Phone Slamming

According to federal law, a caller's long distance can't be changed without his or her consent. Phone "Slamming" is the illegal practice of changing a consumer's telephone service - local, or long distance (including state-to-state, in-state and international long distance) - without permission. Normally, consumers have no knowledge of the switch until after they get a bill. Some discover they've been slammed after they notice a sudden decline in the quality of their phone service or receive an outrageously high phone bill bearing an unfamiliar company name. Others discover they've approved the switch without knowing it.

Firms who gain customers through deception use some of the following techniques. A long distance company may hide an authorization form within a contest entry, or it may send a check which if cashed gives the company permission to claim the consumer's long distance. Other long distance providers don't bother with contest forms or checks. They simply tell the local phone company that a consumer wants to be switched. As a result, their customers pay high rates for long distance service that may be of substandard quality.

Federal Communication Commission Rules

To assist in preventing phone slamming, the FCC enforces the following rules:

• Each authorization letter must contain the subscriber's billing name and address and each telephone number to be covered by the change order. The letter must contain a line stating the subscriber's decision to change long distance carriers along with a statement explaining the subscriber may be charged for the change.
• The authorization letter used to switch carriers must be written in clear and concise language and the print must be of sufficient size and readable type.
• Companies may not use "Negative Option" letters in which a customer must specifically respond "no" in order to stop the change.
• If more than one language is used, the letter must contain a full translation.
• Combination checks/authorization forms must contain the FCC required information without any promotional material. The carrier must print the required language on the front of the check in boldface type with a notice authorizing the change in service.
• If a long-distance customer receives higher bills as a result of being "slammed", the customer is only required to pay the rates charged by the original carrier.
• A 30-day absolution period for the liability of charges provides incentive for consumers to review their phone bills carefully and promptly, and it provides incentives for carriers that legitimately sign up customers to verify switches properly so as to have solid evidence of the change.
• A carrier can fulfill its obligation to verify consumers' authorizations to change their telephone service providers in one of three acceptable ways; consumer signature on an authorization form, electronic authorization, and verification by a third party. This now applies to in-bound calls, thus affording the same protection to consumers who initiate calls to carriers as well as those who receive telemarketing calls.

Prevention

Don't let unscrupulous firms trick you into signing over your long distance account. Read the fine print before you put your name on any contest forms or endorse any checks that appear in your mailbox, and check your monthly bill to verify you haven't been slammed. If you are slammed, contact your phone company and tell them to switch you back to your original carrier. Some phone companies will "freeze" your long distance account so that it cannot be switched to another carrier without a special authorization process. Call your phone company to see if they will freeze it.

To prevent being slammed, ask your local phone company to send you a PIC (Presubscribed Interexchange Carrier) restriction form prohibiting your long distance service from being changed without your express written permission.

If you would like to verify your phone provider, you can call toll-free:

1-700-555-4141 for long distance service, and 1+your area code+700+4141 for local services

What to Do If You've Been Slammed

If you HAVE paid your bill and then discover you've been slammed:

1. The slamming company must pay your authorized company 150% of the charges it received from you.
2. Out of this amount, your authorized company will then reimburse you 50% of the charges you paid to the slammer.

The subscriber also has the option of asking the authorized carrier to re-rate the unauthorized carrier's charges.

If you've been "slammed" and HAVE NOT paid the bill for the carrier that slammed you:

1. You do not have to pay anyone for service for up to 30 days after being slammed, neither your authorized telephone company (the company you actually chose to provide service) nor the slamming company.
2. You must pay any charges for service beyond 30 days to your authorized company, but at that company's rates, not the slammer's rates.
3. Call your authorized company (local or long distance) to inform them of the slam. Tell them that you want to be reinstated to the same calling plan you had before the slam. Tell them that you want all "change of carrier charges" (charges for switching companies) removed from your bill.
4. File a complaint with both the Better Business Bureau and the FCC (National Call Center at 1-888-225-5322) where the company is located. If you're considering a switch in long distance carriers, check the company's record with the BBB before you switch.

Remember, be smart and keep a sharp eye out for high phone bills, poor quality phone service, or a jump in phone rates. Any of these could mean you've been slammed.

Sources Cited: Federal Communications Commission.

For more information contact:

Better Business Bureau
www.bbb.org

Federal Communications Commission
Consumer & Governmental Affairs Bureau
445 12th Street S.W.
Washington, DC 20554
www.fcc.gov
Email: slamming@fcc.gov

New York State Department of Public Service
Office of Consumer Services
(800) 342-3377
www.dps.state.ny.us

New York State Attorney General
(800) 771-7755
www.oag.state.ny.us

This information is general in nature and is not intended as a reliability report on any company, product, or service.