Telcos Asked To Clarify Bills
Los Angeles video producer Rex Olsen gets a phone bill of about 20 pages every month, reports CBS News Correpsondent Sandra Hughes.
In fact, it's so long and complicated that it took five months before he noticed a $25 charge from a company called Integretel.
"They told us the company was charging for a voice mail service. We're here in California, the voice mail service was for a 212 number in New York," says Olsen.
Olsen was a victim of what's called cramming -- the practice of charging customers for extra services like paging and voice mail that they never knowingly ordered or received.
Integretel says it's just a billing company for the voice mail provider, which CBS News was unable to reach.
That company did send Olsen a handwritten letter without a return address.
What does that say?
For thousands of Americans it says scam -- and it can happen when unscrupulous companies obtain your phone number through telemarketing or when you sign up for a sweepstakes.
The Federal Communications Commission is receiving 10,000 complaint calls a month about cramming.
"I learn about this every month when my wife pays the phone bill and comes over to me and says, 'I don't understand all these charges on the bills,'" says FCC Chairman William Kennard.
On Thursday, the FCC issued a notice that to protect consumers the phone companies should simplify bills.
Here's how the government wants it done:
- Charges must be clear, accurate and not misleading.
- Changes from the previous month must be highlighted.
- Contacts must be provided for outside companies adding charges to your phone bill.
Written by Sandra Hughes
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