After 5 years of litigation, the California Public Utilities Commission (CPUC) approved a settlement between UCAN and the formerly named Cingular Wireless, now a part of the "new" AT&T. The settlement (see attachment below) will result in more than $18 million worth of refunds for certain former Cingular customers and more than $12 million in penalties. The case amounts to a total victory of no less than $31 million for California consumers.

Present or former customers of Cingular need not take any action. Cingular will be sending checks to customers who paid ETF penalities directly to Cingular. Customers who paid early termination fees (ETFs) to agents of Cingular (retail stores authorized to sell Cingular) will receive claim forms from Cingular. These mailings are expected to be sent in late April and will arrive 60-90 days after March 15.

Watch a video of the CPUC decision or read the story here. For more information, see our Issue Center dedicated to the case. Remember, UCAN is a non-profit consumer protection organization and our efforts to protect California consumers with our small staff are funded by the grassroots donations of members like you. To help us represent you, JOIN TODAY!

Look for more to come on this website, and read the official CPUC press release below!

From the California Public Utilities Commission


FOR IMMEDIATE RELEASE U.S. Supreme Court Docket #: 06A621

Media Contact: Terrie Prosper, 415.703.1366, news [at] cpuc [dot] ca [dot] gov

PUC SETTLEMENT REQUIRES CINGULAR WIRELESS TO REFUND
EARLY TERMINATION FEES TO CERTAIN CUSTOMERS

SAN FRANCISCO, March 15, 2007 - The California Public Utilities Commission (PUC) today approved a settlement agreement that requires Cingular Wireless (now known as AT&T Mobility) to refund early termination fees (ETFs) collected from its former customers from January 1, 2000 through April 30, 2002. Today's decision brings to an end lengthy litigation arising from the PUC's original decision in this case, which Cingular challenged in court.

The consumer refunds, including interest, total approximately $18.5 million. In addition, Cingular is required to engage an independent claims administrator to review claims for refunds of additional ETFs paid by former customers to Cingular agents for which records of payment no longer exist.

The PUC assessed a $12.14 million penalty, which already has been paid by Cingular, and will be transferred from an escrow account to the State Treasury.

"This settlement agreement demonstrates that the PUC takes its enforcement responsibility seriously," said PUC Commissioner John Bohn. "I support this settlement agreement because it will get reparations back to affected consumers expeditiously."

The PUC required these refunds and imposed this penalty after reviewing Cingular's practice of collecting ETFs from customers who cancelled service after using their cell phones because they were not satisfied with their service coverage. The PUC found that Cingular's ETF practice was fundamentally unfair to its customers who were not informed that network coverage might be less than adequate when signing a contract.

The all-party settlement approved by the PUC was entered into between AT&T Mobility LLC (Cingular Wireless), Utility Consumer Action Network, and the PUC's Consumer Protection and Safety Division.

As a result of the settlement adopted today, Cingular will withdraw its petition to the U.S. Supreme court regarding this issue.

For more information on the PUC, please visit www.cpuc.ca.gov.