The Federal Communications Commission Tuesday proposed new rules designed to reduce a common telephone billing scam called cramming. Customers get crammed when a dishonest company puts charges on their phone bill (landline or wireless) for services that were not wanted or authorized.Cramming has been around for more than a decade — ever since phone companies were allowed to make extra money by billing for other companies. Until recently, the phenomenon had been largely limited to landline phones. But it’s become a growing problem for cell phone customers, too.
Mysterious fees and services crammed onto phone bills are a “nationwide epidemic” for U.S. consumers, but a reliable source of revenue for some of America's biggest telecommunications companies, a year-long congressional investigation has found.
A report to be issued Wednesday by Sen. John Rockefeller, D-W.Va., will say that three firms -- Verizon, AT&T, and CenturyLink/Quest -- earned $650 million as their cut of cramming charges levied by third-parties since 2006.