The telecommunications industry has changed significantly in recent years as a result of advances in technology and reduced regulation. Overall, the prices, service quality, terms and conditions of local telephone service continue to be determined by regulation. However, the prices, terms and conditions of telecommunications services other than local telephone service -- such as long distance and wireless -- are increasingly determined by the marketplace instead of regulators.
In 1984, the New York State Public Service Commission ("PSC") approved comprehensive rules which consolidate and expand protections for residential local telephone service. These rules pursuant to the Telephone Fair Practices Act ("TFPA") were amended in 1997 and are described below. They appear in 16 N.Y.C.R.R. Part 609 of the New York Codes, Rules and Regulations. They are generally similar to the protections provided to residential gas, electric and steam customers under the Home Energy Fair Practices Act (HEFPA), also known as the "utility consumer's bill of rights."
The rules generally apply to all of the telephone companies providing local residential telephone service and intraLATA (Local Access and Transport Area) and InterLATA toll service within New York State. Long-distance companies not using the billing and collection services provided by local telephone companies are exempt from TFPA.
- Basic Local Exchange Service
- Rules Applicable Only to Basic Local Exchange Service
- Applications for Service
- Security Deposits
- Amount of Security Deposit
- Security Deposit Refunds
- Disconnection of Service
- Timing of Disconnection
- Bad Checks
- Medical Emergencies
- Third Party Notification
- Reconnection of Service
- Deferred Payment Agreements
- Backbilling
- Adjusted Payment Schedule
- Bill Content
- Notification Requirements
- Directories
- Outages
- Other Rules Governing Telephone Services
- Optional Telephone Services
Basic Local Exchange Service
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16 N.Y.C.R.R. 609.2(e)
Basic local exchange service includes:
- Customer access lines, including any usage bundled in this charge;
- Local measured service;
- Locality rates;
- Mileage;
- Late payment charges on local exchange service;
- Subscriber line charge;
- Taxes and surcharges prorated to reflect only the taxes and surcharges associated with local exchange service;
- Non-published service;
- Touchtone;
- Local exchange service restoral charge;
- Non-sufficient funds check charge for local exchange service or any part of local exchange service;
- Service order charge for local exchange service;
- Construction charges for local exchange service; and,
- IntraLATA toll service and interregional calls unless intraLATA presubscription is offered and selective intraLATA access is available.
The rules described in the following section do not apply to non-basic telephone services, such as Call Waiting and Caller ID, as well as all long-distance and wireless telephone services. Rules applicable to some non-basic telephone services are identified in subsequent sections of this chapter.
In general, consumers who are not satisfied with their non-basic telephone services should call the provider of those services. The terms and conditions of unregulated telecommunications services, such as wireless telephone services, are governed by contracts between service providers and consumers. Consumers should read those contracts thoroughly before signing.
Rules Applicable Only to Basic Local Exchange Service
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16 N.Y.C.R.R. 609.3
When a customer applies for local exchange telephone service, either orally or in writing, the telephone company generally must provide service within five business days as long as the customer does not owe money on a previous residential account.
Exemptions: The provider of basic local exchange service is not bound by the five-day limit if it is precluded from providing service by labor strikes, physical impediments such as floods, or by considerations of public safety. Also, even applicants who owe money on a previous residential account may be able to get service if they enter into a deferred payment agreement not to exceed three months for the previous account. On the other hand, and regardless of previous accounts, applicants may be required to come up with a security deposit or pay for extraordinary or unusual construction or installation costs.
If service is denied, the company must -- within three business days of the receipt of an oral or written application -- notify the applicant and:
- State the reason for denial;
- Specify what the applicant must do to qualify for service;
- Advise that the PSC is available to help the applicant challenge the denial; and,
- Provide the PSC's address and telephone number.
If service is denied because the applicant owes money on a prior account, the company must give the customer the opportunity to pay off the arrears in installments over a three month period in certain conditions. Those conditions require that the applicant had been a phone customer for three consecutive months during which phone service was not terminated for nonpayment and the amount due has not been part of a previous deferred payment plan.
