Archive for April, 2008
April 12, 2008
What Is “Call Splashing”?
When you place a call from a public phone (a payphone, hotel, or airport phone, for example), your call may be routed to a distant call center before being “handed off” to your chosen long distance carrier. Your preferred long distance carrier might then, either unintentionally or intentionally, bill you as if your call originated from the distant call center, rather than from your actual location. As a result, you may be charged higher long distance rates for the call than what you expected. This is called “call splashing,” and it may be in violation of Federal Communications Commission (FCC) rules.
Is Call Splashing Legal?
A carrier is permitted to base charges on an artificial point of origination if the caller:
requests to be transferred to a different carrier’s operator; or
is informed (before incurring any charges) that the call may be billed as if it originated somewhere other than where the caller is calling from and he/she consents to the transfer.
Avoid Being “Splashed”
To help avoid call splashing, listen carefully to the telephone operator and don’t consent to any call transfers unless you understand what the operator is asking. Carefully read your phone bill to ensure the origination and destination locations of your long distance phone calls are correct. If your phone call has been billed without your consent as if the call originated from a distant call center, and the rate is higher than you anticipated, complain to your preferred long distance carrier so you can receive the correct billing rate. You can also file an informal complaint with the FCC.
Filing a Complaint with the FCC
You can file a complaint by either e-mail (fccinfo@fcc.gov), the Internet, telephone 1-888-CALL-FCC (1-888-225-5322) voice or 1-888-TELL-FCC (1-888-835-5322) TTY, or mail.
Your complaint letter should include:
name, address, and telephone number where you can be reached during the business day;
the telephone number involved with the complaint;
as much specific information about the complaint as possible;
a description of the steps taken by you to resolve the complaint yourself;
the names and telephone numbers of the company employees that you talked with in an effort to resolve the complaint, and the dates that you talked with these employees;
copies of bills listing the disputed charges (circle the disputed charges on the copy of the bill); and
the relief that is being requested (such as adjustment of charges).
April 12, 2008
The following information warns you about some deceptive techniques used to sell telephone service. It can help you avoid marketing abuses today and alert you to tactics that may be used in the future.
Slamming
You have the right to choose your primary long distance company and to change companies whenever you wish. Over the past few years, the number one consumer complaint in the telephone market involves a practice called “slamming” — when your chosen long distance telephone service provider is switched to another company without your consent or knowledge. This practice may involve deceptive marketing tactics or outright fraud, and it could affect your local service. If your service is slammed, you could lose important service features, get lower quality service, or be charged higher rates for your long distance calls. Federal Communications Commission (FCC) rules prohibit slamming. The FCC’s rules require a long distance company to obtain your authorization before changing your long distance service provider. Your service may be switched through no fault of your own. You could be misled by marketing techniques used to sign up customers for telephone service. To avoid this, you should carefully read all promotional material and all forms before signing, including the sweepstakes, contests, promotional checks or other marketing devices some companies use to induce consumers to authorize a carrier switch. FCC rules require that the forms provided by long distance companies to change long distance service be clear and not confusing, signed and dated by the consumer subscribing to the telephone line involved with the change, and easily separated from the promotional material. For instance, the form could be printed on a piece of paper that does not include any promotional material. Or, the form and promotional material could be included on a sheet of paper with perforations so that the form can be easily torn off and separated from the promotional material.
Checks in the Mail
Closely examine checks from telephone companies offering money to switch to their service. While it may be wise to take advantage of special offers, make sure you are signing up for the plan that saves you the most money. Some companies may not put you on their best savings plan. You could end up paying more than the value of the check in higher monthly rates. In some cases, customers need to mark a box on the back of the check to receive the discounted service. A check must clearly state that the customer is authorizing a change in service, but read the entire offer. Look for a full explanation of the changes you are authorizing next to the signature line on the back of the check. If you do cash the check, call the customer service number provided soon after cashing it to make sure you have been placed in the best discount program for you.
Discount Plans
Carefully examine telephone or mail solicitations that offer big savings if you switch your service to a new company. These claims usually compare only the highest rates of well-known carriers. A calling plan with your current company may have lower rates and fewer restrictions than the program being offered. In any case, ask more questions and find out about any hidden costs or restrictions associated with discount plans. Do the discounts offered fit your calling habits? Will the company provide other services you need, such as 24-hour customer service and reliable billing? If you are not getting straight answers, you probably have reason to be suspicious.
Five-Digit Discount Codes
Pay close attention to mailings offering big savings if you use a so-called discount code of five digits at the start of each call you make. These offers promise not to change your long distance company, which is technically true. Dialing the five digits before the number that you are calling will connect you to a long distance company with rates may be higher or lower than the rates charged by your long distance company.
Short-Term Bargains
“Bargains” that provide certain services at a discount or for free often last for only a few weeks or months, then automatically continue at a much higher rate unless you specifically request cancellation. Remember also that your local telephone company charges a fee to change your long distance company. Some long distance companies will pay this charge if you switch to their service.
