Att paperless billing scam3/22/2023 It's not clear how many subscribers AT&T has in California, although, with more than 80 million postpaid customers across the country, it is the third-largest mobile carrier in the US. That's because the California Consumers Legal Remedies Act protects residents against "false advertising, fraud, and other unfair business practices."ĪT&T customers in California who were charged administrative fees on their postpaid wireless service plans between June 20, 2015, and June 16, 2022, can file a claim for a one-time cash payment. While all postpaid customers were charged the fees, only California residents are eligible for payment in this case. Their complaint accuses the carrier of violating several California statutes regarding unfair, unlawful and fraudulent business practices, as well as "the implied covenant of good faith and fair dealing." Who is eligible for money from the AT&T settlement? It's also phrased to suggest that it's akin to a tax or regulatory fee, the suit reads, "when in fact it is simply a way for AT&T to advertise and promise lower rates than it actually charges."Ĭalling the practice a "bait-and-switch scheme," the plaintiffs maintain AT&T has "unfairly and improperly extracted hundreds of millions of dollars in ill-gotten gains from California consumers." Want to find out about more class action settlements? See if you qualify for payouts from T-Mobile's $350 million data-breach deal or Smashburger's $5 million false advertising suit.Īccording to the complaint, mention of the fee is intentionally buried in bill statements "to it likely customers will not notice it." Here's what you need to know about the AT&T hidden fee case, including who's eligible for a payment, when the deadline to file is, and how much qualified customers could get. They contend the fee was actually AT&T's way of increasing its base rate "without having to advertise the higher prices." (Unlike prepaid subscribers, postpaid customers are billed after the fact, based on their usage.)ĪT&T denied the allegations in an email to CNET, saying it "clearly and prominently" discloses all fees and only agreed to the settlement "to avoid lengthy and expensive litigation." Plaintiffs in the case argued AT&T failed to inform postpaid wireless customers they were being charged a $1.99 administrative fee each month. If you don’t prepare for this expense, the company could draft your bank account when you don’t have enough funds in the account and cause an overdraft fee.Are you a current or past AT&T customer? You may be eligible for a portion of a $14 million class action settlement - but you only have until the end of today to file your claim. When annual subscriptions auto-renew, you give the company or retailer permission to automatically charge your credit card or draft funds from your bank account on the next payment due date. Since you don’t think about these bills on a regular basis, you might not remember the next due date, especially if you don’t receive a reminder. Even if you’re an organized person with an outstanding memory and a knack for writing everything on the calendar, annual expenses can catch you off guard. If you have subscriptions or services that renew once a year, like a membership with Amazon Prime or Costco, don’t set up automatic payments for these expenses. Take Our Poll: Do You Believe in Quiet Quitting? This means you might not catch billing errors and will pay more than necessary. Since autopay is a hands-off approach to paying bills, you’re also less likely to inspect your cellphone bill after setting up automatic payments. You could be caught off guard, or out of funds, if a payment posts when you weren’t expecting it. This doesn’t guarantee a consistent payment date each month. While you might have a set date - say the 15th - others have a monthly cycle which varies depending on the number of days in the month. Some cellphone plans also don’t have the same billing date each month. And if you forget to read your cellphone statement in months where you owe more than usual, the extra funds taken from your bank account could trigger an overdraft and bank fees. The problem, however, is the amount you owe can change from month to month, depending on data usage. There’s also the option of setting up automatic payments for a non-unlimited cellphone plan. If you have an unlimited cellphone plan and your bill never varies, autopay is a time-saving strategy for managing payments.
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