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16 N.Y.C.R.R. 609.9
A telephone corporation may not require a security deposit from an applicant or require an existing residential customer to post a security deposit as a condition of receiving basic local exchange service unless the existing customer or applicant:
- Is a seasonal customer or short-term customer;
- Had basic local exchange service terminated for non-payment in the preceding six months;
- Is an existing residential customer who has accumulated two consecutive months' arrears without making reasonable payment of such charges, defined as one half of the total arrears before the due date of the second bill; or
- Fails to provide reasonable proof of identity.
Before the provider of basic local exchange service can require the deposit to be posted, however, it must give the customer 10 days to pay the arrears. If the customer fails, the company will require him or her to pay a security deposit which can be paid in installments over a period of up to six months.
Applicants or customers who receive public assistance, supplemental security income, or other State aid cannot be required by the provider of basic local exchange service to post a security deposit. Customers who are 62 years of age or older and have not had service shut off for nonpayment within the last six months cannot be required by the telephone company to post a security deposit. Those applicants or customers who are 62 years of age or older who pay a security deposit are permitted to pay it in installments over a 12-month period.
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16 N.Y.C.R.R. 609.9(d)
When a new or current basic local exchange service customer is required to post a deposit, it can be for no more than two times the customer's average monthly bill for basic local exchange service.
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16 N.Y.C.R.R. 609.9(g)
The customer's deposit will be returned with interest when the customer pays his or her bills on time for one year or ceases to be a customer, provided, of course, the deposit was not already refunded or credited against the customer's bills. The rules state that a refund may be credited to the customer's account unless the consumer requests that the full refund be returned.
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16 N.Y.C.R.R. 606.4 & 609.4
Basic local telephone service may be disconnected only for nonpayment of basic local telephone service charges. Nonpayment of charges for other services, including long-distance services and non-regulated services, is not cause for disconnection of basic local exchange service if charges for basic local exchange service have been paid. However, customers not paying charges for non-basic services such as long distance may be blocked from using those services until payment is made.
Companies providing basic local exchange telephone service are required to give the customer an opportunity to avoid suspension of service (in which the customer cannot make outgoing calls) or termination of service (in which the customer is unable to make outgoing or receive incoming calls) if the customer pays money owed over the past six months (although the company can suspend or terminate service for bills older than six months in cases involving billing disputes during the six-month period or the culpable conduct of the customer); pays deferred payment amount; pays or agrees to pay equipment and installation charges to start service; or pays a required deposit.
Providers of basic local exchange telephone service may not issue a notice of suspension or termination, except in unusual circumstances, until at least 25 days have elapsed from the date of the bill. After issuing a notice, the telephone company must try to notify the customer by phone of the intended suspension or termination and how it may be avoided. If the company cannot reach the customer during working hours, it must make at least one attempt to notify the customer during non-working hours. (The term "disconnection notice" includes notices of suspension and notices of termination.)
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16 N.Y.C.R.R. 609.4(c) & (d)
Telephone service cannot be suspended until at least eight days, or terminated until at least 20 days, after a disconnection notice is sent to the customer. Furthermore, service can only be suspended or terminated between 8:00 a.m. and 7:30 p.m., Monday through Thursday, and between 8:00 a.m. and 3:00 p.m. on Friday. It may not be suspended or terminated on public holidays, anytime December 23 to December 26 or December 30 to January 2, or when the company's main business office is closed.
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16 N.Y.C.R.R. 609.4(h)
When a customer pays an overdue bill by check and the check bounces, the provider of basic local exchange service must make at least two attempts, one outside of normal business hours, or reach the customer by phone and give an additional 24 hours to pay the bill before service is suspended or terminated -- provided the customer has not issued the telephone company another bad check in the past 12 months.
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16 N.Y.C.R.R. 609.5
When a customer has a medical emergency, which exists when a resident in a customer's residence suffers from a serious illness or medical condition which severely affects the resident's well-being, and the absence of telephone service would create a serious risk of inaccessibility of emergency medical assistance or assistance relating to medical care, the telephone company must postpone the suspension or termination of basic local exchange service, and any access determined by the customer's doctor to be necessary to reach the customer's doctor, for 30 days, provided a doctor or local board of health notifies the utility of the emergency. When the certification is done by phone, it must be confirmed in writing within five business days.
