AT&T Settles Illinois Overcharging Complaints

SPRINGFIELD, Ill. (CN) - AT&T will refund $1.5 million and defer another $5 million in rate hikes after overcharging Illinois customers.

Illinois Attorney General Lisa Madigan said AT&T made the refunds in October and November 2007 and that the refund came to about $40 for each customer.

AT&T called the overcharges a technical billing error and said it was quickly corrected.

According to the settlement, AT&T will continue offering low-priced bundles through at least November 2011. It will allow Illinois consumers to sign up for the low-cost packages online, and will delay an increase in standard charges for local calls.

AT&T will freeze the price at 4 cents a call for 18 months, until July 1, 2010. It had planned to raise the price to 4½ cents a call on Jan. 1, 2009. Madigan said the freeze will save northern Illinois customers about $4 million.

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