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Saturday, July 16, 2011

postheadericon Phone cramming is unacceptably widespread

Telephone companies have opened their billing and collection systems to third-party companies, and some of those companies have quietly been swindling consumers out of tens of millions of dollars each year. They trick phone providers into adding unauthorized charges on bills for services either not ordered, agreed to, or used. The amounts are often small enough, like $2, that people don’t notice.

But the money adds up big-time. By some estimates, consumers are paying tens of millions a year for unauthorized charges in a practice called “cramming.” Various estimates say between six-and- 20 million Americans may get hit each year. This is why the Senate Commerce Committee on which I serve has conducted a year-long investigation.

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