When a medical condition persists, the certificate may be renewed provided that two conditions are met: (1) a doctor or local board of health writes the utility and states the expected length of the medical emergency and explains either the nature of the medical emergency or why the absence of telephone service would create a serious risk, and (2) the customer shows why he or she is unable to pay the telephone bills.
Elderly, Blind, or Disabled: A provider of basic local exchange service must make special attempts to maintain telephone service if it is aware that a customer is 62 years of age or older, blind, or disabled and all those living with the customer are 62 years of age or older, 18 years of age or younger, blind, or disabled. In these circumstances, the telephone company must provide telephone service for an additional 20 days after the termination date on a disconnection notice. The telephone company must attempt to contact a customer by phone or in person at least eight days before service is to be disconnected to devise a payment plan.
In cases in which service has been suspended or terminated and the telephone company subsequently learns that the customer is entitled to these special protections, the telephone company must reconnect service within 24 hours for an additional 20 days and attempt to contact an adult in the household to devise a payment plan.
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16 N.Y.C.R.R. 609.6
The provider of basic local exchange service must provide "third party notice" to any person the customer designates to receive all notices relating to suspension and/or termination of service or other credit actions, provided the third party agrees in writing to accept such notices. The third party can contact the phone company on the customer's behalf, but the third party does not assume the responsibility for paying the customer's bills.
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16 N.Y.C.R.R. 609.7
When a customer's telephone service is suspended or terminated, the provider of basic local exchange service must reconnect service within 24 hours, unless prevented by circumstances beyond the telephone company's control or unless a customer requests otherwise, if:
- The conditions that warranted suspension or termination have been eliminated;
- The customer and telephone corporation agree to a deferred payment agreement and the customer makes a down payment, if one is required;
- The PSC directs the company to reconnect service; or
- There is a serious threat to the customer's health or safety.
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16 N.Y.C.R.R. 609.8
The telephone company cannot suspend, terminate, or refuse to restore a customer's basic local exchange service for nonpayment without offering the customer a deferred payment agreement if a customer has had phone service for at least three consecutive months and has not had that service disconnected for nonpayment. Customers with medical emergencies who are elderly, blind, or disabled shall be exempt from such eligibility criteria. However, deferred payment agreements are not available to customers who the PSC or its designee determines have the resources available to pay their bills. The availability of a deferred payment agreement must be stated in a disconnection notice. A deferred payment agreement:
- Requires the customer to make timely payments of current basic local exchange service charges and deferred charges;
- Lasts for five months unless the customer prefers a shorter period;
- Covers amounts up to $150 unless the company agrees to a greater amount or is directed by the Commission to do so; and,
- May require the customer to make a down payment of up to one-fifth of the deferred amount or three months of his or her average bill for basic local exchange service, whichever is less, plus the difference between what is deferred and what has been deferred.
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16 N.Y.C.R.R. 609.10
When a customer has not received a telephone bill but has been receiving telephone service, the telephone company can only "backbill" the customer for a maximum of 24 months, provided the customer did not cause the delay or inaccuracy in billing. If the telephone company backbills a customer, it must explain:
- Why the bills are late;
- That if six months have passed since the customer was under billed or not billed, service cannot be disconnected for nonpayment; and,
- That the customer can make payments in installments equal to the number of months for which service was not billed.
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16 N.Y.C.R.R. 609.11(a)
Customers on fixed income can have the telephone company schedule payment of their bills around the date that they receive their monthly income.
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16 N.Y.C.R.R. 609.12
Each residential telephone bill shall provide in clear and understandable form and language:
- The name, address and account number of the customer;
- The name of the telephone corporation;
- The telephone number of the corporation's business office which may be contacted to discuss the bill;
- The amount owed for the latest period;
- The date by which payments for the latest period may be made without incurring a late-payment charge;
- Credits from past bills;
- Any amounts owed from previous bills;
- Itemized listing of services and rates;
- Credits or charges which are adjustments to past bills due to service and/or rate increases; and,
- A statement of how the bill may be paid.
