FTC says cell carrier T-Mobile collected millions in bogus charges

By WEEK Producer

Credit: MGN Online

FTC says cell carrier T-Mobile collected millions in bogus charges

July 1, 2014 Updated Jul 1, 2014 at 4:42 PM CDT

The Federal Trade Commission issued a complaint Tuesday that cell phone carrier T-Mobile USA made millions of dollars off customers with bogus “cramming” charges, according to an NBC News report.

Cramming refers to a practice wherein a company adds on bogus charges to a customer’s bill associated with a third party.

The FTC says T-Mobile charged customers with fees for premium services such as horoscopes that they never subscribed to.

The company was said to collect up to 40 percent of the fees even after other customers informed them the charges were a scam.

FTC regulators said T-Mobile should have realized customers were being scammed and acted after the high volume of complaints.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.