Cramming: Mystery Phone Charges
"Cramming." No, we're not
talking about studying for an exam, although you may
want to study your monthly phone bill more closely in
the future. This type of cramming refers to unexplained
charges on your phone bill for services you never ordered,
authorized, received, or used. Sometimes a one-time
charge for entertainment services will be crammed onto
your phone bill. Other times, monthly recurring charges
are crammed onto your phone bill. Cramming of monthly
recurring charges falls into two general categories:
club memberships, such as psychic clubs, personal clubs,
or travel clubs; and telecommunications products or
service programs, such as voice mail, paging, and calling
cards.
Cramming
Schemes
Most of these scams occur through the use of an 800
number. Others are initiated by contests or sweepstakes.
They are all deceptive, and you should dispute the charges.
Here are some common ways crooks get your phone number
and cram charges onto your bill.
- 800 Number Calls. You call an 800
number advertised as a free date line, psychic line
or other adult entertainment service. A recording
prompts you to give your name and to say "I want
the service," or some similar phrase, to get
the advertised free service. You may have no opportunity
to speak with an operator or ask questions, but you
are automatically enrolled in a club or service program.
The phone number from which you call is captured and
billed. You often never get the "free" service
you called for, or the service you're billed for.
- Contest Entry Forms. You fill out
a contest entry form, thinking you're entering to
win a prize. In fact, some unscrupulous promoter is
using the contest to get your phone number, enroll
you for a calling card or some similar service, and
bill you on your phone bill. The disclosure on the
entry form, which is very difficult to comprehend
and in very fine print, says that by completing the
form, you authorized the service. You may never get
the service -- just the bills.
- Direct Mail Sweepstakes. You receive
a sweepstakes promotion in the mail that tells you
to dial an 800 number to enter or claim your prize.
When you call, a recording follows an automated script
to automatically enroll you in a club or service program.
The phone number from which you call is captured and
billed. Once again, the disclosure on the sweepstakes
mailer is very difficult to comprehend and in very
fine print, and you do not get the service -- just
the bills.
- "Instant" Calling Cards.
Someone may use your phone to call an 800 number for
an adult entertainment service, and be offered an
"instant calling card." The "calling
card" isn't an actual card, but is rather an
access code based on the phone number from which the
call was placed. The card is used to access and bill
for the entertainment service. If someone uses your
phone to sign up for such a card, your phone number
will be billed for all purchases of entertainment
made using that card, whether or not they are made
from your phone.
- Dating Service Calls. You call
an 800 number advertised as a way to meet local people
for free. You're told your date will call you back,
or you're asked to enter a code to be "teleconferenced"
with your date. What you're not told is that you'll
be charged a hefty fee for your conversation with
your date. Charges for these calls show up on your
phone bill incorrectly labeled as collect or toll
charges from a different city.
- International Calls. Some ads for
adult entertainment services tell you to call a number
starting with 011, 500, or another unfamiliar area
code. The ads don't explain that these numbers are
for expensive international calls, and that the entertainment
provider is making money every minute you stay on
the line.
- "Free Minutes" Deals.
You may see ads promising "free time" for
a date line, psychic line, or other adult entertainment
service. When you call, you're put on hold but told
that you won't be charged for this time. Not always
true: Sometimes, the "hold time" is deducted
from your free minutes. In fact, you may be billed
for some of your "hold time" as well as
your "talk time."
Don't Get
Crammed
Here are some tips to help you avoid cramming scams.
- Be aware that your local telephone company may bill
for services provided by other companies. Your local
phone bill may include charges for long distance telephone
calls, information or entertainment services accessed
through 900 numbers or presubscription agreements,
club memberships, and non-basic telecommunications
services like voice mail or paging.
- With the right technology, companies can get your
phone number when you call them, using a process similar
to caller ID. Once they have your number, an unscrupulous
company can cram charges onto your phone bill. What's
more, since this technology can automatically bill
the phone number that is called from, other people
using your phone can cause charges to be billed to
your phone.
- Carefully read the fine print before you fill out
contest forms, especially if they ask for your phone
number. Likewise, read the fine print before you place
a call in response to a sweepstakes promotion.
- Be cautious about calling unfamiliar 800 numbers.
Be especially wary if you're told to enter codes,
leave your name, or answer "yes" to prompts.
Unscrupulous entertainment providers may use this
ruse to send you a bill.
- 900 numbers cost money, even if you're calling to
claim a "free" prize. All 900 numbers that
cost more than $2 must give you a brief introductory
message about the service, the service provider, and
the cost of the call. You have three seconds after
the message ends to hang up without being charged.
- Consider a 900 number block; it stops calls from
going through to 900 number services. Blocks also
are available for international, long distance, and
local toll calls. Call your local phone company for
details.
- Check your phone bill every month for unfamiliar
charges. Sometimes, a call placed to a toll-free number
may be fraudulently billed as a 900 number, collect
call, or international call. Also, calls to information
and entertainment providers in foreign countries may
not be described as such. They may be listed as ordinary
international toll calls, or calling card calls.
- Examine your phone bill for recurring monthly charges.
These charges typically appear as "Miscellaneous
Charges and Credits." They may be so small, or
described in such general terms, that they're easy
to overlook or to confuse with valid services you
may have ordered from another provider. Watch for
fees described as "Min. Use Fee," "Activation,"
"Member Fee," "Voice Mail," or
some similar phrase. If you find an error on your
bill, follow the instructions on your statement. You
will be told who to call or write to dispute the charge.
Follow up any phone conversations with a letter, sent
by certified mail, return receipt requested. That's
your proof that the company received your letter.
Keep a copy for your files.
Where to
Complain
First try to resolve the problem by contacting the telephone
company, information provider, or billing agent whose
toll-free number is listed on your phone bill. If you
call, follow up with a letter.
You should also consider contacting
your state Attorney General's office and the Federal
Trade Commission. Most Attorney Generals' offices have
divisions that deal primarily with consumer protection
issues. Check the government section of your phone book
or contact your local or state consumer office for the
phone number and address of your state Attorney General's
office. You can also link to the websites of the Attorney
Generals' offices of many states from the National
Association of Attorneys General website.
For information about cramming, call
the Federal Trade Commission's Cramming Information
Line at (202) 326-3134.
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