According to a nationwide lawsuit recently filed in federal court, Cingular Wireless misled and overcharged millions of AT&T cell phone users when Cingular bought AT&T Wireless. In October 2004, Cingular bought AT&T's cell phone system, after assuring federal regulators that the merger would be "seamless."
The lawsuit claims, instead of the new and better services that Cingular promised AT&T customers, Cingular immediately began dismantling and degrading the AT&T network, forcing AT&T customers to move to Cingular's cell network. AT&T customers were forced to buy new phone equipment, move to higher cost plans, and, in some cases, an $18 "transfer" or "upgrade fee." Some customers who tried to go to another company were hit with "early termination fees" of $175. Others who didn't want to pay or couldn't afford the fees have been stuck with riding out their contract with AT&T Wireless while suffering poor to no reception.
The lawsuit was filed in U.S. District Court in Seattle, Washington on behalf of all AT&T Wireless customers who were deceived or overcharged by Cingular's actions related to the merger. The class action is brought by attorneys for the non-profit Foundation for Taxpayer and Consumer Rights (FTCR), a California-based crusader for consumer rights, and other consumer oriented law firms.
"Cingular promised AT&T customers it would 'raise the bar'; instead, it lowered service quality, forced AT&T customers to move to Cingular, and then raised prices," said a lawyer for FTCR. Pam Pressley, FTCR's Director of Litigation, said, "AT&T customers all over the country have complained about Cingular's conduct. Cingular gave people no choice: put up with the problems, pay to transfer to Cingular, or pay $175 to get out. Too bad it takes a lawsuit to protect people" Pressley continued.
"Cingular has displayed an arrogance which sends the message that their market share is more important than their customers," said a lawyer representing consumers.
"The lawsuit seeks to hold Cingular accountable to their loyal customers who have been forced to pay added fees just to get the service they were promised" states a lawyer for Cingular customers.
The lawsuit states, that as part of the merger with AT&T, Cingular promised that AT&T's customer base would be allowed use of "the combined network, without roaming charges," and insisted that "customers will continue to enjoy the benefits of their current phones, rate plans and features, without any service interruption" the lawsuit states. "In fact, AT&T customers were not allowed access to the combined network, and, according to the FCC, Cingular Wireless logged the highest number of consumer complaints in the industry in the first quarter following the merger" according to a lawyer representing the cell phone users.
The lawsuit seeks to represent all AT&T Wireless customers who were deceived or overcharged by Cingular's actions related to the merger.