In May, the FCC, along with the Consumer Financial Protection Bureau and state attorneys general, announced that Verizon Wireless would pay $90 million and Sprint Corporation would pay $68 million to settle investigations that revealed the companies billed customers millions of dollars in unauthorized third-party premium text messaging services, according to a statement from the Federal Communications Commission.

The two cases brought a total of $353 million in penalties and restitution against the U.S.’s four largest wireless carriers, structuring these settlements so that $267.5 million of the total will be returned to affected customers.

Customers have until December 31 to submit claims through www.cfpbsettlementverizon.com  and www.sprintrefundpsms.com  Consumers with questions about the redress programs can call 1-877-389-8787 for the Sprint case, or 1-888-726-7063 for Verizon.

AT&T customers can submit claims through www.ftc.gov/att or call 1-877-819-9692 for more information.

What is cramming?

Cramming is the illegal act of placing unauthorized charges on your wireline, wireless, or bundled services telephone bill. The FCC has estimated that cramming has harmed tens of millions of American households.

Deception is the hallmark of cramming. Crammers often rely on confusing telephone bills to trick consumers into paying for services they did not authorize or receive, or that cost more than the consumer was led to believe.

Wireless consumers should be particularly vigilant. Smartphones are sophisticated handheld devices that enable consumers to shop online from wherever they are or charge app purchases to their phone bills. The more your mobile phone bill begins to resemble a credit card bill, the more difficult it may become to spot unauthorized charges.

How does cramming occur?

Cramming most often occurs when telephone companies allow other providers of goods or services to place charges on their customers’ telephone bills, enabling a telephone number to be used like a credit or debit card account number for vendors. Crammers may attempt to place a charge on a consumer’s phone bill having nothing other than an active telephone number, which can be obtained from a telephone directory.

What do cramming charges look like?

Cramming comes in many forms.  Charges – such as those described below – may be legitimate if authorized but, if unauthorized, are cramming:

• Charges for services that are explained on your telephone bill in general terms such as “service fee,”  “service charge,” “other fees,” “voicemail,” “mail server,” “calling plan” and “membership.”
• Charges that are added to your telephone bill every month without a clear explanation of the services provided – such as a “monthly fee” or “minimum monthly usage fee.”
• Charges for specific services or products you may not have authorized, like ringtones, cell phone wallpaper, or “premium” text messages about sports scores, celebrity gossip, flirting tips or daily horoscopes.

How can I protect myself against cramming?

• Carefully review your telephone bill every month, just as closely as you review your monthly credit card and bank statements.
• Ask yourself the following questions as you review your telephone bill:
  • Do I recognize the names of all the companies listed on my bill?
  • What services were provided by the listed companies?
  • Does my bill include charges for calls I did not place or services I did not authorize?
  • Are the rates and line items consistent with the rates and line items that the company quoted to me?
• When in doubt, ask questions.  You may be billed for a call you placed or a service you used, but the description listed on your telephone bill for the call or service may be unclear.  If you don’t know what service was provided for a charge listed on your bill, ask your telephone company to explain the charge before paying it.
• Make sure you know what service was provided, even for small charges.  Cramming often goes undetected as very small “mystery charges” – sometimes only $1, $2, or $3 – to thousands of consumers.  Crammed charges can remain on bills for years.
• Keep a record of the services you have authorized and used. These records can be helpful when billing descriptions are unclear.
• Carefully read all forms and promotional materials – including the fine print – before signing up for telephone or other services to be billed on your phone bill.