You Make the Call!

You Make the Call

A Consumer Guide to Choosing Your Telephone Service

Confused about all the new telephone companies and services that are being promoted, today? Well you are not alone. Consumers and small businesses are getting more telemarketing calls, mail solicitations, and advertising for telephone products and services than ever. With competition in the telephone market growing, you will have more choices than ever before. To make the best choices, you need to understand what is being offered and what is right for you. And you need to protect yourself against fraudulent marketing schemes.

This booklet, prepared by the National Consumers League, is designed to give consumers and small businesses the survival tools and tips they need to make the right choices for telephone services. It will help you take charge of your telephone services and avoid falling victim to misleading or illegal marketing schemes. Because when it comes to telephone service, you make the call!

• Find out if the company has other discount calling plans that may be better for you.

• Call your current company and compare rates. Ask if it can match or beat the other company's offer.

When it Comes to Options, It's Your Call!

Today telephone companies offer a wide variety of services like call waiting, voice mail, caller ID, and 3-way calling. Some companies offer service bundles which may include the services you want at a discount.

In some areas, services like automatic callback, three-way calling and repeat dialing are available on your telephone automatically and are billed on a per-use basis. For occasional users, paying on a per-use basis is a good option. For heavy users, monthly subscriptions are available and may be more economical. If you do not want access to these services, call your local telephone company and ask to have them blocked. Most local telephone companies offer blocking for pay-per-use services at no charge.

Always remember to read the fine print. If the devil is in the details, that's where you will find him lurking.

If the Fine Print is This Small,

If the fine print is this small, you may be paying too much.

You May be Paying Too Much

For example, dial around companies promote "discounts" on long distance and local toll service. Before using dial around, be sure to read the fine print. Some dial around companies add a monthly service charge to your bill and require that a call be at least three minutes long to get the discount rate. If you make a lot of long distance calls each month, you may be able to save using a dial around service, even one that has monthly fees and minimum call requirements. If you do not make that many calls, you could end up paying more.

Dial around lets consumers select a company for each call they make. To use dial around services, consumers have to dial 1+0+three digit access code+area code+telephone number every time they make a call. You can not pre-subscribe to a dial around service.

If you are considering using a dial around service, read the fine print and make sure you get the whole picture.

• Time of Day Requirements: Your call must be placed at a certain time during the day in order to receive the discount rate.

• Monthly Fees: You get a great low rate but you also have to pay a flat monthly fee.

• Distance Requirements: The person or business you are calling must be at least a certain number of miles away in order to get the discount.

• Basic Rate Comparisons: Advertisements often compare a company's new rate to a competitor's basic rates, rather than the competitor's lower cost calling plans. Be sure you are comparing "apples to apples."

Know Your Calling Habits

The first step toward saving money on your long distance telephone bill is knowing your calling habits. Look at your recent telephone bills to see: How much you pay for long distance service; How many calls you make; Who you call and how frequently; and, What time of day and what day of the week you make your calls.

With this information in hand, you can pick the company and calling plan that is best for you. For example, if you make most of your calls at night or over the weekend, you need to look for a plan that has the lowest night and weekend rates. If you make most of your long distance calls to the same number look for a plan that has a discount for the number you call the most. If you have a big long distance bill, a volume discount plan may be best for you. And, if you make calls at all times of the day and night, a flat rate plan may save you the most money. If you are a small business owner you probably make most of your calls during regular business hours. Daytime rates can be the highest, so make sure to look for a plan that meets your needs.

To get help choosing a long distance company and calling plan check out these Internet sites:

• Use it at a payphone: Calling cards can also be used at pay telephones anywhere in the country and can save you money.

• If you only use your calling card while on vacation, be sure to pick one that does not have a minimum fee or minimum usage requirement. If you don't, you could end up paying even if you do not use the card.

Prepaid telephone cards can also save you money when calling from a hotel or payphone. It makes sense to buy cards issued by a reputable company. Shop carefully, the per-minute rates on prepaid telephone cards vary widely. Some cards also have initiation fees, minimum call length requirements, and first minute surcharges.

• Every small business is different. Make sure your company will design a customized calling plan that fits your needs.

• If you need multiple line service, cellular, paging, Internet and other services, check to see if you can save by purchasing all of them from one company or from more than one company on an a-la-carte basis.