Package Deals
Package deals can offer a good value as many companies begin to offer deep discounts to customers who buy all their telecommunications services from one source, such as Internet, cable TV, pager, local and long distance services. It could, however, be cheaper to buy separately only the services needed, rather than an entire package. Make sure you purchase what you truly want and can afford.
Selection Freeze
Your local telephone company may tell you that you can avoid negative marketing tactics by signing up for a program that requires you to directly contact your local telephone company to change carriers. Some local companies require written permission. While written permission will help protect you from slamming, it can make it more difficult to take advantage of new competitors offering lower prices or better service.
Prepaid Calling Cards
Depending on their per-minute rate, prepaid calling cards can save money on long distance calls of short duration. If you use prepaid cards for calls from home or for local calls, however, you may pay more than if you used your regular telephone service. In addition, some companies that sold consumers calling cards have gone out of business before the customer can use the full value of the card. Only prepay if you know and trust the company making an offer.
Pay Phones
Be aware that pay phones may be connected to operator service companies charging high rates and added fees. If you make calls away from home, consider getting a calling card that allows you access to the company of your choice by dialing its access code, usually an 800 number. Though illegal, some pay phones are set up to block your ability to reach your company. If you have trouble reaching your carrier or using a calling card, try to find another nearby pay phone.
What You Can Do
Verify Your Company
If you suspect your long distance carrier has been changed without your permission, call 1-700-555-4141 from your home phone and a recording will state which carrier is connected to your home line. Its name will also be listed on your bill.
Get a Refund
If your telephone company is switched improperly, call your local telephone company and your original carrier and arrange to be switched back immediately at no charge. You have the right to demand a refund if you were charged a switching fee or were billed at higher rates than your own carrier’s rates.
Get Help With a Complaint
For advice about a telephone-related problem, contact your state or local consumer protection agency, or your state Attorney General or public utilities commission. If necessary, they may take a complaint from you or refer you to another agency that can help you. Send a copy of your grievance to the company so they know you are dissatisfied.
To File a Complaint
If you are unsuccessful in resolving problems about interstate or international long distance service with the company, you can write to the Federal Communications Commission. Your complaint should include your name; address; the telephone number or numbers involved with the complaint; a telephone number where you can be reached during business hours; the names of your local and long distance companies and, where appropriate, the company that slammed you; and copies of bills or other documents related to your complaint. Be aware that complaints can take several months to process.
For additional information about telephone advertising or service plans, please call the FCC’s toll-free number (voice) 1-888-CALL FCC (1-888-225-5322) or (TTY) 1-888-835-5322. You can also write the Consumer & Governmental Affairs Bureau, Federal Communications Commission, 445 12th Street, S.W., Washington, DC 20554. Information is additionally available through the internet at www.fcc.gov.
You can file a complaint with the Federal Trade Commission by contacting their Consumer Response Center by phone: at toll-free 1-877-FTC-HELP (1-877-382-4357) (voice); 202-326-2502 (TTY); by mail: Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580; or through the Internet using the online complaint form. Although the FTC cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations.
April 12, 2008
Fraudulent telemarketers have found yet another way to steal your money, this time from your checking account. Consumers across the country are complaining about unauthorized debits (withdrawals) from their checking accounts.
Automatic debiting of your checking account can be a legitimate payment method; many people pay mortgages or make car payments this way. But the system is being abused by fraudulent telemarketers. Therefore, if a caller asks for your checking account number or other information printed on your check, you should follow the same warning that applies to your credit card number – do not give out checking account information over the phone unless you are familiar with the company and agree to pay for something. Remember, if you give your checking account number over the phone to a stranger for “verification” or “computer purposes,” that person could use it to improperly take money from your checking account.
How The Scam Works
You either get a postcard or a telephone call saying you have won a free prize or can qualify for a major credit card, regardless of past credit problems. If you respond to the offer, the telemarketer often asks you right away, “Do you have a checking account?” If you say “yes,” the telemarketer then goes on to explain the offer. Often it sounds too good to pass up.
Near the end of the sales pitch, the telemarketer may ask you to get one of your checks and to read off all of the numbers at the bottom. Some deceptive telemarketers may not tell you why this information is needed. Other deceptive telemarketers may tell you the account information will help ensure that you qualify for the offer. And, in some cases, the legitimate telemarketer will honestly explain that this information will allow them to debit your checking account.
Once a telemarketer has your checking account information, it is put on a “demand draft,” which is processed much like a check. The draft has your name, account number, and states an amount. Unlike a check, however, the draft does not require your signature. When your bank receives the draft, it takes the amount on the draft from your checking account and pays the telemarketer’s bank. You may not know that your bank has paid the draft until you receive your bank statement.
What You Can Do To Protect Yourself
It can be difficult to detect an automatic debit scam before you suffer financial losses. If you do not know who you’re talking to, follow these suggestions to help you avoid becoming a victim:
Don’t give out your checking account number over the phone unless you know the company and understand why the information is necessary.
