by Nate Wooley | November 7, 2012 1:07 pm
Wireless giant AT&T (NYSE:T) is in trouble with its customers … and with the Federal Communications Commission. Why? Well, it has been caught overcharging users of its smartphones.
The company — the second largest provider of wireless services in the U.S. — began being investigated by the FCC after complaints surfaced regarding the handling of account plans. Customers found they had been switched from a ‘pay as you go’ plan to a costlier monthly subscription plan without consent.
As a result, the company is being fined $700,000.
AT&T said through a spokesman that the number of customers switched represented fewer than 1% of the company’s subscribers. The complication took place with certain customers who changed their phone number or address.
The spokesman also said that refunds had already been sent to the majority of them prior to the ruling by the FCC.
The stock is down more than 2% in midday trading.
Source URL: http://investorplace.com/2012/11/att-caught-overcharging-smartphone-users/
Short URL: http://invstplc.com/1fzyjWj
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.