FCC Plans $.4M Fine Against LDCB for Illegal Carrier Swaps, Charges

Media Contact:

Will Wiquist, (202) 418-0509

will.wiquist@fcc.gov

For Immediate Release

FCC PLANS $2.4 MILLION FINE AGAINST MICHIGAN COMPANY

FOR MISLEADING CONSUMERS

Long Distance Consolidated Billing Company' Allegedly Changed and Added

Charges To Consumers' Accounts Without Authorization

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WASHINGTON, July 30, 2015 - The Federal Communications Commission plans a $2.4 million

fine against Long Distance Consolidated Billing Company. This telephone company, based in

Waterford, Michigan, allegedly switched consumers' regional toll service providers without their

authorization ( slamming ), misrepresented the company's identity during telemarketing calls,

and placed unauthorized charges on consumers' telephone bills ( cramming ).

It is unacceptable for any company to pad unauthorized charges on bills or trick consumers into

changing their preferred phone company, said Travis LeBlanc, Chief of the FCC Enforcement

Bureau. The FCC will not tolerate companies that deceive consumers into changing their

telephone services or carriers.

The Enforcement Bureau reviewed over 70 complaints against Long Distance Consolidated

Billing Company (LDCB) that consumers filed with the Commission, the Better Business

Bureau, state regulatory agencies, and directly with LDCB. Consumers repeatedly complained

that LDCB switched their regional toll service providers without their authorization. In some

cases, consumers stated that LDCB's telemarketer pretended to be employed by the consumer's

own telephone carrier. The investigation also showed that LDCB placed charges for its service

on consumers' local telephone bills without their authorization.

The Commission has charged LDCB with willfully and repeatedly switching consumers'

preferred regional toll carrier without verified authorization, misrepresenting its identity to

consumers, and cramming unauthorized charges onto consumers' telephone bills. Commission

rules prohibit a carrier from switching a customer's preferred long distance carrier without

obtaining authorization from the customer to make such a change. The Communications Act

makes it unlawful for a carrier to misrepresent its identity or the nature of its service to obtain that

authorization. The Act also makes it unlawful for a carrier to include unauthorized charges or

fees on consumers' telephone bills.

With today's action, the Commission has now taken more than 30 enforcement actions for

cramming or slamming in the past five years. These actions collectively have announced more

than $110 million in penalties to the U.S. Treasury, and are slated to return more than $250

million to consumers.

For more information about the FCC's rules protecting consumers from unauthorized charges on

telephone bills, see the FCC consumer guide to slamming, http://go.usa.gov/3AqPW, or

cramming, http://go.usa.gov/3AqPR.

To file a complaint with the FCC, go to https://consumercomplaints.fcc.gov/hc/en-us or contact

the FCC's Consumer Center by calling 1-888-CALL-FCC (1-888-225-5322) voice or 1-888-

TELL-FCC (1-888-835-5322) TTY; faxing 1-866-418-0232; or by writing to:

Federal Communications Commission

Consumer and Governmental Affairs Bureau

Consumer Inquiries and Complaints Division

445 12th Street, SW

Washington, DC 20554

The Notice of Apparent Liability is available at: https://apps.fcc.gov/edocs_public/attachmatch/

FCC-15-96A1.pdf

Action by the Commission July 30, 2015 by Order (FCC 15-96). Chairman Wheeler,

Commissioners Clyburn, Rosenworcel, Pai, and O'Rielly.

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Office of Media Relations: (202) 418-0500

TTY: (888) 835-5322

Twitter: @FCC

www.fcc.gov/office-media-relations

This is an unofficial announcement of Commission action. Release of the full text of a Commission order

constitutes official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).

LINK:	http://www.fcc.gov/document/fcc-plans-24m-fine-against-ldcb-illegal-ca...
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