Cramming: A Scam To Watch Out For

 

 

A Sun City Anthem blog reader sent me the following portion of his current CenturyLink phone bill, from which I have deleted his identifying information:

 

 

The printing is probably too small for you to make out, so I’ll describe it to you.

The bill shows a charge of $12.95 from a third-party biller called Enhanced Billing Services, which submitted the charge to CenturyLink on behalf of a company called Rocket Communications.

The bill is allegedly a monthly fee for, as the document states, “VMAIL AND FAXING.”

My reader, who swears that he never heard of Rocket Communications or the billing agent, and never contracted for such services, is the victim of one of the fastest-growing fraudulent schemes in the nation.

It is called CRAMMING, defined by the Federal Communications Commission as “the illegal placement of an unauthorized fee onto a consumer’s monthly phone bill. The charges are for services like long-distance services, voicemail, or even diet plans or yoga classes that the consumer neither requested nor used.”

 

 

In a June, 2011 report, the FCC estimated that 15 to 20 million American households a year potentially have these mystery fees on their monthly landline phone bills.

When my reader told me he had been assessed these unauthorized charges for three months before noticing them, I suggested that he start seeking redress by contacting CenturyLink.

Lo and behold, CenturyLink replied almost immediately with the news that they would credit all the charges, totaling $38.85, within his next two billing cycles and would block future charges from this biller.

I researched Rocket Communications and found that it is part of a convoluted web of companies that have had thousands of complaints filed against them.

There is legislation pending in Congress that would require phone companies to notify their customers in advance, and obtain their authorization, before placing such charges on a customer’s bill. But the legislation seems to have been stalled.

In addition, attorneys general in several states, including Nevada, have the issue prominently in their sights.

For the moment, however, it is up to us, as consumers, to take necessary steps to protect ourselves.

Since CenturyLink is my company, too, I called them and asked if they have a procedure that would allow us to prevent ANY third-party biller from adding charges to our phone bill without our express approval.

To my surprise, the answer was YES. For the reasonable cost of $1.00 per month, CenturyLink has now added this service to our monthly bill.

If you have CenturyLink, you should consider spending a buck a month to protect yourself. If you have a different telephone provider and don’t know what their policy is, call them and find out.

What else can you do?

• Examine your monthly phone bill in minute detail for mysterious or unexplained charges, and seek answers if you don’t know what they are.
   
• Be VERY careful when receiving unsolicited phone calls for ANYTHING that seems confusing or suspicious. The scammers are so sophisticated that they have techniques for pulling you into their scheme, even if you gave out no personal information but simply answered the phone and briefly talked with someone, because they can easily capture your phone number.
   
• If you are debited automatically each month to pay your phone bill, consider discontinuing that feature for at least this one type of service provider, regardless of how aggressively your phone company tries to sell you on the so-called benefits. It is a lot easier to dispute a charge before you pay it than after it has been debited by your phone company.

Here is a link to an FCC document that contains information on the subject and tells you how to file a complaint, free of charge, with the FCC.

Comments

[Leah]

David, this is one of the things you do best. A dispassionate explanation of an issue. A description of a problem from both a local and a wider point of view. Some excellent research. Examples of actions we can take as individuals. And a link to a useful external reference.

Thank you so much. I will surely be looking more carefully at our phone bill from now on.

[Sherryl Daly]

David, good to know. Would you also happen to know whether consumers who bundle services -- e.g., get phone, Internet, cable TV from Cox -- are less likely to be victims of crammers?

The different schemes these crammers, scammers and phishers come up with are always evolving, and I appreciate your alerting me to this new way some are trying to rip us off. Thank you.

[Stella G]

David, this kind of information is exactly why I always read
your blog, you really do the community a wonderful service
getting the word out about interesting issues that affect us
all. Thanks -

[David Berman]

Sherryl: I don't know that having bundled service from a single provider like Cox would make a difference, as you are probably just as vulnerable as anyone else. We have Cox for Internet, and basic cable service on three of our sets because we have DirecTv on our primary sets. If anyone does call Cox, it would be interesting to see if they offer the bill-blocking feature on their phone accounts, and at what cost if they do.

Leah and Stella: Thank you for the kind words. It is very gratifying to be able to share this type of information that folks can directly benefit from.

[Rex Weddle]

Until legislation is passed to protect us from something over which we have no control - but the providers do - WE have to pay them $1 for doing the job they should be doing in the first place.

Not sure which is the worst scandal.

[David Berman]

An alert reader, who studied his multi-page CenturyLink bill more thoroughly than I did, found the following language:

"If you believe you may have been crammed, contact CenturyLink to remove the charge and request that these types of charges be blocked from future bills. Even if you haven't been crammed, but want to know what can be done to keep other companies from billing their services in your telephone bill, contact CenturyLink and ask about a third-party bill block which is available at no charge to you."

When he called CenturyLink to add this service, the rep said it was $1 per month as I had indicated in my article. But when he pointed out the statement printed on his bill, the rep put him on hold for a few minutes and then came back to say, "I am adding third-party block to your account for no charge."

Upon receiving this message from my reader, I called CenturyLink and also got the $1 charge removed.

So the bottom line is that CenturyLink will add the block to your account for free. Don't let them charge you any amount to do this, and do check with your own phone company if you have a different provider.

[Mary Jane Hillery]

Thank you David - checking our phone bills.
Your alerts are very much appreciated.

MJH