Cramming: Unauthorized, Misleading or Deceptive Charges Placed on Consumers Telephone Bills

One of the fastest growing sources of consumer complaints received by the FCC are telephone bills that include charges for services that the consumer did not order, authorize or receive. In many cases, this problem is aggravated by telephone bills that do not clearly state what services were provided or clearly identify the entities providing those services.

"Cramming" is a term used to describe the practice of placing unauthorized, misleading, or deceptive charges on consumers' telephone bills. Entities that engage in cramming appear to rely heavily on consumer confusion over telephone bills to mislead consumers into paying for services that were not authorized or received.

This brochure provides information consumers need to know about cramming and summarizes the steps they should take if they have been billed for services that are not clearly described on their telephone bills or for services they did not order, use or authorize.

This brochure also provides tips for consumers on how to save money and protect themselves from cramming and other types of telecommunications fraud.

Cramming Charges
Examples of Cramming Charges

Cramming can come in many forms and is often hard to detect unless consumers closely review their telephone bills. Here are some examples of possible cramming charges:

• Charges for services that were not requested or authorized by the consumer;

• Charges for services that are explained on the telephone bill in general terms -- such as "service fee," "service charge," "other fees," "voicemail," "mail server," "calling plan," "psychic," and "membership;" and
  
  
• Charges that are added to consumers' telephone bills every month without a clear explanation of the services provided -- such as "monthly fee" or "minimum monthly usage fee."

How Cramming Charges Occur

In addition to providing local telephone service, local telephone companies often bill their customers for services provided by other companies.

Cramming charges can be included with a consumer's local telephone company bill when a long distance telephone company or another type of service provider sends inaccurate billing data -- whether through oversight or intentionally -- to the local telephone company. The local telephone company, in turn, bills the consumer for the calls or services. A local telephone company may also engage in cramming if it bills a customer for a service provided by the local telephone company that was not authorized by the customer.

Cramming also occurs when a local or long distance telephone company or another type of service provider imposes a charge for services authorized by a consumer but does not clearly or accurately describe all of the applicable charges to the consumer when marketing the service.

While cramming charges typically appear on consumers' local telephone bills, cramming charges may also be included with bills issued by long distance telephone companies and companies providing other types of services such as cellular telephone, digital telephone, beeper and pager services.

The FCC's Truth-in-Billing Proposals

The FCC has proposed guidelines to make telephone bills more consumer-friendly by providing consumers with the information they need to determine what services have been provided, the charges assessed for those services, and which entities provided those services.

This basic information will empower consumers to protect themselves from cramming and other types of telecommunications fraud and to make informed choices when they shop around to find the best deal for the telephone services they want to use.

Our consumer brochure entitled Truth in Billing for Telephone Bills explains the FCC's proposed guidelines to make telephone bills more consumer-friendly. You can browse and download a copy of this brochure and other consumer information about telephone-related issues from the FCC's Web Site at:

http://www.fcc.gov/ccb/consumer_news/

You can also obtain a copy of this consumer information by calling the FCC's toll-free 1-888-225-5322 voice number or the toll-free 1-888-835-5322 TTY number.

The text version of the FCC's truth-in-billing proposals is available on the FCC's Web Site at:

http://www.fcc.gov/Bureaus/Common_Carrier/Notices/1998/fcc98232.txt

Other Consumer Protection
Actions Taken by the FCC

The FCC recently worked with the local telephone companies and providers of billing and collection services to develop industry best practices guidelines to combat cramming practices on consumers' telephone bills. These guidelines primarily address the relationship between local telephone companies and the service providers for whom they provide billing services.

The anti-cramming best practices guidelines are available on the FCC's Web Site at:

http://www.fcc.gov/Bureaus/Common_Carrier/Other/cramming/cramming.html

Carefully review your telephone bill every month.

Treat your telephone service just like any other major consumer purchase. You should review your monthly telephone bills just as closely as you review your monthly credit card and bank statements.

Ask yourself the following questions as you review your telephone bills:

• "Do I recognize the names of all of the companies listed on my bill?"

• "What services were provided by the listed companies?"

• "Does the bill include charges for calls I did not place and services I did not authorize?"

• "Are the rates charged by each company consistent with the rates that the company quoted to me?"

Keep in mind that you may sometimes be billed for a call you placed or a service you used -- but the description listed on your telephone bill for the call or service may be unclear. If you don't know what service was provided for a charge listed on your bill, ask the company that billed the charge to explain the service provided before paying the bill.

The cost of small, incorrect charges for telephone-related services adds up over time. Make sure you know what service was provided for small charges. Crammers often try to go undetected by submitting $2.00 or $3.00 charges to many thousands of customers.

Keep a record of the telephone services you have authorized and used -- including calls placed to 900 numbers and other types of telephone information services. These records can be helpful when billing descriptions are unclear.

Carefully read all forms and promotional materials -- including all of the fine print -- before signing up for telephone services.

Companies compete for your telephone business. Use your buying power wisely and shop around.

If you think that a company's charges are too high or that their services do not meet your needs, contact other companies and try to get a better deal.

You should take the following actions if cramming charges are listed on your telephone bill:

• Immediately call the company that charged you for calls you did not place or for services you did not authorize or use. Ask the company to explain the charges. Request an adjustment to your bill for incorrect charges.

• Call your local telephone company about cramming charges billed by that company. A customer helpline number for your local telephone company is usually included on the front page of your telephone bill.

• Explain your concerns about the cramming charges to your local telephone company and ask them to explain the procedures for removing incorrect charges from your bill.

• If the companies you contacted will not remove incorrect charges from your telephone bill, you can file a complaint with the proper regulatory agency.
  
  

Complaints About Non-Telephone Services

For cramming charges on your telephone bill for non-telephone services you should file a complaint with the Federal Trade Commission. An example of non-telephone services is "content" services such as psychic hotlines.

You can obtain information about the FTC's regulations and how to file a complaint by writing to the Federal Trade Commission, Public Reference Branch, Drop H240, Washington, D.C. 20580; by calling the FTC's Consumer Response Center at (202)326-3128; or by visiting the FTC's Web Site at: http://www.ftc.gov

Complaints About Telephone-Related
Services Provided Within Your State

For telephone-related services provided within your state you should contact your state regulatory commission. Your local or state consumer office should be able to provide the telephone number and address for your state regulatory commission. This information may also be listed in the government section of your telephone directory.

You can also obtain the telephone number for your state regulatory commission by visiting the FCC's Web Site at:

http://www.fcc.gov/ccb/consumer_news/state_puc.html

Filing a Complaint with the FCC About
Interstate or International
Telephone-Related Services and Charges

Complaints about telephone-related issues must be filed with the FCC in writing. You can file a complaint with the FCC by simply sending a typed or legibly printed letter in your own words to:

FCC
Common Carrier Bureau
Consumer Complaints
Mail Stop Code 1600A2
Washington, D.C. 20554

The following information should be included in your complaint letter:

• Your name, company name (where appropriate), address and a daytime telephone number (including the area code).

• A brief description of the complaint; the telephone number(s) involved with the complaint; the date(s) of the incidents involved with the complaint; the names, addresses and telephone numbers for the companies involved with your complaint; the names and telephone numbers of the company employees you spoke with in an effort to resolve the complaint, and the dates you spoke with them; and the action you are requesting, such as a credit or refund for disputed charges.

• Copies of the telephone bill(s) listing the disputed charges and other documents involved with the complaint. The disputed charges should be circled on the copies of the telephone bill(s).

  January 1999
  Form No. CCB-FS013