Phone scam pads bill with phony charges

“Cramming” is the practice of packing charges onto your phone bill for services that you never ordered, authorized, received or used. This scam has exploded into epidemic proportions as technology becomes more sophisticated and the relationship between consumers and companies becomes more remote through 1-900 numbers and the Internet rather than the personal treatment received when dealing with a local merchant.

Under the terms of a recent settlement with the Federal Trade Commission involving unauthorized charges on telephone bills, some consumers may be eligible for a refund. The charges may have been for Web site design, voice mail, club memberships, hospital phone rental, other “enhanced” services, or 900 number services that were “crammed” onto phone bills.

As part of the settlement, Enhanced Services Billing Inc. and Billing Concepts Inc. have agreed to send notices to consumers whom they bill. The notice may be in the form of a phone bill insert, a message on the phone bill itself, or a separate letter. ESBI and BCI also have agreed to set up a toll-free number, (800) 555-ESBI, that consumers can call to find out the terms and conditions for refunds.

The FTC advises consumers to review their phone bills carefully, both for unauthorized charges and for a notice about the possibility of a refund. According to the FTC, you are entitled to a refund if you have received or do receive a phone bill containing unauthorized charges, other than 900-numbers, between Aug. 9, 2001, and Feb. 9, 2002. You can ask for a refund of current and past charges, and up to a total of 12 months of past charges.

Some of these charges are one-time fees; others appear on your bill month after month.

The charges may be listed under ESBI or some other company name or abbreviation, or as a 900-number charge.

These unauthorized charges may appear on the same page of the bill that contains the notice; on a separate billing page that has the initials “ESBI” or the name “Enhanced Services Billing Inc.” at the top; or elsewhere on your phone bill.

To claim a refund, call ESBI toll-free at (800) 555-ESBI; e-mail www.billview.com; or write to ESBI at P.O. Box 29206, San Antonio, Texas 78229-0206. No particular wording is necessary to request a refund for up to four months of charges. Consumers seeking refunds greater than four months must also mail copies of their telephone bills containing the unauthorized charges to ESBI at P.O. Box 29206, San Antonio, Texas 78229. The deadline for requesting refunds is March 9, 2002.

But be aware ESBI and BCI are not the only organizations using this practice. They just got caught at it. If you haven’t been a victim of cramming, you could become one unless you exercise caution when dealing with unfamiliar companies by phone or online.

Do business with local companies that have a street address and reputation. If you feel compelled to shop for goods or services through 1-900 numbers or online, choose companies with a familiar name. Be certain you understand contracts, agreements, and what the charges will be before offering your credit card or bank account number. Even then, use only “secure servers.” Ask questions until you are satisfied. Get a street address and know whom you are dealing with before you close the deal.

Then watch your phone bill like a hawk. If you see suspicious charges, contact your telephone company. If you believe you have been a victim of cramming, notify the Federal Trade Commission or COMBAT.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT/The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For help or to request individual or business membership information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.