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Kentucky to receive $255,078.86 in settlement with T-Mobile

Kentucky will receive $255,078.86 as part of a multimillion-dollar settlement with the cellphone provider T-Mobile.

The settlement includes $90 million nationwide in payments for consumer refunds, resolving allegations that T-Mobile engaged in "mobile cramming," which is the placement of charges for third-party services on consumers' cellphone bills that were not authorized by the consumer, according to Attorney General Jack Conway's office.

Customers usually complain about charges, typically $9.99 per month for premium text message subscription services such as horoscopes, trivia, and sports scores, which the consumers might not have requested.

Conway announced a similar cramming settlement with AT&T in October for $105 million. T-Mobile and AT&T were among the four major mobile carriers — in addition to Verizon and Sprint — that announced they would cease billing customers for commercial premium text message subscription services in the fall of 2013.

T-Mobile will pay at least $67.5 million to consumers, a portion of which may be paid by forgiving debts consumers may owe to T-Mobile. The cellphone company will also pay $18 million to attorneys general and $4.5 million to the Federal Communications Commission.

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