New customers must be allowed 60 days to change the type and/or grade of service and to cancel optional non-basic services (e.g., custom calling services) without having to pay a cancellation fee or other one-time charges other than the original service connection and monthly charges for service used during that period.
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16 N.Y.C.R.R. 609.13
Customers are entitled to explanations from telephone companies of the rates, charges and provisions of telephone service. Telephone companies are required to provide their customers access to personnel to provide information relating to telephone services, process applications for service, explain charges on customer bills and adjust charges made in error.
Upon initiation of service and at least annually thereafter, telephone companies are required to provide consumers a written copy of consumer rights and responsibilities. At a minimum, this information shall include:
- A description of the complaint-handling procedures available at the telephone corporation and at the PSC;
- The rights and obligations of residential customers relating to payment of bills, termination of service and reconnection of service;
- A description of special protections afforded the elderly, blind, disabled and persons with medical emergencies;
- The right of a customer to designate a third party to receive copies of all notices relating to suspension and/or termination of service or other credit notices; and,
- A description of the customer's rights in regard to deferred payment plans and the holding and demanding of security deposits by the telephone corporation.
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16 N.Y.C.R.R. 602.10
All telephone companies must publish a directory each year and distribute it to all customers within a local exchange area at no charge. The opening pages of the directory shall include information pertaining to emergency calls to fire and police departments, instructions related to placing local and long-distance calls and a telephone number for each local service provider serving the area.
If an out-of-service phone is not returned to service within twenty-four hours, credit should be given to the customer for the period during which the phone remained out of service. The twenty-four hour period begins when the line is reported out-of-service. The amount of credit is calculated by pro-rating a portion of the monthly charge over the number of days the phone is out of service.
Other Rules Governing Telephone Services
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16 N.Y.C.R.R. 609.16
Customers with a complaint about their telephone service or billing should contact the telephone company first. A telephone company resolving a complaint in whole or in part in its favor shall inform the customer of the availability of the PSC's complaint handling procedures.
If the dispute involves an intrastate regulated telecommunications service, such as a local call or intrastate long-distance service, the PSC should be contacted.
If the complaint involves an interstate service, such as an interstate long-distance call or a wireless call, the FCC should be contacted.
The PSC's toll-free HELPLINE for complaints and inquiries is 1-800-342-3377. Calls to that number are answered from 8:30 AM to 4:00 PM, Monday through Friday.
Consumers with a hearing or speech impairment who want to contact the PSC may call through the New York Relay Service 1-800-662-1220.
To file a complaint in writing please mail to:
Office of Consumer Services
NYS Department of Public Service
3 Empire State Plaza
Albany, NY 12223
To file a complaint in person please go to:
90 Church Street
New York, NY 10007
Or
161 Delaware Avenue
Delmar, New York 12054
Or
Ellicott Square Building
Buffalo, New York 14203
To file a complaint via e-mail or to find more information about the PSC go to: www.askpsc.com.
There is no special form to complete to file a complaint with the FCC. Simply send a letter, in your own words, to:
Federal Communications Commission
Consumer and Governmental Affairs Bureau
Consumer Complaints
445 12th St., SW
Washington, DC 20554
The FCC can also be contacted at:
Toll-free National Call Center: 1-888-225-5322 (TTY: 1-888-835-5322)
Consumer Assistance: 202-418-0200 (TTY: 202-418-2555)
Press Office: 202-418-0500
E-mail: fccinfo@fcc.gov
Web site: www.fcc.gov
Fax: 202-418-2830
Discounts for Eligible Customers
Most local telephone corporations offer local telephone service and installation to qualified low-income consumers at a substantially reduced price. These services are known as Lifeline and Link-up respectively. Under the Lifeline program, customers receive a waiver of the federal subscriber line charge as well as a discount on their basic local service charge. While eligibility criteria may differ among telephone companies, in general, a consumer is eligible for Lifeline service if income-eligible for any of the following programs: Aid to Families with Dependent Children, Food Stamps, Home Relief, Home Energy Assistance Program, Medicaid, Supplemental Security Income, Veteran's Disability Pension or Veteran's Surviving Spouse Pension. The website, www.mybenefits.ny.gov, is a prescreening tool that provides a quick and easy way for New York consumers to determine if they are eligible to receive assistance through the above mentioned programs. The New York State Office for the Aging and a consumer's local Department of Social Service office are also valuable resources for customers to ascertain if they are eligible for assistance programs.