If someone says they are taping your call, ask why. Don’t be afraid to ask questions.
Companies do not ask for your bank account information unless you have expressly agreed to this payment method.
IT’S THE LAW: Since December 31, 1995, a seller or telemarketer is required by law to obtain your verifiable authorization to obtain payment from your bank account. That means whoever takes your bank account information over the phone must have your express permission to debit your account, and must use one of three ways to get it. The person must tell you that money will be taken from your bank account. If you authorize payment of money from your bank account, they must then get your written authorization, tape record your authorization, or send you a written confirmation before debiting your bank account. If they tape record your authorization, they must disclose, and you must receive, the following information:
The date of the demand draft;
The amount of the draft(s);
The payor’s (who will receive your money) name;
The number of draft payments (if more than one);
A telephone number that you can call during normal business hours; and
The date that you are giving your oral authorization.
If a seller or telemarketer uses written confirmation to verify your authorization, they must give you all the information required for a tape recorded authorization and tell you in the confirmation notice the refund procedure you can use to dispute the accuracy of the confirmation and receive a refund.
What To Do If You Are A Victim
If telemarketers cause money to be taken from your bank account without your knowledge or authorization, they have violated the law. If you receive a written confirmation notice that does not accurately represent your understanding of the sale, follow the refund procedures that should have been provided and request a refund of your money. If you do not receive a refund, it’s against the law. If you believe you have been a victim of fraud, contact your bank immediately. Tell the bank that you did not okay the debit and that you want to prevent further debiting. You also should contact your state Attorney General. Depending on the timing and the circumstances, you may be able to get your money back.
April 12, 2008
Calls to 800 and 888 numbers are almost always free, but there are some exceptions. Companies that provide audio entertainment or information services may charge for calls to 800, 888 and other toll-free numbers, but only if they follow the Federal Trade Commission’s 900-Number Rule.
This Rule requires a company to ask you to pay for entertainment or information services with a credit card or to make billing arrangements with you before they provide the service. If you don’t use a credit card, the law says companies also must provide you with a security device, such as a personal identification number (PIN), to prevent other people from using your phone to charge calls to these services.
Presubscription Agreements
For a company to charge you for a call to an 800 or 888 entertainment or information service, it must obtain your agreement to the billing arrangement in advance. The company must tell you all relevant information about the arrangement, including the company’s name and address, rates and rate changes, and business telephone number.
The company also must use a security device, like a PIN, to prevent unauthorized charges to your telephone. The “presubscription agreement” must be in place before you reach the entertainment or information provided by the service. If you authorize a company to charge your credit card for an 800 or 888-number call, the company has met the Rule’s requirements.
Prohibitions and Unlawful Practices
Certain practices relating to 800 and 888 numbers are prohibited by the 900-Number Rule. For example, a company can’t charge you for dialing an 800 or 888 number unless you have entered into a valid presubscription agreement. Also, if you dial an 800 or other toll-free number, the company is prohibited from automatically connecting you to a 900-number service, and from calling you back collect. However, the law allows a company to promote a 900-number service during the 800-number call, as long as you would have to hang up and dial the 900 number to reach the service.
Some companies break the law by charging improperly for entertainment and information services that you reach by dialing an 800 or 888 number. For example, some services ask you during the course of a call to simply “Press 1″ to be charged automatically. Others advertise a service as “free” but then unlawfully charge for calls placed to that service. Still others may charge for calls you place to 800 or 888 numbers by billing you for calls to a different type of service — such as calls to an international number. Some will charge a “monthly club fee” on your phone bill after you call an 800 or 888 number. Other services fail to take adequate precautions to prevent the unauthorized use of your telephone to make these calls; they may charge you for 800-number calls you didn’t make or approve.
Minimize Your Risk
Here’s how to minimize your risk of unauthorized charges:
Remember that dialing a number that begins with 888 is just like dialing an 800 number; both are often toll-free, but not always. Companies are prohibited from charging you for calls to these numbers unless they set up a valid presubscription agreement with you first.
Recognize that not all numbers beginning with “8″ are toll-free. For example, the area code 809 serves the Dominican Republic. If you dial this area code, you’ll be charged international long distance rates.
Make sure any 800 or 888 number you call to get entertainment or information that costs money provides security devices — including PINs — before you enter into a presubscription agreement with them.
Check your phone bill for 800, 888 or unfamiliar charges. Calls to 800 and 888 numbers should be identified. Some may be mislabeled as “long-distance” or “calling card” calls and are easy to overlook.
Dispute charges on your phone bill for an 800 or 888 number if you don’t have a pre-subscription arrangement. Follow the instructions on your billing statement.
Realize that if the telephone company removes a charge for an 800 or 888-number call, the entertainment or information service provider may try to pursue the charge through a collection agency. If this happens, you may have additional rights under the Fair Debt Collection Practices Act.
If You Have A Complaint call toll-free, 1-877-FTC-HELP (1-877-382-4357).