Free Guide to AT&T Settlement Payment Information

What the AT&T Settlement Covers and Who It Affects

In 2020, AT&T reached a settlement with the Federal Trade Commission (FTC) over allegations that the company had engaged in misleading advertising about unlimited data plans. The core issue involved what AT&T marketed as "unlimited" data service—customers believed they could use data without limits, but AT&T slowed down (or "throttled") speeds significantly once users reached a certain data threshold, even though their plans didn't explicitly state this limitation would happen.

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The settlement required AT&T to compensate consumers who purchased unlimited data plans and experienced this throttling between 2011 and 2015. This wasn't a class-action lawsuit in the traditional sense where a single lawyer represented all customers. Instead, the FTC pursued this as a regulatory enforcement action, and AT&T agreed to settle without admitting wrongdoing.

The affected population includes anyone who purchased an AT&T unlimited data plan during that four-year window and had their speeds reduced by the company. AT&T had millions of wireless customers during this period, but not all of them were on unlimited plans, and not all unlimited plan users experienced throttling. The settlement didn't cover customers whose plans explicitly mentioned potential speed reductions or who used data on the company's standard plans with explicit data caps.

Understanding what triggered the settlement matters because it clarifies why certain customers might receive payments and others won't. The FTC's position was that AT&T's marketing didn't make the throttling practice sufficiently clear to average consumers shopping for plans. The company advertised unlimited data promininely while burying information about speed reductions in fine print or excluding it altogether from marketing materials.

Takeaway: The settlement specifically concerns unlimited data plans between 2011-2015 where speeds were reduced without clear upfront disclosure. If you had a different type of plan during that period, or used AT&T services outside these years, this settlement likely doesn't apply to your account.

How Payment Amounts Were Determined

One of the most frequently asked questions about this settlement concerns the actual dollar amounts people received or were supposed to receive. AT&T agreed to distribute $60 million to compensate affected customers. This wasn't divided equally among all customers—the FTC and AT&T used a formula based on several factors to determine individual payment amounts.

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The primary factors affecting payment calculation included how many times a customer's data speeds were throttled, how long the throttling lasted, and how much data the customer had used. A person whose speeds were slowed down twice during a one-month period wouldn't receive the same compensation as someone whose speeds were reduced repeatedly across multiple months. Similarly, customers who used significantly more data—and therefore experienced throttling more frequently—could receive larger payments.

AT&T submitted detailed records to the FTC showing which accounts experienced throttling, when it occurred, and for how long. These records became the foundation for the settlement calculation. A customer who had unlimited data from 2011 through early 2015 and regularly hit throttling thresholds could have received payments ranging from $25 to over $100, depending on their specific usage patterns. Conversely, someone who had unlimited data but rarely triggered throttling might have received a smaller amount or potentially no payment at all.

The distribution process created significant challenges. Some customers received payments automatically through AT&T bills (as credits), while others had to submit claims through a claims administrator. For customers who changed phone numbers, closed their accounts, or moved to different carriers, locating them to deliver payments proved difficult. This created situations where some settlement money went unclaimed—funds that were eventually directed to consumer protection organizations as per the settlement terms.

One practical consideration: payment amounts weren't described to customers in advance. People received notices indicating they might be owed money, but the exact amount only appeared when they checked their account or received correspondence. Some received checks, others saw AT&T bill credits, and a portion of customers never received their payments due to contact information issues or account closures.

Takeaway: Payment amounts varied based on throttling frequency and data usage during 2011-2015. There was no single amount everyone received. If you can't find a record of payment, you may need to contact AT&T directly to inquire about your account status during the settlement period.

Documentation Requirements and Payment Methods

Unlike some consumer settlements where people must file detailed claims with extensive documentation, the AT&T settlement operated differently. Because AT&T possessed all the data about customer accounts and throttling events, the company bore the responsibility of identifying affected customers and initiating payment. Customers generally did not need to provide proof of their throttling experience or their unlimited plan status.

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However, certain situations did require documentation or verification. If a customer's account was inactive or closed, AT&T needed some method to contact them and confirm their identity before sending payment. This might have involved verifying the phone number associated with the account, the billing address, or the last four digits of a Social Security number. The claims administrator hired to manage the settlement maintained specific procedures for verifying customer identity before releasing funds.

Payment was delivered through several different methods, which created confusion for some customers. The most common approach was through account credits—AT&T simply applied the settlement payment directly to a customer's existing account, reducing their next bill by that amount. This method worked seamlessly for customers with active accounts but created problems for those who had closed their accounts between the throttling period and the settlement distribution.

For customers with closed accounts, AT&T issued checks through the claims administrator. These checks required customers to cash or deposit them within a specific timeframe (typically three years from issuance). Some customers who received checks didn't recognize them and discarded them, assuming they were spam or unwanted mail. The checks didn't always clearly indicate they were settlement payments, leading to unintended losses.

A third payment method involved sending funds directly to customers who requested them through the claims process. Customers could submit information to receive payments via check, direct deposit, or other methods depending on the claims administrator's procedures. Documentation requirements for this method included proof of identity and proof of the phone number or account information from the 2011-2015 period.

For customers who couldn't be located or who failed to respond to settlement notices, AT&T held the funds temporarily before eventually transferring unclaimed amounts to state consumer protection funds or other designated recipient organizations. This meant some settlement money never reached the customers it was intended for, though the money still technically went to consumer protection purposes.

Takeaway: Documentation needs were minimal because AT&T identified customers from its own records, but inactive accounts and outdated contact information caused payment delivery issues. If you received a check or notice from the settlement, you needed to take action to claim it within a specified timeframe.

Checking Your Account Status and Finding Settlement Information

For people who want to understand whether they received a settlement payment or what their status might be, AT&T's customer service channels provide the most direct route to information. Current AT&T customers can log into their accounts online through myAT&T, contact customer service through the main phone line, or visit an AT&T retail store in person. When you contact them, reference the 2020 FTC settlement regarding unlimited data throttling to get directed to the right department.

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Past customers who no longer have active AT&T accounts face more difficulty. If you closed your AT&T account after the settlement was announced, finding information about whether you were owed money requires contacting AT&T's settlement claims administrator directly. The administrator's contact information was included in settlement notices but changed over time as claims periods progressed. Historical settlement documentation can sometimes be found through the FTC's website, which maintained records of the settlement terms and claims procedures.

When you contact AT&T or the claims administrator, have the following information ready: the phone number used during the 2011-2015 period, your billing address from that time, the approximate dates you had the account, and any account numbers you remember. This information helps representatives locate your account in their records and determine whether throttling events were recorded against it.

Red flags to watch for when seeking settlement information include anyone claiming to charge a fee to help you "recover" settlement money. Settlement payments are distributed free of charge; legitimate settlement administrators never require payment to access funds you might be owed. Similarly, be cautious of calls or emails claiming to be from AT&T settlement officials that pressure you to act quickly or ask for sensitive financial information beyond what's necessary for account verification.

The settlement period for claims eventually closed, and AT&T ceased accepting new settlement claims at a specified date (which varied based on when the settlement was fin