AT&T Sued for Withdrawing Customer's Funds After Account Was Closed

AT&T Wireless withdrew funds from a customer’s account after the customer canceled service and revoked authorization for withdrawals, alleged a fraud complaint Wednesday (docket 3:23-cv-02228) in U.S. District Court for Southern California in San Diego. Plaintiff Esiah Smith of San Diego entered into an agreement with AT&T in August 2022 and soon after returned the phone and stopped using its wireless service, the complaint said. Smith’s “alleged debt” was set up to be paid via recurring monthly automatic payments of $211.32 from his checking account, said the complaint. AT&T withdrew payments from August to October, and in November, Smith revoked the defendant’s authorization to make electronic fund transfers from his account, it said. Smith spoke to an AT&T representative Nov. 18, 2022, who confirmed his account was canceled, and AT&T issued refunds for August-October payments, the complaint said. On Dec. 9, AT&T again withdrew $211.32 from Smith’s checking account. The carrier was unable to say why the withdrawal occurred after Smith canceled service, and he has not been issued a refund for the December withdrawal or any additional communication, it said. As a result of the error, Smith has experienced anger, stress, worry, frustration, embarrassment and mental distress, said the complaint. Smith asserts violations of the Electronic Fund Transfer and California Consumers Legal Remedies acts and the Unfair Prong of the California Unfair Competition Law, it said. He seeks actual damages and attorney’s fees and costs. AT&T didn't comment.