of Verizon and Sprint can visit websites to seek compensation. However, the deadline to apply for a refund online or through mail is December 31, Thursday.
The two companies agreed to settle claims that customers were charged on their bills for unauthorized third-party services. They included services such as ringtones and celebrity gossip.
Most consumers were targeted online through ads. After they clicked on them, the ads redirected people to websites that requested their mobile numbers. Some merchants billed consumers for "free" digital content, while others created phony charges without actually providing any products to the customers.
The third-party companies received up to 40 percent of the gross revenue from the charges. They occurred from around 2004 to 2013, according to CBS News.
Verizon spokeswoman Debra Lewis noted in a statement that Verizon Wireless stopped permitting companies to put charges for premium text message services on customers' bills. Customers can seek a refund if they were incorrectly billed for such services.
Sprint also made a statement. It reported that it had returned tens of millions of dollars before the government launched its investigation of the industry.
The other two major wireless telecoms have also been in big trouble in the past for cramming hidden fees. That includes a Federal Trade Commission (FTC) lawsuit against T-Mobile and AT&T in 2014, according to WTVR.
