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Florida Opens "Cramming" Probe

Charges From Axcess Internet Solutions Placed through ILD Teleservices

By Mark Huffman
ConsumerAffairs.com

May 16, 2006

Cramming • AT&T Settles Cramming Suit • Feds Settle with BSG/ZPDI/Billing Concepts • Verizon Signs Florida Anti-Cramming Agreement • Embarq Agreement Protects Florida Consumers from Cramming • Florida Company Agrees to Repay 'Cramming' Charges • Florida Files "Cramming" Suit • Congress, Feds Sleep While Cramming Charges Afflict Thousands • Florida Seeks Nationwide Telephone Billing Probe • Florida Opens "Cramming" Probe • Cramming Hits Consumers When They Least Expect It • Spitzer Wins Cramming Concessions from Verizon • Mobsters Charged in Cramming Scheme • FTC Opens Hotline for Epixtar Victims --- • ILD Telecommunications • Billing Concepts/ZPDI

Florida Attorney General Charlie Crist has launched an investigation into five telephone companies for placing unauthorized charges on consumers' bills. The investigation may also expand to cover the activities of ILD Teleservices and Axcess Internet Solutions.

Crist says charges for an internet shopping service have appeared on phone bills sent to BellSouth, Sprint, Verizon, AT&T and SBC Communications customers, triggering the investigation into what might be a case of "cramming." Cramming is a practice that bills for extra services without the customer's knowledge.

The practice of tricking consumers into paying for phony or useless services has escalated since passage of the Telecommunications Act of 1996, which allows third party companies to place bills for unrelated communications services on customer's telephone bills.

Crist's Economic Crimes Division began an investigation last week after the Tallahassee Democrat detailed the charges that several Sprint customers found on their bills. The $12.95 charges are for a service called Email Discount Network, which supposedly offers members a discount for internet shopping done through the company's website.

Further investigation revealed that BellSouth, AT&T, SBC Communications and Verizon customers also found the unauthorized charges on their bills.

At about the same time ConsumerAffairs.com received a complaint from Gary Hertz, a professional office manager in Doral, Florida about more than $35 in charges that mysteriously appeared on his company's phone bill.

"I noted charges totaling $35.31 on my current BellSouth bill, billed by ILD Teleservices on behalf of Axcess Internet Solutions, Inc.," Hertz told ConsumerAffairs.com in a follow-up interview.

"The charges were described as Web hosting monthly service fee. Our business is referred to us by psychiatrists, and we have no need for a website. Through BellSouth's assistance, we were able to navigate phone calls to finally get to Axcess via ILD. We cancelled the service."

But Hertz's office had to pay the charges, even though Hertz is sure no one ordered the service. When he asked the Axcess customer service rep to play back the recording of the authorization, he listened in amazement as he heard his boss answer affirmatively, authorizing the service. Hertz told his boss, who had no idea what he was talking about, until he put two and two together.

"A couple of months ago a guy came to our office, saying he was our new Bell South rep, and that as part of a promotion, we qualified for one additional phone line for free. Then, on a Friday after hours a guy called our office and was automatically transferred to my boss," Hertz said.

"He said he was with the phone company, and was ready to install the free line. My boss said he'd have to do it when the office was open, so the caller transferred him to the scheduling department."

Hertz says his boss was asked a number of questions that required him to say "yes" a lot. He said the questions were about the installation and not about any services. Yet when Hertz listened to the authorization recording, all the questions were about the service and none concerned any phone line installation.

"And we never did get a free phone line, either," Hertz said.

Axcess Internet Solutions is the object of as number of similar complaints, and has drawn the irate attention of a company with a similar name. Axcess Internet said it has been flooded with angry complaints from consumers who have mistaken it for the Florida-based company, and has even posted the following statement on its Web site:

"Axcess Internet would like to take this opportunity to let our customers know that neither Axcess Internet Services, Inc. nor, Axcess Internet (a Washington State registered trade name) is responsible for this action. Any charges attributed to Axcess Internet or its subsidiaries, found on your phone bill, were not made by Axcess Internet Services, Inc.

"Axcess Internet has been researching this issue and has learned that the company responsible for these charges may be Axcess Internet Solutions, Inc.. Axcess Internet Solutions, Inc. is headquartered in Delray Beach, Florida and is a subsidiary of Phinder Technologies, Inc. of Canada."

John Scherer, a spokesman for Crist, says Hertz's complaint has been turned over to the Economic Crimes division that's conducting the current investigation. Crist, meanwhile, says the practice known as "cramming" is getting more and more scrutiny.

"These secret charges were placed on bills in hopes that no one would notice," said Crist. "In this case, someone did notice and we will investigate fully to make sure Florida customers are not forced to pay for services they did not order and do not want."

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