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Media Center

Report: Unauthorized phone charges cost Americans $2 billion a year

CNN

July 13, 2011

 

A key Senate chairman says Congress needs to pass legislation to protect customers from unauthorized third-party charges on their phone bills because the telephone industry has failed to prevent the practice.

Sen. Jay Rockefeller, D-West Virginia, said a one-year study by the Commerce, Science and Transportation Committee shows about $2 billion a year in "mystery fees" show up on the landline phone bills of Americans, a problem known as cramming.

In a Wednesday hearing, Rockefeller asked an industry representative why major companies like AT&T haven't stopped unauthorized third-party charges from going onto their customers' phone bills.

"It's illegal, it's wrong, it's scamming," Rockefeller said. "Why haven't you cleaned up your act?"

Read the full article at the CNN website. Learn more about unauthorized third-party charges and lawsuits filed by consumers against major companies in the telephone industry.