CFPB Settlement Verizon
- Obtain more information about the Sprint PSMS refund program approved by the Consumer Financial Protection Bureau, the Federal Communications Commission, and State Attorneys General
- The program is a result of a class action lawsuit in which allegedly charged consumers for unauthorized third-party charges (Sprint denies any actions of wrong doing)
- The CFPB Verizon Settlement will provide $120 million directly to class members who were victim to these unauthorized third-party charges
These “third party ads” were most likely in the form of ring tones or daily horoscopes that were billed as FREE digital content when they were anything but free according to Verizon Wireless Premium SMS Refund Program class members. According the attorneys the illegal billing continued for months and months. Documents in the CFPB settlement also show that Sprint and Verizon received a 30-40 percent cut of every third-party charge giving them a reason to note stop the ads.
Questions about the lawsuit settlement?
- Sprint customers should dial (877) 389-8787
- Verizon customers should dial (888) 726-7063
Under the terms of the lawsuit the wireless companies will also be fined over $350 million in penalties and restitution. “Sprint and Verizon had flawed billing systems that allowed merchants to add unauthorized charges to wireless customer bills,” CFPB Director Richard Cordray stated. This is one of the largest third-party ad lawsuits and it is thought that these activities happened between 2004 through 2013.
Besides ring tones and horoscopes these “ads” were also found in apps, games, books, movies, and music associated with the customers mobile device.