Third-Party Service Fees Sneaking Onto Wireless Bills

Third-Party Service Fees Sneaking Onto Wireless Bills

March 10,
OPTING TO HAVE your daily horoscope sent via text message may help you prepare for the upcoming day, but it won't prepare you for all of the extra charges the service might inflict on your cellphone bill. Increasingly, consumers are discovering that all of those fun cellphone extras such as ringtones, games and entertaining text messages are resulting in some nasty charges from companies other than their cellphone provider.
"Most people have no idea that their cellphone provider can even act as a billing service for another company," says Bob Sullivan, author of "Gotcha Capitalism." What's worse: No credit card is needed. The only thing these so-called "premium content" providers need is your cellphone number to start billing. It also doesn't help that third-party charges are typically listed as vague "direct bill charges," "downloadable content" or "premium messages" on your wireless bill with no company name or specifics. "It's not like your bill says '$20 for ringtones,'" gripes Sullivan.
One common practice that catches consumers unaware is when a single purchase of, say, a ringtone or game, (unknowingly) triggers a monthly subscription or other additional charges, says Kent German, a senior editor at electronics review site CNET.com¹. The Florida Attorney General's office filed a lawsuit² in November against Buongiorno, a European digital mobile entertainment company, alleging that users who followed online ads for free ringtones were later socked with a $9.99 monthly subscription. (The suit is ongoing; Buongiorno has said it plans to defend its practices.)
Wireless service providers are also being taken to task. In early March, AT&T Mobility (formerly Cingular Wireless) settled³ out of court with the Florida Attorney General's CyberFraud Task Force, agreeing to reimburse thousands of its Florida customers who were billed by third-party companies for ringtones, games and other services that were advertised as free. The restitution is expected to surpass $10 million, says an AT&T spokesman.
Here's how to avoid getting sucked into third-party charges, and what to do should an unauthorized charge show up on your bill:

Avoiding Fees

Seek confirmation
The Mobile Marketing Association requires premium content providers to offer so-called double opt-in — meaning the customer must request the service and then confirm their interest again before they can be charged anything. You might think that downloading that new Tetris game, for example, won't result in any extra charges. However, if you receive an "Are you sure?" message before the transaction is complete it's highly likely that a charge above and beyond your wireless service provider's usual text message or web-usage fee is forthcoming, says Edgar Dworsky, founder of Consumer World⁴, a consumer advocate. Responding "no" should be enough to cancel a pending charge — although you won't get to download that game you want, either.

Pay with plastic
If you simply have to have season six "American Idol" winner Jordin Sparks's single "No Air" as your new ringtone, buy it from a company that lets you pay with a credit card such as RingToneJukeBox.com. Opting to have third-party charges billed directly to your credit card gives you added protection such as the right to dispute the amount and nature of an unwanted charge⁵.
Initiate carrier protections
"None of the providers really like these third-party companies because they have to deal with the customer service headache," says Joe Farren, a spokesman for trade group CTIA-The Wireless Association. Ask your provider what options it offers to keep such charges off your bill. In January, Verizon began allowing consumers to block premium SMS content providers from sending or subscribing them to content. AT&T offers controls that allow parents to keep their child from using a wireless phone to purchase any premium content, including ringtones, games and graphics.

Handling Fees

Monitor your bill
"You have to scrutinize your bill every single month," says Dworsky. You'll have an easier time removing unauthorized charges and getting reimbursed if you catch them right away, rather than a few months down the line. If you're worried about getting hit with unexpected charges, you might also opt to set up automatic bill pay⁶ through your bank rather than allow your cellphone provider to dip into your checking account each month. That way, you can dictate that only a set amount is taken out of your account so a bill padded with unwanted third-party charges won't go through.

