A California-based company might be taking local businesses in for the slam. A phone slam, that is, that ends up costing business owners extra time and money.
Phone slamming is a moneymaking scam that usually involves the unauthorized switching of a customer's long distance provider. The company who switches the service usually charges the customer between $5 and $10, and the amount shows up on the customer's telephone bill.
Telecommunications experts say slammers hit everyone -- from large businesses to small, and from governments to private citizens. Though slamming is illegal under Federal Communications Commission regulations, companies who slam are hard to catch.
Recently, a company that could be slamming customers has picked on small businesses in eastern Missouri. The company, whose offices are in Long Beach, Calif., is called Business Discount Plan.
Scott Holste, a spokesman at the Missouri attorney general's office, said his office has received about 80 phone calls and complaints about the Business Discount Plan company. The calls have come from around the St. Louis area and have even come from businesses as far south as Farmington.
The Southeast Missourian received an anonymous call earlier this week from a Cape Girardeau business-owner who claimed to have been slammed by Business Discount Plan.
Holste said the attorney general's office has not taken legal action against the company but has a lot of concerns about its behavior. He said the office will look closely at the complaints it receives about Business Discount Plan.
But Holste and others warn that the California company is only one of many telecommunications hounds who may treat customers unfairly.
In a December news release, Southwestern Bell reported that long-distance phone slamming is increasing in many states, including Missouri. According to the report, phone slamming in Missouri has increased by 34 percent since January.
Holste said telemarketers who slam customers usually target small businesses, sometimes in subtle ways.
Phone slammers might disguise authorization forms as contest entry forms or may show up at local fairs. By signing up for what they think is a free prize, Holste said, people may actually be signing a consent form for a change in long distance carriers.
"If you have to sign something, read all the fine print carefully," said Holste.
To protect against long-distance slamming, Holste also recommends that business-owners inspect their phone bills closely for changes or extra charges.
"Sometimes people go for several months without ever checking their phone bill closely," he said. "If there's been a change in carrier, they sometimes don't see it until they've paid the bill and it's too late."
Holste said businesses should also contact their local long-distance carrier and tell it that its long distance service may only be changed after the carrier has received signed, written consent from the customer itself. People who have complaints about Business Discount Plan or other companies should contact the attorney general's office at (573) 751-3321.
PHONE SLAMMING
-- Phone slamming increased by 34 percent since January 1997.
-- Southwestern Bell received a 35 percent increase in complaints about phone-slamming.
-- Be wary of signing up for free prizes and read the fine print of everything you sign.
-- Inspect your phone bill closely and ask about changes or additional charges.
-- Tell your long-distance carrier your service can only be changed with written consent, signed by you.
Source: Southwestern Bell Telephone
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