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Georgia Suspends Buzz Telecom's Operating Certificate

Indiana Attorney General Investigating the Troubled Long-Distance Provider

By Truman Lewis
ConsumerAffairs.com

April 6, 2007

Buzz Telecom • Indiana Sues Buzz Telecom For Slamming • Georgia Suspends Buzz Telecom's Operating Certificate • What's the Buzz All About --- • Consumer complaints about Buzz Telecom

The Georgia Public Service Commission (PSC) has canceled Buzz Telecom's certificate and fined the company $3.3 million, the commission said.

Several other states are also investigating complaints against Buzz Telecom.

In December, ConsumerAffairs.com's David Wood reported that Buzz was "putting the squeeze on senior citizens by offering false promises and costly fairy tales about long-distance rates."

"Hundreds of complaints have flooded the offices of state officials, most from senior citizens that were promised a "senior discount" from Buzz Telecom. Instead of a discount, the senior saw a huge increase on their phone bill," Wood wrote.

The PSC said it is investigating Buzz Telecom's parent companies, UMCC Holdings and Ultimate Medium Communications Corporation. It advised consumers not to pay any bills from these companies.

Earlier, the commission had said it was investigating complaints of "slamming" and fraud against the Merrillville, Indiana-based long distance service provider. Buzz Telecom received a permanent resale certificate to operate in Georgia in March 2004.

In Indiana, Attorney General Steve Carter is investigating Buzz Telecom for "slamming" and "cramming" long-distance telephone customers across the United States.

Carter's office is looking into 40 complaints that Buzz Telecom either switched Indiana consumers to its phone service without permission or put unauthorized charges on customers' bills, according to attorney general's spokeswoman Staci Schneider.

At least a dozen states have mounted investigations since last September.

Buzz Telecom is owned and operated by brothers Kurtis and Keanan Kintzel. At one time, the company had 50,000 customers and employed 100, according to local press reports in Indiana.

The brothers are now out of the long-distance telecom business and focusing on their Buzzazz Web-page design venture, Kintzel told The Times of Munster, Indiana.

Carmel, Indiana, businessman Scott Wilson said his UMCC Holdings Inc. bought Buzz Telecom's customer lists and other databases for $250,000 in December and took over service to Buzz customers.

Wilson said he has received hundreds of complaints about Buzz. In March, a forensics team sent by the state attorney general's office arrived at Wilson's office and began downloading Buzz Telecom customer lists and other data.

Consumers who believe they have been slammed should take the following steps:

• Contact your local exchange carrier to determine if your long distance service has been switched without your authorization. If it has, ask to be switched back to your preferred long distance service provider.

• Ask your local exchange carrier to place a PIC freeze on your long distance service to assure that your service cannot be switched without your explicit consent.

• Call your state's Public Service Commission to file a slamming complaint.

If your service has not been switched, but you are receiving bills from Buzz, call your state's Public Service Commission to file a complaint. Disputing the charges releases the consumer from any obligation to pay the charges until the dispute has been resolved.

A complete list of state utility and public service commissions is available here.

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