Further, some wireless companies now offer Lifeline savings to eligible customers; consumers should contact their providers to inquire whether they participate in Lifeline.
Optional Telephone Services
Telephone corporations may offer free services which provide consumers greater control over calls originating from their residence. Those services include the ability to prevent calls to "900 number" services, international calls, long-distance calls and/or incoming collect calls. Consumers interested in this capability should contact their telephone company.
The PSC requires companies offering Caller ID to also make available two ways in which callers may prevent their telephone number from being transmitted to Caller ID subscribers. The first is "Per Call Blocking," which is activated by dialing *67 immediately before dialing the telephone number of the call for which the caller wants to block display of their number. The second is "Per Line Blocking," which can be ordered from the telephone company and blocks display of the caller's number on all calls (unless deactivated by the caller for a specific call by dialing *82). Blocking services do not work on 800/900 numbers and some interstate calls (due to different privacy rules in those states).
All print, radio and television advertisements for 900 number advertisements must, under the Federal Trade Commission's and FCC's 900 number rules, include:
- The total cost if there is a flat fee;
- The per-minute rate if the call is charged by the minute and any minimum charge or if the length of the program is known in advance, the total cost of the complete program;
- The range of fees if there are different rates for different options;
- The initial cost of the call plus minimum charges;
- The cost of other 900 numbers to which you may be transferred; and,
- Any other fees that may be charged.
Information cannot be hidden in small print and the cost must be written next to the 900 number in a size that is at least half the size of the 900 number. In television ads, an audio cost disclosure must be given.
When dialing a 900 number which costs more than $2.00, you should hear an introductory message which describes the service and the cost of the call. It must also state that anyone under 18 needs parental permission. Once this information is provided, you must be given three seconds to hang up without incurring a charge. The 900 Number Rule does not, however, apply to pre-existing contractual arrangements. Also excluded from the rule are calls charged to credit cards, yet bills for such calls are covered by the Dispute Resolution Procedures of the Fair Credit Billing Act.1
Under FCC regulations, your phone company cannot disconnect your regular local or long-distance service for not paying a 900 number charge. They can only block you from making future 900 calls.
For errors on your 900 bill, which must be separate from your other services, follow the instructions on the bill. It may tell you to write to either your local company or long-distance telephone company or an independent firm that provides billing services. You must notify the company within 60 days from the first statement. The company must acknowledge your notice in writing within 40 days unless it has been resolved. Within two billing cycles, but no longer than 90 days, the company must:
- Correct the billing error and notify you of the correction, or
- Investigate the matter and correct it or explain why it cannot correct it.
You cannot be charged for an investigation and no one can try to collect the disputed charge from you or report it to a credit bureau until the above steps have been taken or until the investigation has been completed. Companies that do not comply with these rules can lose their right to collect up to $50.00 of each disputed charge. If the service provider pursues the charge through another method, such as through a collection agency, you have additional rights under the Fair Debt Collection Practices Act.2
The FCC requires local phone companies to make blocking available, which in most cases is free for residential customers.
For questions or complaints about a 900 number service, contact:
Federal Communications Commission
Consumer & Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, DC 20554
or
National Fraud Information Center (NFIC)
(a project of the National Consumers League)
www.fraud.org
The FCC has certain rules that govern customer orders for telephone service generated by telemarketing. Before a company can place an order to switch a customer who agreed to sign up through a telemarketing call, the company must use one of the following methods to verify that the customer authorized the switch:
- Obtain a Letter of Authorization (LOA) from the customer. Any LOA used to confirm a telemarketing order must meet the requirements described above.
