- Associated Press - Friday, December 19, 2014

DES MOINES, Iowa (AP) - T-Mobile’s $90 million nationwide settlement involving unwanted cellphone text services includes a payment of more than $232,000 to Iowa.

The Iowa Attorney General’s Office says more than 12,000 Iowans will qualify for refunds under the settlement, which was announced Friday.

The Federal Trade Commission says T-Mobile overbilled for unauthorized charges, a practice known as “cramming.” The FTC sued T-Mobile in July, accusing it of billing customers for subscriptions to text services like $9.99-per-month horoscopes or celebrity gossip updates that they didn’t want or authorize.

Under the agreement, T-Mobile must provide $67.5 million in refunds or debt forgiveness to consumers who file claims. The company must also pay $18 million to state attorneys general and $4.5 million to Federal Communications Commission.

T-Mobile is the fourth-largest U.S. cellphone company.


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