Finishing the proceedings AT&T’s Cingular will pay $18.5 mill. to 115,000 former California subscribers who were charged when they canceled their contracts. Subscribers getting refund checks of $160 within 60 days.
The dispute was about that time between January 2000 through April 2002 when tens of thousands of customers couldn’t place and receive calls, so many decided to end their contracts earlier. Cingular was scolded by California Public Utilities Commission for not giving its subscribers an amount of time when they can decide to refuse the service and product.
Cingular announced in a statement: "Cingular's business practices have changed significantly since the period in question, and the company is now the industry leader in customer-friendly initiatives”. By this time Cingular let customers have up to 30 days in case they decide to return their phones and drop their service with no penalty.