Alert your provider
Your cellphone provider has no way of knowing you didn't agree to be billed until you call a charge into question or complain, says Sullivan. Most wireless service providers allow you to cancel a disputed charge and block future ones. Some will even reimburse you for unauthorized charges that you've already paid, although it may take several calls to customer service to find a representative willing to help.
Hunt down the third party
Having your cellphone provider remove the charge and block new ones is a great start, but you're not done yet, says Dworsky. "So far as the third-party provider knows, you're still subscribed," he says. Contact the company directly through its web site to unsubscribe.
Complain
If you believe any charges on your wireless bill stemmed from misleading business practices, reach out to the Better Business Bureau, your state attorney general and other consumer advocates⁷. Airing your grievance publicly helps them identify the worst offenders to go after and will help prevent others from being charged, too.

Unauthorized Charges on Your Local Phone - Utility Bill?

Unauthorized Charges on Your Local Phone - Utility Bill?
FCC fines Verizon over 'mystery' fees $25 million and $52 million in refunds – 10/28/2010

How to Find Them, Eliminate Them & Get Your Money Back! R1
If your business still gets its phone service through the old "AT&T and Verizon, etc" local phone company (as opposed to one of the newer competitive phone providers) then you need to double check your phone bill each and every month for charges you did not authorize. You may not know it but the local phone company allows other companies to bill you through your local phone bill. And while the local phone company allows other businesses to bill you through your local phone bill, the local phone company does not verify that the charges being billed to you by the other company are valid. When these unauthorized charges fraudulently appear on your phone bill it's called "cramming". Unfortunately you as the business owner or manager are the only one that can spot the unauthorized charges and if you don't comb over your bill every month to spot these unauthorized charges - you'll pay for them.

Customers get crammed when a dishonest company puts charges on their phone bill (landline or wireless) for services that were not wanted or authorized.

Why does the local phone company allow other companies to pass charges onto your phone bill? "Third-party billing" is supposedly a great convenience in that you only have to pay one bill instead of separate bills for obvious authorized phone related charges like yellow-page advertising in the "real yellow pages", 411 information calls and long-distance calls from your chosen long distance carrier. Over the years though, some less-than-scrupulous companies have realized that most businesses rarely scrutinize their local-phone bills. To take advantage of this, these companies have come up with elaborate schemes to place unauthorized charges on your phone bill that you'll end up paying for without even thinking. Unauthorized charges you can end up paying for include charges for unwanted (and unused) email accounts, web sites, directory information calls, directory advertising in obscure publications, voice mail accounts and other services.
In theory, before these charges can be placed on your phone bill, the company that is originating the third-party billed charges is supposed to have a verification of the order like a voice recording. In reality though, all the company needs to do to initiate the charge is submit your name and phone number to the billing entity. The verifications are only required to be produced if a complaint is filed.
To prevent these charges from appearing on you business phone bill it's helpful to understand the four parties that make unauthorized third party phone charges a costly reality. Party number one is any employee who can answer your business phones. The  unauthorized charge is rarely random and it usually happens after one of your company employees gets a telemarketing call. Employees should be instructed to document and report any overly aggressive telemarketing calls they receive. Party number two is the telemarketing company that originates the unauthorized charges by trying to get your employee to accept some service for which you'll be billed through your local phone bill. Party number three is the third-party billing company that has billing agreements with your local phone company. The name of the third-party billing is the one that is prominently displayed on your phone bill. After the third-party billing company's name is the name of the company that is originating the unwanted charges. Party number four is your "former Ma Bell" local phone company that collects the unwanted charges (keeps a share for "Ma") and then passes the rest to the third-party billing company (who keeps a big share) and then passes the balance on to the company that initiated the unwanted charge.
Following are some of the top third-party billing names and unauthorized charge originators you'll find on your phone bill. If you see these names on your phone bill you'll want to call the toll free number listed next to the charge to confirm it's a charge that's been properly authorized to be placed on your bill. Following are actual examples that we've recently found while auditing business phone bills.
We recommend customers should review any utility bills issued by deregulated utility companies. (In most instances today, consumers are paying higher charges to the deregulated gas and electric supply companies).
All Utility - Energy, gas, electric and water bills should be reviewed for proper reading and tariff.
If you suspect that you have been overcharged ask for detailed explanation and or file a complaint with your State Utility Commission.
YJ Draiman for Mayor of LA

Phone Service Check List: Please Circle Applicable Service.