- Provide the customer with a toll-free number to call to confirm the order to switch companies.
- Have an independent third party verify the customer's authorization to switch.
- Within three business days of the customer's request to switch, send the new customer an information package that includes the names of the customer's current and new telephone companies; a description of any terms, conditions, or charges incurred; the name of the customer that authorized the switch; the name, address and telephone number of the customer and of the new company; and, a postage paid postcard the customer can use to deny, cancel or confirm the switch. The company must then wait 14 days after mailing the information package before submitting an order to switch that customer's service.
Due to competition in the telephone industry, aggressive and sometimes illegal marketing practices have sprung up. "Slamming" is the illegal practice of changing a consumer's telephone service provider, local or long distance, without permission. This practice may increase the long-distance charges consumers pay. Both State and federal law prohibit slamming.
The following tips may help prevent you from having your telephone service changed without your express approval.
- Never sign anything without reading it.
- If you receive a phone call about long-distance service and you are not interested, tell the caller that you are not interested in receiving their service and hang up.
- If someone sends you a letter or postcard "verifying" that you have switched services, notify them that you did not authorize such change, then call your local telephone company to confirm that you are still with your preferred carrier.
- Carefully examine your phone bill every month. If you see any unfamiliar names, or charges you cannot identify, call your local telephone company and ask about these items.
- Consider requesting that your local telephone company "freeze" your long-distance carrier. This authorizes the local telephone company to change a consumer's long-distance carrier only upon a written request from the consumer accompanied by a personal ID code. While this does not eliminate slamming, it does reduce the likelihood.
If your telephone company has been changed without your permission:
- Call the slamming company and inform them you want the problem fixed. If you have not paid, inform them you will not pay for the first 30 days of service.
- 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. Inform them that you want all "change of carrier charges" (charges for switching companies) removed from your bill.
You may file a complaint with the PSC or with the FCC at www.fcc.gov.
If you find that you have been slammed, and you have NOT paid the bill of the carrier who slammed you:
- 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.
- 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.
If you have paid your phone bill and then discover that you have been slammed:
- The slamming company must pay your authorized company 150% of the charges it received from you.
- Out of this amount, your authorized company will then reimburse you 50% of the charges you paid to the slammer. For example, if you were charged $100 by the slamming company, that company will have to give your authorized company $150, and you will receive $50 as a reimbursement.
Approved Methods of Authorization
Your telephone service cannot legally be switched from your existing authorized telephone company to a new company unless the new company verifies the switch by one of the following methods:
- Uses an independent third party to verify your oral authorization to switch;
- Obtains your signature on a letter that indicates, in writing, that you want to switch authorized telephone companies; or
- Provides a toll-free number that you can call to confirm the order to switch authorized telephone companies.
NOTE: The Communications Act and FCC slamming rules make telephone companies responsible for the acts of their agents, including their telemarketers.
One method of obtaining authorization is to provide the new telephone company with a LOA, where the customer requests the change in writing. At one time, LOAs were combined with promotional inducements, such as contest entries, prize giveaways and actual checks, so that unsuspecting customers would sign a document without realizing that they were "authorizing" a change in their telephone service provider. Consequently, the FCC issued new rules regulating these practices. LOAs must be separate or severable from inducements such as prizes and contests. No longer can a signature on a contest and sweepstakes form be used as authorization to switch companies. The LOA provided by the carrier seeking new customers must be clear and strictly limited to authorizing a change in the provider of telephone service.
The LOA must include: the subscriber's billing name and address and each telephone number to be covered by the order to change the subscriber's telephone service provider; a statement that the subscriber intends to change from his or her current provider to the new company; a statement that the subscriber designates this new carrier to act as the agent for the change; and, a statement that the subscriber understands that there may be a charge for the change.
The LOA must be written in clear and unambiguous language and the print must be of a sufficient size and readable style, generally comparable in type style and size to the promotional materials. It must also make clear to the consumer that the document, when signed, would change his or her telephone service provider. Only the name of the company setting the consumer's rates can appear on the letter of authorization. The LOA must contain full translations if it uses more than one language. The same rules as above apply to letters of agency sent to businesses.