• If your company relies on customers who let their fingers do the walking, make sure your company offers access to Yellow Pages service.

• Make sure your telephone company can provide 24-hour emergency backup service if it is needed.

• When you receive an offer for service make sure to look at all the details. Check out the rates, the size of the local calling area, minimum calling charges, if any, and monthly and other special surcharges. Some offers are too good to be true!

• Call the company that slammed you and demand to be rebilled at the rates your original carrier would have charged. Use the company's 1-800 number listed on your telephone bill.

• Call your original carrier, explain that you have been slammed, and tell them that you want to switch back and be re-enrolled in any special calling plan that you had previously selected.

• Notify local law enforcement and consumer protection authorities by writing a letter describing the problem and enclosing a copy of your bill. Send a copy of the letter to the Federal Communications Commission, 1919 M Street, NW, Washington, D.C. 20554. Report the incident to the National Consumer League's National Fraud Information Center at 1 (800) 876-7060.

• For more protection against slamming, call your local telephone company and ask them not to change your long distance or local toll company unless they receive a written or verbal authorization from you. There is no charge for this service.

1-800, 1-888, 1-900 and 976 Calls

Consumers can access a variety of services by dialing 1-800, 1-888, 1-900, and 976 numbers, including sports scores, betting services, psychic hotlines, weather forecasts, dating services, and more. But there may be high, per-minute charges or flat fees for using these services.

Calls to 800 and 888 numbers are free, but you can be charged for information or entertainment services provided through such numbers, if you agree in advance.

Some service providers have tricked customers into calling by leaving them urgent voice mails, pages, even e-mails, about a prize or family emergency, and urging them to call a 900 or 800 number where they are solicited or charged for services or get a recorded message. These telephone calls can cost a lot, and the prizes, if there are any, are usually worthless.

Be careful when responding to pages, voice mails, e-mails or postcards urging you to call an unfamiliar number about a family or business emergency or a prize. Be especially cautious if the call back number is in an unfamiliar area code - it may turn out to be an international number in the Caribbean. Unlike most international calls that begin with 011, calls to the Caribbean are dialed like long distance calls in the United States, 1+area code+number. Caribbean area codes linked to scams include 809 in the Dominican Republic, 758 in St. Lucia and 664 in Montserrat. If you are not sure if the area code is for an international call, dial "0" and ask the operator.

Protect Yourself From Unwanted Charges

To prevent 900 or 976 number calling charges, get 900 and 976 call blocking from your local telephone company. The service is free.

If you decide to use a 900 or 976 service, be sure you know the cost of the call and the nature of the service. Federal regulations require 900 and 976 service providers to disclose this information upfront.

Set clear rules in your home for the use of 900, 976 or other services. Make sure your children, the baby sitter and others in your home understand the rules.

Be careful when calling an 800 number. You may be asked to provide a credit card number or enter into a subscription agreement under which services are billed to your telephone account. Do not do so unless you are certain you want the services and know the costs.

Beware of requests to dial activation numbers that will link you to 900 or international numbers.

Don't Be "Crammed"

When companies add charges to your telephone bill for optional services that you never authorized, such as voice mail, paging, a personal 800 number or club membership, it's called "cramming." You can contest charges for services you did not request. Look at your bill closely every month. If you don't read your bill carefully, you could end up paying for services you didn't authorize and don't want.

Charges for various services should be itemized on your telephone bill. If you're not sure whether charges are connected with your regular telephone service or are for extra services, ask your local telephone company.

The name of the company providing services and its toll-free number should be listed on the page showing those charges. If you did not authorize the services, call that number and insist that they be canceled and the charges removed from your bill. If you can't get through to the company, call your local telephone carrier and ask it to file a complaint on your behalf. If you are disputing charges, make sure to pay the undisputed portion of your bill by the due date.

If the "crammer" agrees to remove the disputed charges, let your local telephone company know. It can help you recalculate your bill, subtracting the disputed charges and any taxes or fees associated with them. If the "crammer" refuses, notify your local carrier that you're still disputing the charges. Your phone service should not be disconnected, but be aware that the "crammer" can refer the matter to a collection agency.

Consumer Resources

Your state, city or county consumer affairs office, state attorney general's office, and state public utility commission are listed in the "government" pages of your telephone book. Call them to file a complaint on problems like slamming and cramming or to ask if they have information that might help you.