Charter Communications on Tuesday started issuing credits to Spectrum internet customers in New York as part of a $174.2 million consumer fraud settlement reached in December with the state Attorney General.
Under the agreement, made with former New York AG Barbara Underwood, Charter is doling out $62.5 million in direct bill credits and providing 2.2 million internet subscribers with premium streaming services at no extra charge.
The settlement was the result of a complaint lodged by Underwood against Charter in early 2017 of failing to deliver promised internet speeds and reliability. The systems in question were formerly operated under Time Warner Cable before Charter completed its acquisition of them in May 2016, after which the company said it made upgrades to internet service across New York.
According to a statement from current NY AG Letitia James, Spectrum internet subscribers who leased a DOCSIS 2.0 modem on a speed tier of at least 20 Mbps or an 802.11n wireless router on a tier of at least 200 Mbps, or subscribed to a legacy Time Warner Cable internet plan of 100 Mbps or higher, will receive a credit of $75. Additional credits will be given to subscribers that leased a DOCSIS 2.0 modem with an internet speed tier of at least 20 Mbps for two years or more.
Current New York customers subscribing to both Spectrum internet and TV services can choose from either three months of HBO or six months of Showtime at no additional cost. Internet-only subscribers get one month of Charter’s Spectrum TV Choice streaming service, which includes broadcast TV and a choice of 10 pay TV networks, as well as one month of Showtime.
Customers do not need to do anything to receive their bill credits, but must contact Spectrum by May 30 to receive the premium streaming services.
“Today, New Yorkers will start to receive the tens of millions of dollars and additional services owed to them due to the company’s failure to provide quality services to its customers,” said Attorney General Letitia James, in a statement. “In issuing the largest-ever consumer payout by an internet service provider, my office is proud to set a higher standard for the way that internet providers accurately market services.”