PhoneBillSavings.com
"A One Stop
Telephone Savings Website"
Beware of Deceptive Marketing Practices!
In recent years, the long distance business has become extremely competitive and many carriers (including the “Big 3”) have resorted to deceptive marketing practices to maintain their market share in the industry. These practices have soured an awful lot of consumers on this very essential service and have subsequently caused many to settle for sub-standard rates and service. “PhoneBillSavings.com” hopefully can clear up some of these practices, and make you a smarter “buyer beware” consumer. Here are a few to look for:
Telemarketing sales pitches are designed to find a potential consumer and then get them excited about a promotional gimmick or deceptive rate plan and then get them to say “YES”. The consumer may not even be agreeing to what the telemarketing person is selling, but in month or two they will discover that their long distance service has been switched. Our suggestion is that you politely decline any offers from a telemarketing promotion and request that they remove your name from their calling list. Most importantly, be firm about saying “NO” to cold callers who want to switch your service. Any hesitation on your part could be construed as a yes.
[A funny story: On the TV show “Seinfeld” - Jerry, at his apartment received a telemarketing call from someone wanting to switch his long distance service. Jerry told the telemarketer – “I’m busy right now – give me your phone number and I’ll call you back later.” The telemarketer responded – “We’re not allowed to give out our phone number.” Jerry countered – “Well, then stop calling me – I didn’t give you mine either.”]
Slamming is probably one of the most deceptive and unscrupulous practices in the industry. It’s the practice of switching someone’s long distance service with out proper authorization. It’s against the law. And, one thing you may be surprised of, nearly every carrier in the business has been involved with it. Carriers have such a thing as a “voice letter of authorization” which gives them the right to switch your service. In the above telemarketing example, when you say “yes”, some have even gone as far as to splice a tape recorded “yes” answer to their pre-taped questions. Thus, creating their “voice letter of authorization” This is outright fraud. Again, our suggestion is - avoid telemarketers as much as possible. The best way to prevent slamming is to place a “Pic’ Freeze or Carrier Freeze” on your phone lines with your local phone company. This way, no person or carrier can switch your service without your authorization in writing. If you’re a victim of slamming, be sure to report the incident to the FCC (888-225-5322) and file a formal complaint with your state’s government agency (state information listed on www.fcc.gov.slamming ). You don’t have to pay for service up to 30 days after being slammed, both to your old company or the “slammer”. If you do not file this complaint, the unauthorized carrier has the right to re-bill you for any charges. CLICK HERE for more information about Slamming.
Every long distance service has a pic’ code or carrier code assigned to it. It’s typically a 3 digit or 4 digit access code that routes your long distance calls. If you place a “Freeze” on this code with your local phone company, you have much better control over your service and an even better avenue of recourse should your service ever be switched without your authorization. In most cases, using a “Pic’ Freeze” is a good idea. Just don’t allow the local telephone company persuade you what carrier you should “pic’ freeze” too. They are also in the long distance business and their customer service personnel are trained to push their service.
Many carriers send out checks in the mail to entice consumers to endorse them as “free money”. The fine print on the back of the check gives the carrier authorization to switch your service. Once switched, you are obligated to use their service. This service is usually a high rated plan with all sorts of hidden charges, surcharges, fees, and high billing increments – [all things required to recover the amount of their check]. As we all know there is no such thing as “free money”. And, “free money” sent in the mail in the form of a check is always going to have some “catches”. Our suggestion: Find a real time/real money savings plan and then throw the check away. Then, it will be like you’re receiving a check in the mail every month.
Many companies bill their phone calls in “units” rather than “minutes”. These units can be set up anyway they want that will make their rates seem extremely inexpensive. The consumer is quite often not told they’re not being billed in an “apples to apples” format. The consumer usually doesn’t find out about this discrepancy until a few months go by. At which time, the company may no longer be in business or they will try to make it up to the consumer with another equally deceptive rate plan. These services are usually fast pitched to small to medium size businesses over the phone or hidden in fine print on faxed applications. Always make sure you know what the billing increments are before enrolling for service. If it’s in “units” or something other than minutes – BEWARE !!!
This may be the oldest trick in the book. Companies may advertise a savings of 50%, 60%, 70%, or even 80% off the rates of any of the “Big 3” carriers. The problem arises when you find out what rate plan they are comparing it to. All carriers have what’s commonly known as “basic or standard rates”. Some may be as high as 45 or 50 cents per minute. If you have - 80% savings off of a 50 cent/full minute billed service, you may only end up with a 10 cent minute plan billed in full minute increments. This would not be a very good program. BEWARE OF HUGH % DISCOUNTS. You’ll usually find them in impulse advertisements.
There are a number of ways rate calculators or rate comparison charts can be set up to lead consumers down a path to a predetermined decision. Every consumer is different and only they themselves know their own work/pleasure habits, hobbies, desires, calling patterns, dialing procedures, circle of friends, geographical locations, local, state, or international marketplaces. When taking all factors into consideration, the best anyone can hope for is a select tray of services to chose from. What one person considers an excellent plan, may only be an average plan to someone with different work habits in a different marketplace. A rate calculator will often inadvertently select the same plan for both type consumers. Our suggestion: Know yourself. Know how, where, and when you use your telephone(s). Know your work habits. Know your calling patterns, hobbies, location, marketplace and etc. And then, research a number of plans before making your decision. There’s a plan that’s right for you. Keep in mind, the lowest state-to-state rate plan may not always be your best selection.
90 # Telephone Scam
Inmates, tricksters, and scam artists have been known to pass themselves off as telephone company technicians performing routine tests over the telephone. They ask you to punch in 90# to complete the test. DON'T DO IT! Entering 90# on your keypad allows them to access your telephone line, therefore allowing them to place long distance phone calls - at your expense.