Phone Service Check List: Please Circle Applicable Service.

Main BTN: (____)___________    Customer Name:___________________Location________

Yes   No           01.  Line Backer

Yes   No           02.  Automatic Callback,  2a. Repeat dialing,  2b. Three way calling

Yes   No           03.  900 or 976

Yes   No           04.  Access Codes for Long Distance, no dial around

Yes   No           05.  Hunt Group

Yes   No           06.  Voice Mail

Yes   No           07.  Call waiting

Yes   No           08.  Caller ID

Yes   No           09.  Block International Calling  - Pic Freez L.D. & Password

Yes   No           10.  Restrict 411 to one line (fax or pvt. line)

Yes   No           11.  800 #

Yes   No           12   Calling Card

Yes   No           12.  Program Phone System CPU not to accept 1010, not more than 15 digits & 411 one line.

Yes   No           13.  UPS on Phone CPU

Yes   No           14.  Consolidated Billing with sub-accts. (all voice local, L.D. and data on one bill)

Yes   No           15.  Level 5+ wiring,, modular phone system, type of system

Yes  No            16.  Is your system Wi-Fi ready – IP phones – Internet dialing, DID-PRI, T1, DSL, Voice over broadband,

                                system has to be functional, durable, Customer service and support – parts for many years, system brand

Yes  No            17.  Third party billing restricted

Yes   No           18.  Password protected

Yes   No                   Cellular phones – group rates, shared minutes, free dialing in group, best program, favorite nation

Thank you,               Cable/Dish – Master antenna system – channel inserters

____________________________

The Management

Please sign and fax back to: 818-366-6999 Attn. YJD

USGET.05022008

The lack of control of your telecom expenses

The lack of control of your telecom expenses

It's surprising how many of the world's best run companies do not have adequate control over their telecom expenses.  But rapid consolidation and other business prerogatives have pushed telecom expense management to the back of the room. Eventually it comes down to lack of staff, no time, and little budget. Here's what happens.

u Unexplained and unchecked cost increases, new programs, reduced costs     

u Lack of process from procurement to payment (no checks and balances)

u Decentralized invoice and vendor management (purchasing power)

u Decentralized provisioning management (no coordinated system)         

u Limited resources to audit invoices/contracts (non existing) 

u Incomplete or partial inventory management (old equipment)   

u Lack of automation to perform detailed tasks (no management software) 

To know what equipment and service you have, why you have it, and how to use it.  This is the way it should be, and our mission is to help you get there with optimum management services.
Let Energy Savers review and audit your telecommunications services
Call: YJay Draiman – 818-366-6999
Email: renewableenergy2@msn.com

Web: www.energysavers2.com

Telecommunication Audits and Procurement

Telecommunication Audits and Procurement

Utilize our resources to reduce your Telecom costs.
Our telecom audit and telecom cost management will design an optimization and cost reduction program based on your organization’s needs. Our auditors are experts in managing and reducing telecom costs through rigorous processes and technologies combined with their own creativity and insightfulness.

In today’s business environment and advancing technology it is financially prudent for the consumer to monitor, audit and modify the telecom services to adjust to the times and the demands of the customer’s current business requirements.
In a world where telecom service providers modify and change programs and tariffs it is of utmost importance to have an ongoing rate and tariff monitoring that adjusts to today’s environment and combines to maximize cost savings by incorporating software, hardware and services as a economical package.

Contact us for telecom audit, telecom cost management, inventory and invoice automation, cellular management, and all forms of telecommunications expense management and consultancy solutions.
YJay Draiman - Energy Savers - 847-274-3100 or renewableenergy2@msn.com.