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Clark Howard's Tips

April 18, 2008

Criminals are trying to reach your wallet through your phone bill again. 3rd party aggregators have been posting bogus collect call charges to phone bills issued by the monopolies AT&T, Verizon and Qwest.

First, a little background: Let's say Clark's Collect Calling Phone Company decides to charge $5/min for a collect call made from a pay phone. His goal is to bill that charge to the recipient of the call. But first he has to find a billing company that -- for a cut of the action -- will take that charge and then go to a monopoly phone company and get it on the customer's phone bill. The monopoly, of course, also gets a cut for its role in the transaction. As bad as that sounds, at least it's a legitimate business model.

But the rotten thing is that some 3rd party aggregators have been issuing charges for calls that never took place. The FCC rightfully should have put a stop to this, but they've been sitting on their hands doing nothing about these fraudulent activities. So the FTC had to step in and fine the 3rd party aggregators. One company managed to steal $35 million from people with phony charges!

The real message here is that you've got to vet your phone bill page by page every month looking for bogus charges. Businesses are a major target because their phone bills can be pages and pages long. Shame on AT&T, Verizon and Qwest for aiding and abetting the criminals. The cop on the beat is asleep, so it's up to you. Call up your phone company and get a credit if you're stuck with a phony charge.

Consumer advice courtesy of