WATCH PHONE BILLS FOR "CRAMMING"

WASHINGTON...The National Consumers League issued a warning today about an emerging phone scam known as "cramming," services added or "crammed" onto phone bills without knowledge or consent.

"Cramming is one of the latest schemes consumers complain about to the League's National Fraud Information Center hotline. We're hearing from people about all kinds of mysterious phone charges suddenly popping up on bills," stated National Consumers League President Linda F. Golodner.

Similar to phone slamming, long distance or local phone service switched without authorization, cramming occurs when consumers are charged for optional phone services without prior agreement. These charges, for services such as voice mail, paging, and a personal 800 number, are assessed by third parties and billed through local phone carriers. Sometimes the company names listed on the bills in connection with these charges sound like they are services from local carriers -- for instance, "Enhanced Services" -- making it difficult for consumers to detect them. Those companies are often "billing aggregators," or middlemen, for the real providers of the unauthorized services, adding confusion when consumers attempt to dispute charges.

Based on cramming reports the League has received, charges range from $4.95 to $30 per month. "It's not a lot of money and may not be noticed by the consumer at first, but charges can add up," observed Golodner.

Counselors at the NFIC hotline report cramming often occurs in connection with other illegal activities such as slamming or fraudulent 900 number and other pay-per-call schemes.

According to NFIC Director Susan Grant, "It is a flexible crime that can piggy back on other scams, or it can be a simple case of phantom billing."

Here are some tips:

• Be careful when calling unfamiliar 800 or 900 numbers. Be especially wary of following instructions to "enter activation code numbers" or of answering "yes" to questions that may unwittingly result in authorizing unwanted telephone services.
   
• Read fine print before filling out a contest form or coupon offer. You may be agreeing to new or additional phone services.
   
• Scrutinize each page of your phone bill carefully every month as soon as you receive the bill to make sure that there are no unauthorized charges. If you see something you're unsure about, call your local phone company and ask for an explanation.

If you've been crammed or slammed, contact your local phone company and the National Fraud Information Center (1-800-876-7060) to report the problem.

Send a letter describing what happened and enclosing a copy of the bill to:

Federal Communications Commission
Consumer Protection Branch - Mail Stop 1600A2
Washington, DC 20554.

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