Advertising promotions that use "checks" are exempt from the separate or severable requirement but must meet specific guidelines. Such a check must contain the required letter of agency language and the necessary information to make it a negotiable instrument and shall not contain any other promotional language or material. The carriers must place the required letter of agency language near the signature line on the back of the check in easily readable, bold-faced type, a notice that the consumer is authorizing a change in his or her telephone service provider.
"Cramming" is the practice of placing unauthorized, misleading, or deceptive charges on your telephone bill. Crammers rely on confusing telephone bills in an attempt to trick consumers into paying for services they did not authorize or receive or that cost more than the consumer was led to believe. These charges come in many forms and can be hard to detect unless you closely review your telephone bill each month.
To help prevent cramming, consumers should:
- Be careful when calling unfamiliar 800 or 900 numbers and entering "activation codes" or answering "yes" to questions that may result in unwanted telephone service.
- Call the company that is listed as providing the service to question entries. Their name and telephone number are included on the page of the telephone bill on which the service in question appears. In most cases, that company will be able to answer your question and resolve problems. If the service in question was not authorized, you can insist that the service be canceled and the charges removed from your bill.
- Review your telephone bill each month, just as you would analyze your credit card bill. Although cramming can occur on any part of your telephone bill, it is most commonly done by companies other than your local and long-distance companies. Therefore, you should scrutinize that portion of your bill that has the name of a company you have not selected. Charges by those companies usually appear at the end of your telephone bill.
- If that company cannot resolve the problem, call your local telephone company or the company rendering the bill. Inform them of the charges you are contesting. Pay the remainder of your telephone bill on time, subtracting the disputed amount and any associated taxes. Remember that your local telephone service can be terminated only when charges for local telephone service have not been paid. Local telephone service cannot be disconnected for nonpayment of other charges, such as for long distance, pre-paid phone cards, 900-number calls, paging services, or non-telephone services. However, the "crammer" could refer the matter to a collection agency.
Choosing a Long-Distance Carrier
It is a good idea to shop around for the long-distance service that is best for you. This is because of the increased competition and variety of different rates and plans. Before deciding on a long-distance provider, a consumer should ask themselves a few questions.
- Does the company have a monthly charge, monthly minimum charge or per-use charge?
- Is there a service contract?
- Is there an early termination fee?
- Will the long-distance charges be billed separately or on my local telephone bill each month?
- Does the company have a toll-free number with 24-hour customer service?
- Are discount services available for low-income consumers?
Listed below are toll-free numbers that consumers can use to obtain information on some of the most widely used long-distance companies. These numbers have been provided by the Telephone Research and Analysis Center (TRAC), a non-profit telecommunications advocacy group.
| AT&T | 800-222-0300 |
| MCI | 800-888-8000 |
| Sprint | 800-746-3767 |
| Frontier | 800-482-4848 |
| Dime Line | 800-544-1510 |
| Excel Telecommunications | 800-875-9235 |
| Express Tel | 800-748-6350 |
| LCI | 704-394-8341 |
| LDDS | 800-938-6374 |
| Matrix | 800-282-0242 |
| Pacwest Telecom | 800-399-1234 |
| Qwest | 800-860-2255 |
| Transnational Communications | 800-800-8400 |
| US Long Distance | 800-500-5300 |
| Var Tec | 800-583-6767 |
| Working Assets | 800-788-8588 |
| World X Change (Acceris) | 800-569-8700 |
Choosing a Wireless Telecommunications Provider
As with long-distance service, shop around for the best wireless service. Rates vary considerably among providers so consumers should look for packages of wireless service and the wireless telephone that best meet their needs. Plans are generally tailored to high-, medium- and low-calling-volume customers.
Some plans include the wireless telephone instrument, and some require activation fees, deposits and contract early termination fees. Consumers should also inquire as to calling range and service availability as well as fees for calls made from distant locations.
New York law prohibits cell phone use while driving. If you must communicate while driving, then you are required by law to have a car phone installed or use hands-free communication device.
