Wednesday, July 13, 2011

Telecommunication companies takes your bill and ‘crams” it

Senator's probe slams phone firms for murky 'cramming' fees

Mysterious fees and services crammed onto phone bills are a “nationwide epidemic” for U.S. consumers, but a reliable source of revenue for some of America's biggest telecommunications companies, a year-long congressional investigation has found.

A report issued Wednesday by Sen. John Rockefeller, D-W.Va., says that three firms -- Verizon, AT&T and CenturyLink/Quest -- earned $650 million as their cut of cramming charges levied by third-parties since 2006.

Cramming charges -- such as unwanted $10-per-month voicemail or Web design services -- have been frustrating phone customers for more than 15 years, thanks in part to ill-considered rules designed to enhance competition in local phone markets. Consumers often don't spot the small monthly fees, but even when they do getting refunds can be a nightmare: The telephone provider that sends the bills often refuses to issue refunds, instead referring consumers to the third-party firms, which are often unresponsive.  The Federal Communications Commission estimates that 15 million to 20 million consumers are crammed every year.  Rockefeller’s report says cramming could cost U.S. consumers $2 billion annually.

Congress has been unable to fix the problem for more than a decade.

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