Feds Investigating Wireless Firms’ Billing Practices

As expected, the Federal Communications Commission has launched an investigation into wireless carriers' billing practices, a move sparked in large part by Verizon's admission that it tacked small, unwanted charges onto some consumers' bills.

Previously the agency said it was looking into the way Verizon billed its customers. The FCC didn't specifically name the other companies under investigation, but its generally assumed all the providers are coming under scrutiny.

Verizon disclosed last week that some 15 million customers received more than $50 million in charges for data services that weren't part of their contract. Verizon said the false billing occurred because of a software glitch. It's promised to refund up to $90 million in bogus charges.

 "While I appreciate that Verizon Wireless has acknowledged its billing errors, the refunds to millions of Americans have been a long time coming," FCC Commissioner Mignon Clyburn said last week.

 "It appears the company was first notified, more than two years ago, about certain billing errors. As I pointed out in December of last year, the company's initial response to public reports of the phantom fees was that it does not charge consumers for accidental launching of the web browser," he said.

 Belated action?

 Advocacy groups have been pushing the FCC to look into "bill shock" issues for some time.  Complaints to ConsumerAffairs.com about wireless billing practices have been piling up for years.

 Tonisha, of Los Angeles, experienced bill shock recently.

 "Being a customer nine years with Verizon Wireless I had grandfathered my way into having call detail free," she said in a complaint to ConsumerAffairs.com. "I changed my number on that line and they started charging me $1.99 a month. That was the straw that broke the camel's back. I called them to pay my bill to discover that it was $790.00."

 Jay, of Sioux City, Iowa, was among those complaining about being charged for Verizon services he didn't want.

 "I called about data usage on two phones I do not use web on but was pretty much told too bad, you push the wrong button you pay for the usage," he told ConsumerAffairs.com. " I did not use the web just pushed a wrong button and got charged for it. They didn't even credit it but why would they when its millions of dollars a month."

 FCC Chairman  Julius Genachowski is expected to unveil a new proposed rule that would require wireless companies to provide a warning to their customers when they are about to exceed voice, text and data limits that would significantly increase their bills.