Consider the following tips:
- Make Use of the Trial Period: Most large wireless carriers provide consumers an opportunity to cancel their wireless service contract within two weeks without penalty. Before you sign a contract, find out the length of the trial period. Carefully evaluate the service within that time period, and cancel the service if you are not satisfied.
- Choose the Right Contract Period: Most wireless contracts contain early termination penalties of up to $200. Consumers should be wary of selecting a long contract period if they are not sure the company will provide high quality service.
- Read the Fine Print Carefully: Always read and understand the fine print before signing an agreement. Consumers who do not understand what they are signing should ask questions. If the explanation is not satisfactory, another carrier should be considered.
- Check Coverage in the Areas You Will Use Your Telephone: Use your experience and that of friends and neighbors to determine which cell-phone company provides consistent coverage and service where you need it.
- Wireless for Emergency Only: If you only need a wireless phone for emergency purposes, consider a prepaid wireless phone. There is no monthly fee with this service and customers are only charged on a per-minute basis.
- Evaluate Rates and Plans: Most wireless carriers offer several calling plans. These plans generally include bundles of minutes at a fixed rate that are used in a customer's "home area."
Minutes are usually classified as "peak" and "off-peak." Extra charges are generally applicable for additional minutes of use and calls that are made outside the home area. Many carriers offer plans with additional minutes, or even unlimited calling, when calling family members or other wireless customers of that company. Consumers should understand how they will use the wireless service and estimate the monthly cost of each plan by considering the:
- Basic monthly cost of the plan;
- Number of minutes of use in each category in the basic service plan;
- Cost of additional minutes of use;
- Definition of "home area" and cost of calls made or received outside of the home area;
- Number of calls to and from other customers of the same wireless company that may be discounted or free;
- Cost of terminating the contract; and,
- Any service initiation fees or deposits.
Prepaid phone cards embody a right to exchange the card's monetary value for telephone calling time, often at specified rates. According to the FTC, some prepaid phone cards are issued by long-distance carriers. Others are issued by companies that purchase long-distance minutes at volume-discounted rates, either from long-distance carriers or from other companies that have purchased volume-discounted minutes from the long-distance carriers.
Before purchasing a prepaid phone card, consumers should:
- Ask if the retailer will stand behind or endorse the card if the telephone service is unsatisfactory.
- Look for the rate for domestic and international calls on the card's package or on the vending machine. These rates may vary depending on where you call. If you cannot find the rate, call the card's customer service number. The prepaid phone card industry is highly competitive. Beware of very low rates, particularly for international calls. They may indicate poor customer service.
- Look for disclosures about surcharges, monthly fees, or per-call access.
- Check on expiration dates.
- Be sure the card comes with instructions that you can understand.
- Make sure the card comes in a sealed envelope or has a sticker covering the PIN.
If a prepaid phone card doesn't work even after you've called the customer service number, contact either:
- The Federal Trade Commission (www.ftc.gov or 1-877-FTC-HELP);
- Your local Consumer Affairs Department or state Attorney General; or
- Your local Better Business Bureau to file a complaint or get a report based on customer experience.
Voice over Internet Protocol (VoIP)
VoIP allows you to make telephone calls using an Internet connection (DSL or cable modem). There are two different types of VoIP service. The first is one that is offered by cable television providers and is a "fixed" service very similar to traditional wireline telephone service. The second type offered by companies such as Vonage and Skype utilize telephone equipment connected to computers, specifically laptops that can be located anywhere. The Federal Communications Commission ("FCC") currently is considering how to regulate VoIP and whether or not states will have any role. Currently in New York, not all VoIP providers follow the same rules and regulations that traditional telephone companies are required to follow. For example, not all VoIP providers comply with the PSC's billing requirements, disconnection and complaint procedures or service and repair standards. However, a VoIP provider may agree to follow some or all of these traditional rules. You should check with potential VoIP providers, before you sign up for service, on how they will handle such things as billing disputes, disconnection, repairs and E-911. It is important to note that the FCC mandates that all VoIP providers contribute to the federal Universal Service Fund, provide access to E-911, provide access to the relay service for the deaf and provide Local Number Portability (LNP).